Reliance Power & Infrastructure Stocks Surge 10% in Just Two Days

Reliance Power and Reliance Infrastructure have been in the spotlight this week. Both stocks jumped nearly 10% in just two days, surprising many in the market. For companies that have struggled with heavy debt and slow growth in the past, this sudden rally raises important questions. Is it only short-term momentum, or are we finally seeing signs of a turnaround?

We know that India’s power and infrastructure sectors are gaining strong policy support. With rising demand for energy, urban expansion, and government-led projects, companies connected to these areas are back on investor watchlists. Reliance Power, which manages large generation projects, and Reliance Infrastructure, active in transport and EPC contracts, stand at the center of this renewed attention.

We will break down the reasons behind the two-day surge, look at what is driving investor confidence, and explore whether the fundamentals back up the rally. Our goal is to keep the discussion simple, clear, and fact-based, so we can all understand what this move means for long-term investors.

Background on Reliance Power & Reliance Infrastructure

Reliance Power is a major Indian energy company. It runs power plants and is now moving into solar and battery storage projects. Reliance Infrastructure deals with road building, metro rail service, and defence work. Anil Ambani leads both companies, which have struggled for years with debt and financial challenges. But they also have e big capacity and a chance to rebuild.

The Stock Surge – What Happened?

In two trading sessions, Reliance Power jumped over 10.2% to reach ₹47.70, and Reliance Infrastructure rose about 10.28% to ₹289.25 on the BSE.
Later, both stocks zoomed even more, hitting upper circuit limits and climbing 15.7% in three days. Reliance Power touched ₹50.08; Reliance Infrastructure reached ₹303.70.

Key Drivers Behind the Rally

Clean-Energy Project Wins

Reliance Infrastructure got a Letter of Award from NHPC. The project is expected to deliver 390 MW of solar generation, combined with 780 MWh of battery storage. Offensive of Reliance Power had set up a solar energy joint venture in Bhutan, to generate solar energy with battery reserves. This extended their clean-energy reach and boosted investor confidence.

Strong Profit and Project Momentum

In Q4 FY25, Reliance Power reported a net profit of ₹126 crore, compared to a loss of ₹398 crore a year earlier. That turned heads fast. The company acquired 350 MW BESS based on the solar energy of its subsidiary NU Energies.

Patterns of a Comeback

Reliance Power has risen more than 173% over the last year. Reliance Infrastructure climbed 141%. In June alone, both stocks gained over 22%. They’re now seen as prime turnaround stories in FY25. Reliance Infrastructure has also improved its balance sheet, achieving a three-notch credit rating upgrade.

Financial Health and Fundamentals

Reliance Power’s big leap into profit tells us something has changed. They’ve cleared huge debts, settled legal issues, and won solar bids. Reliance Infrastructure is also cleaning up its financials. A better rating and debt reduction are helping. But risks remain, past losses, large liabilities, and execution hurdles. So, we must watch closely.

Technical Analysis of the Rally

Reliance Power hit fresh 52-week highs, first around ₹67–₹71 in June, then ₹50 in this recent rise.
The stock broke past many moving average lines. That suggests strong momentum, though some technical indicators are now overbought.
Reliance Infrastructure is also nearing key resistance zones near ₹303–₹500. Analysts say a breakout might take it to ₹500, if momentum holds.

Risks and Challenges Ahead

We can’t ignore past troubles. Reliance Power and Infrastructure were once debt-ridden. Some legal and regulatory risks still linger. Execution of new projects may face delays. Market swings after such big gains are common. So, cautious optimism is wise.

Future Outlook

We see potential. Reliance Power’s clean-energy pipeline, domestic and international, is expanding. Profits are back. Debt is shrinking. Reliance Infrastructure’s credit profile and debt position are improving. If these companies keep delivering project wins, financial health, and transparent operations, they may be more than short bursts. We may well be looking at a real revival story.

Conclusion

Reliance Power and Reliance Infrastructure appear to be moving beyond their past struggles. Their stocks are rallying, backed by clean-energy deals, strong profits, and better finances. We feel a turning point. But prudence matters. For long-term investors, the question is: will the companies keep backing the momentum with concrete wins? We’ll be watching closely.

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This content is for informational purposes only and is not financial advice. Always conduct your research.