The shares of this leading power generation company are in focus after baggin a work order worth Rs 2,000 crore. In this article, we will dive deeper into the terms and conditions and the scope of the contract.
With a market capitalization of Rs 18,458 crores, the shares of Reliance Power are currently trading at Rs 46 per share, down by 15.3 percent from its 52-week high of Rs 53.64 per share. Over the last five years, the stock has delivered a return of 2,455.56 percent.
About the order
Reliance Power Limited has executed a commercial term sheet for a long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL), an entity controlled by Druk Holding and Investments Limited (DHI), the investment vehicle of the Royal Government of Bhutan. Together with DHI, Reliance Power will develop Bhutan’s largest solar power project i.,e, a 500 MW plant on a 50:50 joint venture basis.
The project, costing an estimated Rs 2,000 crores of capital outlay, will be built on a Build-Own-Operate (BOO) basis. It is the biggest foreign direct investment (FDI) so far in Bhutan’s solar energy domain. The solar project in Bhutan will be rolled out in phased tranches within the next 24 months, supporting Bhutan’s sustainability agenda and the wider South Asian energy transition agenda. Upon completion, it will be larger than all other solar installations in the country combined, greatly increasing Bhutan’s solar generation capacity.
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Financial Highlights
The company reported a revenue decline of 3.92 percent to Rs 7,583 crores in FY25 from Rs 7,893 crores in FY24. However, it reported a net profit of Rs 2,948 crores in FY25 as compared to a loss of Rs 2,068 crores in FY24. The stock has delivered a negative ROE of 1.31 percent and an ROCE of 6.05 percent.
About the company
Reliance Power Limited is a part of the Reliance Group and is one of India’s leading private sector power generation companies. The company has an operating portfolio of 5,305 megawatts, which includes 3960 megawatts Sasan Power Limited (the world’s largest integrated coal-based power plant). For the past seven years, Sasan Power has consistently ranked as the best operating power plant in India.
Written by Satyajeet Mukherjee
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