Reliance Power Share Price Gains 6% Post Q3 Results – Should You Own It?
Reliance Power share price surged over 6% in early trade on Thursday following the release of its Q3 FY25 results, which showed a significant turnaround from losses to profitability. Investors reacted positively to the strong performance, debt reduction efforts, and operational efficiencies reported by the company.
Let’s dive into the key takeaways from Reliance Power’s Q3 results, stock movement, financial performance, and whether it’s a good investment at current levels.
Reliance Power Share Price Movement
Reliance Power opened at ₹41.38 on the BSE on Thursday, marking a 3% increase from its previous close of ₹39.89. As the trading session progressed, the stock continued its upward momentum, touching an intraday high of ₹43.69, translating to a 9% gain during morning trades.
Reliance Power Q3 FY25 Results – A Strong Turnaround
Reliance Power reported a net profit of ₹41.95 crore for Q3 FY25, a significant improvement from the ₹1,136.75 crore loss reported in the same quarter last year. This turnaround reflects the company’s improving financial position and cost-cutting measures.
Key Financial Highlights (Q3 FY25 vs. Q3 FY24):
- Total Revenue: ₹2,159.44 crore (up from ₹1,998.79 crore)
- Total Expenses: ₹2,109.56 crore (down from ₹3,167.49 crore)
- EBITDA (Earnings Before Interest, Tax, Depreciation & Amortization): ₹492 crore (~$57 million)
The rise in revenue and decline in expenses contributed to the profitability, boosting investor sentiment.
Debt Reduction – A Positive Move
One of the biggest takeaways from the Q3 report was Reliance Power’s aggressive debt reduction strategy. The company reported that its total debt servicing, including maturity repayment, stood at ₹4,217 crore in the first nine months of FY25.
- Debt-to-Equity Ratio: Reduced from 1.61:1 (FY24) to 0.86:1 (Q3 FY25) – among the lowest in the industry.
- Net Worth: ₹16,217 crore (~$1,894 million).
- Bank Debt: Zero, with no default history.
This is a major positive, as reducing debt enhances financial stability and improves investor confidence.
Operational Highlights – Strong Performance Across Key Projects
Reliance Power highlighted strong operational performance across its major power projects:
- Sasan Ultra Mega Power Project (3,960 MW, Madhya Pradesh): Achieved a Plant Load Factor (PLF) of 93%, ranking among the top-performing plants in India.
- Rosa Power Plant (1,200 MW, Uttar Pradesh): Maintained a high availability rate of ~97%.
- Reliance NU Suntech Private Ltd: Secured a 930 MW + 1,860 MWh Solar Battery Energy Storage System (BESS) project from the Solar Energy Corporation of India (SECI). This will be Asia’s largest solar and battery storage project at a single location.
These developments indicate strong operational efficiency and potential future revenue growth.
Reliance Power Key Financial Ratios
| Metric | Value |
|---|---|
| Market Cap | ₹17,410 crore |
| Current Price | ₹43.3 |
| 52-Week High / Low | ₹54.2 / ₹19.4 |
| Stock P/E | – |
| Book Value | ₹35.8 |
| Price to Book Value | 1.21 |
| Debt-to-Equity | 1.04 |
| ROCE (Return on Capital Employed) | 1.43% |
| ROE (Return on Equity) | -17.5% |
| Dividend Yield | 0.00% |
| Industry P/E | 30.3 |
| Debt | ₹14,903 crore |
| Intrinsic Value | ₹41.6 |
| Graham Number | ₹69.8 |
| Piotroski Score | 4.00 |
Should You Invest in Reliance Power?
Positives:
✅ Strong Q3 Performance – The company has turned profitable after a major loss last year.
✅ Debt Reduction – Lower debt-to-equity ratio and no bank debt improve financial stability.
✅ Operational Strength – High PLF for major power plants and entry into large-scale renewable projects.
✅ Sector Potential – The power sector is expected to grow, with increasing demand for electricity and renewable energy investments.
Concerns:
❌ Debt Levels Still High – Although reduced, the company still has ₹14,903 crore in debt.
❌ Low ROE & ROCE – Return on equity (-17.5%) and return on capital employed (1.43%) remain weak.
❌ No Dividends – Investors looking for income stocks may not find Reliance Power attractive.
Final Verdict
Reliance Power’s stock has witnessed strong gains following its impressive Q3 performance, debt reduction, and operational improvements. While the company is moving in the right direction, high debt levels and weak returns remain concerns.
For long-term investors, Reliance Power could be a good bet if it continues improving its financial health and expanding into renewables. However, short-term traders should watch for volatility and resistance near its 52-week high of ₹54.2.
Do you own Reliance Power shares? Let us know in the comments!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.