Synopsis:
Adani Power Ltd, shares edged higher after the company secured a Letter of Award from Bihar State Power Generation Company for a 25-year power supply project.
A power sector stock saw upward movement in Friday’s session after announcing a significant long-term supply agreement in Bihar. Investors reacted positively to the news of a new 25-year contract.
Adani Power Ltd., with a market capitalization of Rs. 2,26,749.44 crore, opened at Rs. 598 and touched an intraday high of Rs. 600.75 against the previous close of Rs. 595.25. This marked a gain of 0.92 percent at the day’s high.
What’s the News?
Adani Power has received a Letter of Award from Bihar State Power Generation Company Ltd. (BSPGCL) for the long-term supply of electricity for a period of 25 years. The company will deliver power from a proposed 2,400 MW (800 MW x 3) ultra-supercritical greenfield power plant, to be set up at Pirpainti in Bhagalpur district of Bihar. The power will be supplied to North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL) through a Power Supply Agreement to be signed soon.
The contract comes at a time when India’s power demand is forecast to surge sharply, with peak demand expected to rise from the current 250 GW to around 400 GW by 2031-32, and over 700 GW by 2047. To support this growth, the government has projected the addition of nearly 100 GW of thermal power capacity by 2035, highlighting the continued importance of reliable, large-scale thermal generation in maintaining energy security and grid stability.
Earlier, Adani Power had won the Tariff Based Competitive Bidding process conducted by BSPGCL by quoting the lowest tariff of Rs. 6.075 per kWh. The company will invest about USD 3 billion in the Pirpainti project and related infrastructure. The mega project is expected to create between 10,000–12,000 jobs during construction and around 3,000 jobs once it becomes operational.
Management Commentary
“Adani Power, as India’s largest private sector thermal power producer, has consistently demonstrated the capability to deliver dependable capacity at scale,” said Mr. S.B. Khyalia, Chief Executive Officer of Adani Power. “With our upcoming ultra-supercritical, high-efficiency Pirpainti project in Bihar, we are setting new benchmarks in operational excellence and sustainability.
This plant will provide affordable and uninterrupted power to the people of Bihar, catalysing industrialisation, strengthening the state’s economy, and supporting the prosperity of its people. Through projects such as this, Adani Power remains committed to playing a leading role in securing India’s energy future,” he said.
Also read: Power stock jumps 3% after launching India’s first OSAT facility in Gujarat
Financial Snapshot
On a sequential basis, revenue declined by 0.9 percent to Rs. 14,109 crore in Q1FY26 from Rs. 14,237 crore in Q4FY25. Operating profit, however, rose 18.1 percent to Rs. 5,685 crore from Rs. 4,813 crore. Profit before tax grew 28.9 percent to Rs. 4,204 crore from Rs. 3,261 crore, while net profit advanced 27.1 percent to Rs. 3,305 crore compared to Rs. 2,599 crore.
On a yearly basis, revenue fell 5.7 percent to Rs. 14,109 crore in Q1FY26 from Rs. 14,956 crore in Q1FY25. Operating profit decreased 8.2 percent to Rs. 5,685 crore from Rs. 6,194 crore. Profit before tax declined 14.3 percent to Rs. 4,204 crore from Rs. 4,906 crore, while net profit dropped 15.5 percent to Rs. 3,305 crore against Rs. 3,913 crore in the same quarter last year.
About the Company
Adani Power Ltd., part of the Adani Group, is India’s largest private sector thermal power producer with an installed capacity of 18,110 MW across twelve plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, along with a 40 MW solar plant in Gujarat.
Backed by advanced technology and a skilled workforce, the company aims to make India a power-surplus nation while ensuring affordable electricity access across the country.
Written by – Manan Gangwar
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