Reliance Power (RPOWER) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was Rs. 1,88,987 lakh; net profit was Rs. 3,010 lakh, compared with a pre-exceptional loss of Rs. 591 lakh. H1 net profit was Rs. 9,481 lakh.

• Consolidated review conclusion was qualified for matters involving RSTEPL, SMPL and DSPPL; auditors also highlighted material going-concern uncertainty at the Group level.

Financial highlights

• Q2 consolidated revenue from operations was Rs. 1,83,004 lakh and total income Rs. 1,88,987 lakh; H1 revenue was Rs. 3,78,636 lakh and total income Rs. 3,99,362 lakh.

• Q2 consolidated PBT was a loss of Rs. 3,123 lakh after Rs. 2,532 lakh in loan prepayment charges; a tax benefit of Rs. 6,133 lakh resulted in net profit of Rs. 3,010 lakh.

• H1 consolidated PBT was Rs. 8,470 lakh and net profit Rs. 9,481 lakh; prior-year H1 net loss was Rs. 33,689 lakh.

• Standalone Q2 revenue was Rs. 71 lakh and net loss Rs. 6 lakh; H1 revenue was Rs. 91 lakh and net profit Rs. 314 lakh.

Outlook and guidance

• Management expects SMPL equipment monetization, subject to lender approval and required approvals, to address outstanding lender obligations; buyer provided a USD 10 million standby letter of credit in Q2.

• Management is pursuing operational improvements and lender-debt resolution at RSTEPL, including advanced discussions with lenders; the going-concern basis depends on future finance and cash generation.

• Management expects to meet liabilities in the ordinary course and through time-bound monetization of subsidiary assets, while auditors cited material uncertainty over continued operations, particularly at RSTEPL and SMPL.