Synopsis:
Adani Power has experienced a significant uplift in its share price over the past three days, climbing 8%, fueled by a combination of transformative corporate developments and favorable structural shifts in its cost base.
This company is a part of the diversified Adani Group, is the largest private thermal power producer in India is now in focus after its shares surged 8% in the last three days amid strategic Bhutan hydro project, landmark stock split, and lower coal costs.
With market capitalization of Rs. 2,46,150 cr, the shares of Adani Power Ltd are currently trading at Rs. 636.75 per share, making today’s high of Rs. 658.55 from its previous close of Rs. 643.65 per share. Shares of Adani Power Ltd have surged 8% from the last three trading sessions from Rs. 609.70 to Rs. 658.55 in today’s market.
Cost Advantage from Coal Compensation Cess Removal
In addition to expansion and market-friendly moves, analysts point to the elimination of the coal compensation cess effective September 22, 2025, as a critical factor expected to lower landed coal prices by 8 to 10%.
For a coal-dependent power producer like Adani Power, this reduction translates into a meaningful drop in operating costs and improves profitability. Market experts estimate savings of roughly ₹0.10–₹0.12 per kilowatt-hour, which could enhance margins under long-term power purchase agreements.
Bhutan Hydroelectric Venture
A key catalyst behind the recent market enthusiasm is Adani Power’s entry into Bhutan’s clean energy sector through a landmark partnership with Bhutan’s state-owned Druk Green Power Corporation (DGPC). Together, they will develop the Wangchhu hydroelectric project, a 570 MW peaking run-of-river plant estimated to cost around ₹6,000 crore (INR 60 billion).
This joint venture, to be structured as a public company in Bhutan with a 49% stake for Adani Power and 51% for DGPC, is scheduled to commence construction in the first half of 2026 with a target completion timeline of five years.
Additionally, the board has approved the company’s first stock split in a 1:5 ratio. This corporate action subdivides each existing equity share of face value ₹10 into five shares of ₹2, significantly improving liquidity and making shares more affordable to retail investors. The record date for this split is fixed for September 22, 2025.
Adani Power Limited, part of the Adani Group, is India’s largest private thermal power producer, with an installed capacity of over 12 GW as of 2025. The company operates major coal-based power plants like Mundra, Tiroda, and Udupi, while also expanding into renewable energy projects such as solar and hydro power. It integrates coal mining to secure fuel supply and improve cost-efficiency.
Written by Manideep Appana
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