01 — At a Glance
The Power Company That Lost Its Own Power Supply
- 52-Week High / Low₹76.5 / ₹21.1
- TTM Revenue (12m)₹7,710 Cr
- TTM PAT (12m)₹283 Cr
- Full-Year EPS (FY25)₹0.69
- Q3 FY26 EPS (Dec 2025)₹0.06
- Book Value₹39.9
- Price to Book0.56x
- Dividend Yield0.00%
- Total Debt₹15,232 Cr
- Cash in Hand (Aug 2025)₹62.77 Cr
The Auditor’s Red Alert: Reliance Power closed Q3 FY26 with ₹1,873 crore revenue (+1.08% YoY) and ₹25.1 crore PAT (-40.1% YoY). Cash in hand? ₹62.77 crore on a ₹15,232 crore debt pile. The ED has attached assets. SEBI is auditing. And the company is fighting a ₹1,641.67 crore guarantee demand on a subsidiary’s failed Bangladeshi project. This is not financial distress. This is financial theatre.
02 — Introduction
Once Anil Ambani’s Jewel. Now? A Cautionary Tale Masquerading as a Turnaround.
In 2008, when Reliance Power IPO’d at ₹450 per share on the back of mega coal-based projects and Anil Ambani’s golden touch, the stock was hailed as a generational investment. Today, at ₹22.2, you’re not even buying a turnaround story — you’re buying the funeral procession.
The narrative used to be straightforward: Sasan Power (3,960 MW) and Rosa Power (1,200 MW). Two behemoth thermal plants. Stable PPAs. Captive coal mines. Cash generation machine. Then came the Samalkot project in Bangladesh. Then came Ed raids. Then came SEBI forensic audits. Then came ₹1,642 crore in guarantee demands. And now the company has ₹62.77 crore in cash trying to defend itself in the London Court of International Arbitration.
Yes, the company has pivoted to renewables. Yes, Reliance NU Energies has locked in 4 GW of solar + 6.5 GWh BESS capacity. Yes, management speaks about “premiumization” and “integrated energy platforms.” But when your subsidiary is being sued for ₹1,641.67 crore, your auditors flag liquidity as “poor,” and your books are under SEBI forensic scrutiny, even the most generous bulls get their horns clipped.
This is a company that generates electricity but can’t generate confidence. Let’s audit the numbers.
Latest Drama (Jan 2026): SEBI initiated forensic audit on Jan 14. ED prosecution filed on Dec 6 over alleged SECI bank-guarantee fraud. Monitoring agency report shows ₹1,524.60 crore in warrant obligations, of which only ₹694.65 crore received. The story keeps changing — management just keeps spinning.
03 — Business Model: Do They Sell Electricity or Litigation?
5,305 MW of Capacity. 62.77 Crore in Cash. The Math Ain’t Mathing.
Reliance Power operates two main thermal powerhouses. Sasan Power (3,960 MW) in Madhya Pradesh supplies 14 state discoms. Rosa Power (1,200 MW) in Uttar Pradesh supplies to UPPCL on a cost-plus, 15% assured RoE basis. Together, they account for roughly 95%+ of operating cash flow. Then there’s the minority stake in Samalkot (40% ownership, Bangladesh), which was supposed to be a $1 billion asset but became a $1.6 billion liability.
The Samalkot CCGT project was designed to sell equipment to Bangladesh as well. They did. Great. Then the lender invoked a guarantee agreement executed by RPL for the debt raised by Samalkot Power Limited (the subsidiary). Boom. ₹1,641.67 crore demand. SMPL (the subsidiary) said “nope, we don’t owe this” and filed for arbitration in the London Court. Sub-judice. Stuck.
New growth engine? Reliance NU Energies. 930 MW SECI solar+BESS awarded. 350 MW SJVN. 750 MW SJVN (FDRE). 510 MW Bhutan hydro partnership. Attractive on paper. Reality check: execution risk on pre-revenue assets, while the core business bleeds liquidity fighting a guarantee demand.
Sasan Capacity3,960 MWOperational
Rosa Capacity1,200 MWOperational
Renewable (Locked)4,000 MWUnder Dev
Samalkot (40%)754 MWNon-Op Crisis
The Warranty Trap: Reliance Power issued an unconditional and irrevocable guarantee for Samalkot’s debt. Then Samalkot didn’t pay. Then lender called the guarantee. Then RPL said “court will decide.” Meanwhile, ₹62.77 crore in cash sits watching ₹15,232 crore in debt. This is not a business model. This is a hostage situation.
💬 How do you think this Samalkot arbitration ends? Investor bets get wiped, or management pulls a “miraculous restructuring”? Drop your prognosis.
04 — Financials Overview
Q3 FY26: The Numbers That Should Terrify Lenders
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