Anil Ambani group stocks: The turnaround in Anil Dhirubhai Ambani group (ADAG) stocks — Reliance Power and Reliance Infrastructure — was not just limited to companies’ financials but rubbed off on shareholders’ wealth. From the brink of bankruptcy, both ADAG stocks have rebounded to profitability, helped by effective debt reduction and favourable sectoral dynamics.
Reliance Power cleared ₹3,872 crore in obligations as a guarantor for Vidarbha Industries Power Ltd, eliminating most of the related debts and corporate guarantees. Meanwhile, Reliance Infrastructure significantly reduced its standalone external debt from ₹3,831 crore to ₹475 crore.
Reliance Power share price has surged 125% from ₹29 to above ₹65 levels. Meanwhile, Reliance Infrastructure shares have not been far behind, recording an 87% jump in its value. The sharp rally in ADAG stocks has significantly boosted investor wealth.
Reliance Power
Vinit Bolinjkar Head of Research – Ventura, said Reliance Power’s operating portfolio, totaling 5,305 MW, includes the 3,960 MW Sasan Power Ltd, the world’s largest integrated coal-based power plant.
The company is also accepting EPC orders for joint development of renewable energy projects, contributing to its improving financial performance.
The same is reflected in the company’s financials. For the last quarter of FY25, Reliance Power had swung to the black, posting a profit of ₹126 crore, as against a loss of ₹397.56 crore in Q4 FY24. Total income dipped to ₹2,066 crore in the fourth quarter from ₹2,193.85 crore in the same period a year ago.
“With a strong outlook for the power sector and a fresh start following restructuring, investor confidence is on the rise,” Boljinkar said.
Reliance Infrastructure
Anubhav Sangal, Sr. Research Analyst at Bonanza, said that Reliance Infra is seeing green shoots in revival through successful restructuring and debt reduction as well as bagging robust opportunities with the recent Dassault collaboration in the helm.
These measures according to experts have fortified Reliance Infra’s balance sheet, setting a solid foundation for future growth.
“Beyond its power distribution operations in Delhi, the company is expanding into defence manufacturing infrastructure, including the Mumbai Metro project. A recent JV with the US-based Coastal Mechanics for MRO services in India, along with export orders from global defence companies, could drive enhanced future performance,” according to Boljinkar.
The company is also targeting ₹3,000 crore from the export of 155 mm ammunition and aggregates by the end of the financial year 2027, as per a PTI report. As per PTI sources, Reliance has been able to make inroads in the highly competitive markets of the European Union and South East Asia.
Recently, Reliance Defence also announced a strategic partnership with Düsseldorf-based Rheinmetall AG. The collaboration between the companies will include the supply of explosives and propellants for medium and large calibre ammunition to Rheinmetall by Reliance.
Reliance Infrastructure also posted a financial turnaround, reporting a net profit of ₹4,387 crore in the March quarter, mainly aided by a reduction in expenses. It had posted a net loss of ₹220.58 crore in the January-March period of 2023-24.
Can rally in Reliance Infra, Reliance Power shares continue?
Analysts remain largely positive on these ADAG stocks, expecting the trend to sustain, albeit the pace could slow down.
“Both companies are entering a new chapter following their restructuring efforts, and their growth prospects are backed by strong industry trends and their deep expertise in their respective sectors, making this rally sustainable,” said Boljinkar.
Commenting on individual stocks, Sangal said we could still see space left for the valuation to go upwards for Reliance Power shares, however, at a slower pace than we saw earlier.
For Reliance Infra, the analyst said, “We believe that Reliance Infrastructure is poised to see meaningful revenue visibility through current orders and potential future orders that will take reliance infra towards a meaningful value unlocking.”
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies,…More
