Reliance Infrastructure to Reliance Power: Why Anil Ambani-owned Reliance ADAG stocks are skyrocketing? EXPLAINED

Mint

23-05-2025

Reliance ADAG group stocks in focus: Anil Dhirubhai Ambani Group (ADAG) stocks, including Reliance Home Finance, Reliance Infrastructure, and Reliance Power, rallied sharply in Friday's trade (May 23).
Reliance Home Finance shares surged 10% to ₹ 3.63 apiece, Reliance Power stock jumped 18.5% to a 6-month high of ₹ 52.82, while Reliance Infrastructure share price climbed 10% to ₹ 311 per share.
The broad-based rally in ADAG stocks was driven by multiple positive developments that boosted investor sentiment and triggered a sharp spike in trading volumes on Dalal Street.
Reliance Infrastructure-promoted Reliance Defence and Düsseldorfbased Rheinmetall AG on May 22 entered a strategic partnership in the field of ammunition.
This marks the third major partnership for Reliance Defence, following its successful strategic alliances with Dassault Aviation and the Thales Group of France, the company said in a press release.
'In order to support this collaboration, Reliance Defence Ltd will set up a Greenfield manufacturing facility in the Watad Industrial Area, of Ratnagiri, Maharashtra. In India, the new state-of-the-art facility will make a significant contribution to supplying the country's armed forces. The defence manufacturing complex will contribute in supporting India's ambitious defence export target of ₹ 50,000 crore by 2029,' Reliance Infra added.
Additionally, all eyes are on Reliance Infrastructure stock ahead of its Q4 results later in the day.
On May 20, Anil Ambani-owned Reliance Power executed a preferential allotment of equity shares aggregating ₹ 43.89 crore to two entities—Reliance Infrastructure Limited and Basera Home Finance Private Limited.
According to an exchange filing, the company allotted a total of 1.33 crore fully paid-up equity shares at ₹ 33 per share (inclusive of a ₹ 23 premium). The shares were issued under the SEBI (ICDR) Regulations, following the exercise of rights attached to previously issued warrants.
In addition, Reliance Power recently announced a strategic international venture with Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan. The two companies will jointly develop Bhutan's largest solar power project, with a planned installed capacity of 500 MW.
In October 2024, Reliance Enterprises—jointly promoted by Reliance Power Limited and Reliance Infrastructure Limited—initiated a strategic partnership with DHI to develop solar and hydropower projects in Bhutan.
The ₹ 2,000 crore project will be developed under a 50:50 joint venture on a Build-Own-Operate (BOO) basis. The company stated that the agreement—marked as the largest private sector FDI in Bhutan's solar energy sector to date—was formalized through a commercial term sheet with Green Digital Private Limited (GDL), a DHI-owned entity.
Reliance Power said its total clean energy pipeline stands at 2.5 GWp of solar and over 2.5 GWh of BESS, making it India's largest player in the integrated solar + BESS segment.
The turnaround in financial performance during the March quarter has also fueled renewed investor interest in the stock on Dalal Street. For the quarter ended March, the company posted a consolidated net profit of ₹ 126 crore, a significant recovery from a loss of ₹ 397.56 crore in the same quarter last year, driven by lower finance costs and reduced operating expenses.
Total operating expenses fell from ₹ 3,575 crore in Q4FY24 to ₹ 2,108 crore in Q4FY25. However, revenue from operations declined to ₹ 2,066 crore from ₹ 2,193.85 crore year-on-year, primarily due to lower realizations.
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