Reliance Power Share Soars to 10-Year High: What’s Behind the Big Comeback?

Reliance Power, a company many investors had written off, is suddenly back in the spotlight. Its stock price has surged to a 10-year high, leaving many wondering: what has changed? The answer isn't just one thing, but a series of major positive developments, from landing one of Asia's largest green energy projects to making a surprise return to profit.

This article will break down the key reasons behind this incredible turnaround. We'll explore the massive green energy projects it has won, its surprise return to profitability, the fresh investment from its owners, and a crucial legal victory. More importantly, we'll look at what this comeback story means for you as an investor.

First, Why is Everyone Talking About Green Energy?

Before diving into Reliance Power, it's important to understand why its focus on renewable energy is such a big deal.

India's Massive Goal: India has a huge goal to get a large portion (50%) of its electricity from non-fossil fuels (targeting 500 GW of non‑fossil capacity) like solar and wind by 2030. This means there is a massive, long-term demand for green power.

Government's Helping Hand: The Indian government is boosting green energy through major incentives. In 2024, it allocated ₹5,400 crore under the Battery Energy Storage Scheme to support 30 GWh of storage projects. It also waived inter-state transmission charges until June 2028, reducing project costs by about 7%, and is offering 25-year PPAs for solar and hybrid projects, ensuring long-term income stability for green energy companies.

Technology is Cheaper: The cost of solar panels and battery energy storage systems (BESS) has dropped drastically over the past decade due to technological advancements and expansion of production lines. Projects that were once unviable now make strong economic sense. As a result, there has been a surge in new startups and private players entering the renewable energy space, driving innovation, competition, and further cost reductions. This dynamic ecosystem is helping accelerate India’s transition toward clean, affordable, and sustainable energy.

Landing Mega Green Energy Projects

Reliance Power is making a serious pivot to clean energy, backed by huge, government-supported deals.

Asia's Largest Solar + Battery Project: The company's subsidiary, Reliance NU Suntech, has signed a landmark 25-year deal to sell power from what will be Asia's largest single-location solar and battery project. With a massive investment of ₹10,000 crore, this project will not only generate a huge amount of solar power but also store it in giant batteries.

The project will generate 930 megawatts (MW) of solar electricity and store 1.86 gigawatt-hours (GWh) of power in batteries. To put this in simple terms, 930 MW is enough to run nearly 9 lakh ceiling fans at the same time. The battery storage of 1.86 GWh means the system can store enough electricity to power a city like Chandigarh for around 2 to 3 hours even when there is no sunlight. Think of it like a giant power bank for a city; it stores solar power when the sun is shining and releases it at night or on cloudy days, ensuring a 24/7 power supply.

More Big Wins: Reliance NU Energies, another group company, won a 350 MW solar project from the government-owned SJVN.

International Expansion: Reliance Power has also tied up with Bhutan's Druk Holding and Investments Ltd to help build the country's largest solar power plant, signaling its ambition to expand beyond India.

A Surprise Return to Profit

After years of losses, Reliance Power has finally turned profitable. In the last quarter, the company reported a net profit of ₹126 crore. This is a dramatic turnaround from the same period last year, when it had a loss of nearly ₹400 crore. This profit was achieved through smart cost-cutting and a fresh infusion of money from its investors.

The annual sales of the company also dropped over the years. In FY17, it booked ₹10,396 crore sales, which in FY25 shrank significantly to ₹7,583 crore. Coming to the bottom line, it booked profits in FY25 worth ₹2,948 crore after three years of continuous losses.

Source: screener.in

The Owners Are Putting Their Money In

In a major sign of confidence, the company's promoters (the owners) have recently invested more of their own money into the business. In May 2025, Reliance Power raised over ₹348 crore, primarily from its promoter, Reliance Infrastructure. When the owners of a company put their own money back into it, it sends a strong signal to other investors that they believe in the company's future.

A Lighter Debt Load

One of the biggest problems for Reliance Power in the past was its huge mountain of debt. However, the company has been working hard to fix this. Its total borrowings have been cut down significantly, from over ₹28,000 crore in FY20 to around ₹15,153 crore in FY25.

Less debt is great news because it means the company has to spend less money on interest payments, leaving more cash available to invest in new growth projects.

A Legal Hurdle is Removed

To top it all off, the company recently got a legal green light. The Delhi High Court provided relief against an order that had barred it from bidding for certain government projects. This decision opens the door for Reliance Power to once again compete for new government tenders, creating more opportunities for future growth.

Also Read: Is Waaree Energies an AI Company? The Solar Power Connection

What Should Investors Know?

Their Green Energy Plan is Serious: The company's shift to green energy is no longer just a plan; it's backed by real, large-scale projects. With a project pipeline now including 2.4 GW of solar power and 2.5 GWh of battery storage, Reliance Power is positioning itself as a major player in India's clean energy future. These are not small ventures; they are foundational projects with long-term government contracts.

The Financial Foundation is Much Stronger: The company's financial health is improving on two important fronts. First, it has made a return to profitability with a ₹126 crore net profit, proving it can manage its costs effectively after years of losses. Second, its owners have shown strong confidence by investing ₹348 crore of their own money. This is all happening while the massive debt load has been cut down to ₹15,153 crore, giving the company more financial breathing room.

A Key Roadblock to Growth Has Been Removed: A crucial development is the recent legal green light. The lifting of a ban that prevented the company from bidding for certain government projects removes a major roadblock. This reopens a clear path for future growth that was previously closed, allowing it to compete for new contracts.

The Biggest Test is Still Ahead: Reliance Power’s stock has already seen a massive surge this year, a 58% year-to-date and a 148% gain in the last 12 months. Now, the focus must shift from "the plan" to "the performance." The company's future success will be measured by its ability to deliver these huge projects on time and on budget.

Conclusion

Once seen as a struggling company, Reliance Power is reinventing itself as a serious player in India's clean energy boom. The combination of massive new projects, a return to profitability, fresh investment from its owners, and reduced debt paints a promising picture of a comeback. However, this is still a work-in-progress. The company's ability to successfully build and operate its ambitious projects will determine whether it can truly shine again and become a leader in India's power sector.

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