Financial Performance

Reliance Power reported a consolidated net loss of ₹33.69 billion for FY2025-26, a significant reversal from the profit of ₹294.78 billion in the previous year. Revenue from operations stood at ₹798.85 billion, with cost of fuel consumed at ₹379.91 billion and finance costs of ₹166.62 billion. On a standalone basis, the company reported a profit of ₹1.34 billion compared to a loss of ₹9.41 billion in FY25.

Operational Highlights

  • Sasan UMPP (3,960 MW): Generated 30,092 MUs with PLF of ~87%
  • Sasan Coal Mine: Produced 17.18 million MT of coal
  • Rosa Thermal Power Plant (1,200 MW): Generated 6,952 MUs
  • Solar PV plant (40 MW): Generated 46.82 MUs
  • CSP plant (100 MW): Generated 12.61 MUs
  • Bangladesh plant (718 MW): Commenced commercial operations in July 2025

Fundraising Initiatives

The company proposes raising up to ₹60 billion through Qualified Institutions Placement (QIP) and ₹30 billion via Non-Convertible Debentures (NCDs). The funds are intended for renewable energy expansion and debt repayment. During FY26, the company issued 11.88 crore equity shares through warrant conversion at ₹33 per share, raising ₹39.2 billion, while 34.32 crore outstanding warrants lapsed post-year end.

Regulatory and Legal Challenges

Enforcement Directorate Proceedings

The ED filed a Supplementary Prosecution Complaint against the company, Rosa Power Supply Company Limited, Reliance NU BESS Limited and certain individuals regarding alleged fake bank guarantees submitted to Solar Energy Corporation of India (SECI). The ED arrested the former Executive Director and CFO and provisionally attached company assets under PMLA, which attachment has been extended for 365 days.

SEBI Actions

SEBI appointed a forensic auditor to investigate alleged violations of securities laws and the Companies Act. The regulator also issued show-cause notices for alleged violations of PFUTP Regulations and Listing Regulations.

Insolvency Proceedings

Samalkot Power Limited's lender invoked a corporate guarantee against Reliance Power and initiated Corporate Insolvency Resolution Process under section 7 of IBC, 2016, creating material uncertainty about the company's going concern status.

Subsidiary Performance

  • Rosa Power Supply Company: Outstanding term loans of ₹21.06 billion, fully repaid deferred payment liabilities
  • Sasan Power Limited: Outstanding loans of ₹70.22 billion, facing disputed tax dues of ₹86.52 billion
  • Samalkot Power Limited: Defaulted in repayment of ₹18.20 billion borrowings, received binding offer from AM Green Energies for equipment sale
  • Rajasthan Sun Technique Energy: Net loss of ₹7.29 billion, defaulted on ₹21.13 billion borrowings, negative net worth
  • Dhirubhai Ambani Green Tech Park: Transitioning from 3960 MW UMPP to green hydrogen/ammonia project

Strategic Developments

The company secured significant renewable energy contracts including:

  • 25-year PPA with SECI for 930 MW solar power with 465 MW/1860 MWh BESS
  • Two projects from SJVN Limited: 350 MW solar with 175MW/700 MWh BESS and 750 MW/3000 MWh BESS
  • Partnership with Bhutan's Druk Holding for 500 MWp solar and 770 MW hydro projects

Corporate Governance

Board met 13 times during FY2025-26 with several management changes. The 32nd Annual General Meeting is scheduled for August 14, 2026, with agenda items including appointment of new statutory auditors Kailash Chand Jain & Co and reappointment of director Sachin Mohapatra.

Auditor Qualifications

Auditors issued qualified opinions highlighting material uncertainties regarding going concern status due to insolvency proceedings, ongoing ED investigations, and SEBI forensic audit. They emphasized significant judgment required in valuation of investments in subsidiaries.

Contingent Liabilities

  • Bank guarantees: ₹14.17 billion
  • Corporate guarantees: ₹181.99 billion
  • Disputed tax dues: ₹3.16 billion
  • Insurance surety bonds: ₹17.00 billion

Outlook

The company faces significant challenges from regulatory investigations, debt defaults at subsidiaries, and going concern uncertainties, while pursuing renewable energy expansion and fundraising initiatives to strengthen its financial position.