Reliance Power Ltd
Reliance Power Ltd
UtilitiesReliance Power has been established to develop, construct and operate power projects both in India as well as internationally. The Company on its own and through its subsidiaries has a large portfolio of power generation capacity, both in operation as well as capacity under development. [1]
Reliance Power trades at a negative PE of -32.9 with persistently negative ROE of -5.58% over 3 years and zero sales growth. The stock has declined 60% in the last year and lacks any analyst coverage or dividend yield, making it unsuitable for most investors despite trading below book value at 0.74x P/B.
Key Fundamentals
MicrocapPower GenerationPowerTechnical Indicators
Key Insights
Strengths
1- Stock is trading at 0.65 times its book value
Weaknesses
3- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of -0.81% over past five years.
- Company has a low return on equity of -5.58% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 9d agoReliance Power trades at a negative PE of -32.9 with persistently negative ROE of -5.58% over 3 years and zero sales growth. The stock has declined 60% in the last year and lacks any analyst coverage or dividend yield, making it unsuitable for most investors despite trading below book value at 0.74x P/B.
- Stock trades at 0.74x price-to-book value, offering a 26% discount to book value which provides a margin of safety for deep value investors
- 3-year stock CAGR of 18% indicates the stock had a significant re-rating phase between 2021-2024 before the recent correction
- 5-year stock CAGR of 13% shows the company delivered positive long-term returns for patient holders despite operational struggles
- TTM compounded profit growth of 3% suggests the company is inching toward profitability after years of losses
- 3-year compounded profit growth of 24% indicates a meaningful trajectory of loss reduction and improving bottom line
- Market cap of Rs 11,419 crore provides reasonable liquidity and scale for a power sector turnaround play
- Power sector in India benefits from structural tailwinds with rising electricity demand and government capex push in energy infrastructure
- Negative PE ratio of -32.9 confirms the company is currently loss-making with no earnings to support valuation
- ROE has been consistently negative at -6% over 3 years, -7% over 5 years, and -1% last year, destroying shareholder value
- Zero analyst coverage with 0 buy, 0 hold, and 0 sell ratings indicates institutional disinterest and lack of credibility
- Stock has crashed 60% in the last 1 year, indicating severe loss of market confidence and momentum
- Sales growth is negative at -0.81% over 5 years and -3% over 10 years, showing the business is structurally shrinking
- Zero dividend yield means shareholders receive no income return while bearing significant capital risk
- Low interest coverage ratio signals the company struggles to service its debt obligations from operating profits
- 10-year stock CAGR of -7% means long-term investors have lost money even over a full decade holding period
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 3d ago- Stock down 57.68% in one year Jun 16
Reliance Power has fallen 57.68% over the past year versus NIFTY's 3.7% gain and Nifty Energy index's 10.87% gain, showing severe long-term underperformance.
- Zero PE ratio, loss-making Jun 16
Trailing twelve months PE ratio stands at 0 based on earnings ending March 2026, indicating the company is loss-making or has minimal earnings.
- Ex-CFO denied bail in fraud case Jun 10
Delhi HC refused bail to former CFO Ashok Kumar Pal in a ₹68.2 crore fake bank guarantee money laundering case probed by the ED under PMLA.
- SECI three-year tender debarment Jun 10
SECI barred Reliance Power and subsidiary Reliance NU BESS from participating in tenders for three years after a bank guarantee for a 1,000 MW BESS project was found to be false in September 2024.
- Q4 FY26 net loss, revenue decline May 29
Reliance Power reported Q4 FY26 revenues of ₹18,873 crore versus ₹19,780 crore YoY, swinging to a net loss from a net profit of ₹1,256 crore in Q4 FY25.
- Trading volume well below average Jun 16
Volume on Jun 16 was 169.89 lakh shares, significantly below the one-month daily average of 394.56 lakh shares, suggesting limited investor participation.
- Third straight session of gains Jun 16
Stock rose 1.09% to ₹26.93 on Jun 16, marking its third consecutive session of gains with approximately 0.86% gain over the last one month.
- Large 5,305 MW generation portfolio May 29
Reliance Power manages 5,305 MW of operational power generation capacity including the 3,960 MW Sasan Ultra Mega Power Project in Madhya Pradesh, with several projects under development.
- Featured in energy penny stocks list May 29
The Financial Express included Reliance Power among three energy penny stocks to watch in 2026, noting its large portfolio and focus on balancing operational performance with ongoing development.
- SECI debarment stayed by Delhi HC Jun 10
The three-year debarment order by SECI was stayed by the Delhi High Court on November 26, 2024, while the company claims it was a victim of fraud by Biswal Tradelink.
TL;DR: Reliance Power shows minor short-term price momentum with three straight sessions of gains, but the broader picture is deeply concerning. The stock is down nearly 58% in one year, is loss-making with zero PE, and faces serious legal overhang from a ₹68.2 crore fake bank guarantee case involving its former CFO. While the 5,305 MW generation portfolio provides operational scale, deteriorating quarterly earnings and ongoing fraud investigations suggest the trend remains negative until the company demonstrates sustainable profitability and resolves its legal challenges.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,730 | 1,922 | 2,038 | 1,944 | 1,997 | 1,992 | 1,760 | 1,853 | 1,978 | 1,886 | 1,974 | 1,873 | 1,887 |
| Expenses | 1,889 | 1,301 | 1,318 | 2,307 | 1,811 | 1,342 | 1,384 | 1,361 | 1,388 | 1,321 | 1,356 | 1,269 | 1,311 |
| Operating Profit | -159 | 621 | 720 | -364 | 186 | 651 | 376 | 492 | 590 | 565 | 618 | 604 | 576 |
| OPM % | -9% | 32% | 35% | -19% | 9% | 33% | 21% | 27% | 30% | 30% | 31% | 32% | 31% |
| Other Income | 1,170 | 37 | 117 | 175 | 175 | 77 | 3,433 | 307 | 88 | 140 | 93 | 77 | -323 |
| Interest | 574 | 620 | 716 | 602 | 517 | 551 | 562 | 544 | 399 | 426 | 395 | 371 | 474 |
| Depreciation | 266 | 261 | 259 | 258 | 287 | 250 | 243 | 204 | 211 | 207 | 208 | 210 | 205 |
| PBT | 171 | -224 | -138 | -1,048 | -444 | -73 | 3,004 | 50 | 67 | 72 | 108 | 100 | -426 |
| Tax % | -50% | 32% | 72% | 8% | -10% | 34% | 4% | 16% | -87% | 38% | 19% | 75% | 16% |
| Net Profit | 257 | -296 | -238 | -1,137 | -398 | -98 | 2,878 | 42 | 126 | 45 | 87 | 25 | -494 |
| EPS in Rs | 0.86 | -0.79 | -0.64 | -3.04 | -0.99 | -0.24 | 7.16 | 0.1 | 0.31 | 0.11 | 0.21 | 0.06 | -1.19 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 6,903 | 10,299 | 10,396 | 9,593 | 8,201 | 7,562 | 7,934 | 7,503 | 7,514 | 7,893 | 7,583 | 7,620 |
| Expenses | 4,317 | 5,884 | 5,889 | 5,199 | 4,268 | 4,536 | 4,359 | 4,768 | 5,628 | 6,733 | 5,441 | 5,256 |
| Operating Profit | 2,587 | 4,414 | 4,506 | 4,393 | 3,934 | 3,027 | 3,575 | 2,735 | 1,886 | 1,160 | 2,142 | 2,363 |
| OPM % | 37% | 43% | 43% | 46% | 48% | 40% | 45% | 36% | 25% | 15% | 28% | 31% |
| Other Income | 298 | 323 | 496 | 276 | -2,823 | -3,384 | 486 | 192 | 1,296 | 499 | 3,871 | -13 |
| Interest | 1,074 | 2,683 | 2,843 | 2,926 | 3,206 | 3,054 | 2,539 | 2,721 | 2,504 | 2,451 | 2,056 | 1,666 |
| Depreciation | 524 | 701 | 734 | 759 | 838 | 836 | 1,083 | 1,077 | 1,017 | 1,062 | 910 | 829 |
| PBT | 1,286 | 1,353 | 1,425 | 984 | -2,934 | -4,248 | 439 | -871 | -339 | -1,854 | 3,048 | -145 |
| Tax % | 20% | 34% | 23% | 15% | 1% | 1% | -3% | 5% | 19% | 12% | 3% | 132% |
| Net Profit | 1,028 | 895 | 1,104 | 840 | -2,952 | -4,271 | 454 | -915 | -403 | -2,068 | 2,948 | -337 |
| EPS in Rs | 3.67 | 3.19 | 3.94 | 3 | -10.52 | -14.53 | 0.82 | -2.84 | -1.26 | -5.15 | 7.34 | -0.81 |
| Div. Payout % | 0% | 31% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 2,805 | 2,805 | 2,805 | 2,805 | 2,805 | 2,805 | 2,805 | 3,400 | 3,735 | 4,017 | 4,017 | 4,136 |
| Reserves | 17,827 | 17,422 | 18,562 | 18,430 | 14,572 | 9,064 | 9,441 | 8,364 | 7,860 | 7,597 | 12,320 | 11,904 |
| Borrowings | 33,219 | 33,790 | 32,925 | 31,697 | 30,456 | 28,804 | 25,635 | 23,129 | 21,236 | 18,766 | 15,153 | 14,812 |
| Other Liabilities | 8,175 | 9,997 | 9,872 | 9,242 | 10,245 | 12,671 | 12,901 | 14,919 | 15,704 | 13,378 | 9,793 | 10,441 |
| Total Liabilities | 62,026 | 64,014 | 64,165 | 62,174 | 58,078 | 53,343 | 50,782 | 49,812 | 48,535 | 43,758 | 41,283 | 41,293 |
| Fixed Assets | 33,634 | 34,515 | 34,851 | 34,881 | 35,903 | 38,574 | 37,190 | 36,308 | 35,776 | 33,584 | 31,859 | 30,944 |
| CWIP | 15,531 | 7,386 | 7,403 | 6,913 | 4,276 | 3,615 | 1,912 | 2,020 | 2,320 | 1,293 | 1,387 | 1,720 |
| Investments | 861 | 873 | 799 | 280 | 224 | 30 | 36 | 37 | 39 | 209 | 173 | 142 |
| Other Assets | 12,001 | 21,240 | 21,112 | 20,100 | 17,675 | 11,124 | 11,644 | 11,447 | 10,401 | 8,672 | 7,864 | 8,486 |
| Total Assets | 62,026 | 64,014 | 64,165 | 62,174 | 58,078 | 53,343 | 50,782 | 49,812 | 48,535 | 43,758 | 41,283 | 41,293 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 1,399 | 4,574 | 4,705 | 4,365 | 4,223 | 4,543 | 4,149 | 3,613 | 4,024 | 3,174 | 1,938 | 2,824 |
| Investing | -3,630 | -1,348 | -2,142 | 354 | 60 | -247 | 486 | 284 | -354 | -192 | 451 | -212 |
| Financing | 695 | -3,194 | -3,389 | -4,311 | -4,839 | -4,200 | -4,615 | -3,849 | -3,623 | -2,734 | -2,435 | -1,828 |
| Net Cash Flow | -1,535 | 32 | -826 | 408 | -556 | 96 | 19 | 48 | 46 | 248 | -46 | 785 |
| Free Cash Flow | -761 | 2,544 | 4,130 | 3,918 | 4,180 | 3,998 | 4,015 | 3,417 | 3,639 | 3,225 | 2,091 | 2,708 |
| CFO/OP | 54 | 109 | 106 | 104 | 108 | 154 | 117 | 134 | 216 | 277 | 92 | 122 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 154 | 125 | 105 | 94 | 122 | 114 | 111 | 156 | 130 | 76 | 73 | 63 |
| Cash Conversion Cycle | 154 | 125 | 105 | 94 | 122 | 114 | 111 | 156 | 130 | 76 | 73 | 63 |
| Working Capital Days | -209 | -162 | -158 | -209 | -567 | -551 | -485 | -622 | -682 | -661 | -309 | -348 |
| ROCE % | 5% | 7% | 8% | 7% | 7% | 6% | 7% | 5% | 3% | 1% | 6% | 6% |
Documents
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Company Information
Reliance Power has been established to develop, construct and operate power projects both in India as well as internationally. The Company on its own and through its subsidiaries has a large portfolio of power generation capacity, both in operation as well as capacity under development. [1]