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Reliance Power just lit up the Street.
The stock surged nearly 5.9 per cent on Monday (June 2, 2025), hitting a fresh 52-week high of Rs 62.8.
What’s driving this sudden charge? A big-ticket green energy project, a surprise Q4 profit and a sharply trimmed debt pile. Add to that heavy volumes – over 16 crore shares changed hands – and it’s clear something has flipped the switch on investor sentiment.
But does this rally have staying power?
What’s happening?
- Big clean energy win: Reliance NU Energy, a subsidiary, just bagged a project from state-run SJVN. It includes 350 MW of solar capacity and a 175 MW/700 MWh battery energy storage system (BESS), a first for the company at this scale.
This wasn’t a routine award. The tender saw massive interest and was oversubscribed four times. The win signals Reliance Power's serious push into the renewables game, a space where future valuations are being minted.
- Profitable Q4 shocker: The company posted a net profit of Rs 126 crore in Q4 FY25, its first in a while. This came despite a slight dip in revenue. What changed? A steep 24 per cent drop in expenses. That helped Reliance Power swing from a Rs 398 crore loss last year to a profit.
Here’s a quick snapshot:
| Metric | Q4 FY25 | Q4 FY24 | Change |
|---|---|---|---|
| Revenue | Rs 2,066 crore | Rs 2,148 crore | - 4 per cent |
| Net profit | Rs 126 crore | - Rs 398 crore | Turnaround |
| Expenses | Rs 1,998 crore | Rs 2,615 crore | - 24 per cent |
- Debt cleanup: Over the last 12 months, the company repaid Rs 5,338 crore worth of debt. Its debt-to-equity ratio is now at a much healthier 0.88:1, down from 1.61:1. That’s a big positive in a capital-heavy business.
About the company
Reliance Power, part of the Anil Ambani-led Reliance ADA Group, runs thermal and renewable power projects and has been trying to pivot to cleaner energy after a troubled past filled with delays and debt.
Here’s how its fundamentals look.
| Metric | Value |
|---|---|
| Market cap | Rs 24,054 crore |
| ROE | - 19.4 per cent |
| ROCE | 1.3 per cent |
| P/E ratio | 8.2 |
| P/B ratio | 1.4 |
| Book value | Rs 40.5 |
| EPS | - Rs 0.4 |
How does Value Research rate Reliance Power?
As per Value Research Online, Reliance Power has an overall rating of two stars.
Here’s how it scores on other parameters:
- Quality: 1/10
- Growth: 5/10
- Valuation: 2/10
- Momentum: 10/10
Should investors plug in?
Reliance Power’s rally is backed by more than just hype. There’s real progress, especially on the debt and cash flow front. And the solar-plus-storage order puts Reliance Power in a league it hadn’t played in before.
This time, the fundamentals look better, but cautious optimism is still the way to go.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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