Reliance Power Shares Soar 9% on Strong Profit Rebound, Debt Reduction

Shares of Anil Ambani-led Reliance Power surged nearly 9% to Rs 43.94 on the NSE in early trade on Thursday, after the company posted a net profit of Rs 41.95 crore for the December quarter, marking a solid rebound from a loss of Rs 1,136.75 crore during the same period last year. 

However, the company has reported a return to profitability in the September quarter of the ongoing fiscal (Q2 FY25), reporting a profit of Rs 2,878.15 crore on the back of an exceptional gain of Rs 3,230.42 crore following the deconsolidation of a subsidiary. 

Reliance Power’s revenue from operations slipped to Rs 1,852 crore in Q3 FY25, down 4.6% from Rs 1,943 crore in the corresponding quarter of the previous fiscal. The company’s expenses declined by 33% to Rs 2,109.56 crore, compared to Rs 3,167.49 crore in the year-ago period. 

On Wednesday, Reliance Power shares settled at Rs 39.9, down 0.05% on the NSE. The stock has declined 11% year-to-date but gained 239% over the last two years. The company’s market capitalisation stands at around Rs 17,000 crore. 

Reliance Power's Turnaround

The company’s 3,940 MW Sasan Ultra Mega Power Project in Madhya Pradesh was among the top-performing plants in the country and it achieved 93% PLF (plant load factor), it said. 

The 1,200 MW Rosa Power Plant in the Shahjahanpur district of Uttar Pradesh saw availability of 97%. 

Reliance NU Suntech Private Ltd, the 100% subsidiary of Reliance Power, has recently secured a solar battery energy storage system (BESS) Project from the Solar Energy Corporation of India (SECI) for 930 MW plus 1,860 MWh. It would be Asia’s largest solar and battery storage project at a single location. Reliance NU Suntech won the project at a tariff of Rs 3.53/kWh. 

"Reliance NU Suntech will develop the project on a build-own-operate basis and connect it to the interstate transmission system (ISTS) in compliance with Central Electricity Regulatory Commission (CERC) regulations for interconnection with the ISTS," Reliance Power had said earlier. 

Reliance Power, a subsidiary of Reliance Group, is one of India’s leading private sector power generation companies. It has an operating portfolio of 5,300 megawatts, which includes 3,960 megawatts from Sasan Power Limited. 

Reliance Power Debt Reduction

In its statement, Reliance Power informed exchanges that the total debt servicing, including maturity repayment in 9 months of the financial year, stood at Rs 4,217 crore. The debt-to-equity ratio reduced from 1.61:1 at the end of FY24 to 0.86:1 by the end of Q3 FY25. 

On December 31, 2024, Sasan Power successfully made a bullet payment of $150 million to India Infrastructure Finance Company (IIFCL UK), fulfilling its outstanding debt obligations. As of December 31, 2024, Reliance Power had zero debt and no bank default.