Mukesh Ambani stock in focus after receiving ₹18,100 Cr under PLI scheme for 10 GWh battery capacity

Mukesh Ambani’s stock is gaining momentum after the company signed a significant agreement under the Production-Linked Incentive (PLI) scheme for a 10 GWh battery capacity, boosting its prospects in the growing energy storage sector.

Price Movement

In Tuesday’s trading session, Reliance Industries Limited share price reached an intra-day high of Rs.1,229.90 per share, representing 1 percent rise from its previous close of  Rs.1,224.90 apiece. The shares retreated later before closing at Rs.1,223.95 per share.

PLI Scheme for Battery Capacity Expansion

The Ministry of Heavy Industries (MHI) signed an agreement with Reliance New Energy Battery Ltd for the allocation of 10 GWh capacity under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage. 

This agreement follows a competitive global bidding process, making the Reliance Industries Ltd subsidiary eligible for incentives under the Rs.18,100 crore PLI ACC scheme, as stated by the ministry on Tuesday.

With this new allocation, a total of 40 GWh has now been awarded to four companies under the scheme, which aims to reach a manufacturing capacity of 50 GWh. In the initial round of bidding held in March 2022, three companies secured 30 GWh, with programme agreements signed in July 2022.

Investment Plans and Outlook

Reliance has set an ambitious target to establish 100 GW of renewable energy installations by 2030. In line with its green energy aspirations, the company announced a $10 billion investment in 2021 to expand its renewable energy portfolio. Furthermore, Reliance is on track to invest up to Rs.75,000 crore in developing a new energy manufacturing ecosystem, solidifying its commitment to sustainability and clean energy.

Also read: Smallcap stock crashes over 9% after downgrading its revenue guidance for FY25

Budget Allocations

The Union Budget for 2025-26 introduced several measures to boost the domestic battery manufacturing ecosystem, including the exemption of 35 additional capital goods used in EV battery production from Basic Customs Duty (BCD). 

According to the ministry, this initiative has prompted Indian companies to invest in cell manufacturing facilities, with over 10 firms already in the process of setting up more than 100 GWh of additional capacity.

Earnings Overview

In the latest financial update, the company reported net sales of Rs.239,986 crore for Q3 FY25, marking an increase of approximately 7 percent from Rs.225,086 crore in Q3 FY24. Net profit increased 12 percent to Rs.21,930 crore, compared to Rs.19,641 crore in the same period last year.

Company overview

Reliance Industries Limited (RIL) is the largest private sector company in India and a Fortune 500 firm. It operates in hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, as well as renewables including solar and hydrogen. Additionally, RIL is involved in retail and digital services.

Written by – Siddesh S Raskar

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