Why is Reliance power share rising? Reasons behind the sudden surge
The RPower stock, at market closing on Friday, was trading at ₹58.09 on the NSE, 11.24% up from the previous day.
Shares of Reliance Power Ltd soared on Friday, hitting a 52-week high of ₹59.75 on both the NSE and BSE, driven by a confluence of strong financial results, a major renewable energy contract win, and growing investor optimism in the company’s clean energy strategy.
The stock, at market closing on Friday, was trading at ₹58.09 on the NSE, 11.24% up from the previous day. It outperformed both the indices - Sensex and Nifty - which ended the day in red.
The stock has now gained nearly 30% in May alone and over 140% in the past 12 months, reflecting a resurgent investor sentiment.
Solar and battery project
The primary catalyst behind Friday's rally is the announcement made by the company on May 28, post market hours, that its subsidiary Reliance NU Energies received a Letter of Award (LoA) from SJVN for a 350 MW solar power project integrated with a 175 MW/700 MWh Battery Energy Storage System (BESS).
The project, which is part of a larger 1,200 MW solar and 600 MW/2,400 MWh BESS tender, was highly competitive, with participation from 19 developers and oversubscription by over 4 times, underscoring the sector’s strong growth potential. Reliance NU Energies secured the project at a fixed tariff of ₹3.33/kWh for 25 years.
Once commissioned, this project will add 600 MW of solar DC capacity and 700 MWh of BESS capacity to Reliance Power’s renewable portfolio. The company now boasts a clean energy pipeline of 2.4 GW of Solar DC and over 2.5 GWh of BESS capacity, positioning it as India’s largest player in the integrated Solar and BESS segment.
Company records profit
The stock’s rally is also supported by a significant turnaround in the company’s financial performance. For Q4 FY25, Reliance Power posted a consolidated net profit of ₹126 crore, compared to a loss of ₹397.56 crore in the same quarter a year earlier. The improvement came despite a slight dip in total income, largely due to substantially lower expenses, which fell from ₹2,615.15 crore to ₹1,998.49 crore.
For the full FY25 fiscal, the company recorded a consolidated net profit of ₹2,947.83 crore, a stark contrast to a loss of ₹2,068.38 crore in FY24. It also completed debt servicing of ₹5,338 crore over the past 12 months, and improved its debt-to-equity ratio from 1.61:1 to 0.88:1, reflecting stronger financial health.
