Reliance Industries acquires 100% stake in KGTL to boost its green hydrogen plans, pushing its stock to a 4-month high.
Reliance Industries Limited (RIL), India’s largest conglomerate led by Mukesh Ambani, announced the acquisition of a 100% equity stake in Kandla GHA Transmission Limited (KGTL) from PFC Consulting Limited (PFCCL). This move strengthens RIL’s plans in the green hydrogen sector and has pushed its stock to a 4-month high, making it an interesting time to invest in stocks.
RIL’s strategic move towards green energy
On April 25, 2025, RIL confirmed that the acquisition deal would not exceed ₹20 crores. Upon completion, KGTL will become a wholly-owned subsidiary of Reliance Industries. KGTL, incorporated on November 27, 2024, has not yet started commercial operations. This strategic investment is a significant step towards executing the Independent Transmission Project (ITP) titled "Transmission System for supply of power to Green Hydrogen/Ammonia manufacturing potential in Kandla area of Gujarat (Phase-3 GW)."
For investors looking to invest in stocks with a focus on the future, RIL’s bold move into green hydrogen infrastructure offers considerable promise. The transaction is set to conclude by the end of June 2025 and does not require any governmental or regulatory approvals.
Stock performance amid acquisition and strong Q4FY25 results
Following the announcement, RIL's stock hit a 4-month high of ₹1,325.25 per share during Friday's trading session. Over the past month, the stock rose by 0.37%, and on a year-to-date basis, it recorded a gain of 6.66%. This performance underlines why many experts suggest it could be a good time to invest in stocks like RIL.
Alongside the acquisition news, RIL also declared its Q4FY25 financial results. The company reported a gross revenue of ₹2,88,138 crores, marking an 8.8% year-on-year growth. The profit after tax and share of profit/(loss) of Associates and Joint Ventures stood at ₹22,611 crores, reflecting a 6.4% increase. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also grew by 3.6% year-on-year, reaching ₹48,737 crores.
Financial highlights show consistent growth
In the quarterly results for March 2025, RIL posted a revenue of ₹2,61,388 crores, up 10.51% compared to ₹2,36,533 crores in March 2024. Operating profit rose by 3.10% to ₹43,832 crores, while profit after tax increased by 2.41% to ₹19,407 crores.
For FY24, RIL reported a revenue of ₹9,64,693 crores, showing a 7.30% growth compared to ₹8,99,041 crores in FY24. The net profit for the year rose slightly to ₹69,648 crores from ₹69,621 crores in the previous year. Such stable performance makes RIL a strong contender for those planning to invest in stocks for long-term gains.
Why investors are eyeing RIL
Reliance Industries continues to diversify its operations across petrochemicals, refining, oil and gas, retail, telecommunications, and textiles. As of 12:00 PM on April 28, 2025, the stocks of Reliance Industries were trading at ₹1,358.69 per share on the National Stock Exchange (NSE). Its foray into green energy and infrastructure projects like KGTL further strengthens its market positioning.
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