Anil Ambani’s Remarkable Comeback: Reliance Power and Infrastructure Stocks Soar Over 22% in June

Anil Ambani’s Corporate Comeback: Hope Amidst Financial Turmoil

Once a titan of industry and one of the richest men in the world, Anil Ambani’s journey through financial turmoil is not just a story of caution but now hints at a potential fall toward resurgence. As two of his key companies, Reliance Infrastructure and Reliance Power, have recorded impressive surges, Wall Street is abuzz with talks of a resurrection from the depths of despair.

A Legal Victory for Reliance Infrastructure

The resurgence of Reliance Infrastructure, a significant player in the Indian power and utilities sector, comes after a crucial legal reprieve that has rekindled investor optimism. This month, the National Company Law Appellate Tribunal (NCLAT) suspended insolvency proceedings initiated against Reliance Infrastructure after a complaint by IDBI Trusteeship Services. The tribunal accepted the company’s claim that it had successfully settled its dues of Rs 92.68 crore to Dhursar Solar Power Pvt Ltd.

This legal victory provided immediate market traction for Reliance Infrastructure. Over the past month, the stock has surged by 72.5%, rising 13.4% just within the last week. The momentum in Reliance Infrastructure’s stock can be interpreted through its position relative to key technical indicators. Currently, it is trading above all eight key simple moving averages, ranging from the 5-day to the 200-day, indicating strong bullish sentiment. Its Relative Strength Index (RSI), sitting at 76.9, denotes overbought conditions, while the Moving Average Convergence Divergence (MACD) at 31.1 remains bullish.

Beyond court victories, Reliance Infrastructure is strategically pivoting its focus toward high-value defense and aerospace projects, recently winning a Rs 5,000-crore defense contract to independently manage a comprehensive aircraft upgrade program over the next 7 to 10 years. This move signifies a potential shift in the company’s project portfolio, aiming to capitalize on the booming defense sector.

Impressive Financial Resurgence

Reliance Infrastructure’s recent quarterly results further illuminate its turnaround trajectory. In Q4FY25, the company reported no outstanding bank debt after a reduction of Rs 3,300 crore during the fiscal year. The company’s consolidated profit of Rs 4,387 crore marks a significant increase from a loss of Rs 3,298 crore in the previous quarter. Highlighting its financial resurgence, the adjusted EBITDA soared by an astonishing 681% to Rs 8,876 crore, while net worth rose by 44% quarter-on-quarter, reaching Rs 14,287 crore as of March 31, 2025.

Reliance Power: Soaring to New Heights

Similarly, Reliance Power is witnessing a wave of positive developments that have contributed to its remarkable stock performance. Over the past month, Reliance Power’s stock has risen by 76%, hitting a 52-week high of Rs 67.68 on June 10. In June alone, the company has recorded a growth of 22.4%.

A significant catalyst for this surge has been its subsidiary, Reliance NU Suntech, which recently signed a 25-year power purchase agreement with SECI for Asia’s largest single-location solar and battery energy storage project. This project comprises 930 MW of solar capacity along with 465 MW/1,860 MWh of battery energy storage system (BESS) and is expected to require an investment of Rs 10,000 crore.

Moreover, Reliance Power has secured a 350 MW solar-BESS project from SJVN, and has forged a commercial term sheet with Bhutan’s Druk Holding and Investments Ltd to co-develop Bhutan’s largest solar project. Financially, Reliance Power has bounced back to report consolidated net profits of Rs 126 crore in Q4FY25, as opposed to a loss of Rs 397.56 crore a year prior. This turnaround was supported by a Rs 348.15 crore equity infusion from Reliance Infrastructure and investor Basera Home Finance Pvt Ltd.

Adding to the good news, the Delhi High Court granted interim relief to Reliance Power against a debarment order by SECI, allowing the firm to participate once again in new renewable energy tenders. This renewed access to the market will likely bolster its growth opportunities even further.

A Billionaire’s Second Act?

The tumultuous history of Anil Ambani’s financial journey has garnered significant media attention. Once ranked as the sixth richest man globally, with a peak net worth of $42 billion in 2008, Ambani found himself embroiled in significant debt, legal issues, and a market collapse that saw him declare bankruptcy in a UK court in 2020. His flagship ventures faced insolvency, reflecting a sharp decline from his former glory.

Yet now, as Reliance Infrastructure and Reliance Power exhibit remarkable stock performances and declining debt levels, there seems to be a germ of hope for Ambani’s corporate ambitions. While the close of this chapter remains uncertain, the market momentum is palpable. Key questions linger: Will these early signs of resurgence translate into a sustainable revival for Anil Ambani and his business empire? Or will they remain fleeting moments in a lengthy, challenging journey? Only time will tell if this marks the beginning of a new era for the beleaguered billionaire or yet another twist in his dramatic narrative.