Reliance Power (RPower) shares have been on a strong upward trajectory over the past week, rising 13% in just 5 trading sessions, driven by a combination of debt restructuring optimism, group-level capital infusion expectations, and technical buying momentum. The stock closed at ₹31.20 on Monday, gaining nearly 3% intraday on the NSE.
Key Highlights
✅ 5-day gain: +13%
✅ 1-month gain: +19%
✅ Current market cap: ₹11,880 crore
✅ 52-week high: ₹34.65
✅ 52-week low: ₹14.90
What’s Driving Reliance Power’s Surge?
1. Debt Restructuring Progress
The company has been actively pursuing:
- Debt reduction strategies by selling non-core assets.
- Settling loans with lenders including SBI-led consortium through asset monetisation and promoter support.
- Reports suggest negotiations to resolve outstanding loans of over ₹1,200 crore are at an advanced stage.
This has boosted investor confidence, as a cleaned-up balance sheet would improve the financial viability of its operational power assets.
2. Promoter Infusion Optimism
Reliance Power is part of Anil Ambani’s Reliance ADA Group, which has been gradually strengthening balance sheets across group companies, including Reliance Infrastructure and Reliance Capital (under resolution).
Market speculation indicates potential promoter infusion or strategic investor interest to revive pending projects, especially its stalled Samalkot gas-based power plant and hydro assets in Arunachal Pradesh.
3. Technical Breakout
The stock has breached key resistance levels:
| Technical Indicator | Level | Signal |
|---|---|---|
| 50-day moving average | ₹27.45 | Bullish crossover |
| 200-day moving average | ₹23.20 | Sustained uptrend |
| RSI (14-day) | 65.4 | Near overbought zone |
Analysts expect the next resistance at ₹34.00, with immediate support at ₹28.50.
RPower Stock Performance
| Period | Closing Price (₹) | % Change |
|---|---|---|
| 5 days ago | 27.60 | +13% |
| 1 month ago | 26.20 | +19% |
| 3 months ago | 21.80 | +43% |
| 6 months ago | 18.40 | +69% |
| YTD | 17.80 | +75% |
(Source: NSE data as of June 30, 2025)
Company Financial Snapshot
| Parameter | FY24 | FY23 |
|---|---|---|
| Total income | ₹7,012 crore | ₹6,784 crore |
| Net profit | ₹128 crore | ₹(254) crore |
| Total debt | ₹3,845 crore | ₹5,242 crore |
| Equity capital | ₹3,239 crore | ₹3,239 crore |
| EPS | ₹0.40 | Negative |
(Source: Company filings)
Group-Level Developments Adding Optimism
- Reliance Infrastructure stake increase: Promoter group increased stake via open market purchases last quarter, signaling commitment to group companies’ revival.
- Reliance Power – Reliance Infra synergy: Both entities are expected to integrate power EPC capabilities and operational management to optimise costs.
- Strategic sale possibilities: The company has been exploring options to monetise its Butibori thermal power plant and coal mining rights to reduce debt further.
Investor Sentiment & Broader Market Context
1. Positive Market Environment
Indian equity markets have been bullish with Nifty nearing 24,000 levels on strong macro data and FPI inflows, driving sentiment in midcaps like RPower.
2. Sector Rotation
Power sector stocks have seen renewed buying due to:
- Summer demand surge raising PLFs
- Government push for renewables and gas-based plant revival
- Improved cash flows from state discoms under revamped reforms
Expert Views
Kunal Shah, Analyst, ICICI Securities:
“RPower’s rally is speculative in nature with optimism around debt reduction. However, sustainable upside will require visibility on operational cash flows and promoter-led capitalisation.”
Ravi Singh, VP Research, Religare Broking:
“Technically, the stock is strong above ₹30 levels. Investors must monitor volumes and debt restructuring updates for sustained moves towards ₹34-36 zones.”
Risks To The Rally
| Risk Factor | Impact |
|---|---|
| High leverage | Despite repayments, debt remains significant relative to cash flows |
| Project delays | Stalled Samalkot plant and hydro projects continue to burden balance sheet |
| Promoter financial health | Group-level challenges could limit fresh capital infusion pace |
| Regulatory issues | Past challenges in coal allocation and environmental approvals remain pending |
Future Outlook
Reliance Power’s revival hinges on:
✅ Successful debt restructuring completion by FY26
✅ Monetisation of non-core assets and redeployment in operational projects
✅ Promoter’s ability to bring in strategic partners or investors
With government focus on energy transition and gas-based power plant revival under the National Hydrogen Mission and natural gas policy reforms, assets like Samalkot could become viable with appropriate fuel linkages and regulatory clarity.
Market Conclusion
Reliance Power’s 13% surge in 5 sessions highlights investor optimism over its financial restructuring prospects and sector tailwinds. However, analysts advise caution, citing high leverage risks and the need for clear operational turnaround visibility for long-term re-rating of the stock.
Disclaimer
This article is based on NSE data, company filings, and market expert views as of June 30, 2025. Stock investments carry market risks. Readers are advised to consult SEBI-registered investment advisors before making any financial decisions.
