Reliance Power Soars on Secret ₹2,000 Cr Solar Deal in Bhutan
Shares of Reliance Power witnessed a sharp uptick on Monday morning, climbing nearly 4% in early trade after the company announced a landmark solar power joint venture with Bhutan. The Anil Ambani-led company signed a commercial term sheet for a long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL)—a firm owned by Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan.
Reliance Power signs commercial term sheet for long-term Power Purchase Agreement (PPA) with Green Digital Private Limited (GDL), Bhutan, owned by Druk Holding & Investments Limited (DHI), the investment arm of the Royal Govt of Bhutan (1/n)#ReliancePower #SolarEnergy…
— Reliance Power (@reliancepower) May 19, 2025
The stock rallied 3.63% to ₹46.72 on the BSE, up from its previous close of ₹45.08, pushing its market capitalization to ₹18,510 crore. Nearly 59 lakh shares changed hands during the session, contributing to a turnover of over ₹27 crore.
This development is more than just a stock market story—it’s a strategic step in advancing regional clean energy cooperation and strengthening cross-border infrastructure between India and Bhutan. The two entities will jointly develop Bhutan’s largest solar power project, a 500 MW capacity plant, under a Build-Own-Operate (BOO) model. The total investment: a massive ₹2,000 crore, making it the largest private sector FDI in Bhutan’s solar energy sector to date.
The project is a 50:50 joint venture between Reliance Power and DHI, aligning with the company’s focus on long-term, sustainable investments. The move not only reinforces Reliance Power’s commitment to clean energy but also enhances its positioning in South Asia’s growing renewable energy ecosystem.
A Financial Turnaround in the Making
The positive market sentiment also rides on Reliance Power’s recent financial comeback. The firm reported a net profit of ₹125.6 crore in the fourth quarter ending March 31, 2025—a dramatic turnaround from a net loss of ₹397.6 crore during the same period last year.
Though operational revenue dipped slightly by 1% (₹1,978 crore vs ₹1,997 crore), the company reported an extraordinary rise in EBITDA—up a staggering 1,109% to ₹589.8 crore, compared to just ₹48.8 crore in the year-ago quarter. The EBITDA margin surged to 29.8%, up from a modest 2.4%, signaling strong operational efficiency.
Total income for Q4 stood at ₹2,066 crore, while over the past fiscal year, Reliance Power made good on debt obligations of over ₹5,300 crore, showcasing financial discipline and improved liquidity management.
Market Indicators Stay Positive
From a technical perspective, the stock appears bullish. With a beta of 1.3, Reliance Power remains highly volatile but currently trades above all key moving averages—5-day to 200-day—signaling strength in momentum. The Relative Strength Index (RSI) is currently at 63.8, positioning it securely within the range of neither overbought nor oversold conditions.
Looking Ahead
This solar initiative signifies more than merely a substantial financial commitment; it embodies a wider transformation in Reliance Power’s approach towards sustainable and impactful projects. As regional cooperation in renewable energy gains momentum, the company’s proactive approach could well cement its place among South Asia’s leading green energy players.
With strong financials backing it and an ambitious clean energy roadmap ahead, Reliance Power is definitely one to watch in the renewable space.