RattanIndia Power share price jumps another 11%, rallies 35% in June. What's powering the rally?

New Delhi – Shares of RattanIndia Power Ltd continued their remarkable upward trajectory, surging 11% on Monday, extending their monthly gains to a solid 35% in June 2025. The power sector stock, which had largely flown under the radar in recent months, has suddenly become the toast of retail and institutional investors alike. The sharp rally has raised eyebrows across Dalal Street, prompting a closer look into what’s fueling this momentum.

Momentum Fueled by Strategic Debt Resolution and Financial Restructuring

At the heart of RattanIndia Power’s rally lies a series of positive developments on the financial restructuring front. The company, which operates a 1,350 MW thermal power plant in Amravati, Maharashtra, has made significant progress in reducing its debt burden.

Earlier this month, reports indicated that RattanIndia Power cleared a substantial portion of its outstanding debt, aided by improved cash flows and strategic refinancing. According to industry insiders, this move has materially improved the company’s balance sheet, making it more attractive for long-term investors.

"The resolution of legacy debt issues and focus on operational efficiency have led to a re-rating of the stock," said Rajiv Mehta, Senior Analyst at Yes Securities. "The market is responding to cleaner books and better earnings visibility."

Power Demand Boom Adds Tailwinds

The rally is also supported by a favorable macro environment. India is witnessing robust demand for power, with peak demand hitting record levels in summer months due to rising industrial activity and extreme temperatures.

The Ministry of Power recently reported that India’s peak power demand crossed 250 GW, marking a significant jump over previous years. This surge is putting thermal power producers back in the spotlight, especially those with scalable and operational capacity.

"With renewable capacity still not fully able to meet peak demand, legacy thermal players are witnessing a revival in fortunes," said Ankit Aggarwal, Energy Sector Expert at JM Financial.

Valuation Catch-Up and Retail Interest

Despite the recent run-up, RattanIndia Power’s valuation still appears reasonable compared to peers. The stock had been trading at a steep discount due to concerns over debt and lack of clarity on future growth. With those headwinds easing, analysts believe a valuation catch-up is underway.

Moreover, the company has caught the attention of retail investors on social media forums and stock trading platforms, further fueling short-term momentum.

"The rally is partly fundamental and partly speculative. There’s a sudden surge in retail volumes, likely driven by bullish sentiment on energy stocks," said Nilesh Jain, Technical & Derivatives Analyst at Centrum Broking. "But RattanIndia’s chart structure does indicate strength above ₹10 levels."

Technical Indicators Point to Continued Momentum

From a technical perspective, RattanIndia Power is currently in a bullish breakout zone, with rising volumes confirming the uptrend. The stock is trading well above its 20-day and 50-day moving averages, a sign of sustained buying interest.

The Relative Strength Index (RSI) has entered overbought territory but remains supportive of the bullish sentiment. Analysts caution, however, that some consolidation or profit booking could occur after the sharp gains.

Market Context: Power Stocks Back in Favor

RattanIndia Power’s rally is not an isolated case. Several power sector stocks—particularly public sector enterprises (PSEs) and private thermal operators—have seen sharp gains in 2025 amid expectations of higher tariffs, better plant load factors (PLFs), and rising demand.

Companies like NTPC, JSW Energy, and Tata Power have also registered strong stock market performance. However, RattanIndia Power’s rally stands out due to its low base and debt resolution angle, which makes it a high-beta play in the sector.

Investor Outlook: Should You Chase the Rally?

While the rally has caught the attention of momentum traders, long-term investors are advised to tread with caution. The fundamentals are improving, but significant upside from current levels may depend on earnings delivery, further deleveraging, and capacity utilization.

"We expect more upside, but the stock may face resistance near the ₹12–₹13 level unless backed by strong quarterly results," said Harshit Shah, Equity Strategist at KRChoksey.

The upcoming Q1 FY26 earnings and management commentary will be crucial in determining whether RattanIndia Power can sustain its re-rating story.

RattanIndia Power's 35% rally in June reflects a confluence of improving fundamentals, macro tailwinds, and investor optimism. While the stock has made impressive strides, the sustainability of the uptrend hinges on continued financial discipline and a steady improvement in operating performance.

For now, the market seems to be rewarding its transformation from a debt-laden utility to a leaner, more competitive power player.