Honestly, if you’ve been tracking the Reliance Power stock price lately, you know it feels a bit like a high-stakes poker game where the cards are constantly being reshuffled. One day the ticker is flashing green on news of debt settlements, and the next, it’s dipping as the broader market gets jittery. As of mid-January 2026, the stock is hovering around the ₹33.20 mark.
It’s a far cry from the single-digit "penny stock" territory it inhabited back in 2020. But it’s also quite a tumble from the 52-week high of ₹76.49.
What’s actually going on under the hood? Most people just look at the line on the chart and panic or celebrate. But if you want to understand where the money is moving, you have to look at the massive debt-clearing marathon Anil Ambani’s firm has been running.
The Debt-Free Claim: Fact vs. Fiction
There was a lot of noise throughout 2024 and 2025 about Reliance Power becoming "debt-free." You’ve probably seen the headlines.
Basically, the company did pull off a significant feat. They settled a massive ₹3,872 crore obligation related to Vidarbha Industries Power. They also cleared dues with major players like IDBI Bank and ICICI Bank. On a standalone basis—meaning the parent company itself—they’ve largely wiped the slate clean of bank debt.
But here’s the kicker: the consolidated balance sheet still shows total liabilities in the neighborhood of ₹24,945 crore.
- Standalone debt is gone (great for short-term sentiment).
- Consolidated debt (including subsidiaries) still exists.
- Operational plants like Sasan UMPP (3,960 MW) are the ones carrying the heavy lifting.
Investors often mix these two up. When a company says they are "debt-free from banks," it doesn't mean they have zero liabilities. It means they’ve cleared the immediate, high-pressure loans that usually lead to bankruptcy proceedings. It's a massive win for survival, but it's not a total clean slate.
Why the Stock Price Keeps Swivelling
Why did the Reliance Power stock price drop nearly 4% in the first two weeks of 2026?
It's partly because of the "Anil Ambani overhang." Just this week, in January 2026, banks have been back in the Bombay High Court trying to lift a stay on fraud-classification actions against him. Even though Ambani stepped down from the board years ago, the market still treats his legal battles as a proxy for the company's health. It’s sort of unfair, but that’s how Dalal Street works.
Then you've got the financials. In the last reported quarter (Q2 FY26), revenues were up about 5.3% year-on-year. That sounds decent, right? But the current ratio—a measure of whether the company can pay its short-term bills—is sitting at a precarious 0.16.
Usually, you want that number above 1.0. At 0.16, the company is basically living paycheck to paycheck, relying on its operational cash flow from its thermal plants to keep the lights on.
The Sasan Factor
Sasan is the crown jewel. It’s one of the largest integrated coal-based plants in the world. As long as Sasan is churning out power and its captive coal mines are producing, the company has a heartbeat. If Sasan hits a snag, the stock price usually reacts like it's seen a ghost.
Is the "Green" Pivot Real?
You can’t talk about any power stock in 2026 without mentioning renewables. Reliance Power has been offloading some of its old assets—like the Vashpet wind project—to pay down debt.
The real question is whether they can pivot fast enough to compete with the likes of Adani Green or even the "other" Reliance (RIL). While Mukesh Ambani is building giga-factories in Jamnagar, Reliance Power is mostly focused on stabilizing its existing thermal footprint.
There's some talk about them getting into the solar ecosystem, but honestly, they are currently a turnaround story, not a growth-at-all-costs green energy giant.
What This Means for Your Portfolio
Look, nobody has a crystal ball. But if you're looking at the Reliance Power stock price today, you're looking at a company that has successfully moved out of the "intensive care unit" and is now in the "recovery ward."
It’s still a speculative bet. The 52-week low is ₹31.27, and we aren't that far off from it right now. If the company can show another quarter of positive Profit Before Tax (PBT)—which they finally managed in Q1 FY26—investor confidence might start to harden.
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But the legal drama involving the promoter group isn't going away. If the court rules against the stay on fraud actions, expect some serious volatility.
Actionable Next Steps for Investors
- Check the Consolidated Debt: Don't just read the "debt-free" headlines. Look at the quarterly filings to see if the total liabilities are actually shrinking or just being moved around.
- Monitor the Bombay High Court: The hearings in mid-January 2026 are critical. A negative result for the promoter group usually triggers a sell-off, regardless of the company's actual power output.
- Watch the ₹31 Support Level: If the price breaks below the 52-week low, it could signal a deeper slide. Conversely, holding this level suggests a base is being formed.
- Analyze Revenue Stability: If revenue from the Sasan and Rosa plants stays consistent despite coal price fluctuations, the company's ability to service its remaining internal debt remains solid.
Buying into Reliance Power right now isn't about the energy industry; it's about betting on a successful corporate restructuring. It’s gritty, it’s complicated, and it definitely isn’t for the faint of heart.