RPOWER - Reliance Power

📊 NSE: RPOWER 🏢 Power Generation And Supply 📅 Last Updated: 12/14/2025 11:48

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue reached INR 8,260 Cr in FY25, showing a marginal 0.03% growth from INR 8,257 Cr in FY24. Thermal power remains the dominant segment with 5,760 MW capacity, while renewable energy contributes through 185 MW of existing capacity.

Geographic Revenue Split

Operations are primarily concentrated in India, with key assets including the Sasan project in Madhya Pradesh and the Rosa project in Uttar Pradesh. Specific regional percentage splits are not disclosed.

Profitability Margins

Operating profit margin improved significantly to 28% in FY25 from 15% in FY24. However, the net profit margin remained negative at -3% in FY25, though improved from -25% in FY24 due to exceptional income from deconsolidation.

EBITDA Margin

Normative EBITDA grew 20.7% YoY to INR 2,778 Cr in FY25 from INR 2,301 Cr in FY24, driven by operational efficiencies and sustained high PLFs at Sasan and Rosa assets.

Capital Expenditure

The company has a planned pipeline of 4 GWp Solar and 6.5 GWh BESS. The Board has approved raising up to USD 600 million (approx. INR 5,000 Cr) through FCCBs to fund these renewable and energy-storage initiatives.

Credit Rating & Borrowing

Liquidity is rated as 'Poor' by ICRA due to delays in debt servicing. Standalone bank debt was eliminated in April 2024, but consolidated debt remains at INR 18,765 Cr with a finance cost of INR 2,055.86 Cr in FY25 (approx. 11% effective rate).

⚙️ Operational Drivers

Raw Materials

Coal is the primary raw material, representing 47% of total income (INR 3,892 Cr fuel cost in FY25). Natural gas is a secondary fuel, though 25 GW of industry capacity remains idle due to supply shortages.

Import Sources

Sourced domestically within India. Sasan project utilizes captive mines, while Rosa project is supplied via fuel supply agreements with Coal India Limited.

Key Suppliers

Coal India Limited is the primary external supplier for thermal operations.

Capacity Expansion

Current installed capacity is 5,945 MW (5,760 MW Thermal, 185 MW Renewable). Planned expansion includes 4,000 MW Solar, 6,500 MWh BESS, and 770 MW Hydro projects.

Raw Material Costs

Fuel costs were INR 3,892 Cr in FY25, up 1.5% from INR 3,831 Cr in FY24. Procurement strategy focuses on captive mining for Sasan to maintain cost leadership.

Manufacturing Efficiency

Sasan and Rosa assets maintain 'industry-leading' Plant Load Factors (PLFs). Inventory turnover was 61.8 days in FY25 compared to 52.1 days in FY24.

Logistics & Distribution

Distribution is managed through long-term Power Purchase Agreements (PPAs) with state-owned distribution utilities (DISCOMs).

📈 Strategic Growth

Expected Growth Rate

16-20%

Growth Strategy

Growth will be achieved through the 'Reliance Nu Energies' platform, focusing on a 4 GWp Solar and 6.5 GWh BESS pipeline. The company is transitioning to a zero net bank debt standalone model and raising USD 600M via FCCBs to fund clean energy hybrids and green hydrogen pathways.

Products & Services

Electricity (Thermal, Solar, Wind, Hydro), Battery Energy Storage Systems (BESS) capacity, and ancillary grid services.

Brand Portfolio

Reliance Power, Reliance Nu Energies.

New Products/Services

Battery Energy Storage Systems (BESS), Green Hydrogen, and Digital Trading Ecosystems are expected to be future revenue drivers.

Market Expansion

Targeting the renewable energy segment across India through bids with agencies like SECI, GUVNL, and NTPC.

Market Share & Ranking

The company operates 5,945 MW of capacity, positioning it as a significant private sector power producer in India.

Strategic Alliances

Reliance Nu Energies serves as the internal integrated clean energy platform; external JVs include a 50% associate stake in Reliance Enterprises Private Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward 'premiumized, integrated clean energy platforms' with 20+ GWh of BESS already auctioned in India. RPOWER is positioning itself as a clean IPP platform.

Competitive Landscape

Competes with major thermal and renewable IPPs like NTPC, Adani Power, and Tata Power.

Competitive Moat

Moat is derived from captive coal mines for the Sasan project, providing cost leadership in thermal power, and long-term PPAs that secure revenue streams.

Macro Economic Sensitivity

Highly sensitive to India's power demand growth and the financial health of state DISCOMs.

Consumer Behavior

Increasing demand from corporate customers for green power (Corporate PPAs) driven by ESG and Scope 3 pressures.

Geopolitical Risks

Global supply chain dependencies for solar modules and battery components for the 4 GW solar and 6.5 GWh BESS pipeline.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act, SEBI LODR, and environmental norms prescribed by the Ministry of Environment, Forest and Climate Change.

Environmental Compliance

High capital expenditure is required for the installation of Flue Gas Desulphurization (FGD) systems to meet updated emission standards under the Environment (Protection) Amendment Rules, 2015.

Taxation Policy Impact

Effective tax expense was INR 99.89 Cr in FY25, down from INR 214.03 Cr in FY24.

Legal Contingencies

The company is in ongoing discussions with lenders for debt resolution and settlements. It was previously in the 'Issuer Not Cooperating' category for certain credit ratings.

⚠️ Risk Analysis

Key Uncertainties

Liquidity remains the primary risk, with standalone cash balances as low as INR 6 Cr in late 2024. Execution risks for the 4 GW renewable pipeline include land acquisition and financial closure.