The stock has been buoyed in recent weeks by a combination of project wins, favourable court rulings, equity infusion, and a return to profitability in the March quarter. It rallied 45.5% in May and has gained 10% over the past week.
Last month, Reliance NU Suntech, a subsidiary of the company, signed a 25-year power purchase agreement (PPA) with SECI for Asia’s largest single-location solar and battery energy storage project—930 MW of solar capacity integrated with 465 MW/1,860 MWh of BESS. The project is to be developed over 24 months with an investment of up to Rs 10,000 crore.
In addition, another subsidiary, Reliance NU Energies, recently secured a 350 MW solar-BESS project from SJVN and signed a commercial term sheet with Bhutan’s Druk Holding and Investments Ltd to co-develop the country’s largest solar power project.
The company’s financial position has also improved. In May 2025, Reliance Power raised Rs 348.15 crore via preferential share allotments, issuing 9.55 crore equity shares to its promoter Reliance Infrastructure and 1 crore shares to Basera Home Finance Private Ltd.
In the March quarter of FY25, Reliance Power swung to a consolidated net profit of Rs 126 crore, reversing a year-ago loss of Rs 397.56 crore. This turnaround followed cost rationalisation efforts and the equity infusion from the promoter and a public investor.The company also received interim relief from the Delhi High Court against a debarment order issued by SECI last year, allowing it to resume participation in new tenders.
Technicals show strength
From a technical perspective, the stock is trading above all key simple moving averages — from the 5-day to the 200-day — indicating strong momentum.
Its Relative Strength Index (RSI) currently stands at 77.1, signaling overbought conditions and a potential pullback. However, the Moving Average Convergence Divergence (MACD) is at 5.4, above both its signal and center lines, supporting the bullish trend.
With gains of over 2,600% in five years, 389% in three years, and strong recent momentum, Reliance Power remains one of the best-performing power sector stocks on the Street.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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