Reliance Power profit falls 53.48% QoQ as tax credit masks loss
Revenue fell faster than expenses, while a Rs 61.33 cr tax credit turned a Rs 31.23 cr pre-tax loss into reported profit.
Filed 12 Nov 2026, 19:44 IST · after market close · Reliance Power Ltd (RPOWER)
Key takeaways
- Consolidated net profit fell 53.48% QoQ to Rs 30.10 cr as a Rs 61.33 cr tax credit offset a pre-tax loss.
- Revenue declined 6.45% QoQ while expenses fell 5.45%, narrowing operating margin by 0.76 percentage points to 27.99%.
- Operating margin matched the 27.99% median among 31 Utilities peers that had reported the quarter.
Price around the results
Operating profit weakened as revenue fell faster than costs
Reliance Power's consolidated revenue declined 6.45% QoQ to Rs 1,830.04 cr, while expenses fell only 5.45% to Rs 1,317.89 cr. That cost pattern pulled operating profit down 8.94% to Rs 512.15 cr and reduced operating margin by 0.76 percentage points to 27.99%.
Tax credit, not operating performance, drove reported profit
The company posted a Rs 31.23 cr pre-tax loss, with interest broadly stable as it rose 0.37% QoQ to Rs 388.06 cr. A negative tax charge of Rs 61.33 cr, equivalent to a 196.38% tax rate, turned that loss into net profit of Rs 30.10 cr. Other income fell 76.59% to Rs 34.51 cr and represented -110.50% of pre-tax profit, underscoring the distorted profit-quality comparison in a loss-making quarter.
Margin held at the Utilities peer median
With no year-on-year comparison available, the sequential trend shows operating margin moving down from 28.75% in Q1FY27 to 27.99% in Q2FY27. The Q2FY27 margin matched the median for 31 Utilities peers that had reported the same quarter.
After-close filing leaves the market response open
Reliance Power filed the consolidated results at 19:44 IST, after market close. The share-price response therefore is not part of this quarter's initial read.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,830 cr | ₹1,956 cr | -6.45% |
| Other income | ₹35 cr | ₹147 cr | -76.59% |
| Expenses | ₹1,318 cr | ₹1,394 cr | -5.45% |
| Operating profit | ₹512 cr | ₹562 cr | -8.94% |
| Operating margin (%) | 27.99% | 28.75% | — |
| Interest | ₹388 cr | ₹387 cr | +0.37% |
| Depreciation | ₹190 cr | ₹207 cr | -8.42% |
| Profit before tax | ₹-31 cr | ₹116 cr | — |
| Tax | ₹-61 cr | ₹51 cr | — |
| Net profit | ₹30 cr | ₹65 cr | -53.48% |
| EPS (₹) | ₹0.07 | ₹0.16 | -56.25% |
Operating margin of 27.99% compares with a Utilities sector median of 27.99% across 31 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 27.99% after its 0.76-percentage-point QoQ decline.
- Whether revenue moves back above Rs 1,830.04 cr without expenses growing faster than revenue.
- Whether profit before tax returns above Rs 0 after a Rs 31.23 cr loss despite a Rs 61.33 cr tax credit.