Reliance Power, under the stewardship of Anil Ambani, has emerged as a powerhouse in the Indian stock market, delivering staggering returns and capturing the attention of investors. With a debt-free balance sheet, a robust order book, and a strategic pivot toward renewable energy, Reliance Power is riding a wave of success. This article delves into the latest developments fueling Reliance Power’s meteoric rise, its sister company Reliance Infrastructure’s parallel success, and the bright future awaiting both. Whether you’re a seasoned investor or exploring opportunities, this comprehensive guide unpacks why Reliance Power is a stock to watch in 2025.
The Meteoric Rise of Reliance Power Shares
Reliance Power has transformed into a multi-bagger stock, delivering an astonishing 5400% return over the past five years. From a low of ₹1.15 on March 27, 2020, the stock soared to ₹64.37 by June 9, 2025, turning a modest ₹1 lakh investment into a staggering ₹55.93 lakh. This meteoric rise underscores the company’s remarkable turnaround and its ability to capitalize on market opportunities.
In the last month alone, Reliance Power shares surged by over 65%, reaching a 52-week high of ₹64.37 with a 4% gain on June 9, 2025. The stock’s robust performance is driven by high trading volumes, ranking it third in market activity, with significant buying from large fund houses. This momentum signals strong investor confidence in the company’s growth trajectory.
Why Reliance Power is a Multi-Bagger Stock
Several factors have propelled Reliance Power’s extraordinary performance. The company’s strategic initiatives, coupled with favorable market conditions, have created a perfect storm for growth. Here’s a breakdown of the key drivers:
1. Debt-Free Status: A Game-Changer for Growth
Reliance Power was once burdened by a massive debt load, which constrained its growth potential. However, the company has successfully cleared its debt, achieving a debt-free status that has significantly strengthened its financial position. This milestone has restored investor confidence and provided the company with the flexibility to pursue ambitious projects without the overhang of financial liabilities.
2. Robust Order Book and Mega Projects
Reliance Power’s order book is brimming with high-value projects, particularly in the renewable energy sector. A landmark achievement is the 25-year Power Purchase Agreement (PPA) signed by its subsidiary, Reliance NU Energy, with the Solar Energy Corporation of India (SECI). This agreement involves a 930 MW solar power project paired with a 465 MW (1860 MWh) battery energy storage system, making it Asia’s largest integrated renewable energy project. The project, valued at approximately ₹10,000 crore, underscores Reliance Power’s leadership in green energy.
Additionally, the company has secured multiple government tenders, further bolstering its revenue pipeline. A notable legal victory in the Delhi High Court cleared allegations of document irregularities, ensuring Reliance Power retained a critical SECI tender. These developments highlight the company’s ability to navigate challenges and secure high-impact opportunities.
3. Strategic Focus on Renewable Energy
India’s renewable energy sector is experiencing unprecedented growth, driven by government support and global demand for sustainable solutions. Reliance Power has strategically pivoted from its traditional thermal power business to prioritize green energy. This shift aligns with national policies promoting clean energy and positions the company to capitalize on India’s ambitious renewable energy targets.
4. Promoter Confidence and Capital Infusion
Reliance Power’s promoter, Reliance Infrastructure, has demonstrated strong confidence in the company’s future by increasing its stake. In May 2025, Reliance Infrastructure invested ₹955 crore through preferential shares, while Basera Home Finance acquired 1 crore shares. This capital infusion has strengthened the company’s financial foundation and signaled to the market that promoters are bullish on its growth prospects.
Reliance Infrastructure: A Parallel Success Story
While Reliance Power has stolen the spotlight, its sister company, Reliance Infrastructure, is also making waves. The company’s shares reached a 52-week high of ₹387 on June 9, 2025, delivering a remarkable 1640% return over the past five years. From a 52-week low of ₹169, Reliance Infrastructure has staged an impressive recovery, driven by strategic moves in the defense sector and a debt-free balance sheet.
1. Defense Sector Expansion
Reliance Infrastructure is rapidly expanding its presence in India’s defense sector, a high-growth area backed by government support. The company is investing approximately ₹5000 crore over the next six to seven years to develop defense projects, including a groundbreaking initiative to establish a dedicated defense manufacturing hub in Maharashtra. This move positions Reliance Infrastructure as a pioneer in the private defense sector.
2. Debt Resolution and NCLAT Victory
Reliance Infrastructure faced a significant hurdle when the National Company Law Tribunal (NCLT) initiated insolvency proceedings over an ₹88 crore debt. However, the National Company Law Appellate Tribunal (NCLAT) suspended the order, recognizing that the company had already cleared its dues. This resolution has removed a major overhang, allowing Reliance Infrastructure to focus on growth.
3. Aircraft Upgrade Program
Reliance Infrastructure has achieved a historic milestone by becoming India’s first private-sector company to independently launch an aircraft upgrade program. Previously, such initiatives were dominated by public-sector undertakings (PSUs). This venture enhances the company’s credibility and opens new revenue streams in the defense and aerospace sectors.
Market Dynamics Fueling Reliance Power’s Growth
The broader market environment has played a crucial role in Reliance Power’s success. On June 9, 2025, the BSE Sensex rose by 220 points (0.27%) to 82,449, while the Nifty Energy Index surged by 422 points (1.18%) to 36,346. Reliance Power has been a standout performer in this bullish energy sector, capitalizing on increased investor interest and high trading volumes.
However, profit booking has occasionally tempered market gains, with the Sensex retreating from an intraday high of 82,600. Despite these fluctuations, Reliance Power’s consistent upward trajectory reflects its resilience and strong fundamentals.
Comparing Reliance Power with Peers: JP Power Ventures
Reliance Power’s performance is particularly notable when compared to peers like JP Power Ventures, which has also seen significant gains. JP Power surged by 9% on June 9, 2025, driven by speculation surrounding the potential sale of its parent company, JP Associates. Bidders such as Adani Group, Patanjali, and Vedanta are reportedly in the race, which could further boost JP Power’s valuation. Despite its impressive 9% gain, JP Power remains undervalued based on its price-to-earnings (P/E) ratio, making it another attractive option for investors.
However, Reliance Power’s broader project portfolio, debt-free status, and renewable energy focus give it a competitive edge. The company’s ability to secure large-scale projects and navigate legal challenges positions it as a leader in the energy sector.
The Anil Ambani Turnaround Story
Anil Ambani’s journey from financial distress to a remarkable comeback is a testament to strategic vision and resilience. Both Reliance Power and Reliance Infrastructure have benefited from the active involvement of Ambani’s sons, who have played a pivotal role in steering the companies toward profitability. The debt-free status of both companies, coupled with their focus on high-growth sectors like renewable energy and defense, has restored investor trust and fueled their stock price surges.
Investment Potential: Is Reliance Power Still a Buy?
Reliance Power’s extraordinary returns over the past five years—5400% since 2020, 2300% over four years, 410% over two years, and 150% in the last year—raise the question: Is there still room for growth? Several factors suggest that Reliance Power remains a compelling investment opportunity:
- Renewable Energy Leadership: The company’s focus on green energy aligns with global and national trends, ensuring long-term growth potential.
- Strong Order Book: Mega projects like the 930 MW solar and battery storage initiative provide revenue visibility for decades.
- Promoter Backing: Increased promoter stake signals confidence in sustained growth.
- Debt-Free Advantage: A clean balance sheet allows Reliance Power to pursue ambitious projects without financial constraints.
However, investors should exercise caution and conduct thorough research or consult a financial advisor before investing. While Reliance Power’s fundamentals are strong, market volatility and profit booking can impact short-term performance.
How to Approach Reliance Power as an Investor
For those considering an investment in Reliance Power, here are actionable steps to make an informed decision:
- Analyze Financials: Review the company’s latest financial statements, focusing on revenue growth, profitability, and cash flow.
- Monitor Sector Trends: Stay updated on developments in India’s renewable energy and power sectors, as government policies can significantly impact Reliance Power’s performance.
- Track Legal and Regulatory Developments: Ensure there are no pending legal issues that could affect the company’s operations or stock price.
- Diversify Your Portfolio: While Reliance Power offers high growth potential, diversify your investments to mitigate risks.
- Consult Experts: Seek advice from a certified financial advisor to align your investment with your financial goals.
The Future of Reliance Power and Reliance Infrastructure
Looking ahead, both Reliance Power and Reliance Infrastructure are well-positioned to capitalize on emerging opportunities. Reliance Power’s focus on renewable energy, backed by mega projects and government support, ensures a strong growth trajectory. Meanwhile, Reliance Infrastructure’s foray into defense and aerospace opens new avenues for revenue and innovation.
The combined strength of these companies, underpinned by Anil Ambani’s strategic vision, positions them as leaders in their respective sectors. As India accelerates its transition to clean energy and strengthens its defense capabilities, Reliance Power and Reliance Infrastructure are poised to play pivotal roles.
Conclusion: Why Reliance Power is a Stock to Watch
Reliance Power’s remarkable journey from a debt-laden entity to a debt-free, high-growth company is a story of resilience and strategic reinvention. With a 5400% return over five years, a robust order book, and a focus on renewable energy, the company has cemented its status as a multi-bagger stock. Its sister company, Reliance Infrastructure, complements this success with its defense sector expansion and strong financial recovery.
For investors seeking exposure to India’s energy and defense sectors, Reliance Power and Reliance Infrastructure offer compelling opportunities. However, prudent research and risk management are essential to navigate market volatility. As Anil Ambani’s companies continue to soar, they underscore the potential for transformative wealth creation in the Indian stock market.
