Comeback kings! Reliance Power, Reliance Infra among 40 turnaround stories of FY25. Watchlist material?

In a stunning reversal of fortune, at least 40 companies pulled off a comeback story, shifting from losses in FY24 to profits in FY25. Stocks of nine of these companies have rewarded investors with multibagger returns exceeding 100%.

Leading this remarkable turnaround brigade is Anil Ambani-led Reliance Power, which catapulted from a staggering loss of Rs 2,242 crore in FY24 to a profit of Rs 2,947 crore in FY25, delivering investors a spectacular 151% return over the past year.

The infrastructure space witnessed an equally impressive transformation, with another Anil Ambani company Reliance Infrastructure posting the most dramatic profit swing—from a loss of Rs 1,148 crore to a whopping profit of Rs 9,177 crore, while rewarding shareholders with 136% returns.

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Electronics component manufacturer Kernex Microsystems emerged as the biggest winner among mid-cap turnaround stories, skyrocketing 224% after swinging from a Rs 27 crore loss to a Rs 50 crore profit. The company’s remarkable journey from red to riches exemplifies the potential hidden in India’s manufacturing ecosystem.

PC Jeweller, once mired in controversies and losses, staged its own comeback with a 138% stock price surge after reporting a profit of Rs 578 crore against the previous year’s loss of Rs 629 crore. The diamond and jewellery retailer’s resurrection has caught the attention of value hunters seeking distressed opportunities.Among large-cap stories, Tata Steel‘s turnaround deserves special mention despite its stock declining 8% over the year. The steel giant swung from a massive loss of Rs 4,910 crore to a profit of Rs 3,174 crore, setting the stage for potential re-rating as commodity cycles improve.”FY25 was an election year. The entire commodity pack got impacted with cement and steel prices getting hit,” said Pankaj Pandey, Head of Retail Research at ICICI Direct. “Tata Steel is looking for a Rs 3,000 kind of a price hike. If you are making Rs 12,000 EBITDA per tonne, Rs 3,000 is a significant number as the entire benefit flows to the bottomline.”

The renewable energy sector showcased resilience with Inox Wind Energy and GMR Power delivering impressive turnarounds. Inox Wind Energy surged 57% after swinging to a profit of Rs 423 crore from a loss of Rs 89 crore, while GMR Power rallied 63% on the back of a Rs 1,738 crore profit versus a Rs 82 crore loss.

Real estate emerged as another surprise winner, with Max Estates and Awfis Space Solutions both featuring in the turnaround list. Max Estates gained 46% after moving from a Rs 55 crore loss to a Rs 26 crore profit, while co-working space provider Awfis jumped 69% following its swing to profitability.

Piramal Enterprises, the financial services major, completed one of the most significant large-cap turnarounds, moving from a loss of Rs 1,684 crore to a profit of Rs 485 crore, though its stock gained a modest 46%. V-Mart Retail also joined the revival party with a 38% gain after returning to profitability.

The pharmaceutical sector contributed its share of comeback stories, with Glenmark Pharma leading the pack with a profit of Rs 1,047 crore against a previous loss of Rs 1,831 crore, though the stock gained a relatively modest 31%.

Market analysts believe this wave of corporate turnarounds reflects broader economic stabilization after a challenging period. “In FY26 we are expecting around 11% kind of growth,” Pandey noted, suggesting the earnings recovery cycle may be gaining momentum.

However, caution remains warranted. HSBC analysts warn that “a sustained recovery in earnings growth is still a few quarters away,” citing concerns over urban consumption weakness and delayed private capital expenditure.

Motilal Oswal’s data reveals that while aggregate Nifty-500 company earnings grew 9% year-on-year, the recovery remains concentrated. “The top 10 companies by incremental profit growth contributed approximately 97% to the incremental YoY earnings in FY25, compared to 50% in FY24,” the brokerage noted.

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For investors, these 40 turnaround stories present a compelling case study in corporate resilience and the power of operational restructuring. However, with nine companies already delivering multibagger returns, the key question remains whether late entrants can still ride this phoenix wave or if the easy money has already been made.

The coming quarters will test whether these corporate comebacks can sustain their momentum or prove to be just another false dawn in the cyclical recovery story.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)