RattanIndia Enterprises, RattanIndia Power Shares Rally 20%. Here’s Why…

On Tuesday, 10 June 2025, two companies from the same corporate business group witnessed a significant surge in their stock prices –

• RattanIndia Enterprises, the flagship company of the RattanIndia group, spiked up to 19%, reaching an intraday high of Rs 59.3.

• RattanIndia Power, on the other hand, was locked in the upper circuit band of 20% at Rs 14.3.

While the former is catering to emerging industries like electric mobility, renewable energy, drone technology, fintech, and e-commerce, the latter claims to be one of India’s largest private power generation companies.

Let’s unpack both.

# RattanIndia Enterprises

RattanIndia Enterprises, which was traditionally known for its power generation business, is undergoing a strategic shift. The company has expanded its operations to tech focussed new age businesses including e-commerce, electric vehicles, and drones.

It owns Revolt Motors, India’s first electric motorcycle brand, which it acquired in January 2023.

Through its subsidiary NeoSky India, RattanIndia is also involved in the development and manufacturing of military-grade drones and anti-drone solutions.

It has one more subsidiary – Throttle Aerospace Systems (TAS). This is India’s first DGCA approved drone company and has license to manufacture both civil drones and military-grade drones for the Ministry of Defense.

Why is the Stock Price Rising?

Coming to its recent share price performance, RattanIndia Enterprises shares rallied over 18% in intraday trade on Tuesday on the back of heavy volumes.

Compared to its average volume, the stock saw a spurt of more than 23 times in its volume, which explains the price rise.

Apart from this, there’s no announcement by the company which has materially impacted its performance. So the movement is purely based on volume.

With today’s spike, the stock price has rallied over 35% in a month. However, shares are still down 8% in 2025 so far.

YTD Performance

Financial Performance

Coming to its financials, RattanIndia Enterprises has staged a decent turnaround in the past couple of years. From a loss making company in FY23 and in years 2016-2020, the company is back to reporting profits.

In FY25, the company posted record high sales of Rs 6,866 crore, which resulted in an operating profit of Rs 252 crore and a net profit of Rs 81 crore. Operating margins also improved compared to the year ago period.

The performance in fourth quarter of FY25 was exceptional on account of higher PLF

and improved coal quality. In FY25, the company sold 29.46 MUs on the power exchange, generating revenue of Rs 23 crore, in addition to revenue earned through the PPA.

While the company’s revenue has increased in recent quarters, profitability remains weak, leading to doubts about sustainable earnings growth.

What Next?

The company is currently investing in a lot of new business segments, which are expected to contribute to its topline and bottomline in the coming quarters.

The company’s EV arm Revolt Motors plans to double its sales network to 400 dealerships in India by the end of FY26. The company has expanded its dealership to 200 locations multiplying the network by ten times over the last two years.

Revolt Motors recently partnered with MV Dugar Group, one of Nepal’s leading automotive groups, making its foray into the Nepal market.

It has big plans for the drone segment as well. NeoSky plans to establish over 150 drone hubs across India and more than 25 internationally by the financial year 2027.

While the company has diversified into multiple new age sectors, it will all depend on the company’s execution skills and how it navigates the market as none of the segments have reached significant profitability yet.

Let’s now look at the other stock which saw a sudden spurt…

# RattanIndia Power

According to its website, RattanIndia Power is among India’s largest private power generation companies with an installed capacity of 2,700 MW of thermal power plants in Maharashtra. 

It supplies the majority of power it generates to the Maharashtra State Electricity Distribution Company Limited (MSEDCL) through a long-term power purchase agreement. While the rest is sold on the open market.

Why is the Stock Price Rising?

Shares of RattanIndia Power jumped as much as 20% on Tuesday, hitting the day’s high of Rs 14.34 amid significant volumes. According to reports, as many as 19.47 crore shares changed hands.

Following this steep rise during intraday trade, BSE sought clarification from the company. To which RattanIndia Power said it’s not aware of any reason for the recent significant increase and the movement is purely price and volume driven. 

As a result of this rally, the stock price is up 37% in a month. In 2025 so far, the company’s stock price is up 5%.

YTD Performance

Financial Performance

Coming to RattanIndia Power’s financials, much like RattanIndia Enterprises, the company turned around in FY24 and FY25. Before that, between FY14-FY23, the company posted losses in 9 out of the 10 years.

In FY25, RattanIndia Power posted a net profit of Rs 222 crore on sales of Rs 3,284 crores. The figures are lower compared to FY24 as power generation experienced a decline in Q2 & Q3 of FY25 due to scheduled annual and capital overhauling of units.

What Next?

The company has a long term power purchase agreement with MSEDCL for 1200 MW. This provides steady revenue visibility.

While the company has staged a turnaround in recent years, the profitability and sales growth have remained sluggish in most of the quarters of FY25.

Therefore, RattanIndia Power’s future would be determined on how well it manages debt, and how it expands presence in the green energy segment.

Conclusion

While price movements like these grab headlines, seasoned investors know that stock surges – especially those driven by volumes – don’t always reflect the true health of a business. The real story lies beneath the surface: earnings growth, debt levels, cash flows, and the company’s ability to create long-term value. 

Price is what you pay, but value is what you get. And that value is rarely visible in a single day’s rally. 

Investors would do well to focus less on short-term spikes and more on whether the business itself is moving in the right direction.

Happy Investing.

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