Stock in focus: Reliance Power arm, Bhutan firm launch renewable energy venture

Reliance Power Limited, under the leadership of Anil Ambani, announced the formation of a new joint venture with Green Digital Private Limited, a state-owned firm from Bhutan. The entity, named GDL–Reliance Solar Pte Ltd (GRSPL), was officially incorporated on 24 July 2025. This initiative marks a 50:50 partnership between Reliance Enterprises Private Limited (REPL) and Green Digital, operating under the Gelephu Mindfulness City, a Special Administrative Region in Bhutan. As part of the venture's inception, REPL has acquired a 50% shareholding by subscribing to 2,25,000 shares, each valued at $100, thereby giving Reliance Power an indirect 25% interest in the new company. GRSPL is set to focus on renewable energy initiatives, although it is yet to commence operations.

Reliance Power stock ended at Rs 43.27 on Monday. Market cap of the firm stood at Rs 17,895 crore.   

The incorporation of GRSPL does not classify as a related party transaction, even though Reliance Infrastructure Limited, the promoter company, holds an indirect 25% stake via REPL. The creation of this JV is in line with Reliance Group's broader strategy to diversify and expand its portfolio in the defence and clean energy sectors. This development reflects the company's commitment to renewable energy, aligning with global sustainability trends. Investors will be monitoring the operational commencement of GRSPL, as it could influence market perceptions and Reliance Power's stock performance.

Reliance Power recently reported a net profit of ₹125.6 crore for the fourth quarter ending 31 March 2025. This marks a significant turnaround from a net loss of ₹397.6 crore in the same quarter of the previous fiscal year. The company's revenue from operations saw a slight decline of 1%, settling at ₹1,978 crore compared to ₹1,997 crore in the corresponding period of the prior fiscal year.

Despite this, the company's operating level EBITDA surged by 1,109%, reaching ₹589.8 crore, up from ₹48.8 crore in the previous fiscal's corresponding quarter. The EBITDA margin improved markedly to 29.8% from 2.4% in the prior year's quarter.