Reliance Power Q1 FY27 Results (NSE: RPOWER)
Signal: Growth reaccelerated
The read
The operating recovery continued with consolidated revenue of ₹195632 lakh, +3.8% YoY, and EBITDA margin of 36.3%, but the thesis remains dominated by earnings quality and solvency: PAT of ₹6471 lakh included ₹14743 lakh of other income, while RSTEPL and SMPL carry defaults, auditor qualifications and material going-concern uncertainty.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,956.32 Cr | +3.8% | +3.7% |
| EBIT | ₹502.56 Cr | N/A | |
| Net profit | ₹64.71 Cr | +44.8% | |
| EPS | ₹0.16 | +43.1% | |
| EBIT margin | 36.3% |
P&L walk
Consolidated revenue increased to ₹195632 lakh, +3.8% YoY and +3.7% QoQ, while EBITDA margin was 36.3%; lower finance cost of ₹38663 lakh supported pre-tax profit of ₹11593 lakh, but PAT of ₹6471 lakh was substantially influenced by ₹14743 lakh of other income.
Segments
The Group reports only one segment, Generation of Power; the material consolidated-versus-standalone gap, with consolidated revenue of ₹195632 lakh versus standalone revenue of ₹20 lakh, confirms that earnings sit in subsidiaries.
Key positives
- Consolidated revenue increased to ₹195632 lakh, +3.8% YoY and +3.7% QoQ, reversing the -4.6% YoY decline reported in Q4FY26.
- EBITDA was ₹70984 lakh and EBITDA margin was 36.3%, above the 31% OPM recorded in Q4FY26 in the prior results series.
- Finance cost declined to ₹38663 lakh, -9.2% YoY and -18.5% QoQ, providing a direct support to pre-tax profitability.
- PAT recovered to ₹6471 lakh from a ₹49400 lakh loss in Q4FY26, while EPS recovered to ₹0.156 from ₹-1.194.
Key concerns
- Fuel cost rose to 52.7% of revenue from 49.6% YoY, compressing fuel-adjusted gross margin by 313bps; the filing does not establish tariff pass-through or pricing protection.
- Other income of ₹14743 lakh was 127.2% of consolidated PBT of ₹11593 lakh, making the ₹6471 lakh PAT recovery less representative of recurring operating earnings.
- RSTEPL reported a quarterly loss of ₹3573 lakh, negative net worth of ₹264580 lakh and borrowing defaults of ₹229561 lakh.
- SMPL reported a quarterly loss of ₹2942 lakh, negative net worth of ₹286131 lakh and current liabilities exceeding current assets by ₹457163 lakh; its lender has invoked a corporate guarantee and initiated CIRP against the parent.
- The Group's ability to continue as a going concern depends on time-bound monetisation of subsidiary assets and resolution of lender obligations.
Earnings quality: includes non-operating other income
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