Reliance Power shares tank 5%: Q2 profit surge on exceptional gain, operational revenue decline

Reliance Power shares hit the lower circuit of 5% in early trade today despite reporting a net profit of ₹2,878.15 crore in Q2 FY25, as investors focused on the company’s declining operational performance.

The company’s return to profitability, compared to a loss of ₹276.19 crore in Q2 FY24, was primarily driven by a one-time exceptional gain of ₹3,230.42 crore from subsidiary deconsolidation. However, operational metrics showed weakness, with revenue declining 13.6% year-on-year to ₹1,759.81 crore from ₹2,037.80 crore in Q2 FY24.

The sequential performance also remained under pressure, with revenue falling 11.7% from ₹1,992.23 crore in Q1 FY25. The stock’s negative reaction suggests investors are concerned about the core business performance, looking past the exceptional gain that drove the profit surge.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult a financial advisor before making any investment decisions.