Reliance Share Price Falls 3% as Battery Unit Faces ₹125 Crore Fine

Date: 03-mar-2025

Reliance Faces Setback in Battery Manufacturing

Reliance Industries Limited (RIL) witnessed a sharp decline of over 3% in its stock price on March 3, 2025, hitting a new 52-week low of ₹1,156. The dip comes after its subsidiary, Reliance New Energy Ltd., failed to meet a crucial deadline in setting up its battery cell manufacturing unit, triggering a potential ₹125 crore fine.

Why Did Reliance Shares Drop?

Missed Deadline and Government Fines

Reliance New Energy had secured a bid under the Indian government’s Production Linked Incentive (PLI) scheme to boost domestic battery cell production. However, delays in the project have led to financial penalties, raising concerns about the company’s ability to compete in the electric vehicle (EV) and clean energy markets.

Market Reaction and Investor Concerns

• Stock Performance: Reliance shares fell below key support levels, marking a six-month decline of 23%.
• Foreign Institutional Selling: Continuous selling by foreign investors has further pressured the stock.
• Global Economic Factors: Rising US interest rates and a strong dollar have affected investor sentiment in emerging markets.

What’s Next for Reliance?

Analysts believe Reliance’s stock performance will depend on its ability to recover from these setbacks. The company must address the delay in its battery production facility and reassure investors of its long-term clean energy strategy.

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