Reliance Power shares surge 18% on AI, tech-driven push; what's next?

Shares of Reliance Power Ltd rose sharply in Wednesday's trade, soaring 18.36 per cent to hit a high of Rs 29.40. The stock was last seen trading 15.54 per cent higher at Rs 28.70. Despite the sharp uptick, the counter is still down 17.39 per cent on a year-to-date (YTD) basis and has declined 40.94 per cent over the past one year.

"We wish to inform that Reliance Power Ltd, as a step to participate in the rapidly evolving field of Artificial Intelligence (AI) and allied new-age technologies, has through its subsidiaries, undertaken certain enabling steps to incorporate AI and related technology-driven activities within its business framework," RPower stated.

"Pursuant thereto, relevant objects covering Artificial Intelligence and technology-enabled services have been incorporated, including adoption of the following new names of the subsidiaries: (1) Reliance AI Green Power Pvt Ltd; (2) Reliance AI Power Pvt Ltd; (3) Reliance AI Data Control Pvt Ltd; and (4) Reliance AI Data C Pvt Ltd," the company added.

Ravi Singh, Chief Research Officer at Master Capital Services, said, "RPower shares witnessed a sharp rally after the company announced its entry into the AI and new-age technology space. The announcement has improved investor sentiment, leading to strong buying interest and a breakout supported by robust trading volumes."

He, however, added, "Investors should remember that the AI initiative is still at an early stage, and its financial contribution will take time to materialise. Sustained execution and future business developments will be the key factors driving long-term value creation."

From a technical standpoint, AR Ramachandran, a Sebi-registered research analyst at Tips2trades, noted, "The stock is bullish on daily charts with strong support at Rs 24.97. A daily close above the resistance of Rs 29.4 could lead to an upside target of Rs 32.8 in the near term."

The stock was trading above its 5-day, 10-day, 20-day, 30-day, 50-day and 100-day simple moving averages (SMAs), but remained below the 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) stood at 61.09. An RSI below 30 is considered oversold, while a reading above 70 is viewed as overbought.

According to Trendlyne data, RPower has a standalone/consolidated price-to-earnings (P/E) ratio of 955.67/(-)35.20 and a price-to-book (P/B) value of 1.26. Earnings per share (EPS) stood at 0.03/(-)0.81, while return on equity (RoE) was 0.14. The stock's one-year beta was 1.78, indicating relatively high volatility.

As of March 2026, promoters held a 24.98 per cent stake in the company.