Synopsis: The power stock received an ‘overweight’ rating with a 29% upside, supported by regulatory clearance, strategic acquisitions, and operational efficiency, ongoing capacity expansions, and new PPAs position the company for robust medium- to long-term growth.
India’s integrated power utilities sector boasts a total installed capacity of 484.8 GW as of June 2025, with 50.1% about 242.8 GW sourced from renewables, including solar, wind, hydro, and nuclear. Driven by robust demand and policy reforms, this sector is rapidly expanding and powering India’s dynamic economic and industrial growth.
With a market capitalization of Rs 2,64,046.04 crore, the shares of Adani Power Ltd were trading at Rs 684.60 per share, increasing around 8.74 percent as compared to the previous closing price of Rs 630.85 apiece.
Brokerage Recommendations
Morgan Stanley, one of the well-known brokerages globally, has given an ‘overweight’ rating on the power stock with a target price of Rs 818 apiece, indicating a potential upside of 29 percent from the previous closing price of Rs 630.85 per share.
Adani Power exemplifies a successful corporate turnaround, having resolved key regulatory issues and completed multiple value-accretive acquisitions. Morgan Stanley anticipates robust earnings growth, supported by timely project completions and new power purchase agreements. The combination of strategic acquisitions, operational efficiency, and regulatory clarity positions the company for sustainable medium-term performance and shareholder value creation.
The company projects a 2.5× increase in capacity and a 3× growth in EBITDA by FY2033, signaling strong long-term expansion. New coal PPAs are expected to bolster earnings visibility, enhancing investor confidence in future profitability and reinforcing the company’s strategic growth trajectory in the power sector.
Adani Group stocks, including Adani Power, gained attention after SEBI cleared the group and its top executives of allegations raised by Hindenburg Research. The regulator found no evidence of legal violations, fraud, market manipulation, or insider trading. This boosts investor confidence, potentially stabilizing stock performance and enhancing market credibility for the group.
Also read: 5 Microcap stocks with 3 year net profit CAGR of up to 278% to add to your watchlist
Financial & Operational Highlights
Looking forward to the company’s financial performance, revenue decreased by 6 percent from Rs 14,956 crore in Q1FY25 to Rs 14,109 crore in Q1FY26. Further, during the same time frame, net profit decreased by 16 percent from Rs 3,913 Also reato Rs 3,305 crore.
Adani Power’s operating capacity stands at 18,150 MW, driven by 10,840 MW of efficient organic generation and 7,270 MW of inorganic growth. The portfolio features flagship plants across Gujarat, Maharashtra, Rajasthan, and Jharkhand, using supercritical and ultra-supercritical technologies.
Adani Power’s recent inorganic capacity additions total 2,900 MW, including Korba (600 MW), Mutiara (1,200 MW), Dahanu (500 MW), and Butibori (600 MW). Rapid turnarounds added 4,370 MW via plants like Udupi, Raipur, Raigarh, and Mahan. Further, 10,920 MW are under development, driving significant future capacity expansion.
Written by Abhishek Singh
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