RattanIndia Power Limited (RPL) has reported a net loss of Rs 47.62 crore for the half-year ended September 30, 2025, marking a significant downturn from the profit of Rs 88.68 crore recorded in the same period last year. The company's financial performance showed a notable decline, with revenue from operations decreasing to Rs 1,475.68 crore from Rs 1,614.26 crore year-on-year.

Financial and Operational Performance

Despite the financial challenges, RPL's 1,350 MW thermal power plant at Amravati demonstrated strong operational metrics:

• Achieved a Plant Load Factor (PLF) of 78.98%
• Maintained plant availability of 85% during H1 FY26
• Reported EBITDA of Rs 337.00 crore for the period

The company also sold 12.09 MUs on the power exchange, generating additional revenue of Rs 9.36 crore during the quarter.

Regulatory and Legal Developments

RPL has seen positive developments on the regulatory front:

1. The Appellate Tribunal for Electricity allowed RPL's appeal regarding Change in Law claims related to ash transportation and sizing charges.
2. CRISIL Ratings upgraded the company's short-term bank facilities rating to CRISIL A3+ from CRISIL A3, potentially indicating improved financial flexibility.

The company continues to pursue recovery of regulatory receivables through legal forums, which may impact future financial outcomes.

Outlook

While RPL faces financial headwinds, as evidenced by the shift from profit to loss, the company's focus remains on operational efficiency and resolving regulatory matters. The strong performance of the Amravati plant, maintaining high PLF and availability, suggests that operational fundamentals remain solid despite financial challenges.

The power sector in India is projected to see growth, which may present opportunities for RPL to improve its financial position. However, the company will need to address the factors contributing to its revenue decline and increased losses to capitalize on sector growth.

RPL's ongoing efforts in operational excellence, coupled with positive regulatory developments and credit rating upgrades, may support the company's efforts to navigate current challenges and work towards financial recovery in the coming periods.

RattanIndia Power Limited (RPL) has emerged victorious in a significant legal battle against REC Limited, as the National Company Law Tribunal (NCLT) in New Delhi dismissed an insolvency petition filed against the power company.

Key Highlights

• The NCLT's New Delhi Branch dismissed a petition filed by REC Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC) against RattanIndia Power Limited.
• REC Limited had filed the petition as a holder of Redeemable Preference Shares (RPS) of RattanIndia Power.
• The tribunal ruled that Redeemable Preference Shares do not constitute a 'financial debt' under the IBC.
• As a result, REC Limited was deemed ineligible to qualify as a 'financial creditor' to initiate the Corporate Insolvency Resolution Process (CIRP).

Legal Implications

The dismissal of the petition by the NCLT has significant legal implications for both RattanIndia Power and the broader interpretation of financial creditors under the IBC. The tribunal's decision clarifies that holders of Redeemable Preference Shares cannot be considered financial creditors under the current framework of the Insolvency and Bankruptcy Code.

Financial Impact

According to the company's disclosure, there are no expected financial implications, compensation, or penalties related to this dismissal. This outcome is likely to be viewed positively by RattanIndia Power's stakeholders, as it removes the immediate threat of insolvency proceedings.

Company's Response

RattanIndia Power Limited, in its regulatory filing, stated that the petition was dismissed on the grounds that Redeemable Preference Shares do not constitute a "financial debt" under the Insolvency and Bankruptcy Code, 2016. Consequently, REC Limited does not qualify as a "financial creditor" eligible to initiate the Corporate Insolvency Resolution Process under Section 7 of the IBC.

Conclusion

This legal victory for RattanIndia Power Limited not only safeguards the company from potential insolvency proceedings but also sets a precedent regarding the status of Redeemable Preference Shareholders in the context of the Insolvency and Bankruptcy Code. The decision underscores the importance of clearly defining financial creditors and debts within the legal framework of corporate insolvency resolution.

As the power sector continues to navigate complex financial and regulatory landscapes, this ruling may have broader implications for similar cases in the future, potentially influencing how financial instruments are viewed in the context of insolvency proceedings.