power
Reliance Power
RPOWER · Nifty 50
₹26.85
Price 2026-06-17
At a Glance
Fundamental
55/100
ADEQUATE
Trust
95/100
Verification
Coverage
33/100
LIMITED
Quick Take
Reliance Power scores 55/100 on fundamentals (adequate). Reliance Power: BROAD EXPANSION regime.
Fundamental Score: 55/100 · ADEQUATE · 1 signals detected
DuPont Analysis
ROE -2.1% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of -2.1% is modest margin-driven and stable. Net margin of -4.4% × asset turnover of 0.18x × leverage of 2.6x.
What This Means
Net margin of -4.4% means the company keeps ₹-4.4 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.18x means the company generates ₹0.18 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 2.6x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
50.1%
Operating
20.0%
Net
-4.4%
Gross margin 50.1% → operating margin 20.0% → net margin -4.4%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
WEAKCash flow only covers -84.4x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
STRETCHEDInterest covered only 0.9x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 6.3x is high — monitor leverage.
Free Cash Flow
STRONGFCF margin at 371.5% — strong cash generation. Business is self-funding.
Peer Comparison
Reliance Power is compared against 8 peers in the power sector.
Key Watchpoints
Breaks above ₹28 (+5%)
Trend reversal confirmation
Breaks below ₹26 (-5%)
Further downside risk
Power sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
One-off items significantly inflating reported profit. Core earnings may be much lower.
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Special charges of ₹382K Cr. May indicate restructuring, impairment, or one-time costs.
Company not overvalued on revenue basis.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes