Reliance Infrastructure
Much of the renewed investor confidence in Reliance Infrastructure stems from a key legal reprieve earlier this month. The National Company Law Appellate Tribunal (NCLAT) suspended insolvency proceedings against the company, which had been initiated following a petition by IDBI Trusteeship Services. The appellate body accepted Reliance Infrastructure’s claim that it had fully cleared its outstanding dues of Rs 92.68 crore to Dhursar Solar Power Pvt Ltd, effectively removing a critical overhang.
The impact was immediate. The stock, which has now rallied 72.5% in the past month and 13.4% in the past week, continues to attract bullish sentiment. On the technical front, it is trading above all eight key simple moving averages, from 5-day to 200-day. Its Relative Strength Index (RSI) stands at 76.9, placing it in overbought territory, although the MACD at 31.1 remains bullish.
Beyond courtroom victories, the company is making strategic strides. It recently became the first private Indian firm to independently manage a full-scale aircraft upgrade programme, a Rs 5,000-crore defence contract expected to run over the next 7–10 years. This marks a significant pivot into high-value defence and aerospace projects.
Reliance Infrastructure’s Q4FY25 results have further supported the rally. The company reported a standalone net debt of zero to banks and financial institutions, following a Rs 3,300 crore reduction during the fiscal year. It posted a consolidated profit of Rs 4,387 crore, reversing a loss of Rs 3,298 crore in the previous quarter. Adjusted EBITDA soared 681% to Rs 8,876 crore, while its net worth rose 44% quarter-on-quarter to Rs 14,287 crore as of March 31, 2025.
Reliance Power
Meanwhile, Reliance Power has been riding a wave of positive developments. The stock hit a 52-week high of Rs 67.68 on Tuesday, June 10, extending a rally that has seen it rise 76% in one month, 10% in the past week, and 22.4% in June alone.A major driver has been its subsidiary, Reliance NU Suntech, which signed a 25-year power purchase agreement with SECI for Asia’s largest single-location solar and battery energy storage project. The project includes 930 MW of solar capacity and 465 MW/1,860 MWh of BESS, with an estimated investment of Rs 10,000 crore.
Another arm, Reliance NU Energies, 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 that country’s largest solar project.
Financially, the company has swung back to profit. In Q4FY25, Reliance Power reported a consolidated net profit of Rs 126 crore, compared to a loss of Rs 397.56 crore a year ago. The turnaround was aided by a Rs 348.15 crore equity infusion from Reliance Infrastructure and public investor Basera Home Finance Pvt Ltd, via preferential share allotments.
Adding to its momentum, Reliance Power also received interim relief from the Delhi High Court against a debarment order by SECI, allowing it to resume participation in new renewable tenders.
On the technical charts, the stock is trading above all key SMAs. The RSI is at 77.1, indicating overbought conditions, though the MACD at 5.4 still signals bullish momentum. With a five-year gain of over 2,600% and 389% in the last three years, Reliance Power remains one of the best-performing power stocks on the Street.
A billionaire’s second act?
Anil Ambani’s fall from grace was dramatic. Once the sixth richest man in the world in 2008 with a net worth of $42 billion, he saw his empire unravel under mounting debt, legal troubles, and market collapse. In 2020, he declared bankruptcy in a UK court. His flagship ventures, Reliance Communications and Reliance Capital, filed for insolvency in 2019 and 2021 respectively. Sebi banned him from the securities market in August 2024, and he narrowly avoided jail in 2019 over unpaid dues to Ericsson, bailed out at the last minute by his brother Mukesh Ambani.
Yet, with two stocks soaring and debt levels falling, the tide may be turning. The market momentum is hard to ignore. The key question now is whether these early signs of resurgence will evolve into a sustainable revival, or remain a brief rally in a long, uncertain road.
Also read | Reliance Power shares rally 5% to hit new 52-week high
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