Posted on May 30, 2025, by Niftynews
Reliance Power shares jumped more than 2% in early trading on May 30, 2025, continuing a strong upward momentum that has seen the stock surge by an impressive 116% over the past year. The recent rally follows a series of positive developments, including a major new solar power project awarded to Reliance Power’s subsidiary and robust quarterly earnings, which are strengthening investor confidence in the company’s clean energy transition and financial health.
Reliance Power Stock Performance: Key Highlights
On Friday morning, Reliance Power shares were trading at ₹53.42 on the BSE, up 2.28%, and ₹53.45 on the NSE, up 2.36%. This rise reflects a sustained bullish trend fueled by both operational achievements and improving fundamentals.
Stock Price Growth Overview:
- 12-month surge: +116%
- Year-to-date (2025) gain: +19%
- 6-month gain: +37%
This strong upward momentum positions Reliance Power among the top-performing power sector stocks in India, attracting interest from institutional and retail investors alike.
Major Project Win: 350 MW Solar Plus 175 MW/700 MWh Battery Storage Awarded
On May 28, Reliance Power announced that its arm, Reliance NU Energies, secured a prestigious contract from SJVN for a 350 MW solar power project combined with a 175 MW/700 MWh Battery Energy Storage System (BESS).
This project is part of a large 1,200 MW solar and 600 MW/2,400 MWh BESS tender, which saw fierce competition among 19 developers, with Reliance NU Energies emerging as the successful bidder. The contract was awarded at a fixed tariff of ₹3.33/kWh for 25 years, promising stable revenue streams.
Expanding Leadership in Renewable Energy
Once commissioned, this project will add significant capacity to Reliance Power’s portfolio:
- 600 MW solar DC capacity
- 700 MWh BESS capacity
Reliance Power’s total clean energy pipeline now stands at:
- 2.4 GW of solar DC capacity
- Over 2.5 GWh of BESS capacity
This makes Reliance Power the largest player in India’s integrated solar and battery energy storage segment, reflecting the company’s commitment to expanding its clean energy footprint.
Strong Q4 FY25 Earnings Boost Investor Confidence
Reliance Power’s recent quarterly results further reinforced the positive sentiment. In Q4 FY25, the company reported:
- Consolidated net profit: ₹126 crore (vs. ₹397.56 crore loss in Q4 FY24)
- Total income: ₹2,066 crore (down slightly from ₹2,193.85 crore last year)
- Total expenses: ₹1,998 crore (down significantly from ₹2,615 crore)
For the full fiscal year 2024-25, Reliance Power posted a consolidated net profit of ₹2,948 crore, a remarkable turnaround from a loss of ₹2,068 crore in FY24.
Debt Reduction and Improved Financial Health
Reliance Power has also been successful in managing its debt, which is a critical factor for capital-intensive power projects:
- Debt servicing of ₹5,338 crore completed in 12 months, including maturity repayments
- Debt-to-equity ratio improved from 1.61:1 in FY24 to 0.88:1 in FY25
These improvements enhance the company’s credit profile and financial stability, making it better positioned for future growth.
What This Means for Investors
Reliance Power strong share price performance, bolstered by strategic project wins and financial discipline, signals growing investor confidence. The company is effectively balancing growth in renewable energy with prudent debt management, a key consideration for long-term value creation.
Key Points for Investors:
- Sustained growth: A 116% surge in share price over the past year reflects robust market demand.
- Clean energy leadership: Large-scale solar and battery projects position Reliance Power at the forefront of India’s energy transition.
- Improved earnings: The return to profitability and reduction in expenses highlight operational efficiencies.
- Lower leverage: Debt reduction efforts mitigate financial risks and improve future capital access.
Conclusion: Reliance Power Is Poised for a Bright Future
Reliance Power is clearly making strides in consolidating its leadership in India’s power sector, especially in renewable energy and battery storage solutions. With strong recent earnings and a robust project pipeline, the stock appears well-positioned for further gains.
However, investors should monitor sectoral trends, regulatory developments, and global energy price movements that can influence stock performance.
