RattanIndia Power Swings to Profit in Q2 FY27

Profit reached Rs 38.37 crore for the quarter; Revenue climbed to Rs 702.85 crore.

Reader Takeaway: Strong operational recovery is offset by significant ongoing legal disputes and pending preference share redemptions.

What just happened

RattanIndia Power Limited has reported a return to profitability for the quarter ended September 30, 2026. The company posted a net profit of Rs 38.37 crore, marking a turnaround from the Rs 31.55 crore loss during the same period last year. For the half-year, profit stands at Rs 84.22 crore against a loss of Rs 44.66 crore in the previous year. Revenue from operations also saw a rise to Rs 702.85 crore for the quarter compared to Rs 653.72 crore a year ago.

Why this matters

The return to profitability suggests improved operational efficiency. However, the company continues to navigate significant financial and legal challenges. A recent arbitration award of Rs 171 crore against the firm and the ongoing delay in redeeming Rs 250 crore worth of preference shares remain key concerns for stakeholders.

Corporate Developments and Legal Status

Management is evaluating the Rs 171 crore arbitration award pronounced by the tribunal on October 1, 2026. The company maintains its position that no additional liability adjustment is needed at this stage. Furthermore, the company is still contesting an older interim award of Rs 115 crore at the Delhi High Court. Additionally, MSEDCL has disbursed Rs 876.84 crore under 'Change in Law' claims, with the company anticipating the realization of the remaining balance.

Risks to watch

The statutory auditors have highlighted the pending redemption of Rs 250 crore in preference shares, which have been overdue since December 2021. The ongoing legal disputes related to these shares under the IBC code remain a critical area of focus for investors.