Shares of Reliance Power Ltd (RPOWER) have entered a steep downward spiral, breaking below the psychological support level of ₹30 this week. On Thursday , January 22, 2026, the stock hit a fresh 52-week low of ₹29.66 on the BSE, marking a dramatic reversal for a stock that was once a market darling. Just seven months ago, Reliance Power was trading at a multi-year high of ₹76.49 (June 11, 2025). Since then, the stock has eroded more than 60% of its value. The decline has intensified recently, with the share price falling by over 16% in the last month alone and nearly 10% in the last four trading sessions.
On January 16, 2026, the company informed exchanges that the Securities and Exchange Board of India (SEBI) had initiated a forensic audit. This investigation focuses on alleged violations of the SEBI Act and the Companies Act, causing panic among institutional investors. Despite reporting a 95% jump in net profit for the September 2025 quarter, the company still grapples with a high Debt-to-EBITDA ratio (9.83x) and low long-term operating profit growth. While the recent crash is painful for newer investors, long-term holders are still seeing significant green. Looking back five years to January 2021, the stock was trading at a mere ₹3.40. Even at today’s "low" price of roughly ₹29.60, the stock has delivered a staggering 770% return over the five-year period.
Reliance Power’s debt-to-equity ratio, is at 0.87, which is lowest in the industry, adding that its debt servicing of ₹634 crore in the September FY26 quarter reflected “continued commitment to debt reduction”. Technical indicators show that Reliance Power is currently trading below all its key moving averages (5-day, 20-day, 50-day, and 200-day). Breaking the 52-week low is considered a major "red flag" by analysts, suggesting that the stock may face further selling pressure unless a positive catalyst—such as a clean chit from SEBI—emerges. Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, noted that immediate support is placed at Rs 30, while resistance is seen at Rs 34.22. He added that a decisive move above Rs 34.22 could push the stock towards Rs 36, with the expected short-term trading range between Rs 30 and Rs 36. AR Ramachandran, part-time Sebi-registered research analyst at Tips2trades, said Reliance Power continues to show weakness on daily charts. According to him, the stock faces strong resistance at Rs 33.2 and could drift towards the Rs 30 level in the near term.