Reliance Power’s Electrifying Rally: 22% Gain in 6 Days Sparks Profit-Booking Debate

Unknown Apr 02, 2026 750 Views

Reliance Power Ltd. stunned market observers with a dramatic 22% climb in its stock price over the last six trading days, driven by robust quarterly results, a signature solar joint venture, and renewed optimism from investors. While the rally is still on, investors now wonder whether it is the c...

Key Drivers Behind the Rally

Strong Q4 Results and Profit Turnaround

Reliance Power posted a consolidated net profit of ₹126 crore for Q4 FY25, reversing a loss of ₹397.56 crore in the same quarter last year, primarily due to a sharp reduction in expenses.
For the full financial year 2025, the company reported a net profit of ₹2,947.83 crore, a significant turnaround from a net loss of ₹2,068.38 crore in FY24.
This is the third profitable quarter in a row for the company, indicating enhanced operational efficiency and cost management.

Landmark Solar Joint Venture

Signed a ₹2,000 crore joint venture with Bhutan's Druk Holding and Investments (DHI) to develop a 500 MW solar power project—the biggest private sector FDI in Bhutan's solar industry.
Development of the project will be done on a 50:50 Build-Own-Operate (BOO) basis, strengthening Reliance Power's strategic emphasis on renewable energy and enhancing India-Bhutan economic ties.

Technical and Market Sentiment

The stock rose 18–19% in one day on May 23, 2025, hitting a six-month high of ₹52.90, amid record volumes and a firm 'buy' signal from technical indicators such as Supertrend.
Shares of Reliance Power are trading above all the significant moving averages, reflecting a strong uptrend.
The stock has given 91.7% returns in the last one year and 2,820% in five years, much higher compared to the broader market.

Should You Book Profits? Analyst Views

Even as the stock is in a strong trend, analysts caution that Reliance Power continues to be a high-risk stock because of its volatile past and history of wealth destruction.
Technical experts pick out resistance around ₹53–55, with support at ₹48. A strong breakout above ₹53 may lead to further gains, but a close below ₹48 might result in a correction.
The stock fell 2% on May 26, 2025, after the recent rally as some of the investors booked profits.

Overbought Zone and Profit-Booking Indications

The stock is in the overbought zone, and technical resistance and profit-booking were witnessed following the steep rally.
Analysts indicate that those with low risk appetite can book part profits, while those who have high risk appetite may hold for possible further gains, keeping a keen eye on support levels.

Reliance Power's Strategic Position

The company has repositioned itself as a clean energy leader, with a 2.5 GWp solar and 2.5 GWh battery storage project pipeline.
Financial stability and investor sentiment have been enhanced through recent debt restructuring and the settlement of legacy liabilities.
Significant order wins, such as large-scale solar and battery energy storage projects, underpin long-term growth opportunities.

Financial Turnaround

Q4 FY25 net profit: ₹126 crore (compared to ₹397.56 crore loss YoY)
FY25 net profit: ₹2,947.83 crore (compared to ₹2,068.38 crore loss in FY24)

Market Performance

22% share price increase in 6 days; 91.7% return in 1 year
Record trading volumes and technical strength

Growth Drivers

₹2,000 crore solar JV with Bhutan's DHI (500 MW capacity)
India's largest integrated solar and battery energy storage pipeline

Analyst Caution

Stock in overbought range; resistance around ₹53–55, support around ₹48
Profit-booking suggested for risk-averse investors; high-risk investors can hold cautiously

Sources: India Today, Angel One, 5paisa, Business Today, Groww, Economic Times, Samco, Business Standard, EquityRight

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