ADAG Stocks On Fire: Reliance Power Soars 70%, Reliance Infra 60% In One Month; Know Why
Last Updated:
Stocks of Anil Dhirubhai Ambani Group —Reliance Power and Reliance Infrastructure—are witnessing a surge; Key reasons and should you buy?
Stocks of the Anil Dhirubhai Ambani Group (ADAG)—Reliance Power and Reliance Infrastructure—are witnessing a sharp surge. Reliance Power shares jumped over 5% in morning trade on Wednesday, extending their monthly gain to more than 70%. Meanwhile, Reliance Infrastructure rose 1% early today, taking its monthly gains close to 60%.
Key Drivers Behind The ADAG Stock Rally
The rally in Reliance Power and Reliance Infrastructure stocks has been fuelled by a series of positive developments.
For Reliance Power, the turnaround in Q4 results played a pivotal role. The company reported a consolidated profit of ₹125.57 crore for Q4FY25, compared to a loss of ₹397.56 crore a year ago. Positive project wins also boosted sentiment. On May 28, SJVN Limited, a Navratna PSU, awarded Reliance NU Energies Private Limited—a Reliance Power subsidiary—a letter of award for a 350 MW solar power project and a 175 MW/700 MWh battery energy storage system (BESS) connected to the interstate transmission system (ISTS).
Reliance Infrastructure, meanwhile, strengthened its position in the defence sector. Post-market hours on Tuesday, the company announced an expansion of its strategic partnership with Germany's Diehl Defence. Anil D. Ambani, founder and chairman of the Reliance Group, and Helmut Rauch, CEO of Diehl Defence, met to discuss specifics on guided and terminally guided munitions as part of a long-standing agreement signed in 2019.
What's driving investor interest?
'The Reliance Infrastructure–Diehl Defence venture marks a significant entry into India's growing defence sector, reinforcing the group's long-term growth prospects."
For Reliance Power, the turnaround story has gained momentum. The company's 25-year solar and battery storage PPA with Bhutan's Druk Green Power—Asia's largest such project—along with a Q4 FY25 pre-tax profit of ₹67.15 crore (compared to a pre-tax loss of ₹461.35 crore in Q4 FY24) have improved its outlook. Reliance Power's debt-to-equity ratio has dropped to 0.88:1 in FY25, down from 1.61:1 in FY24, marking one of the best in the sector.
Debt reduction has also been a key focus. Reliance Infrastructure has nearly eliminated its standalone net debt, while Reliance Power has strengthened its balance sheet through preferential allotments.
The recent NCLAT stay on insolvency proceedings against Reliance Power and the resolution of Reliance Capital's insolvency through a ₹9,650 crore acquisition by IndusInd International Holdings Ltd have lifted key legal overhangs, further fueling investor optimism.
'These factors have created the perfect backdrop for a re-rating of ADAG group stocks," Srivastava added. 'The market is re-evaluating these companies as turnaround stories with strong potential, rather than distressed assets."
Overall, improved earnings, strategic wins, reduced debt, and legal relief have paved the way for a strong revival, making the ADAG group stocks an attractive opportunity for investors betting on long-term growth.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
a day ago
- Hans India
Renewable energy generation in India jumps to 17 pc in May: HSBC report
New Delhi: The decline in power demand, together with continued renewable capacity additions the last year, caused the share of renewable energy generation in India jump to 17 per cent in May and to 19 per cent in first 10 days of June — compared to 13 per cent/14 per cent in May/June last year, respectively, an HSBC report showed on Friday. Large base and excess rainfall cause decline in power demand. Power demand/peak demand declined 4 per cent/7 per cent in May and declined 1 per cent/1 per cent in the first 10 days of June, respectively. This was the result of significantly above average rain levels in May. Owing to the must-run status of renewables, thermal plants had to back down reducing the plant load factor (PLF) to 65 per cent in May (versus 72 per cent last year). 'Accordingly, coal stocks at power plants reached a significant 61m tonnes (21 days of demand versus 17 days at the same time last year). This also resulted in power prices during solar hours dropping to zero on 25 May. Power deficits, accordingly, remained negligible through the month,' the report mentioned. Government is backing storage. To solve the intermittency issue of renewable energy, batteries are critical to control curtailment, improve renewable energy offtake, and improve efficient use of existing coal plants. The government announced a slew of measures, doubling down on battery storage: announcing a Rs 54 billion of additional viability gap funding (VGF) for 30 GWh of battery storage. This amounts to $21 per kwh of government incentives for putting up new battery storage systems. Out of the 30GWh, 25GWh of storage capacity will be allocated to states and 5GWh to NTPC. This is in addition to the Rs 37 billion of existing VGF under which the existing 13GWh of storage is under implementation. 'Further, the government also extended the waiver of Inter-State Transmission (ISTS) charges for pumped storage plants (PSP) (construction awarded before June 2028) and co-located battery storage (BESS) for projects (commissioned before June 2028). This will help accelerate the take-up of battery tenders - nearly 10GWh of BESS tender capacity has been awarded since March 2024,' according to the HSBC note.
Time of India
a day ago
- Time of India
Renewable energy generation in India jumps to 17% in May: HSBC report
New Delhi: The decline in power demand, together with continued renewable capacity additions the last year, caused the share of renewable energy generation in India jump to 17 per cent in May and to 19 per cent in first 10 days of June - compared to 13 per cent/14 per cent in May/June last year, respectively, an HSBC report showed on Friday. Large base and excess rainfall cause decline in power demand. Power demand/peak demand declined 4 per cent/7 per cent in May and declined 1 per cent/1 per cent in the first 10 days of June, respectively. This was the result of significantly above average rain levels in May. Owing to the must-run status of renewables, thermal plants had to back down reducing the plant load factor (PLF) to 65 per cent in May (versus 72 per cent last year). "Accordingly, coal stocks at power plants reached a significant 61m tonnes (21 days of demand versus 17 days at the same time last year). This also resulted in power prices during solar hours dropping to zero on 25 May. Power deficits, accordingly, remained negligible through the month," the report mentioned. Government is backing storage. To solve the intermittency issue of renewable energy, batteries are critical to control curtailment, improve renewable energy offtake, and improve efficient use of existing coal plants. The government announced a slew of measures, doubling down on battery storage: announcing a ₹54 billion of additional viability gap funding (VGF) for 30 GWh of battery storage. This amounts to $21 per kwh of government incentives for putting up new battery storage systems. Out of the 30GWh, 25GWh of storage capacity will be allocated to states and 5GWh to NTPC. This is in addition to the ₹37 billion of existing VGF under which the existing 13GWh of storage is under implementation. "Further, the government also extended the waiver of Inter-State Transmission (ISTS) charges for pumped storage plants (PSP) (construction awarded before June 2028) and co-located battery storage (BESS) for projects (commissioned before June 2028). This will help accelerate the take-up of battery tenders - nearly 10GWh of BESS tender capacity has been awarded since March 2024," according to the HSBC note.
Time of India
2 days ago
- Time of India
MSEDCL plans ₹20,000 crore battery storage project for 16,000MW solar power
In a major push for renewable energy integration, the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) is planning a Rs20,000 crore project to set up battery-based storage units for 16,000MW that will be generated through solar power. To make the ambitious project financially viable, MSEDCL has sought viability gap funding ( VGF ) from the Central govt. The storage units are aimed at conserving surplus solar energy for use during peak demand hours in the night. A senior MSEDCL official confirmed that the proposal seeking subsidy has already been sent to the Central govt. MSEDCL is currently implementing Mukhyamantri Saur Krishi Vahini Yojana 2.0, under which several solar parks are being constructed across the state to generate 16,000MW. The project deadline is 2026. However, MSEDCL sources said that currently, there is no facility to store the excess generated power at this level. To store the excess power, MSEDCL is going for a Battery Energy Storage System (BESS), for which it has also received approval from the Maharashtra Electricity Regulatory Commission ( MERC ). A small contract has been awarded to a private firm. According to MSEDCL sources, the firm is now building storage facilities using BESS at 75 substations of the discom. "Excess solar power will be stored at these locations and later used during high demand. This power will be bought by MSEDCL from the firm at a lower cost," said the sources. The first such project is being implemented for 750MW, for which 1,500MWh capacity needs to be built. MSEDCL sources also said that setting up the battery unit for 1MW costs around Rs1.25 crore and requires a 2MWh capacity. "So, for setting up storage units for 16,000MW, it will cost around Rs20,000 crore. The Central govt provides around Rs27 lakh per MWh, while the rest needs to be raised by the firms which bag the contracts. However, we have sent the subsidy proposal, and the Central govt will think over it," said the official. In the contract already issued, the Central govt has given a subsidy for 500MWh, while the subsidy for 1,000MWh is pending. MSEDCL, however, wants to implement it on a large scale, so they have sent the proposal to the Central govt. "If the subsidy is secured, then tenders will be floated, and different companies can bid for it. The firms will be provided a subsidy, and to recover the remaining money, they will sell the power to MSEDCL, which too will benefit because of the low cost of power," said MSEDCL sources.
