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Stocks of Anil Dhirubhai Ambani Group —Reliance Power and Reliance Infrastructure—are witnessing a surge; Key reasons and should you buy?
Anil Ambani Group Stocks Rally
Stocks of the Anil Dhirubhai Ambani Group (ADAG)—Reliance Power and Reliance Infrastructure—are witnessing a sharp surge. Reliance Power shares jumped over 5% in morning trade on Wednesday, extending their monthly gain to more than 70%. Meanwhile, Reliance Infrastructure rose 1% early today, taking its monthly gains close to 60%.
Key Drivers Behind The ADAG Stock Rally
The rally in Reliance Power and Reliance Infrastructure stocks has been fuelled by a series of positive developments.
For Reliance Power, the turnaround in Q4 results played a pivotal role. The company reported a consolidated profit of ₹125.57 crore for Q4FY25, compared to a loss of ₹397.56 crore a year ago. Positive project wins also boosted sentiment. On May 28, SJVN Limited, a Navratna PSU, awarded Reliance NU Energies Private Limited—a Reliance Power subsidiary—a letter of award for a 350 MW solar power project and a 175 MW/700 MWh battery energy storage system (BESS) connected to the interstate transmission system (ISTS).
Reliance Infrastructure, meanwhile, strengthened its position in the defence sector. Post-market hours on Tuesday, the company announced an expansion of its strategic partnership with Germany’s Diehl Defence. Anil D. Ambani, founder and chairman of the Reliance Group, and Helmut Rauch, CEO of Diehl Defence, met to discuss specifics on guided and terminally guided munitions as part of a long-standing agreement signed in 2019.
What’s driving investor interest?
Experts attribute the surge in ADAG stocks to a combination of strategic collaborations, financial clean-ups, and renewed investor confidence.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, said:
“The Reliance Infrastructure–Diehl Defence venture marks a significant entry into India’s growing defence sector, reinforcing the group’s long-term growth prospects.”
For Reliance Power, the turnaround story has gained momentum. The company’s 25-year solar and battery storage PPA with Bhutan’s Druk Green Power—Asia’s largest such project—along with a Q4 FY25 pre-tax profit of ₹67.15 crore (compared to a pre-tax loss of ₹461.35 crore in Q4 FY24) have improved its outlook. Reliance Power’s debt-to-equity ratio has dropped to 0.88:1 in FY25, down from 1.61:1 in FY24, marking one of the best in the sector.
Debt reduction has also been a key focus. Reliance Infrastructure has nearly eliminated its standalone net debt, while Reliance Power has strengthened its balance sheet through preferential allotments.
The recent NCLAT stay on insolvency proceedings against Reliance Power and the resolution of Reliance Capital’s insolvency through a ₹9,650 crore acquisition by IndusInd International Holdings Ltd have lifted key legal overhangs, further fueling investor optimism.
“These factors have created the perfect backdrop for a re-rating of ADAG group stocks,” Srivastava added. “The market is re-evaluating these companies as turnaround stories with strong potential, rather than distressed assets.”
Overall, improved earnings, strategic wins, reduced debt, and legal relief have paved the way for a strong revival, making the ADAG group stocks an attractive opportunity for investors betting on long-term growth.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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