Reliance Power and Infrastructure Stocks Surge: Factors Behind Anil Ambani’s Momentum

Anil Ambani’s Reliance ADAG stocks, including Reliance Power and Reliance Infrastructure, have experienced a remarkable surge, driven by a series of positive developments. On Wednesday, Reliance Power saw a rise of over 5% in morning trading, marking a staggering monthly gain of over 70%. Similarly, Reliance Infrastructure gained 1% in early trading, contributing to an impressive nearly 60% increase over the past month. The rally in these stocks is attributed to a combination of project wins, favorable court rulings, equity infusions, and a robust return to profitability.

Reliance Power’s Impressive Performance

Reliance Power has recently reported a significant turnaround in its financial performance. In the fourth quarter of FY25, the company posted a consolidated profit of Rs 125.57 crore, a remarkable recovery from a loss of Rs 397.56 crore during the same period last year. This turnaround can be largely credited to effective cost-cutting measures and fresh equity infusions from both its promoters and investors. The stock has been on a remarkable upward trajectory, hitting a new 52-week high of Rs 67.68 on Tuesday, which is part of a month-long rally that has seen a 76% increase and an astonishing 173% gain over the past year. The stock’s performance has been bolstered by a 45.5% rise in May alone, with an additional 10% gain in the past week.

Major Project Wins Fueling Growth

The surge in Reliance Power’s stock is further supported by significant project wins that have boosted investor sentiment. On May 28, Reliance NU Energies, a subsidiary of Reliance Power, secured a substantial 350 MW solar power project along with a 175 MW/700 MWh battery storage project from the public sector unit SJVN. Additionally, another subsidiary, Reliance NU Suntech, has entered into a 25-year Power Purchase Agreement (PPA) with SECI for Asia’s largest solar-plus-storage project, which includes 930 MW of solar capacity and 465 MW/1,860 MWh of battery storage. This ambitious project is expected to involve an investment of up to Rs 10,000 crore, further solidifying Reliance Power’s position in the renewable energy sector.

Cross-Border Collaboration and Financial Strengthening

Reliance Power is also making strides in cross-border clean energy collaboration. The company has signed a commercial term sheet with Bhutan’s Green Digital Pvt Ltd for a long-term power purchase agreement, marking a significant milestone in international energy cooperation. Green Digital is a subsidiary of Druk Holding and Investments Ltd, which is the investment arm of the Royal Government of Bhutan. Additionally, Reliance Power has strengthened its financial position by raising Rs 348 crore in May through preferential allotments, enhancing its balance sheet and providing further capital for future projects.

Reliance Infrastructure’s Strategic Partnerships

Reliance Infrastructure is not lagging behind, as its subsidiary, Reliance Defence, has recently announced a strategic cooperation agreement with Germany’s Diehl Defence. This partnership aims to manufacture advanced artillery systems in India, focusing on the production of the Vulcano 155mm precision-guided munition system, known for its long-range and high accuracy. Helmut Rauch, CEO of Diehl Defence, expressed optimism about strengthening the relationship with Reliance in the context of the Indian Armed Forces. This collaboration not only enhances Reliance Infrastructure’s portfolio but also contributes to India’s defense capabilities, showcasing the company’s commitment to innovation and strategic partnerships in various sectors.

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