Anil Ambani’s eliance Power reported a significant turnaround in financial performance for the quarter ended September 30, posting a net profit of Rs 87 crore. This positive result was driven by an increase in revenues compared to the same period last year. The company, a part of the Anil Dhirubhai Ambani Group had faced a considerable loss of Rs 352 crore in the second quarter of FY25, as revealed in a media statement issued late Monday. However, robust revenue growth, with the total income reaching Rs 2,067 crore, up from Rs 1,963 crore a year ago, aided the recovery.
Overall, Reliance Power’s Q2 FY25 results present a positive picture of operational growth and margin expansion. Despite the headline decline in profit due to last year’s exceptional gain, the company’s core business has clearly strengthened. With rising revenue, higher margins, and better cost control, Reliance Power appears to be on a path of steady operational recovery, which bodes well for its long-term prospects.Revenue grew 12.2%, showing that the company is generating more from its operations.EBITDA up 64% and margins up to 31.3% — that’s a huge operational improvement.
The stock witnessed a significant uptick on Wednesday, climbing 7.8% to Rs 42.30. This surge came in the wake of the company's clarification regarding a recent arrest made by the Enforcement Directorate (ED) in connection with a fake bank guarantee case. The case revolves around alleged forged bank guarantees worth over Rs 68 crore, which were reportedly arranged to help a Reliance Power subsidiary qualify for a Solar Energy Corporation of India (SECI) tender. Dutta is accused of collaborating with previously arrested individuals, including the company's former CFO, in this scheme.This incident is part of a larger ED investigation into Anil Ambani's Reliance Group. The probe has already resulted in asset attachments worth over Rs 7,500 crore and allegations of loan diversions between 2010-2012.