The auditors have flagged material uncertainty relating to the group’s ability to continue as a going concern because of the financial position of these subsidiaries
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Anil Ambani-led Reliance Power reported a 44 per cent year-on-year increase in consolidated net profit to ₹65 crore for the quarter ended June 30, 2026, helped by steady operating performance despite ongoing legal and financial challenges at some of its subsidiaries.Revenue from operations rose four percent to ₹1,956 crore during the April-June quarter, according to the company’s regulatory filing. In the notes to its financial results, the company said the Central Bureau of Investigation (CBI) had conducted search and seizure operations during and after the quarter at the registered offices of Reliance Power and Reliance Cleangen Ltd in connection with transactions involving Reliance Commercial Finance Ltd and Reliance Home Finance Ltd. The company said it had fully cooperated with the investigation and that the searches had no impact on the group’s business operations.Reliance Power also said certain group companies and officials continue to be under investigation by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act. While the ED has attached certain group assets, the company said it is contesting the action through legal proceedings and does not expect any impact on its operations or financial statements at this stage. During the quarter, ₹34.32 crore outstanding warrants lapsed after they were not converted into equity within the prescribed 18-month period. Consequently, the company forfeited ₹302.62 crore received as the upfront subscription amount, while the corresponding equity shares will not be issued.Reliance Power also disclosed continuing financial stress at two subsidiaries. Rajasthan Sun Technique Energy Pvt Ltd (RSTEPL) has defaulted on lender repayments after the technology deployed at its solar project failed to deliver the expected results, while compensation awarded by the Appellate Tribunal for Electricity remains stayed by the Supreme Court.Separately, lender action against Samalkot Power Ltd (SMPL) has resulted in corporate insolvency proceedings being initiated against Reliance Power after invocation of a corporate guarantee. The company said it is evaluating legal options and expects planned asset monetisation at SMPL, subject to lender approvals, to address outstanding obligations. It added that despite material uncertainties relating to the subsidiaries, it expects to continue as a going concern and meet its liabilities through normal business operations and asset monetisation.The auditors have flagged material uncertainty relating to the group’s ability to continue as a going concern because of the financial position of these subsidiaries. Reliance Power, however, said it remains confident of meeting its liabilities through normal business operations and time-bound asset monetisation, while maintaining that its core power generation business continues to operate normally.Shares of Reliance Power closed 0.29 per cent higher at ₹24.25 on the BSE on Thursday.Published on August 6, 2026
