Reliance Group-Backed Power Stock Under Rs 50: Company Signs Rs 2,000 Crore Deal for 500 MW Solar Project in Bhutan
The stock has delivered a return of 73.65 per cent over the past year and 7.1 per cent in the past week.
Reliance Power Limited has signed a significant agreement to develop Bhutan’s largest solar project in collaboration with Green Digital Private Limited (GDL), a subsidiary of Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan. The project involves a capital outlay of up to Rs 2,000 crore and will have an installed capacity of 500 megawatts (MW), marking the largest private sector foreign direct investment (FDI) in Bhutan’s solar sector to date. The partnership will be structured as a 50:50 joint venture and developed under the Build-Own-Operate (BOO) model.
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This strategic move strengthens Reliance Power's position in the renewable energy sector, expanding its international footprint while supporting Bhutan’s clean energy goals. The signing of the commercial term sheet for a long-term Power Purchase Agreement (PPA) with GDL highlights the company’s commitment to sustainable power development in the South Asian region.
On May 19, 2025, at 2:20 PM, Reliance Power shares were trading at Rs 45.58, up 1.13 per cent. The uptick reflects investor optimism driven by the solar project announcement and the company's robust financial performance for Q4 FY25.
In its Q4 FY25 results, Reliance Power reported total income of Rs 2,066 crore, an EBITDA of Rs 590 crore, and profit after tax (PAT) of Rs 126 crore. The company significantly reduced its debt-to-equity ratio from 1.61:1 to 0.88:1, with a current net worth of Rs 16,337 crore. Notably, Reliance Power serviced Rs 5,338 crore of debt over the past 12 months and now has zero bank debt, with no defaults reported. These improvements reflect strong operational efficiency and financial discipline.
From a stock performance perspective, Reliance Power has delivered a return of 73.65 per cent over the past year and 7.1 per cent in the past week, making it an attractive option for investors tracking Small-Cap or turnaround stories. While the company has not announced any bonus, rights issue, or dividend recently, its performance and debt-free status could lead to such shareholder rewards in the future.
Reliance Power, a part of the Reliance Group, operates 5,305 MW of power generation capacity, including the 3,960 MW Sasan Power Limited — the world’s largest integrated coal-based power plant. The company continues to explore strategic opportunities in both conventional and renewable power segments.
Disclaimer: The article is for informational purposes only and not investment advice.