The Resurgence of Anil Ambani and Reliance Power

June 14, 2025

1. The Fall and the Fears

Anil Ambani, once a billionaire and a key figure in India’s corporate circles, experienced one of the most dramatic downfalls in Indian business history. As the younger brother of Mukesh Ambani, he inherited a significant portion of the Reliance legacy. However, his aggressive expansion strategies, especially in the power and telecom sectors, backfired, leaving his companies burdened with unsustainable debt.

Reliance Power, which once launched India’s largest-ever IPO in 2008, quickly became a cautionary tale. The stock price, initially soaring, crashed due to delayed projects, regulatory hurdles, and falling revenues. Combined with the collapse of Reliance Communications and mounting liabilities in Reliance Infrastructure, Anil Ambani’s empire was on the brink. At one point, Anil even declared in court that his net worth was effectively zero, a stunning admission from a man once listed among the world’s richest.

2. Strategic Repair and Capital Infusion

The narrative began to shift over the past two years. A mix of strategy, market conditions, and regulatory breakthroughs laid the foundation for a potential revival.

Debt Reduction: Reliance Power and other group companies undertook aggressive debt restructuring. Large chunks of bank loans were cleared, significantly reducing the debt burden. Several group firms now report zero outstanding bank loans—a dramatic shift from their earlier over-leveraged status.
Fresh Capital Inflows: The group raised capital through preferential allotments, convertible bonds, and private equity infusions. This fresh influx helped stabilize cash flow and fund new growth projects, while also restoring investor confidence.
Project Wins and New Business Focus: The turning point came when Reliance Power’s subsidiary secured a long-term power purchase agreement (PPA) for a major renewable project. The deal involved a large-scale solar energy initiative combined with battery energy storage—a first-of-its-kind for the group. This not only positioned Reliance Power within India’s growing clean energy narrative but also created a long-term recurring revenue stream.
Legal Reprieve: In parallel, Anil Ambani’s group won critical relief in insolvency proceedings. Courts paused proceedings that threatened the takeover of Reliance Infrastructure. This bought valuable time for the company to regroup and keep control of core assets.

3. Stock Market Momentum

These internal changes were swiftly reflected in the market. Shares of Reliance Power and Reliance Infrastructure began to rally significantly.

Reliance Power saw its share price more than double within a few months, hitting multi-year highs. For long-time investors who had written off the stock, this was an unexpected revival.
Reliance Infrastructure, which was once facing insolvency proceedings, also rallied sharply, driven by improved financials and positive news flow.

The rise in share prices was not purely speculative. It was underpinned by improving fundamentals—profit turnaround, higher operating margins, and cleaner balance sheets. For the first time in years, the companies started reporting profits instead of chronic losses.

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4. Reasons Behind the Rally

Multiple forces came together to push Anil Ambani’s companies back into the spotlight:

Improved Fundamentals: Reliance Power swung back into profitability after years of red ink. Cost controls, restructuring of operations, and new power purchase agreements helped in lifting the company’s earnings.
Green Energy Push: The move toward solar and battery energy storage projects aligned perfectly with India’s green energy roadmap. With government incentives and sectoral support, this pivot gave the company fresh relevance in a competitive landscape.
Reduced Debt Burden: With a sharp reduction in outstanding bank loans and minimal promoter pledging, market participants began to see the group’s financial risk as significantly lower.
Legal Wins: Relief from court in insolvency cases helped avoid forced takeovers, allowing Anil Ambani and his team to execute their turnaround strategy without external interference.
Technical Breakouts: On the charts, both Reliance Power and Reliance Infrastructure stocks showed strong momentum. With higher volumes, they breached key resistance levels, attracting retail and institutional investors alike.

5. Challenges That Remain

While the outlook appears more optimistic than it has been in years, challenges still loom:

Execution Risk: Delivering large-scale renewable projects is capital intensive and operationally complex. Any delay or cost overrun could hurt margins and impact credibility.
Volatility: The recent stock rally has been dramatic, but it could face corrections if short-term expectations are not met. Many investors are still wary, given past performance.
Legacy Liabilities: Though much of the debt has been resolved, not all legacy legal and financial issues are behind the group. Some creditor disputes and regulatory matters are ongoing.
Dependence on Fewer Projects: The current recovery is centered around a few large wins. The group’s long-term success depends on diversifying revenue sources and sustaining new project inflows.

6. What’s Next for Anil Ambani?

This potential turnaround raises an important question: Is this Anil Ambani’s big comeback?

So far, the signs are encouraging. The recovery of stock prices and financial health of Reliance Power and Reliance Infrastructure marks a stark contrast to the gloom of recent years. Anil Ambani, who had remained relatively quiet in public during the group’s darkest phases, appears to be back in strategic mode—restructuring, aligning with national policy themes, and protecting core assets.

If the group sustains this momentum over the next few quarters, it may lay the foundation for Anil Ambani’s long-term corporate comeback. While he may not return to the billionaire list anytime soon, regaining business credibility is itself a major milestone.

7. Broader Market Implications

This turnaround story offers several lessons and signals to the wider market:

The Power of Deleveraging: Companies weighed down by debt can still make a comeback if they take tough decisions, cut costs, and focus on core competencies.
Energy Transition: The focus on renewables and battery storage shows that even legacy firms can rebrand and align with future-focused sectors.
Retail Investor Attention: Many retail investors, previously burned by Anil Ambani’s group stocks, are cautiously re-entering. The volume patterns suggest a mix of new and returning investors.
Possibility of Corporate Redemption: Anil Ambani’s journey underscores the idea that Indian corporate history is full of second chances—for those who adapt.

8. Investor Outlook and Watchlist

For investors, Reliance Power and Reliance Infrastructure now offer a mix of opportunity and risk:

Short-Term Watch: The next earnings reports and execution on the solar + BESS project will be critical indicators. Also watch court outcomes related to insolvency and regulatory rulings.
Medium-Term Prospects: A steady flow of new project wins, especially in renewables and defence, could help de-risk the business model and reduce revenue concentration.
Long-Term Potential: If governance remains clean, operations stay lean, and the group avoids new debt pitfalls, this could become one of India’s biggest corporate revival stories.

9. Final Thoughts

Anil Ambani and his Reliance Group have taken significant steps to move away from the shadows of financial ruin. A disciplined focus on reducing debt, improving profitability, and aligning with India’s renewable energy ambitions has started to bear fruit.

Whether this turns into a full-scale business renaissance will depend on sustained execution, investor trust, and regulatory clarity. But for now, what seemed like a failed empire is showing signs of revival, resilience, and perhaps redemption.