Adani Power
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Adani Power's management has articulated a robust growth strategy, targeting a capacity expansion to 42 GW by FY32, underpinned by secured long-term Power Purchase Agreements (PPAs) that provide revenue stability. This strategic positioning is critical as it mitigates exposure to volatile merchant markets, enhancing revenue predictability. Vista's financial outlook reflects this optimism, projecting significant EBITDA growth driven by capacity expansions and favorable market conditions, despite potential execution risks and competitive pressures. The company's focus on operational excellence and diversification into nuclear energy further supports its long-term growth trajectory. However, challenges such as regulatory pressures and rising environmental compliance costs could impact margins. The power utilities sector is currently expanding, with strong investment opportunities, although competitive pricing may pressure profitability. Over the next 12-24 months, key opportunities include leveraging India's growing power demand and strategic acquisitions, while watchpoints include execution risks associated with large capital projects and potential delays in asset construction
Why We Like This Stock
- Management's ambitious capacity expansion plan to 42 GW by FY32 is supported by secured long-term PPAs, enhancing revenue stability
- The company's focus on operational excellence and diversification into nuclear energy presents significant long-term growth opportunities
- The expanding power utilities sector in India offers strong investment potential, driven by increasing demand and government support
Things To Watch Out For
- Execution risks associated with large capital projects could delay growth and impact financial performance
- Regulatory pressures and rising environmental compliance costs may negatively affect margins
- Intense competition in the sector could lead to pricing pressures, impacting profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 50,351 | 56,203 | 54,241 | 66,350 | 78,675 |
| Profit Before Tax (Cr.) | 20,796 | 16,376 | 15,500 | 20,954 | 25,156 |
| PBT Margin | 41.3% | 29.1% | 28.6% | 31.6% | 32.0% |
| Net Profit (Cr.) | 20,796 | 16,317 | 13,939 | 18,909 | 22,702 |
| Earnings Per Share | 10.8 | 8.6 | 7.2 | 9.8 | 11.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Prabhudas Liladhar | ► Hold | 259 | 25-Sep-2026 |
| Jeffries | ▲ Buy | 270 | 11-Sep-2026 |
| Motilal Oswal | ▲ Buy | 250 | 03-Sep-2026 |
| Cantor Fitzgerald | ▲ Overweight | 266 | 24-Jul-2026 |
| ICICI Securities | ► Add | 233 | 24-Jul-2026 |
| Bernstein | ▲ Buy | 220 | 12-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 275 | 25-Jun-2026 |
| Macguire | ► Hold | 230 | 11-Jun-2026 |
| JMFinancials | ▼ Reduce | 202 | 09-Jun-2026 |
Company Overview
Show Company Profile
Adani Power Limited engages in the generation, transmission, and sale of electricity under long term power purchase agreements (PPAs), supplemental PPAs, medium and short term PPAs, and on merchant basis in India. The company generates electricity through thermal energy sources through various power projects with a combined installed and commissioned capacity of 18,150 megawatt (MW). It also operates various coal based power plants comprising 4,620 MW at Mundra, Gujarat; 3,300 MW at Tiroda, Maharashtra; 1,320 MW at Kawai, Rajasthan; 1,200 MW at Udupi, Karnataka; 600 MW at Raigarh and Korba, Chhattisgarh; 1,370 MW at Raipur, Chhattisgarh; 1,200 MW at Mahan, Madhya Pradesh; 1,200 MW at Mutiara, Tamil Nadu; 1,600 MW at Mirzapur, Uttar Pradesh; 500 MW at Dahanu, Maharashtra; and 1600 MW at Godda, Jharkhand. The company also operates solar based power plant comprising 40 MW at Bitta, Gujarat. In addition, it engages in coal import and supply/trading business. Adani Power Limited was founded in 1988 and is headquartered in Ahmedabad, India.