Reliance Power Ltd is a private power generation company with a diversified portfolio of thermal and renewable energy assets across India. Once a flagship of the Anil Ambani Group, the company has faced significant financial and operational challenges in recent years, including persistent losses, high debt, and asset monetization pressures. Despite its large installed capacity of nearly 6 GW, the company’s profitability remains elusive. This article provides a clear, fact-based analysis of its business model, financial health, and future outlook to establish realistic share price targets from 2026 through 2030.
Reliance Power Ltd: Company Overview
- Business Model: Operates thermal and renewable power plants, selling electricity under long-term Power Purchase Agreements (PPAs) and on a merchant basis.
- Geography: Operates across multiple states, including Maharashtra, Uttar Pradesh, Gujarat, and Andhra Pradesh.
- Key Developments: The company has been actively working on debt resolution and asset optimization. It clarified in August 2025 that it is not impacted by fraud classifications or legal actions against other Reliance Group entities like Reliance Communications.
Reliance Power Ltd: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹33.75 |
| Market Capitalization | ₹13,946 Crore |
| 52-Week High/Low | ₹76.5 / ₹29.2 |
| P/E (TTM) | Not Applicable (Negative EPS) |
| P/B (TTM) | 1.47 |
| ROE (FY2025) | -1.02% |
| ROCE (FY2025) | -0.18% |
| Debt/Equity (Mar 2025) | 0.93 |
| FY2025 Revenue | ₹7,583 Crore |
| FY2025 Net Profit | -₹948 Crore |
Reliance Power Ltd Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹36 – ₹44 |
| 2027 | ₹40 – ₹50 |
| 2028 | ₹45 – ₹58 |
| 2029 | ₹50 – ₹68 |
| 2030 | ₹55 – ₹80 |
Note: These targets are derived from a synthesis of credible analyst discussions and projections found in the public domain, adjusted for a neutral, educational perspective.
Reliance Power Ltd Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹36 | ₹44 |
- The company reported a net loss of ₹948 crore in FY2025, continuing its trend of unprofitability.
- While its P/B ratio of 1.47 suggests it is not deeply overvalued, the negative return metrics (ROE, ROCE) are major red flags.
- Any near-term upside would depend on successful debt restructuring or asset sales, not core operational improvement.
Reliance Power Ltd Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹40 | ₹50 |
- Growth prospects remain limited as the company struggles with stagnant revenue (0% growth) and high fixed costs from its thermal fleet.
- Investor sentiment is cautious due to the company’s history of losses and its association with the financially troubled Anil Ambani Group.
- The stock may see speculative rallies based on rumors, but fundamentals do not support a strong bull case.
Reliance Power Ltd Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹45 | ₹58 |
- By this stage, the market will be looking for concrete evidence of a turnaround, such as consistent quarterly profits or a significant reduction in debt.
- Its large asset base provides a theoretical floor for valuation, but poor utilization and low plant load factors cap its earnings potential.
- A re-rating is unlikely without a change in management or a strategic partnership.
Reliance Power Ltd Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹50 | ₹68 |
- Long-term investors will be watching for any progress in its renewable energy initiatives, which could offer a path to a more sustainable business model.
- However, its core thermal assets face increasing regulatory and environmental headwinds, which could lead to further write-downs.
- Sustained losses would likely keep the stock range-bound or in a downtrend.
Reliance Power Ltd Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹55 | ₹80 |
- Sentiment will hinge entirely on whether the company can achieve a fundamental turnaround or find a strategic buyer for its assets.
- There is no credible information suggesting Adani or any other large player is in talks to acquire Reliance Power.
- In a best-case scenario of stabilization and modest profit recovery, the stock could trade closer to its book value of ₹22.87, implying limited upside from current levels.
Reliance Power Ltd: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters | 24.98% |
| Foreign Institutions (FII/FPI) | 13.09% |
| Domestic Institutions (DII) | 3.73% |
| Public (Retail & Others) | 58.18% |
The promoter stake has significantly reduced from historical levels, now standing at just under 25%. There is no pledging of promoter shares, which is a positive governance signal, but the low holding also indicates a lack of strong promoter commitment.
Reliance Power Ltd: Strengths vs Risks
- Strengths:
- Large Asset Base: Owns nearly 6 GW of generation capacity, providing a tangible asset backing.
- Diversified Portfolio: Has both thermal and a small but growing renewable energy presence.
- Clean Promoter Holding: No pledged shares reduces a key governance risk.
- Risks:
- Chronic Losses: Has been unprofitable for several consecutive years, with a net loss in FY2025.
- High Debt Burden: Carries a significant debt of over ₹6,258 crore, leading to high interest expenses.
- Stagnant Business: Revenue growth is flat (0%), indicating a lack of new growth drivers or market share gains.
- Group Legacy Risk: Association with the Anil Ambani Group continues to weigh on investor sentiment.
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Very High (loss-making, high debt) |
| Time Horizon | Not suitable for long-term investment |
| Volatility | Very High – prone to sharp, speculative moves |
| Dividend/Income | None – the company does not pay dividends (0% yield). |
| Ideal Investor | Only highly speculative traders with a very high risk appetite should consider this stock. It is not suitable for conservative or even moderate-risk portfolios. |
Reliance Power is not an investment but a speculative gamble on a potential corporate turnaround or asset sale.
FAQs
Is Reliance Power a good buy?
No, Reliance Power is not a good buy for most investors. It is a loss-making company with high debt and stagnant revenue. It may be suitable only for aggressive speculators who can tolerate extreme risk.
Is Adani buying Reliance Power?
There is no credible public information or official announcement suggesting that Adani Group is in talks to acquire Reliance Power.
What is the target price of the Reliance Power share in 2030?
Based on our analysis of its weak fundamentals and high risk, we estimate a 2030 target range of ₹55 – ₹80. However, a more likely outcome is continued underperformance, with the stock trading closer to its book value of ₹22.87.
What is the IPO price of Reliance Power?
Reliance Power’s IPO price was ₹450 per share in 2008, which was one of the largest IPOs in Indian history at the time.
Is Reliance Power in profit or loss?
Reliance Power is at a loss. It reported a net loss of ₹948 crore for the financial year 2025.
Final Verdict
Reliance Power Ltd stands as a cautionary tale of a once-prominent power company that has failed to adapt to a changing energy landscape. Its massive asset base is offset by chronic losses, high debt, and a lack of a clear strategic direction. For all but the most speculative traders, this stock warrants extreme avoidance. Our 2026–2030 price targets (₹36–₹80) reflect a highly optimistic scenario of stabilization; the more probable trajectory is one of continued stagnation or decline toward its book value, unless a dramatic corporate event occurs.
Sources
- Screener.in – Reliance Power Ltd. Consolidated Financials (FY2025)
- Finology Ticker – RPOWER Company Profile & Ratios
- Groww – Reliance Power Ltd Fundamental Data
- BSE/NSE Corporate Filings – Q2 FY26 Results & Clarification Announcements (Aug 2025)
