Reliance Power shares surged over 9% in early trading after the company reported a profit of ₹41.95 crore for Q3 FY25, marking a turnaround from the ₹1,136.75 crore loss in the same quarter last year. With improving financials, debt reduction, and strong operational performance, should investors take notice? Let’s break it down.
Reliance Power share price rally: What’s driving the surge?
On Thursday, February 6, 2025, Reliance Power’s share price opened at ₹41.38 on the BSE, reflecting a 3% gain over its previous close of ₹39.89. As the trading session progressed, the stock soared to an intraday high of ₹43.69, marking an overall increase of 9.52%. On the NSE, the stock hit ₹43.94, a 10% jump from the previous session.
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Reliance Power Q3 FY25 Stock Performance
| Stock Exchange | Previous Close | Opening Price | Intraday High | Percentage Gain |
| BSE | ₹39.89 | ₹41.38 | ₹43.69 | 9.52% |
| NSE | ₹39.89 | ₹41.38 | ₹43.94 | 10% |
The spike in Reliance Power share price is largely attributed to its Q3 FY25 results, where the company posted a profit for the first time in multiple quarters.
Q3 FY25 results: A turnaround from heavy losses
Reliance Power reported a profit of ₹41.95 crore in Q3 FY25, a sharp contrast from the ₹1,136.75 crore loss in the corresponding quarter of the previous financial year. The company also improved its earnings before interest, tax, depreciation, and amortisation (EBITDA) to ₹492 crore, signalling operational efficiency.
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Reliance Power Financials (Q3 FY24 vs Q3 FY25)
| Financial Metric | Q3 FY24 | Q3 FY25 | Change (%) |
| Net Profit/Loss | ₹(1,136.75) Cr | ₹41.95 Cr | Turnaround |
| Total Income | ₹1,998.79 Cr | ₹2,159.44 Cr | 8.03% |
| Revenue from Operations | ₹1,943.83 Cr | ₹1,852.84 Cr | -4.68% |
| Expenses | ₹3,167.49 Cr | ₹2,109.56 Cr | -33.40% |
| EBITDA | – | ₹492 Cr | – |
The rise in total income and the sharp reduction in expenses have significantly contributed to the company’s financial turnaround.
Debt-free status: A major confidence boost
One of the biggest highlights of Reliance Power’s latest earnings was its debt reduction strategy. The company fully repaid its bank loans, achieving a zero bank debt status.
- Debt-to-equity ratio improved from 1.61:1 (FY24) to 0.86:1 (Q3 FY25)
- Total debt servicing in FY25 (April-December) amounted to ₹4,217 crore
- Net worth as of December 31, 2024 stood at ₹16,217 crore ($1.89 billion)
Operational performance: How are Reliance Power plants performing?
Reliance Power’s power plants continue to deliver strong output, contributing to the company’s financial recovery:
- Sasan Ultra Mega Power Project (3,960 MW, Madhya Pradesh) achieved a 93% plant load factor (PLF), making it one of India’s top-performing plants.
- Rosa Power Plant (1,200 MW, Uttar Pradesh) recorded a 97% availability rate.
- Reliance NU Suntech Private Ltd won a 930 MW solar plus 1,860 MWh battery energy storage system (BESS) project from SECI, marking a major renewable energy milestone.
Is the stock still undervalued or ripe for investment?
While the Reliance Power share price has surged in response to the company’s return to profitability, its valuation metrics indicate a balanced outlook:
- Market Cap: ₹17,252 crore
- Shares Traded (BSE & NSE combined): 35.27 million
- Beta (Volatility Index): 1.0 (indicating average market volatility)
- Relative Strength Index (RSI): 49.5 (neutral zone, neither overbought nor oversold)
Given its financial turnaround, debt-free status, and operational efficiency, the company appears to be on the path to stability. However, investors should consider the volatility risks and industry competition before making an investment decision.
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However, investors should weigh the risks before investing:
| Pros | Cons |
| Strong operational performance | High past volatility |
| Significant debt reduction | Competition from renewable energy firms |
| Return to profitability | Need for consistent financial performance |
Final thoughts: Should you invest?
Reliance Power’s Q3 FY25 results have instilled confidence in investors, reflected in its 9% share price rally. Its return to profitability, zero bank debt, and efficient power generation make a compelling case for long-term potential.
If the company maintains its positive earnings momentum, it could continue to be a stock to watch in the financial year 2025. But as always, do your own research or consult a financial advisor before making any investment decisions.
