Reliance Power Ltd (RPower) stunned investors with a sharp 97% year-on-year decline in consolidated net profit for the July–September quarter (Q2 FY26), even as its operational growth showed strong improvement. Despite the profit slump, the company’s expansion into renewable and energy storage projects and plans for a $600 million FCCB issue signal an aggressive push toward long-term growth.
Reliance Power Q2 FY26 Results
In Q2 FY26, Reliance Power reported a net profit of ₹87.3 crore, compared to ₹2,878 crore in the same period last year. However, revenue from operations grew 12.2% year-on-year to ₹1,974 crore, up from ₹1,760 crore. The company’s EBITDA jumped 64.3% YoY to ₹618 crore, while EBITDA margin improved sharply to 31.3%, compared with 21.4% a year ago.
Analysts attribute the sharp decline in net profit mainly to a high base in the previous year, when Reliance Power benefited from exceptional one-time gains. The latest results, however, underline the company’s improving operational efficiency and focus on core power generation business.
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Reliance Power Plans $600 Million FCCB Issue
In a major financing update, the Reliance Power Board approved seeking shareholder authorization to raise up to $600 million through Foreign Currency Convertible Bonds (FCCBs). The issue will be done via international private placement, subject to necessary approvals.
According to the company, this new FCCB proposal replaces an earlier plan and will help strengthen its balance sheet and support future growth projects. The funds are likely to be deployed in clean energy initiatives and debt optimization, aligning with Reliance Power’s long-term renewable transition strategy.
Reliance Nu Energies Bags India’s Largest Solar-Plus-Battery Tender
In a major breakthrough, Reliance Nu Energies, a subsidiary of Reliance Power, secured the largest allocation in SJVN Ltd’s 1,500 MW/6,000 MWh FDRE ISTS tender. The company won 750 MW/3,000 MWh capacity, accounting for half of the total project, through a competitive bidding process.
This project will combine 900 MWp of solar capacity with over 3,000 MWh of battery energy storage, making it one of India’s most advanced renewable infrastructure developments. The awarded tariff stood at ₹6.74 per kWh, showcasing the company’s ability to deliver at competitive pricing while ensuring profitability.
With this win, Reliance Nu Energies has positioned itself as India’s largest player in the solar-plus-battery energy storage system (BESS) segment, boasting 4 GWp solar and 6.5 GWh BESS capacity across four tenders in just one year—all awarded by Navratna public enterprises.
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Reliance Power Outlook
While the Reliance Power share price may face near-term pressure due to the steep fall in quarterly profit, the company’s improving EBITDA margins, strategic fundraise through FCCBs, and record renewable energy wins provide a strong foundation for growth.
Analysts believe that Reliance Power’s transition toward solar and energy storage could unlock massive value in the coming years, positioning it as a key player in India’s clean energy future. With growing investor interest in renewable infrastructure, the Reliance Power stock could regain momentum once profitability stabilizes and new projects come online.
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