Reliance Power Shares Soar Nearly 19% Amid Bhutan Solar Project Tie-Up and Q4 Turnaround

Reliance Power Shares Soar Nearly 19% Amid Bhutan Solar Project Tie-Up and Q4 Turnaround

Reliance Power shares surged up to 18.66% during Friday’s trading session on May 23, 2025, hitting an intraday high of ₹52.90 per share, driven by robust volumes and a major international renewable energy deal.

Reliance Power Stock Performance

As of 1:23 PM, Reliance Power was trading at ₹52.29, up 17.29%, while the BSE Sensex gained 1.05% at 81,802.05. The stock saw an extraordinary uptick in trading activity, with:

  • 24.23 million shares worth ₹120.80 crore traded on BSE
  • 282.43 million shares worth ₹1,410.25 crore exchanged hands on NSE

Major Trigger: Bhutan Solar Power Deal

The stock’s rally was fuelled by the announcement of a ₹2,000 crore joint venture between Reliance Power and Druk Holding and Investments (DHI) of Bhutan. Key highlights:

  • Development of Bhutan’s largest 500 MW solar power project
  • Executed under a 50:50 BOO (Build-Own-Operate) model
  • Marks Bhutan’s biggest private sector FDI in solar to date
  • Long-term Power Purchase Agreement (PPA) signed with Green Digital Private Limited, a DHI subsidiary

This move not only strengthens Reliance Power’s renewable energy portfolio but also showcases its international ambitions in the clean energy sector.

Reliance Power Q4FY25 Results: Strong Profit Recovery

Reliance Power posted a consolidated net profit of ₹126 crore in Q4FY25, a significant recovery from a net loss of ₹397.5 crore in the same quarter last year. Though revenue dipped to ₹2,066 crore (from ₹2,193.8 crore YoY), the profit surge was mainly due to:

  • Sharp reduction in expenses to ₹1,998.49 crore (from ₹2,615.15 crore)
  • Cost optimization and improved efficiency across its business segments

Why Investors Are Bullish

  1. Strategic Global Expansion: Entry into Bhutan’s solar sector signals future growth in clean energy.
  2. Improved Financial Health: Return to profitability reflects effective management and restructuring.
  3. High Trading Volumes: Indicates strong market interest and institutional participation.

 

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