Reliance Power Limited shares reached 52 weeks high on Friday 59.75 on both NSE and BSE, confluence of strong financial results, a major renewable energy contract win, and the growing investors in the company’s clean energy strategy inspired optimism.
Stock was trading at the market closure on Friday 58.09 on NSE, 11.24%from previous day. This improved both indices – Sensex and Nifty – which ended the day in red.
Stock has now increased by about 30% in May and more than 140% in the last 12 months, reflecting a revival investor spirit.
Solar and battery project
The primary catalyst behind the Friday rally was announced by the company on 28 May that its assistant Reliance Nu Energe received a letter (LO) with a 175 MW/700 Mg for a 350 MW solar power project from SJVN for a 350 MW solar power project (LO) with a 175 MW/700 Mg Battery Energe System (BESS).
The project, which is part of the 1,200 MW solar and 600 MW/2,400 MW, was highly competitive, with 19 developers and overbscription participation more than 4 times, underlining the strong growth capacity of the region. Reliance Nu Energy secured the project in a certain tariff 3.33/kwh for 25 years.
Once the commission is done, the project will add 600 MW solar DC capacity and 700 MW BES capacity to Reliance Power’s renewable portfolio. The company now claims a clean energy pipeline of 2.4 GW of Solar DC and claims more than 2.5 GWH capacity, holding it as India’s biggest player in the Integrated Solar and BESS segment.
Company records benefits
The stock rally is also supported by a significant change in the company’s financial performance. For Q4 FY25, Reliance Power posted a consolidated net profit 126 crores compared to loss of 397.56 crores in the same quarter a year ago. Despite a slight decline in total income, improved, due to very low expenses, which fell 2,615.15 crore 1,998.49 crores.
For full FY25 fiscal, the company recorded a consolidated net profit 2,947.83 crores, a clear contrary to a loss 2,068.38 crores in FY24. It also completed debt servicing In the last 12 months, 5,338 crore, and reflecting strong financial health, its debt-to-identity ratio from 1.61: 1 to 0.88: 1 improved.
