Reliance Power Share Price: Anil Ambani-Owned ADAG Stock Hits 52-Week High After Order from THIS Navratna PSU

Mumbai, May 31, 2025 — In a strong comeback that caught many market participants off guard, shares of Reliance Power Ltd—part of the Anil Dhirubhai Ambani Group (ADAG)—soared to a fresh 52-week high on Friday, following news of a significant project order secured from a prominent Navratna Public Sector Undertaking (PSU). The development not only boosted investor sentiment but also marked a pivotal shift in the company's turnaround narrative.

The stock surged 12.5% intraday, touching a high of ₹28.75 on the BSE before closing at ₹27.90, up 10.82% for the day. On the National Stock Exchange (NSE), volumes spiked by over 300% compared to the 30-day average, underlining strong investor interest.

The Trigger: Project Awarded by NLC India Ltd

According to a regulatory filing made by Reliance Power to the stock exchanges, the company’s engineering arm, Reliance Infrastructure Engineering, has secured a key contract from NLC India Ltd, a government-owned Navratna PSU under the Ministry of Coal. The contract, valued at ₹1,150 crore, pertains to engineering, procurement, and construction (EPC) for a lignite-based thermal power plant in Tamil Nadu.

NLC India Ltd, formerly Neyveli Lignite Corporation, is one of India’s largest lignite mining and power generation firms, with a diversified portfolio in conventional and renewable energy.

Key Highlights of the Project:

• EPC contract for 2x500 MW thermal power plant

• Located in Cuddalore district, Tamil Nadu

• Execution timeline of 36 months

• Scope includes design, civil works, mechanical installations, and commissioning

Reliance Power, in its statement, said, “This order reaffirms our credentials as a capable and competitive EPC partner in India’s growing power sector. It also signifies a revival of confidence in the ADAG group’s infrastructure capabilities.”

Why This Matters: Strategic Win for Reliance Power

This contract win is especially significant for Reliance Power, which has been struggling to reposition itself in the power sector following years of debt restructuring, stalled projects, and reduced investor confidence. The company, once touted as the crown jewel in the ADAG portfolio, has faced a difficult decade marked by cancelled ultra-mega power projects and corporate de-leveraging.

But over the past year, there have been signs of resurgence:

• Debt reduction efforts have picked up pace

• Operational performance has shown steady improvement

• The group’s strategic focus has shifted towards cash-generating assets

The NLC India order marks the first major PSU contract bagged by Reliance Power in over six years.

According to market watchers, this contract could serve as a launchpad for the company to win more such bids in the public sector space, where credibility and execution history are critical.

Stock Market Reaction: Massive Surge in Volumes and Valuation

The market cheered the development enthusiastically. With Friday’s gains, Reliance Power’s market capitalization has crossed ₹10,000 crore, its highest since 2017.

Trading Snapshot (BSE):

• Previous Close: ₹25.17

• Day High: ₹28.75

• Day Low: ₹25.30

• Closing Price: ₹27.90

• Volume: Over 4.5 crore shares traded

The stock has now gained over 72% in 2025 YTD, outperforming the broader BSE Power index, which is up 31% for the same period.

Technical analysts noted that the breakout above ₹26 was accompanied by strong momentum indicators, suggesting further upside is likely in the near term.

"We see a near-term target of ₹32–35, provided the stock sustains above ₹27 with strong volumes," said Kunal Bothra, an independent market expert.

The Bigger Picture: ADAG Group’s Rebuilding Phase

The resurgence in Reliance Power is part of a broader turnaround strategy under Anil Ambani’s leadership. While much of the ADAG group had been written off by investors in recent years due to insolvency proceedings and financial stress, there’s been a marked shift in perception in 2025.

Key group companies—Reliance Infrastructure, Reliance Capital (under administration), and Reliance Naval—have seen legal breakthroughs, asset monetizations, and in some cases, strategic investors stepping in.

For Reliance Power, the focus is now clearly on:

• Monetizing stalled power assets

• Re-entering the EPC space with leaner structures

• Participating in energy transition projects, especially in renewables

According to insiders, the company is exploring joint ventures for solar and wind projects in Gujarat and Rajasthan, with announcements expected in the next quarter.

Analyst Views: “Too Early to Call a Full Turnaround”

While the market has reacted positively, several brokerages are urging caution.

"This contract win is a morale booster and improves near-term cash flow visibility, but the company still carries high legacy debt and operational constraints," noted a report by ICICI Securities.

Analysts are also watching for:

• Project execution timelines

• Capital expenditure outflows

• Working capital cycle management

• Future bidding pipeline

A full turnaround will require sustained performance and strategic clarity, particularly in the context of India’s evolving power policy framework, which is increasingly skewed towards renewables.

What Should Investors Do?

For retail investors, the rally in Reliance Power poses the classic risk-reward dilemma. While the upside potential has improved significantly, volatility remains high.

Bullish Case:

• Execution of the NLC project builds credibility

• Cash flows improve, enabling faster debt repayment

• Renewed interest from institutional investors

• Macro tailwinds from India’s infrastructure push

Bearish Risks:

• Execution slippages or cost overruns

• Legal hurdles in older stalled projects

• Competitive pressure in future PSU tenders

• Limited clarity on long-term growth roadmap

Experts advise risk-tolerant investors to wait for quarterly results and execution updates before making fresh allocations.

A Step in the Right Direction

Reliance Power’s share price surge to a 52-week high following the NLC India order signals a renewed phase of optimism around the company. While challenges persist, the development marks a critical milestone in the ADAG firm’s path to recovery and re-entry into India’s high-growth power infrastructure ecosystem.

Whether this order is a one-off or the start of a new chapter will depend on execution, capital discipline, and strategic agility. For now, though, Anil Ambani has a rare reason to celebrate in the markets—and investors are watching closely.