Debts getting erased rapidly, deals closing rapidly...,can Anil Ambani overtake his elder brother Mukesh Ambani?
Anil Ambani was once the sixth richest person in the world, even boasting a wealth of $42 billion by the end of the 2000s. After the division of the Reliance group, he was in control of companies such as Reliance Telecom, Reliance Capital, Reliance New Energy, and Reliance Power – all companies with significant potential. But as a result of bad choices, poor planning, over-dependence on debt, and poor execution, all of his companies started to struggle. Debt obligations mounted, shares fell, and many were lost in the sale of companies to pay down obligations.
Today, things seem to be changing. Companies are finding more capital to invest in their future, profits are growing, loan amounts are shrinking, and new projects are coming in. If the trend continues, it would not be surprising to see Anil Ambani regain one of the many positions he has lost over the last decade in the business world.
Anil Ambani and Mukesh Ambani are two well-known names in the world of business. Today, Mukesh Ambani is the richest industrialist in India. Moreover, he is one of the richest individuals in Asia. He holds a significant name in the global business community. However, Anil Ambani is also making a comeback. Things are getting better for him, and his companies—Reliance Power, Reliance Industries, and Reliance Home Finance—are regularly reporting profits.
Anil Ambani's companies have been providing exceptional returns for investors. Stocks like Reliance Power, Reliance Home Finance Ltd, and Reliance Infrastructure have produced very favorable results. In just one month, Reliance Power shares have increased by more than 40%. In fact, for one full year, the stock has delivered a spectacular return of around 125%, which is more than double the original investment. This means that a Rs 1 lakh investment in Reliance Power one year ago would be worth approximately Rs 2.25 lakh today.
Likewise, Reliance Infrastructure Ltd has also given out sizable returns in the previous year. The stock was up 30% in the last month and has given almost a 90% return in a year. As for Reliance Home Finance Ltd, the stock has generated nearly a 55% return in just one month and around 50% in one year. And when you examine Mukesh Ambani's Reliance Industries, it is important to note, although it remains India's most valuable company based on market value, its performance hasn't been too good recently. In the past month, it has remained mostly flat, and over the last year, it has declined by about 6%.
In terms of returns, it appears that Anil Ambani's companies have performed better than his older brother's Reliance Industries in the recent past.
Good things are happening for Anil Ambani right now. His companies, Reliance Infra and Reliance Power, are becoming transformational forces. Recently, Reliance Infra's subsidiary, Reliance Defence, has secured multiple deals one after another.
If it wasn't enough that confidence is growing in Anil Ambani's businesses from domestic investors in India, a great deal of global confidence in his businesses has developed. He recently signed a significant deal with Diehl Defence in Germany.
Prior to the deal with Diehl, another German company inked an agreement with his firm to manufacture ammunition.
Moreover, Anil Ambani's company signed a major international project agreement in Bhutan, where he signed an agreement to build a 1,270 MW solar power plant—this is a concrete step forward in his comeback.
Anil Ambani is now clearly committed to reducing the level of debt for his companies, as he has been continuously working towards getting his companies debt-free, one after the other.
Reliance Infrastructure, one of the flagship companies of the Ambanis, cleared Rs 3,300 crore in debt in FY2025 and has become entirely debt-free. Media reports suggest that Reliance Power's Rosa Power Supply Company also paid down its Rs 485 crore in debt, which likewise has been cleared to be entirely debt-free.
Previously, Reliance Power itself managed to pay down a substantial loan of Rs 3,872 crore. It is interesting that with these debts being reduced, the companies also seem to be attracting new orders and attracting new investments, signaling that Anil Ambani's businesses are on the verge of a full revival.
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