From a low of below Rs 35 a share to a high of over Rs 70 in 12 months. From Rs 3 five years ago to over Rs 40 now, after touching even grander heights. Only a few stocks, especially of companies promoted by renowned and established names, can witness such a roller-coaster, whimsical, and random volatility like this. More than 20 times increase in 60 months. More than 1,300 per cent if one considers the end-to-end price over the period. But this is not the entire story. Since the end-2023, the spikes, the immediate ups and downs, are larger, and faster. They appear every few weeks, if not few days, even as the company gets embroiled in new and ever-growing controversies, and issues denials, and clarifications. Yes, we are talking about the Anil Ambani-owned Reliance Power. Both the promoter and company seem to zig-zag vertically.
Although there are several layers to this pattern, we will focus on three. The first is about Anil’s tryst with official investigations, which relate to the charges of manipulations, siphoning off money, fraud loan accounts, interrogations by the Enforcement Directorate (ED), and arrests of key executives. Over the past few months, there are speculations about why the Government, its investigating agencies, and state-owned banks are going after the group with full energy. No stone seems to be left unturned to somehow push Anil to the wall. Observers talk about political backlash, business rivalries, banks’ firming stance, and family’s apathy. However, we are not interested in these issues. In terms of stock movement, we are concerned about how each day’s events and developments pushes up, or pulls down, the share price in an unexpected, and logical manner. The banks or the Government does something, and price slumps. The group clarifies, or denies, and the stock moves up. It is a continuous yo-yo.
For example, between early September and early October 2024, the stock zoomed from below Rs 30 to above Rs 50. By the third week of November, it was down to Rs 35, and then up to more than Rs 47 by mid-December. In early March 2025, it stood at just over Rs 33, and moved Rs 10 within a fortnight. Between early May and early June, it was up from below 40 to above Rs 70, down by Rs 10 or so within weeks, up to over Rs 70 by end June, and down to Rs 42 in mid-August. Since then, it went into a series of going north, and going south over the next few months. There is no ending to understanding this topsy-turvy stock ride, which is likely to make investors giddy, heady, dizzy, woozy, shaky, wobbly, rickety, and wonky. You can choose more words, depending on the number of shares you own.
Second relates to Reliance Power’s financials. Between 2023-24 and 2024-25, revenues from operations were down, but losses came down to less than a tenth, from nearly Rs 2,000 crore to less than Rs 200 crore. A one-off exceptional gain of more than Rs 3,200 crore due to “de-consolidation of (a) subsidiary” in 2024-25 transformed the loss into a net profit of just under Rs 3,000 crore. Obviously, the company did better in terms of expenses, which were down by more than 15 per cent, including lower finance costs by more than 20 per cent. Yet, revenues were down a bit. Quarterly results seem better. In the first quarter (April-June) in 2025-26, the net profit was down to below Rs 45 crore, compared to a loss of nearly Rs 100 crore in the same quarter the previous year. A quarter-on-quarter (Q-o-Q) comparison shows that the figure was down from Rs 126 crore in January-March 2025 to Rs 45 crore in April-June 2025. Revenues from operations were down both QoQ, and YoY (year-on-year).
Finally, there is the pure stock market dynamics. It is noticeable that when a stock goes up four per cent in a single day, or comes down by a similar percentage another day, and if this change happens sequentially, from one day to the next, there is a problem. This is especially so when the downward movement is dictated by some bad news, and reversed when the company provides some good news the next day. It does indicate that some investors are day-trading to benefit from the series of bad news, and good news. To cite an example, on November 7, 2025, the ED arrested Amar Nath Dutta, a resident of Kolkata, who was linked to bogus bank guarantees by a subsidiary of Reliance Power to Solar Energy Corporation, and the earlier arrest of Reliance Power’s chief financial officer, Ashok Kumar Pal. The stock tanked, and recovered immediately when the company clarified that it had no connection with Dutta.
The interesting aspect is how Anil Ambani is fighting several battles. He grapples with the authorities, bankers, shareholders, and business community. Six years ago, he announced bankruptcy in a London court. Shares of his companies quoted miserably, like Rs 3 for Reliance Power. The news of revival, and rebuilding the group, apart from new projects gave a shot in the arm. Once the Government trained its guns on him in the recent past, the shares were down. Over the past 20 years, since the public spat, and split with his elder brother, Mukesh, Anil’s fortunes have fluctuated wildly.
