Anil Ambani-led Reliance Power stock surged 18.5% to a six-month high following strategic equity allotments, a key solar JV in Bhutan, and improved Q4 results.
Shares of Reliance Power, a key Anil Ambani-owned company under the Reliance ADA Group (ADAG), surged by a sharp 18.5% today, hitting a six-month high of ₹52.82 in intraday trade. The rally marks the stock’s most significant single-day gain since January 2024 and has brought the spotlight back onto the ADAG counters.
This upward momentum comes amid a surge in trading volumes, corporate developments, and a significant shift in the company’s strategic direction — especially toward clean energy.
What’s Fueling the Rally?
- Equity Allotment to Strategic Investors
On May 20, Reliance Power executed a preferential allotment of equity shares worth ₹43.89 crore to Reliance Infrastructure Limited and Basera Home Finance Private Limited. This involved the issuance of 1.33 crore fully paid-up equity shares at ₹33 per share (including a premium of ₹23), following the conversion of previously issued warrants.
This move has been seen by market analysts as a vote of confidence by group entities and potential signal of internal financial restructuring.
- Massive Spike in Trading Volume
Investor interest has intensified, with 232.3 million shares traded across the NSE and BSE by 1:00 p.m. — over four times the weekly average volume of 54 million shares. The volume spike points to renewed institutional and retail participation, likely driven by strong forward-looking developments.
Solar Bet in Bhutan: A Strategic Shift
In a bold international expansion, Reliance Power recently signed an agreement with Druk Holding and Investments (DHI) — Bhutan’s sovereign investment arm — to co-develop the country’s largest solar power project, with a planned capacity of 500 MW.
The ₹2,000 crore solar project will be executed under a 50:50 joint venture between DHI’s Green Digital Private Ltd and Reliance Enterprises, a company jointly owned by Reliance Power and Reliance Infrastructure. The project, to be developed on a Build-Own-Operate (BOO) basis, marks Bhutan’s largest private sector FDI in renewables.
This international partnership not only expands Reliance Power’s clean energy footprint but also positions it as India’s largest integrated solar + battery energy storage system (BESS) player, with a pipeline of 2.5 GWp solar and 2.5 GWh BESS.
Strong Q4 FY25 Performance Aids Sentiment
Adding to the optimism is a remarkable turnaround in Reliance Power’s financials for the March quarter. The company reported a net profit of ₹126 crore, recovering from a ₹397.56 crore loss in the same period last year. The turnaround is attributed to:
- Lower finance costs
- Reduced operational expenses
(Down from ₹3,575 crore in Q4FY24 to ₹2,108 crore in Q4FY25)
While revenue from operations declined to ₹2,066 crore from ₹2,193 crore year-on-year, the focus on profitability and efficiency improvements has significantly bolstered investor confidence.
What It Means for ADAG Stocks
The rally in Reliance Power has had a positive rub-off effect on other ADAG group stocks, including Reliance Infrastructure. Market watchers view this as a re-rating phase for the group, driven by strategic capital infusions, an international renewables push, and credible efforts to reduce debt and improve governance.
From strategic equity infusions and record trading volumes to a high-profile solar JV and improved earnings, multiple factors have converged to fuel Reliance Power’s remarkable rally. As the group pivots towards clean energy and financial discipline, the momentum behind ADAG stocks is likely to remain strong — provided these initiatives continue to yield tangible results.