Reliance Power Surges 70% in Just 1 Month; Shares Hit New 52-Week High Today: What's Fuelling the Rally?

Shares of Reliance Power, owned by Anil Ambani, skyrocketed to a new 52-week high of Rs 76.49 on Tuesday after rising 7.3% intraday. The stock rallied a stunning 70% in just one month, crossing past the Rs. 70 mark for the first time after a long slump. The last time Reliance Power traded at this level was in November 2014, before its fall to penny stock status in 2019.

The sharp rally in Reliance Power shares is intriguing to a lot of people, mainly because of the recent rebound the stock is experiencing , alongside improving investor sentiment.

Here are the potential top reasons that could be behind this rally in Reliance Power shares:

1. Blockbuster Q4 FY25 Results

Last month, on May 12, Reliance Power reported a consolidated net profit of Rs. Rs.126 crore in Q4 FY25, a dramatic turnaround from a loss of Rs. 397.56 crore in the same period last year. Although total income slightly dipped to Rs.2,066 crore, expenses declined sharply to Rs.1,998 crore from Rs.2,615 crore, improving the company's bottom line. FY25 full-year net profit stood at a strong Rs. 2,947.83 crore.

3. Solar + BESS Project Win:

Back in May this year, Reliance Power's wholly owned subsidiary Reliance NU Energies informed the exchanges that it secured a Letter of Award (LOA) from SJVN Ltd, a Navratna PSU, for a 350 MW ISTS-connected solar project coupled with a 175 MW/700 MWh Battery Energy Storage System (BESS).

"The project win will definitely boost Reliance Power's clean energy portfolio, which now stands at 2.4 GW of solar and 2.5 GWh of BESS, making it India's largest integrated solar + BESS player." as per data from the exchange filing

4. Tariff Stability and Long-Term Revenue

The project was awarded at a fixed tariff of ₹3.33/kWh for 25 years, ensuring predictable long-term cash flows. The award was part of a highly competitive 1,200 MW solar + 600 MW/2,400 MWh BESS tender that saw oversubscription by 4x, showing massive market interest in dispatchable renewable energy.

5. Strong Stock Momentum

The stock's re-emergence from its penny status signals a possible turnaround for the company. Reliance Power has become a momentum favourite. As per Trendlyne, "technical indicators are strongly bullish, with the stock trading above all 8 major moving averages, where the RSI (82.1) and MFI (87.8) both signal overbought conditions. Ownership structure shows strong retail participation (58.9%) alongside rising institutional interest, with FII holdings increasing to 12.9% and DII to 3.2% in the latest quarter."

Reliance Power Share Movement

As of 12 noon on June 11, 2025, shares of Reliance Power were trading at Rs 72.70, up by Rs 1.46 or 2.05% on the day. The stock has witnessed a phenomenal surge in recent times, gaining 16.16% in the past 5 days, 69.56% in the past month, and over 64.67% in the last six months. Most notably, Reliance Power's share price has skyrocketed by a massive 2,689.23% over the last 5 years, marking one of the most dramatic turnarounds in the market currently. Once considered a penny stock after its sharp fall in 2010, Reliance Power stock is once again back on the investors' radar.

Share Outlook & Target Price Ahead

"Reliance Power has rallied significantly in recent sessions and is now facing profit booking near the Rs. 72-Rs. 75 zone. This level has acted as a resistance earlier as well. If it fails to break above Rs. 75, the stock may retrace toward Rs. 66- Rs. 68 in the short term. Traders holding long positions may consider booking partial profits and re-entering on dips. Fresh entry should be avoided unless there's a breakout above Rs.75 on strong volume." said Riyank Arora technical analyst at Mehta equities ltd.

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