Reliance Power Shares rises 12% on Strong Q4 Performance and Major Solar-BESS Order
Reliance Power Ltd witnessed a significant surge in its share price, jumping over 9% on Monday and exceeding 12% in early trading. The robust buying interest pushed the stock to an intraday high of ₹42.55, trading at around ₹43.21 as of 11:25 AM. This positive momentum follows a previous close of ₹38.65 per share and comes amid favourable sentiment in the energy sector and improved market confidence.
Key Catalysts for the Rally
The sharp rise appears to be primarily driven by two key factors announced by the company: its Q4 results for FY25 and a large order win by its subsidiary. Reliance Power reported a consolidated net profit of ₹126 crore for the January-March quarter of FY25. This marks a significant turnaround from a loss of ₹397.56 crore in the same quarter last year. While total income for the quarter saw a decline to ₹2,066 crore from ₹2,193.85 crore in Q4 FY24, a sharp reduction in total expenses to ₹1,998.49 crore from ₹2,615.15 crore was instrumental in returning to profitability. For the full financial year 2025, the company posted a consolidated net profit of ₹2,947.83 crore, a considerable improvement from a net loss of ₹2,068.38 crore in FY24.
Adding to the positive news, Reliance Power's subsidiary, Reliance NU Energies, secured the largest allocation in SJVN's tariff-based competitive bidding process. This win comprises 350 MW of solar generation capacity coupled with a 175 MW/700 MWh battery energy storage system (BESS). Once commissioned under a build-own-operate (BOO) framework, this project is expected to add 600 MWp of installed solar PV capacity and 700 MWh of energy storage to Reliance Power's portfolio. The company stated this order consolidates its leadership in new energy solutions, bringing its total clean energy pipeline to 2.5 GWp solar and >2.5 GWhr BESS, positioning it as India’s largest player in the integrated Solar + BESS segment. The project includes a minimum four-hour daily discharge window, enabling assured peak power delivery to state distribution utilities.
Financial Health and Market Sentiment
Beyond the quarterly performance and new order, Reliance Power has also made strides in strengthening its balance sheet. The company announced it had repaid a total of ₹5,338 crore in debt over the past year. This debt reduction has led to an improvement in its debt-to-equity ratio, which fell to 0.88:1 in FY25 from 1.61:1 in FY24.
The stock's rise is also supported by broader market trends and positive sentiment around the energy sector, particularly renewable and traditional energy.
Future Outlook
The stock’s upward momentum could extend if it sustains above the ₹42.00 mark, with resistance expected near ₹45.00. While volatility persists, its strategic position in the energy sector supports long-term investor interest. Near-term, traders may watch for profit booking as the stock nears resistance. Market participants will closely track sectoral developments, company updates, and broader market cues, with any dips potentially offering accumulation opportunities.
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