Turnaround

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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