Reliance Power , a key player in India's private power generation sector, has reported significant developments in its financial management and employee incentive program.

Preferential Issue Proceeds Utilization

Reliance Power Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, regarding the utilization of proceeds from its preferential issue of convertible warrants worth Rs. 1,524.60 crores. The monitoring agency, Infomerics Valuation and Rating Limited, reported no deviation from the stated objects and no range of deviation from the allocated amounts.

Key points from the report include:

• No utilization of issue proceeds during the quarter
• Rs. 26.49 crores remain unutilized, invested in fixed deposits with scheduled commercial banks
• Original allocation of proceeds:
  • Expansion of business operations: Rs. 803.60 crores
  • General corporate expenses: Rs. 381.00 crores
  • Debt reduction: Rs. 340.00 crores
• Total utilization across all objects since the issue: Rs. 668.16 crores
• Previous allotment of 11.88 crore equity shares upon exercise of warrant rights for Rs. 392.04 crores

Stock Option Grant

The company's Nomination and Remuneration Committee has approved the grant of 99,92,103 employee stock options under the Reliance Power Employee Stock Option Scheme, 2024. These options are convertible into an equal number of fully paid-up equity shares with a face value of Rs. 10 each. The pricing of these options was determined using two formulas:

1. Options granted at face value of Rs. 10
2. Options granted at a 20% discount to the closing market price on NSE as of November 07, 2025, which was Rs. 31.35

The vested options can be exercised within a maximum period of 4 years from the vesting date, subject to the scheme's conditions.

Q2 FY26 Financial Highlights

Reliance Power reported a notable turnaround in its financial performance for Q2 FY26:

Financial Position and Debt Management

The company's financial position shows signs of improvement:

• Debt to Equity Ratio: 0.87, reported as among the lowest in the industry
• Debt Servicing: Rs. 634.00 crore in Q2 FY26
• Net Worth: Rs. 16,516.00 crore as of Q2 FY26

Strategic Initiatives

Reliance Power's board has approved seeking an enabling resolution from members to raise up to US$ 600.00 million through the issuance of Foreign Currency Convertible Bonds (FCCBs). This move aims to fund the company's growth initiatives.

Operational Portfolio

Reliance Power maintains an operating portfolio of 5,305 megawatts, which includes the 3,960 megawatt Sasan Power Limited, recognized as the world's largest integrated coal-based power plant. Notably, Sasan Power has been ranked as the best operating power plant in India for the past seven years.

The company's strategic focus on employee incentives, coupled with its improved financial performance and debt reduction efforts, signals a potential turnaround in its operations. However, investors should note that these developments come amid ongoing challenges in the power sector and should be viewed in the context of broader market conditions.

Reliance Power Limited , a key player in India's private power generation sector, has reported a profit after tax of Rs 87.00 crore for the quarter ended September 30, marking a significant turnaround from a loss of Rs 352.00 crore in the same period last year. This represents a 125% year-on-year improvement in the company's bottom line.

Financial Highlights

• Total income rose to Rs 2,067.00 crore from Rs 1,963.00 crore in the corresponding quarter of the previous year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 64% to Rs 618.00 crore from Rs 376.00 crore.

Operational Performance

Reliance Power operates a total power generation capacity of 5,305 megawatts, which includes the 3,960 megawatt Sasan Power plant.

Balance Sheet and Debt Position

• Net Worth: Rs 16,516.00 crore
• Debt to Equity Ratio: 0.87, which the company claims is among the lowest in the industry
• The company completed debt servicing of Rs 634.00 crore during the quarter

Future Growth Initiatives

• The Board of Directors has approved seeking shareholder authorization for issuing Foreign Currency Convertible Bonds (FCCBs) up to USD 600.00 million through international offering via private placement. This move aims to fund growth initiatives.
• Reliance Power granted approximately 100 lakh stock options under its Employee Stock Option Scheme, potentially aligning employee interests with the company's long-term performance.

Conclusion

Reliance Power's quarterly results demonstrate a significant improvement in profitability and operational performance. The company's focus on debt management, coupled with its plans for raising capital through FCCBs, suggests a strategic approach to future growth while maintaining financial stability.