Reliance Power Share Rally: Relief or Revival After Q3 Results 2025?
Reliance Power shares have been on a bullish spree, surging for the second consecutive week. The Anil Ambani-owned company has grabbed the attention of Dalal Street investors following its Q3 FY25 earnings, which have showcased a remarkable financial turnaround. The stock, which was trading at ₹36.71 two weeks ago, has now climbed to ₹41.72 on the NSE, marking a 13.5% gain.
But is this surge a temporary relief rally, or is Reliance Power set for a strong comeback? Let’s dive into the company’s latest performance, financial outlook, and future prospects.
Reliance Power Q3 Results 2025: A Strong Comeback
Reliance Power, a part of the Anil Dhirubhai Ambani Group (ADAG), has posted a consolidated net profit of ₹41.95 crore in Q3 FY25, marking a stark contrast to its ₹1,136.75 crore loss in the previous financial year. The company’s total income stood at ₹2,159 crore, with an EBITDA of ₹492 crore, signaling strong operational performance.
One of the most notable improvements has been in the company’s debt-to-equity ratio, which has significantly dropped from 1.61:1 in Q3 FY24 to 0.86:1 in Q3 FY25. Moreover, the company has zero bank debt, strengthening its balance sheet and boosting investor confidence.
According to Sugandha Sachdeva, Founder of SS WealthStreet, “Reliance Power’s turnaround in Q3 FY25 highlights its improved financial health and operational efficiency. The company’s focus on reducing debt and expanding into the renewable energy sector has added to its positive outlook.”
Reliance Power’s Renewable Energy Push
Reliance Power has made significant strides in the renewable energy domain. Its subsidiary, Reliance NU Suntech Pvt. Ltd., has secured a 930 MW solar power project with a 1,860 MWh battery energy storage system from the Solar Energy Corporation of India (SECI).
This project, touted as Asia’s largest solar and battery storage facility, marks Reliance Power’s strategic shift towards clean energy solutions. Experts believe this move will significantly contribute to the company’s long-term growth and improve its standing in the power sector.
Stock Market Outlook: What Experts Say
Market analysts are optimistic about Reliance Power’s stock trajectory. Anshul Jain, Head of Research at Lakshmishree Investment and Securities, believes that while the Q3 results signal a turnaround, the company must sustain this momentum in the coming quarters.
From a technical analysis perspective, Reliance Power’s stock has been consolidating within the ₹37–₹43.50 range.
- Support levels: ₹36.50 (200 DEMA) and ₹40
- Resistance levels: ₹44 (crucial breakout level) and ₹51 (medium-term target)
“If the stock decisively breaks the ₹44 resistance level, we may see it touching ₹51 in the near term. However, failure to breach this level could result in the stock drifting back towards the ₹40 or ₹36.50 support zones,” said Sugandha Sachdeva.
Reliance Power Financial Ratios & Key Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹16,807 Cr. |
| Current Price | ₹41.8 |
| High / Low | ₹54.2 / ₹19.4 |
| Stock P/E | – |
| Book Value | ₹35.8 |
| Dividend Yield | 0.00% |
| ROCE | 1.43% |
| ROE | -17.5% |
| Face Value | ₹10.0 |
| Debt to Equity | 1.04 |
| Industry PE | 30.3 |
| Debt | ₹14,903 Cr. |
| PEG Ratio | – |
| Intrinsic Value | ₹41.6 |
| Graham Number | ₹69.8 |
| Piotroski Score | 4.00 |
Final Verdict: Is Reliance Power a Buy?
Reliance Power’s Q3 FY25 results have injected fresh optimism into the stock. The company’s return to profitability, reduced debt levels, and expansion into renewable energy make it a compelling investment candidate. However, investors should closely watch its price movement around the ₹44 resistance level before making fresh entries.
With a solid fundamental turnaround and strong technical setup, Reliance Power has the potential for further gains if it sustains its performance in the upcoming quarters.
Would you bet on Reliance Power’s revival? 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.