Two of Anil Ambani's key group companies — Reliance Power and Reliance Infrastructure — have delivered extraordinary returns over the past year, emerging as notable multibaggers in the Indian stock market. As of June 2025, Reliance Power has gained 151 percent, while Reliance Infrastructure has surged by 136 percent, driven by a combination of debt restructuring, improved investor sentiment, and growth-focused restructuring plans.
This sharp uptrend has reignited market interest in companies that were once considered underperforming or debt-laden.
Rally Fueled by Optimism and Restructuring
Both companies were under significant financial stress over the past decade. However, in recent quarters, strategic efforts to reduce debt, exit non-core businesses, and improve project execution have started reflecting positively in their share performance.
Reliance Power, which operates thermal and renewable energy assets, announced that it had repaid a large portion of its outstanding debt, reducing its interest burden. Additionally, progress in stalled power projects and higher power demand in India contributed to improved revenue projections.
Reliance Infrastructure, engaged in engineering, construction, and power transmission projects, also reported a turnaround in operational performance. Several infrastructure projects under execution moved forward, while cost efficiencies and restructuring aided profitability.
Market Sentiment and Investor Participation
Retail and institutional investors alike have shown renewed interest in both stocks. This can be attributed to:
- Improved financials and earnings visibility
- Strong sectoral outlook in power and infrastructure
- Speculation around potential merger or asset sale news
- Positive commentary from management in quarterly updates
Trading volumes in both companies have remained high on the NSE and BSE, reflecting strong participation. The overall bullish sentiment in India’s mid-cap space has further supported the rally.
Expert Opinions and Caution
While the stocks have rewarded shareholders handsomely in the short term, analysts caution that such rapid gains also bring elevated risks. Many experts suggest that the current valuation may be pricing in future earnings and that any delays or deviations in execution could impact stock performance.
They also emphasize that both companies still face challenges, including regulatory hurdles, competitive pressure, and the need to maintain consistent earnings over the long term.
Investors are advised to evaluate the fundamentals and monitor quarterly performance carefully before making fresh entries. Given their past history and current debt profile, both Reliance Power and Reliance Infra are considered high-risk, high-reward investments.
Outlook for the Future
With India’s continued focus on infrastructure development and clean energy transition, both companies have the potential to benefit from sectoral tailwinds. Their recent operational improvements and capital restructuring initiatives may pave the way for sustained performance, provided execution stays on track.
Whether these stocks continue their upward momentum will depend on consistent financial results, project completion, and market confidence in the leadership’s vision.
