Synopsis:
Adani Power Limited and Druk Green Power Corporation Limited have signed a shareholders’ agreement with a shareholding ratio of 49:51 for setting up a 570 MW hydroelectric project in Bhutan.
The shares of the largest private thermal power producer in India sell power through a combination of long, medium, and short-term contracts, as well as on the open market, gained notice after announcing the setting up of a 570 MW hydroelectric project in Bhutan.
With the market capitalization of Rs.2,46,072.70 crore, the shares of Adani Power Limited are trading at Rs.635.90, up by 4.28 percent from its previous day’s closing price of Rs.609.80 per equity share.
Project Setup
Adani Power Limited has partnered with Druk Green Power Corporation to develop the 570 MW Wangchhu hydroelectric project in Bhutan, with a total investment of Rs. 60 billion.
The project will be implemented under a build, own, operate, transfer model and will use a peaking run-of-river system. Construction is expected to begin in the first half of 2026 and be completed within five years.
As per the agreement, a new public company will be set up in Bhutan, with Adani Power holding 49 percent and DGPC holding 51 percent of the shares. Beyond the initial investment, both companies will contribute additional funds as needed according to their shareholding. The new company will issue 4.9 million shares to Adani Power Limited and 5.1 million shares to DGPC, with a price of 100 Bhutanese Ngultrum per share.
The agreement was signed in the presence of Bhutan’s Prime Minister, Dasho Tshering Tobgay, and Mr. Gautam Adani, Chairman of the Adani Group, marking an important step in promoting clean energy collaboration between the two nations.
Bhutan endeavors to become a High Income GNH (Gross National Happiness) Country within the next decade. Access to reliable and affordable electricity from its renewable energy resources, such as hydropower and sola,r will be critical to enable other investments to drive its economic growth. Bhutan, therefore, plans to add another 15,000 MW in hydropower and 5,000 MW in solar generation capacity by 2040.
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Management Commentary
Adani Power Limited’s CEO, Mr.SB Khyalia, commented as follows: “Bhutan is a rolemodel for the world in sustainable development, and we are very excited to play a leadingrole in the development of the country’s natural resources through this renewable energyproject. The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro power generation is low. During the summer months, it would exportpower to India”.
Company Profile & Others
Adani Power Limited, part of the Adani Group, India’s top private producer ofthermal power, with a total capacity of 18,150 MW. The company operates at multiple sites and provides electricity through various agreements, while also engaged in power trading and other related businesses.
The company’s revenue went down from Rs. 14,956 crore in Q1FY25 to Rs.14,109 crore in Q1FY26. Net profit went down from Rs.3,913 crore in Q1FY25 to Rs.3,305 crore in Q1FY26. Its return on equity is 26.1 percent, and return on capital is 22.5 percent. With a P/E ratio of 19.95, much lower than the industry average of 21.06, the stock looks cheaper compared to others.
Written by Jhanavi Sivakumar
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