What was filed
Reliance Power's board approved unaudited consolidated and standalone results for the first quarter of FY2026-27 on August 6, 2026, together with the statutory auditors' limited review reports. On a consolidated basis the Group returned to profit, reversing the loss reported in the immediately preceding March quarter. The Group operates in a single segment — generation of power — predominantly in India.
The headline improvement, however, sits alongside a run of auditor observations and disclosures that dominate the notes to the accounts.
Auditor qualifications and going-concern flags
The auditors issued a qualified conclusion on subsidiary Rajasthan Sun Technique Energy Private Limited (RSTEPL), citing negative net worth and defaulted borrowings, and said they were unable to obtain adequate evidence on the going-concern assumption. Similar material-uncertainty language was drawn on Samalkot Power Limited (SMPL). For Dhursar Solar Power Private Limited (DSPPL), the auditors said they could not obtain sufficient evidence on the impairment valuation assumptions or on the recoverability of receivables from promoter company Reliance Infrastructure Limited.
Taken together, the auditors concluded, these conditions indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. Management stated the results were nonetheless prepared on a going-concern basis, citing time-bound monetization of subsidiary assets and ongoing lender discussions.
Insolvency application, guarantee dispute and investigations
SMPL's lender invoked a corporate guarantee against the parent and, during the quarter, initiated a Corporate Insolvency Resolution Process against the parent under Section 7 of the Insolvency and Bankruptcy Code, which management said it is evaluating. A London arbitration tribunal issued a partial award on June 23, 2026 holding it lacked jurisdiction over SMPL's claim, and SMPL later withdrew that arbitration. SMPL has separately agreed to sell certain project equipment of its 1,508 MW combined-cycle plant, subject to lender approval.
The notes also describe an Enforcement Directorate investigation under PMLA with provisionally attached assets, a CBI search operation, an EOW chargesheet relating to a fake bank guarantee submitted to SECI, and the arrest of a former Executive Director and CFO. A SEBI-appointed forensic audit remains ongoing. The company stated there is no impact on business operations. Separately, during the quarter warrants lapsed and the amount received against them was forfeited.