Reliance Power to Reliance Infra: How Anil Ambani Group stocks are making a comeback

The Anil Dhirubhai Ambani Group (ADAG) has seen a resurgence in its stock performance across several key companies, driven by strategic shifts and sector-specific growth. In 2025, companies like Reliance Power, Reliance Infrastructure, Swan Defence and Heavy Industries, and Reliance Home Finance have displayed positive developments, particularly in renewable energy, defence, and infrastructure. Despite these gains, investors must be mindful of the volatility and past performance as these companies navigate through ongoing challenges and restructuring.

After facing years of financial turmoil and operational setbacks, some of the Anil Ambani-led group companies are showing signs of recovery. FY25 has been a positive quarter for companies like Reliance Power and Reliance Infrastructure, supported by key strategic initiatives and a focus on high-growth sectors.

Reliance Power: Focus on renewable energy

Reliance Power seems to be making a comeback both in terms of financials and stock performance. In FY25, the company reported a net profit of ₹2,948 crore, compared to a loss of ₹2,068 crore in the previous fiscal year. Meanwhile, its revenue from operations stood at ₹7,583 crore, down 3% YoY. Moreover, the company has consistently reduced its debt.

In FY25, Reliance Power's debt-to-equity ratio has improved significantly to 0.93 from 1.62 in FY24. Also, the company has secured multiple orders. Most recent developments include a 350 MW solar power project, for which its subsidiary Reliance NU Energies received a Letter of Award (LOA) on May 28, 2025.

Reliance Infrastructure: Strategic moves in defence

Reliance Infrastructure has made significant progress by diversifying into the defence sector. Recently, the company expanded its partnership with Germany’s Diehl Defence, focusing on supplying guided munitions and terminally guided munition systems for India’s armed forces.

The company aims to focus on aircraft upgrade programmes and is eying an opportunity of ₹5,000 crore over the next seven to ten years. Recently, the company upgraded 55 Dornier-228 aircraft under a contract with Hindustan Aeronautics Ltd, in collaboration with US-based avionics firm Genesys.

Another Anil Ambani Group company, like Swan Defence and Heavy Industries, has been facing challenges in the early stages, but the stock has still delivered return of 373% year-to-date. The company’s stock has been volatile, particularly due to the controversial share swap ratio following the acquisition of Reliance Naval’s assets.

Reliance Home Finance reported subdued earnings, indicating challenging times. It continues to face significant headwinds as it strives to rebuild in the challenging housing finance sector.

Conclusion: Navigating volatility and risks

While the recent gains in stock prices of ADAG-led companies such as Reliance Power and Reliance Infrastructure reflect positive developments, there is still significant volatility and uncertainty. These companies are attempting to diversify and strengthen their portfolios in defence, renewable energy, and infrastructure, but challenges remain, particularly in terms of maintaining steady revenue growth and overcoming financial setbacks.

Investors should remain cautious, keeping in mind the historical volatility of these stocks and the ongoing efforts for recovery. As always, it is important to conduct thorough research or consult with a financial advisor before making investment decisions.