Reliance Power (RPOWER) – Latest Fundamental Update

Reliance Power has shown a meaningful improvement in Q1 FY27, with revenue rising 3.75% YoY to ₹1,956 crore and PAT increasing 44.8% to ₹64.7 crore, compared with a ₹97.9 crore loss in the year-ago quarter. PBT also turned positive at ₹115.9 crore. However, operating profit was broadly flat YoY, so the improvement in headline PAT needs to be viewed carefully. The major long-term positive is the company's shift toward renewable energy and battery-storage projects through its subsidiary Reliance NU Energies. The company has previously secured a major allocation in an ISTS-connected solar + BESS project, giving it exposure to India's rapidly growing renewable-storage market. The balance-sheet turnaround is another important factor. Reliance Power has been working to reduce financial stress and improve the position of its operating assets. This is important because the company historically carried significant debt and faced financial/asset-quality issues.