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Anil Ambani’s Reliance Power and Reliance Infrastructure Deliver Multibagger Returns in FY25

Anil Ambani’s Reliance Power and Reliance Infrastructure Deliver Multibagger Returns in FY25

Anil Ambani’s Reliance Power and Reliance Infrastructure Deliver Multibagger Returns in FY25

Once written off, Anil Ambani’s flagship companies have staged a remarkable turnaround, rewarding investors with 151% and 136% returns, respectively, as strategic pivots, legal wins, and sectoral tailwinds fuel a dramatic comeback.

From Crisis to Comeback: The FY25 Turnaround
Following years of financial stress and operational hurdles, Reliance Power and Reliance Infrastructure have made a strong comeback in FY2025, standing out as notable turnaround stories.
Both companies swung from deep losses in FY24 to robust profits in FY25, leading a group of nine firms that have rewarded shareholders with multibagger returns exceeding 100%.
• Reliance Power: Shifted from a loss of ₹2,242 crore in FY24 to a profit of ₹2,947 crore in FY25, delivering a 151% return to investors over the past year.
• Reliance Infrastructure: Posted an even more dramatic swing, moving from a loss of ₹1,148 crore to a record profit of ₹9,177 crore, resulting in a 136% return for shareholders.

Reliance Power: Riding the Renewable Wave
Reliance Power’s revival is driven by a string of strategic breakthroughs in the renewable energy space. Its subsidiary, Reliance NU Suntech, inked a landmark 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) for Asia’s largest co-located solar and battery energy storage project—comprising 930 MW of solar capacity and 465 MW/1,860 MWh of BESS—entailing an estimated outlay of ₹10,000 crore. Further achievements include securing a 350 MW solar-BESS project from SJVN and entering into a commercial partnership with Bhutan’s Druk Holding to build the country’s largest solar energy installation.
Reliance Power posted a PAT of ₹126 cr in Q-4 FY2025, a dramatic improvement compared to the ₹397.56 cr loss it incurred during the corresponding quarter of the previous fiscal year.
This recovery was bolstered by a ₹348 crore equity infusion from Reliance Infrastructure and Basera Home Finance, as well as cost rationalization and debt reduction efforts. The company’s debt-to-equity ratio improved to 0.93 from 1.62 in FY24, signaling a healthier balance sheet.
Legal clarity also played a role, with the Delhi High Court granting interim relief against SECI’s debarment order, allowing Reliance Power to resume bidding for new projects.

Reliance Infrastructure: Legal Wins and Defence Foray
Reliance Infrastructure’s revival has been equally dramatic. The company benefited from a favorable ruling by the National Company Law Appellate Tribunal (NCLAT), which suspended an earlier insolvency order and restored investor confidence. This legal win was followed by the award of a ₹5,000 crore defence contract—the first of its kind for a private Indian firm—covering a full-scale aircraft upgrade program to be executed over 7–10 years.
The company’s stock soared more than 100% in the past year, including a 61% rally in the last month alone. The move into the high-value defence and aerospace sector has brought long-term business visibility and diversified revenue streams.

Market Performance and Investor Sentiment
Both Reliance Power and Reliance Infrastructure have outperformed the broader market, with their stocks hitting multi-year highs and drawing renewed attention from retail and institutional investors. Reliance Power has delivered a staggering gain of over 2,600% over the past five years, with a nearly 400% return in just the last three years.
Reliance Infrastructure’s momentum is similarly robust, driven by strong earnings, legal clarity, and strategic diversification.
However, analysts caution that while the turnaround is impressive, these stocks remain volatile and should be approached with careful research and risk management.

The Broader Turnaround Trend
The resurgence of Anil Ambani’s companies is part of a wider trend in India’s capital markets, where at least 40 firms have swung from losses to profits in FY25, with nine delivering multibagger returns. This reflects the dynamism of India’s manufacturing and infrastructure sectors, as well as the potential for distressed companies to stage dramatic recoveries with the right mix of strategy, capital, and regulatory support.

Conclusion
Anil Ambani’s Reliance Power and Reliance Infrastructure have executed one of the most striking recoveries of FY25, delivering multibagger gains and restoring investor trust in the group’s strength and ability to navigate change.
Strategic pivots into renewables and defence, improved financial discipline, and favorable legal outcomes have all contributed to this revival. While challenges remain, the momentum suggests that the ADAG group is on a carefully managed path to stability and renewed relevance in India’s corporate landscape.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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The image added is for representation purposes only

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Fourth tranche includes structural reforms in various sectors

Fourth tranche includes structural reforms in various sectors

In the 4th tranche of the economic package, Finance Minister Nirmala Sitharaman basically focuses on various sectors aiming towards growth stimulation and job creation. This time the utmost focus has been on sectors like coal, minerals, defence, aviation, power distribution, space and atomic energy sector. All the 4 tranches sums up the detailed guidelines and strategy of allocation of total fund as announced earlier by Prime Minister Narendra Modi. This pool of Rs 20 lakh crore package, that amounts to 10 percent of our GDP aims to help the nation survive the economic crisis that has risen due to cross country lockdowns laid to curtail spread of COVID-19.

 

Details of previous tranches:

The 1st tranche was announced on May 13, 2020 following the 2nd and 3rd tranche on May 14 and 15 respectively. The announcements in 3 tranches summed up to Rs 10.73 lakh crore. Similarly, 4th tranche has been aired on May 16, 2020 providing further details regarding the balance amount of fund dispersal strategy.

The 20 lakh crore package includes the amounts of earlier announcements made in March. Like the fund of Rs 1.7 lakh crore to take care of provision of free food grain and cash to poor for three months period, and monetary policy announced by RBI amounting to Rs 5.6 lakh crore. The First 3 tranches focuses on MSMEs, NBFCs, relief measures for poor migrant workers, street vendors, small businesses and farmers and agricultural sector.

 

Major announcements and reform in policies:

Investment upgradation:

States will be ranked on investment attractiveness to compete for new investments for industrial upgradation and infrastructure facilities and expansion of its reach. Major sectors in radar are Coal, Minerals, Defence, Airspace, Power distribution, Space and Atomic Energy. Let us consider them one by one.

 

Coal:

Government removes its monopoly over coal and announces commercial mining of this black diamond. Emphasizing on reduction of imports and increasing “Atma Nirbharta”. She also announces that government will spend Rs. 50,000 crores to develop this sector and looks forward to transparent and healthy competition welcoming private sector participation. Adding further, she tells around 50 blocks of coal will be auctioned.

 

Minerals:

Similarly, she announces that the government is looking forward to enhance private investment in this sector. Open and transparent auctions will be held to offer around 500 mining blocks. In order to boost competition in Aluminium industry, joint auction will be arranged for Bauxite and coal ores.

 

Defence Production:

With the aim of reducing dependence and becoming Atma Nirbhar, Foreign Direct Investment (FDI) in manufacturing under automatic route has been raised to 74% as compared to 49% previously. For domestic production of imported spares, budget provisioning has been done. These steps are taken to enhance autonomy, accountability and improvise efficiency in this sector.

 

Civil Aviation:

Limitations levied on usage of Indian Air Space will be uplifted, in order to make flying more efficient. This liberation will earn an annual benefit of around Rs. 1,000 crores for this sector. She also mentions vision of building world-class airports via Public Private Partnerships (PPP). Adding further, she said Government is taking efforts to make our country an international hub for repairs and maintenance and overhaul for aircrafts under authorization of the Airports Authority of India. Untill now 3 out of 6 airports have been authorized for the same on PPP basis.

 

Power:

In accordance with the newly laid tariff policies, Government opens doors for private players to enter into power distribution sector in the Union Territories. This is supposed to strengthen, stabilize and improvise efficiency in this sector.

 

Stimulating investments:

A revival scheme amounting to Rs 8,100 crores, has been launched to stimulate social infrastructure. This will boost private sector investment in social infrastructure.

 

Space:

Government welcomes private sector to become part of journey in space, launching rockets, satellite services and others. This will stimulate private participation in this sector. The finance minister also mentions that the government is trying to liberalize geo-spatial policy.

 

Atomic Energy:

Government wishes to see new startups in the nuclear sector. For stimulating this vision, government will set up incubation centres. These incubators are termed as Technology Development cum Incubation Centres. The welcoming the PPP model will help in establishing research reactors and making of medical isotopes.

Lastly, the above mentioned strategic plans and reforms are built with a vision of creating opportunities for businesses and at the same time generating employment and contributing to economic upswing.

 

 

Third tranche of economic package to support farmers along with governance reforms