Prashant Pathak
Reliance Power’s stock jumped 4.8%, hitting a new 52-week high as its upward momentum continues. The rally has been fueled by several positive developments, including winning key solar-plus-battery energy storage (BESS) projects, receiving equity infusion of ₹348 crore through preferential allotments, and securing favorable court rulings. Most notably, the company returned to profitability in Q4 FY25, reporting a net profit of ₹126 crore. Despite technical indicators showing the stock is in overbought territory, strong momentum persists.
On June 10, 2025, Reliance Power shares climbed 4.8%, touching a fresh 52-week high of ₹67.68 on the BSE. This marks a continuation of the stock’s impressive rally, which has seen a 76% increase in the last month and a remarkable 173% rise over the past year.
Several key factors have contributed to this upward momentum:
- Major Project Acquisition: The company successfully bagged a 500 MW Battery Energy Storage System (BESS) project through an e-reverse auction held by the Solar Energy Corporation of India (SECI). This initiative is part of the government’s plan to strengthen energy storage infrastructure. Reliance Power won the contract with a competitive bid of ₹3.82 lakh per MW per month—among the most cost-effective bids seen in India for similar projects.
- Debt Clearance: Rosa Power, a subsidiary of Reliance Power, repaid ₹850 crore in outstanding loans to Varde Partners, a Singapore-based financial institution. With this, Reliance Power has achieved zero debt, indicating a much stronger financial footing.
- Profit Recovery: The company reported a net profit of ₹126 crore in the fourth quarter of FY25, signaling a strong recovery after a period of losses.
Nonetheless, Reliance Power has also encountered regulatory issues. In August 2024, SEBI imposed a five-year ban on Anil Ambani from participating in the securities market, following accusations of fund mismanagement in Reliance Home Finance. As a result, shares of Reliance Power and other group companies witnessed a steep decline and hit lower circuits in multiple sessions.
