Is Reliance Power stock a buy right now?
As of early May 2025, Reliance Power is trading at approximately ₹40.74 on the NSE, with daily average volumes around 34.6 million shares—a clear indicator of robust market interest. The stock has seen a notable 52% advance over the past year, despite some recent range-bound activity and moderate volatility (beta at 1.24). Most recently, Reliance Power has secured a transformative 25-year Power Purchase Agreement (PPA) for a massive 930 MW solar and 465 MW battery energy storage project with SECI, valued at nearly ₹10,000 crores. This development not only underpins long-term revenue visibility but also signals commitment to India’s clean energy ambitions. Equally relevant is Reliance Power’s steady progress in reducing debt, lending confidence to its financial trajectory. Market sentiment remains constructive, with technicals showing consolidation above key long-term supports, and major institutional investors—including FIIs and DIIs—have steadily increased their stakes. The power generation and distribution sector itself is experiencing a broad shift towards renewables and energy storage, making Reliance Power’s pivot particularly timely. Reflecting these factors, the consensus of over 32 national and international banks anticipates a target price of approximately ₹53 by year-end, suggesting renewed confidence in the stock’s upside, especially as fresh quarterly results are on the horizon.
- Low P/E ratio (6.75) indicates potential undervaluation versus sector peers.
- Consistent reduction in debt, improving financial stability and outlook.
- Strong recent turnaround: from significant losses to positive net profit in latest quarter.
- Major new PPA for solar and battery storage secures long-term revenue stream.
- Expanding presence in renewable energy aligns with India's clean energy push.
- Historic earnings volatility; prior years recorded losses and negative return on equity.
- Debt-to-equity remains elevated, though trending downward steadily.
- What is Reliance Power?
- How much is Reliance Power stock?
- Our full analysis on Reliance Power </b>stock
- How to buy Reliance Power stock in India?
- Our 7 tips for buying Reliance Power stock
- The latest news about Reliance Power
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of Reliance Power for more than three years. Every month, lakhs of users in India rely on us to interpret market trends and uncover the best investment opportunities. Our analyses are intended for informational purposes only and should not be considered investment advice. In accordance with our ethical charter, we have never been, and will never be, paid or influenced by Reliance Power.
What is Reliance Power?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Indian company operating in power generation and energy sector. |
| 💼 Market | NSE, BSE | Reliance Power is listed on both main Indian exchanges, ensuring strong liquidity. |
| 🏛️ ISIN code | INE614G01033 | Unique identification for Reliance Power shares in demat and trading systems. |
| 👤 CEO | Sateesh Seth (Chairman) | Veteran leader steering company through debt reduction and renewable shift. |
| 🏢 Market cap | ₹16,365 crores (approx. $1.96 billion) | Mid-cap category with significant recent rally, reflecting improved investor sentiment. |
| 📈 Revenue | ₹7,602 crores (TTM) | Revenue saw a slight decrease, but company maintains strong position in power generation. |
| 💹 EBITDA | ₹2,052 crores (approx., FY2024) | Company has healthy cash flows, indicating operational efficiency despite industry challenges. |
| 📊 P/E Ratio (Price/Earnings) | 6.75 | Low P/E vs sector suggests undervaluation, but historical profitability needs consideration. |
How much is Reliance Power stock?
The price of Reliance Power stock is rising this week. As of now, Reliance Power trades at ₹40.74, gaining ₹0.61 (+1.52%) over the last 24 hours, though reflecting a -1.50% change for the week.
| Metric | Value |
|---|---|
| Current Price | ₹40.74 |
| 24h Change | +₹0.61 (+1.52%) |
| Weekly Change | -1.50% |
| Market Capitalization | ₹16,365 crores |
| Average Daily Volume (3M) | 34.61 million shares |
| P/E Ratio | 6.75 |
| Dividend Yield | 0.00% |
| Beta | 1.24 |
The stock’s beta of 1.24 indicates higher volatility compared to the broader market.
Investors should note that while the stock offers potential with its recent momentum and strategic developments, its notable price swings require a careful and well-informed approach.
Check out the best brokers in India!Compare brokersOur full analysis on Reliance Power stock
We have undertaken a thorough review of Reliance Power’s latest financial disclosures, tracked the stock’s trajectory over the past three years, and synthesized key findings from a broad spectrum of analyses—including core financial metrics, technical signals, and peer benchmarking—refined through proprietary methodologies. This comprehensive, multidimensional approach seeks to illuminate both the strengths and outlook of Reliance Power at a time of significant industry transformation. So, why might Reliance Power stock once again become a strategic entry point into the Indian power sector in 2025?
Recent Performance and Market Context
The last year has seen Reliance Power deliver a robust performance that stands out amid a traditionally volatile landscape. The stock has advanced a remarkable 52.01% over the past twelve months, far outpacing many industry peers and underlining renewed investor confidence. Despite moderate intra-week softness (-1.5%) and a slight 6-month retracement (-1.88%), the broader upward trend reflects deep-seated strength reemerging in the narrative for both the company and its sector.
Bolstering this resurgence are decisive corporate actions and macroeconomic tailwinds:
- Major PPA Expansion: In May 2025, Reliance Power’s subsidiary Reliance NU Suntech signed a 25-year PPA with Solar Energy Corporation of India (SECI) for a landmark 930 MW solar and 465 MW battery storage project, representing a ₹10,000 crore investment and embedding the company firmly in India’s renewables push.
- Consistent Deleveraging: The company’s ambitious reduction of total borrowings—from ₹21,236 crores (March 2023) to ₹14,903 crores (September 2024)—signals not only prudent fiscal management, but also positions Reliance Power to better capture future opportunities with a streamlined balance sheet.
- Sectoral Momentum: The Indian government’s unwavering commitment to renewable energy and infrastructure modernization has created a generational backdrop of growth for power sector participants, with reforms and incentives dovetailing with private innovation.
These factors, combined with increased institutional participation (FIIs and DIIs have both increased exposure in recent quarters), point to a growing consensus that Reliance Power is regaining strategic relevance at a critical inflection point for Indian energy.
Technical Analysis
Current market signals favor a constructive, if measured, optimism for Reliance Power’s next leg higher. Key technical takeaways include:
- Momentum Indicators: The 14-day Relative Strength Index (RSI) registers at 51.13, confirming neutral stance while leaving abundant upside potential before approaching overbought territory. Meanwhile, the MACD (12,26) sits at -0.04 but has triggered a bullish crossover, often heralding the early phases of upward price momentum.
- Moving Averages: The stock is consolidating just below the 20-day average but securely above the pivotal 200-day moving average, which has been providing medium- to long-term support and preserving an underlying bullish structure.
- Support & Resistance: Anchored by strong support at ₹39.47, Reliance Power’s immediate resistances lie at ₹41.36 and the ultra-significant ₹50–70 band—a rally through these could signal the onset of a sustained bullish phase comparable to previous surges.
- Volatility: With a beta of 1.24, short- and medium-term traders can expect lively price action, providing an agile opportunity for those seeking market-beating returns in dynamic conditions.
Taken together, the technical landscape supports a scenario where Reliance Power appears favorably positioned for renewed advance, particularly for investors seeking entry at or just above established support levels.
Fundamental Analysis
A deep dive into Reliance Power’s financials reveals a company rapidly transitioning into a phase of operational discipline and targeted expansion:
- Revenue and Profitability: While Q3 FY2025 revenue contracted modestly by 4.68% year-on-year to ₹1,853 crores, the company reversed an alarming net loss from the prior year—posting a ₹41.95 crore profit, an unequivocal turnaround that demonstrates improving core business health, efficiency, and margin control. Crucially, operating profit margins remain strong at 27%.
- Valuation Appeal: The stock’s P/E ratio stands at just 6.75—dramatically lower than the sector average of 28.08—indicating that the shares trade at a considerable discount to intrinsic value. This discount is amplified by a modest P/B ratio (1.14), suggesting limited downside with room for multiple re-rating as profitability becomes sustained.
- Strategic Expansion: Reliance Power’s aggressive moves into solar and battery storage, coupled with its legacy portfolio (5,945 MW capacity), reaffirm its commitment to repositioning as a diversified energy leader attuned to India’s clean energy priorities.
- Market Share and Brand Strength: Despite past headwinds, Reliance Power remains a recognized name, with project scale and experience in ultra-mega power plants (notably Sasan and Rosa) that most competitors cannot easily replicate.
- Balance Sheet Repair: The debt-to-equity ratio, while still elevated (1.62), continues on a steady downward trajectory, improving the company’s solvency outlook and ultimately, value creation for shareholders.
In summation, the fundamentals strongly support renewed investor interest, with risk/reward demonstrably shifting in favor of those prepared to look beyond historical volatility.
Volume and Liquidity
Reliance Power’s market liquidity profile is a key enabler for both institutional and retail investors:
- Substantial Trading Volume: The stock boasts an average daily trading volume of 34.61 million shares (3-month average), a clear indicator of deep investor engagement and robust, reliable price discovery.
- Float Dynamics: With over 60% public shareholding, fluidity is high, supporting dynamic and rapid valuation adjustments as newsflow and catalysts materialize.
- Tradability: The high volume ensures that large buy or sell orders exert minimal distortion on price, further reinforcing the stock as an attractive vehicle for both short-term trading strategies and longer-term accumulation.
This depth in liquidity significantly reduces execution risk—heightening the appeal for active investors and portfolio managers seeking exposure to fast-evolving power sector themes.
Catalysts and Positive Outlook
The months ahead are replete with potential catalysts that could drive Reliance Power’s valuation into a new range:
- Q4 FY2025 Results: Scheduled for May 9, the upcoming results could serve as a powerful validation of sustained profitability and operational improvement—market participants will be watching closely for signs of accelerating momentum.
- Renewable Energy Expansion: The recently inked PPA with SECI expands the company’s renewable footprint to an unprecedented scale. With planned investments exceeding ₹10,000 crore in next-generation solar and battery storage assets, Reliance Power is uniquely aligned with national policy and investor preference for green assets.
- Consistent Debt Reduction: As the company continues relentless deleveraging, the improving credit profile heightens the capacity to finance further expansion—potentially at lower cost and greater flexibility.
- ESG Credentials: With an increasing focus on clean energy projects and sustainability initiatives, Reliance Power’s evolving ESG story is set to resonate with both domestic and global investors seeking responsible growth, particularly as Indian capital markets deepen.
- Sector Tailwinds: Record electricity demand, government policies favoring renewable investments, and power sector consolidation position companies like Reliance Power to benefit from secular growth and tariff up-cycles.
These multi-layered drivers fortify the outlook, and the aggregation of these catalysts—some immediate, others structural—arguably positions Reliance Power at the threshold of a transformative new phase.
Investment Strategies
Given the current setup, Reliance Power may warrant consideration under a range of strategic horizons:
- Short-Term: Active traders can take advantage of clear, well-established support (₹39.47) and resistance (₹41.36, ₹50–70) levels, particularly ahead of the Q4 results—a potential volatility event ripe for tactical positioning.
- Medium-Term: Investors seeking re-rating potential may see value in the combination of operational turnaround, momentum in renewables, and significant valuation disconnect versus sector comparables. A hold over several quarters aligns with likely newsflow and evolving investor perception.
- Long-Term: Those with a strategic horizon may benefit most, with Reliance Power progressively reducing legacy risks (notably debt and profitability volatility) while repositioning toward renewable-heavy growth. The company’s diversified assets, scale, and access to capital provide a compelling foundation for sustainable value creation.
- Ideal Entry Points: Technical analysis suggests that accumulation at or just above strong support zones—especially if confirmed by positive Q4 results or additional project wins—could optimize risk-adjusted returns, anchoring positions ahead of a possible multi-quarter uptrend.
Is It the Right Time to Buy Reliance Power?
In summary, Reliance Power presents an intriguing combination of robust medium-term price performance, improving financial discipline, and strategic expansion in renewable energy—all while trading at attractive valuation multiples relative to the sector. The company’s disciplined debt reduction and renewed profitability have repaired much of the narrative risk that previously surrounded the stock, while its ambitious entry into solar and battery storage positions it as a leader in India’s energy transition. Volatility and a legacy of inconsistent earnings remain points of vigilance, but the current technical landscape, depth of liquidity, and imminent catalysts (notably the approaching results announcement and recent PPA expansion) suggest that the timing may be particularly favorable for those seeking exposure to the re-energized Indian power sector.
For investors with a focus on turnaround stories, sectoral momentum, and green infrastructure growth, Reliance Power seems to represent an excellent opportunity—anchored by improving fundamentals and the prospect of a structural rerating. As the sector transforms under the twin engines of policy support and technological innovation, Reliance Power’s journey looks set to enter a new, shareholder-friendly chapter. The coming months are poised to reveal whether this emerging momentum can deliver on its substantial promise, making Reliance Power a stock deserving of serious consideration by investors seeking untapped value and growth within India’s power renaissance.
How to buy Reliance Power stock in India?
Buying Reliance Power stock online is a straightforward and secure process when you use a regulated broker in India. Whether you are interested in becoming a direct shareholder or prefer a more flexible approach through trading instruments, there are two main ways to get exposure: spot (cash) buying and trading Contracts for Difference (CFDs). Both methods are widely accessible and can be completed in just a few clicks on established trading platforms. If you’re wondering which option suits you best, our detailed broker comparison further down the page will help guide your decision.
Spot Buying
A cash purchase means you are buying actual Reliance Power shares on the stock exchange (NSE or BSE), becoming a true part-owner of the company. You typically pay a fixed commission per order—often around ₹20–₹30—or a small percentage of your trade value, depending on the broker. For example, with Reliance Power trading at ₹40.74 per share and a $1,000 investment (around ₹83,000, based on an exchange rate of $1 = ₹83), you could buy approximately 2,035 shares, including a typical brokerage fee of roughly ₹416 (around $5).
Informations importantes
Gain scenario: If the share price rises by 10%, your shares are worth $1,100 (₹91,300).
Result: That’s a +$100 gross gain, or +10% on your investment.
Trading via CFD
CFD trading lets you speculate on the share price movement of Reliance Power without owning the actual shares. CFDs allow you to use leverage, which means you can amplify your market exposure with a smaller initial outlay. CFD brokers charge a spread (the difference between buying and selling price) and, if you hold positions overnight, a small financing fee.
Informations importantes
Example: You open a CFD position on Reliance Power using $1,000 (approx. ₹83,000) at 5x leverage, giving you market exposure to $5,000 (₹415,000) worth of shares.
Gain scenario: If the share price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a +$400 gain on your $1,000 stake, excluding fees.
Final Advice
Before investing, it’s wise to compare brokers’ fees, trading platforms, and conditions, as these can vary significantly and impact your returns. Whether you opt for direct ownership or prefer the flexibility of CFDs depends on your investment goals and risk comfort. Remember, a detailed broker comparison is available further down this page to help you make an informed choice tailored to your needs.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Our 7 tips for buying Reliance Power stock
| Step | Specific tip for Reliance Power |
|---|---|
| Analyze the market | Assess Reliance Power’s recent shift toward renewable energy and review sector trends in India’s power generation industry for growth signals. |
| Choose the right trading platform | Opt for a SEBI-registered stock broker with user-friendly platforms and competitive charges for easy access to Reliance Power on NSE/BSE. |
| Define your investment budget | Allocate only a portion of your funds, considering Reliance Power’s stock volatility and historical performance while ensuring portfolio balance. |
| Choose a strategy (short or long term) | Consider a medium-to-long-term approach to benefit from ongoing debt reduction and renewable project expansion but set clear profit goals. |
| Monitor news and financial results | Stay updated on Reliance Power’s quarterly results, especially the upcoming Q4 FY2025 report and major project announcements in renewables. |
| Use risk management tools | Utilise stop-loss and target price orders to manage downside risks and protect gains, given the stock’s above-average volatility (beta 1.24). |
| Sell at the right time | Review technical resistance levels (₹41.36 and above) and upcoming company events to time your exit or partial profit booking strategically. |
The latest news about Reliance Power
Reliance Power signed a 25-year Power Purchase Agreement with SECI, advancing its renewable energy expansion. This new agreement, finalized in early May 2025, is for a 930 MW solar power project and a 465 MW Battery Energy Storage System, representing an approximate investment of ₹10,000 crores. It signals a strong commitment to India’s renewable energy transition and secures a long-term revenue stream, which could enhance financial stability and future cash flows for the company. The PPA not only strengthens Reliance Power’s presence in the fast-growing clean energy sector but aligns the company’s portfolio with evolving regulatory mandates and national sustainability goals.
Reliance Power’s latest quarterly results reveal a marked turnaround, with net profit rebounding from previous losses. For the quarter ended December 2024 (Q3 FY2025), the company posted a net profit of ₹41.95 crores, a remarkable recovery from the ₹1,136.75 crores loss reported in the prior year’s corresponding quarter. While quarterly revenue experienced a modest year-on-year decline of 4.68% to ₹1,853 crores, the operating profit margin stood firm at 27%. This positive earnings trend, especially after a series of loss-making periods, provides an encouraging signal for analysts tracking the turnaround potential and improving operational execution at Reliance Power.
The company’s ongoing debt reduction has further lowered borrowings, enhancing its financial resilience. Reliance Power has continued to reduce its overall debt, with total borrowings dropping from ₹21,236 crores in March 2023 to ₹18,766 crores in March 2024, and further down to ₹14,903 crores by September 2024. This deliberate deleveraging effort has contributed to a notable drop in the debt-to-equity ratio, now at 1.62, compared to 1.83 a year ago. Lower leverage not only reduces financial risk but also positions the company more favourably for future project financing and enhances investor confidence in management’s commitment to prudent capital structure management.
Recent technical signals show a neutral-to-bullish momentum, supported by healthy trading volumes. Reliance Power’s share price, at ₹40.74 as of May 5, 2025, is trading above its 200-day moving average but slightly below the 20-day moving average, indicating long-term support with short-term consolidation. The stock maintains strong liquidity, evidenced by a robust average daily traded volume of approximately 34.6 million shares, and its 14-day RSI hovers in the neutral zone at 51.13. The MACD shows a bullish bias, suggesting a potential for upward movement if positive catalysts, such as strong earnings or project execution, materialize.
Institutional investor interest has increased, with both FIIs and DIIs raising their stakes in the March 2025 quarter. Foreign Institutional Investors (FIIs) increased their holdings to 13.21%, while Domestic Institutional Investors (DIIs) also raised theirs to 3.29%, both representing incremental gains over the previous quarter. The stable promoter holding at 23.27% and a public shareholding of 60.22% reflect a balanced and diversified ownership structure. This upward trend in institutional participation typically signals growing market confidence in the company’s strategic direction and its capacity to deliver on its growth and turnaround initiatives.
FAQ
What is the latest dividend for Reliance Power stock?
Reliance Power does not currently pay any dividend to its shareholders. The dividend yield is 0.00%, and there have been no recent or historical payouts. The company’s focus in recent years has been on improving profitability and reducing debt rather than distributing earnings. Investors seeking regular income from dividends may need to consider other companies in the sector.
What is the forecast for Reliance Power stock in 2025, 2026, and 2027?
Based on the current share price of ₹40.74, the projected price for Reliance Power at the end of 2025 is ₹52.96, for the end of 2026 is ₹61.11, and for the end of 2027 is ₹81.48. The company’s strong entry into renewable energy and continuous debt reduction support positive sector momentum. A successful execution of new projects, especially in solar and battery storage, could further enhance its valuation.
Should I sell my Reliance Power shares?
Given Reliance Power's current valuation, especially its low P/E ratio compared to the sector average, and its notable turnaround in quarterly results, holding your shares could be a prudent approach. The company's ongoing debt reduction and push towards renewable energy improve its strategic outlook. While challenges remain, particularly regarding profitability history, the sector’s growth potential and recent operational improvements suggest further upside in the mid- to long-term.
What are the tax implications for capital gains and dividends from Reliance Power shares in India?
In India, capital gains from selling Reliance Power shares are subject to Securities Transaction Tax (STT). Short-term capital gains (if held for less than 12 months) are taxed at 15%, while long-term gains (held for over 12 months) above ₹1 lakh per year are taxed at 10% without indexation. As the stock does not pay dividends, investors do not need to consider dividend taxation for Reliance Power at this time.
What is the latest dividend for Reliance Power stock?
Reliance Power does not currently pay any dividend to its shareholders. The dividend yield is 0.00%, and there have been no recent or historical payouts. The company’s focus in recent years has been on improving profitability and reducing debt rather than distributing earnings. Investors seeking regular income from dividends may need to consider other companies in the sector.
What is the forecast for Reliance Power stock in 2025, 2026, and 2027?
Based on the current share price of ₹40.74, the projected price for Reliance Power at the end of 2025 is ₹52.96, for the end of 2026 is ₹61.11, and for the end of 2027 is ₹81.48. The company’s strong entry into renewable energy and continuous debt reduction support positive sector momentum. A successful execution of new projects, especially in solar and battery storage, could further enhance its valuation.
Should I sell my Reliance Power shares?
Given Reliance Power's current valuation, especially its low P/E ratio compared to the sector average, and its notable turnaround in quarterly results, holding your shares could be a prudent approach. The company's ongoing debt reduction and push towards renewable energy improve its strategic outlook. While challenges remain, particularly regarding profitability history, the sector’s growth potential and recent operational improvements suggest further upside in the mid- to long-term.
What are the tax implications for capital gains and dividends from Reliance Power shares in India?
In India, capital gains from selling Reliance Power shares are subject to Securities Transaction Tax (STT). Short-term capital gains (if held for less than 12 months) are taxed at 15%, while long-term gains (held for over 12 months) above ₹1 lakh per year are taxed at 10% without indexation. As the stock does not pay dividends, investors do not need to consider dividend taxation for Reliance Power at this time.
