Adani Power
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Adani Power's management has articulated a robust growth strategy, targeting an expansion to 45 GW by FY32, underpinned by strong demand dynamics and favorable government policies. The company's focus on securing long-term Power Purchase Agreements (PPAs) has significantly reduced its exposure to the volatile merchant market, enhancing revenue predictability. Recent earnings reports indicate a recovery in revenue growth, supported by improved generation and realization rates. Vista's financial outlook reflects this optimism, projecting improved margins and stable cash flows, aligning with the company's strategic initiatives. However, potential headwinds include fuel price volatility and execution risks associated with its ambitious capex plans. The power utilities sector is currently experiencing strong demand growth, driven by urbanization and data center expansion, which bodes well for Adani Power's long-term prospects. Over the next 12-24 months, key opportunities lie in the company's capacity expansion and diversification into renewable energy, while watchpoints include regulatory pressures and the competitive landscape. Overall, Adani Power is well-positioned to capitalize on India's growing power demand, although execution risks remain a concern
Why We Like This Stock
- Strong demand dynamics and government support are driving Adani Power's ambitious capacity expansion plans
- The company's focus on long-term PPAs has reduced exposure to market volatility, enhancing revenue stability
- Operational excellence and a robust capital structure position Adani Power favorably for sustained growth
Things To Watch Out For
- Fuel price volatility poses a risk to profitability and margin expansion
- Execution risks associated with ambitious capex plans could delay growth targets
- Regulatory pressures and competitive dynamics from the renewable sector may impact market share
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 50,351 | 56,203 | 54,241 | 66,355 | 77,131 |
| Profit Before Tax (Cr.) | 20,796 | 16,376 | 15,500 | 26,698 | 28,786 |
| PBT Margin | 41.3% | 29.1% | 2857.6% | 40.2% | 37.3% |
| Net Profit (Cr.) | 20,796 | 16,317 | 13,939 | 24,094 | 25,978 |
| Earnings Per Share | 10.8 | 8.6 | 7.2 | 12.5 | 13.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Cantor Fitzgerald | ▲ Overweight | 266 | 24-Jul-2026 |
| ICICI Securities | ► Add | 233 | 24-Jul-2026 |
| JMFinancials | ▼ Reduce | 202 | 09-Jun-2026 |
| Jeffries | ▲ Buy | 270 | 06-Jun-2026 |
| Macguire | ► Hold | 230 | 11-Jun-2026 |
| Morgan Stanley | ▲ Overweight | 275 | 25-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.