In a significant move that bolsters its position in the renewable energy sector, Reliance NU Energies Private Limited, a subsidiary of Reliance Power Limited , has secured the largest allocation in a tender for ISTS-connected solar power and Battery Energy Storage System (BESS) projects. The tender, issued by SJVN , a state-owned power company in India, marks a notable achievement for Reliance Power in the realm of large-scale solar and energy storage initiatives.

Tender Details

Reliance NU Energies Private Limited has secured 350 MW solar capacity with 175 MW/700 MWh battery storage in SJVN's tender. The project comes with a tariff of ₹3.33/kWh for a period of 25 years, highlighting the competitive nature of the bid and the long-term commitment involved.

Implications for Reliance Power

This win significantly strengthens Reliance Power's foothold in the renewable energy market. With this latest addition, Reliance Power has positioned itself as India's largest player in the integrated Solar + BESS segment. The company now boasts a total clean energy pipeline of 2.5 GWp solar and over 2.5 GWhr BESS capacity, demonstrating its capability to compete effectively in the evolving energy landscape, particularly in the integration of solar power with advanced energy storage solutions.

Industry Context

The combination of solar power projects with Battery Energy Storage Systems is gaining traction globally. This approach addresses one of the key challenges of renewable energy - intermittency - by allowing for energy storage during peak generation periods and distribution during high demand or low generation times.

Looking Ahead

This development is expected to contribute significantly to Reliance Power's renewable energy portfolio. It aligns with India's broader goals of increasing its renewable energy capacity and reducing dependence on fossil fuels.

As the renewable energy sector in India continues to grow, backed by supportive government policies and increasing private sector participation, projects like these are likely to play a crucial role in shaping the country's energy future.

Investors and industry observers will be keenly watching how this project unfolds and its potential impact on Reliance Power's financial performance and market position in the coming quarters.

Reliance Power Ltd , a key player in India's energy sector, has reported a remarkable turnaround in its financial performance for the fourth quarter of fiscal year 2025, with its stock price surging over 9% following the announcement.

Q4 Financial Highlights and Stock Performance

• Net Profit: Reliance Power posted a consolidated net profit of ₹126.00 crore in Q4 FY25, showcasing a dramatic improvement from the ₹397.56 crore loss reported in the same quarter of the previous year.
• Full-Year Performance: For the entire fiscal year 2025, the company reported a profit of ₹2,947.83 crore.
• Stock Price: The company's stock price increased by over 9% following the announcement of Q4 results.
• Solar Power Order: Reliance NU Energies, a subsidiary of Reliance Power, won a significant solar power order, contributing to the positive market sentiment.

Financial Turnaround

The company's return to profitability is a significant milestone, especially considering the challenging environment in the power sector. This positive shift can be attributed to various factors, including:

1. Improved operational efficiency
2. Better cost management
3. Successful debt servicing

Debt Reduction and Financial Health

Reliance Power has made substantial progress in improving its financial position:

• Debt Servicing: The company completed debt servicing of ₹5,338.00 crore over the past 12 months.
• Improved Debt-to-Equity Ratio: The debt-to-equity ratio improved to 0.88:1 in FY25 from 1.61:1 in FY24, indicating a stronger balance sheet.

Year-on-Year Comparison

To put the company's performance in perspective, here's a year-on-year comparison of key financials:

The table clearly illustrates the substantial improvement in Reliance Power's bottom line.

Conclusion

Reliance Power's Q4 FY25 results demonstrate a significant financial turnaround, with the company moving from substantial losses to considerable profits. The shift to profitability, coupled with successful debt reduction efforts and a major solar power order, has led to a surge in investor confidence, reflected in the 9% stock price increase. This positive trend suggests improved operational efficiency and financial management, positioning the company for potential growth in the renewable energy sector.