Adani Power’s share price traded between ₹572 and ₹590, slipping slightly from its recent high of ₹594. The stock dipped 0.3% to ₹590.80 just ahead of the company’s important board meeting. While the broader market remained stable, the slight decline in Adani Power’s share price reflected investor caution leading up to new announcements.
Despite short-term volatility, investor interest remained strong due to the company’s strategic actions, including a stock split and long-term expansion plans.
Adani Power Stock Split Announced to Boost Retail Participation
In a key move, Adani Power’s board approved a 1:5 stock split on August 1. Under this decision, each existing ₹10 face value share will be split into five shares of ₹2 face value, subject to shareholder and regulatory approvals. The aim is to enhance liquidity and make the stock more accessible to retail investors.
News of the board’s consideration of this split had already caused the share price to rise around 3–3.8% prior to the official approval. The move is seen as a positive step in attracting more investors and increasing overall market participation in the company’s shares. Analysts believe that this could lead to higher trading volumes and greater visibility for the stock.
Adani Power Q1 FY26 Results: Profit Falls But Long-Term Outlook Strong
For the quarter ended June 2025, Adani Power reported a consolidated net profit of ₹3,305 crore, marking a decline of approximately 15–16% year-on-year. Revenue also slipped about 6% to a range of ₹14,109–₹14,167 crore. These results signaled some short-term pressure on the company’s performance.
Despite the earnings drop, the company’s EBITDA margin improved to around 14.8%, and annual revenue growth for FY25 stood at 10–11%, supported by ongoing efficiency improvements. However, net profit for FY25 fell to ₹12,750 crore from ₹20,829 crore in FY24, and Return on Equity (ROE) declined from 58% in FY24 to around 24–26% in FY25.
Expansion Efforts: Acquisition and Capacity Growth Ahead
Adani Power has continued to execute its aggressive expansion strategy. The company recently finalized the acquisition of Vidarbha Industries Power Limited, adding 600 MW to its installed capacity. This acquisition is part of a larger plan to scale up capacity to 30.67 GW by FY2030.
Analysts remain confident in the company’s direction, citing orders for modern ultra-supercritical technology and new project wins as indicators of strong future performance. Beyond domestic growth, the company is exploring hydropower collaborations in Bhutan and diversifying across new energy verticals, positioning itself to benefit from India’s push for infrastructure and clean energy investment.
Analyst Ratings and Share Performance Overview
Despite the recent dip in profits, several brokerage firms, including Jefferies and ICICI Securities, continue to issue “strong buy” or bullish ratings on Adani Power. ICICI sees a potential 24% upside, setting a target price around ₹600.
Here’s a snapshot of Adani Power’s share returns as of August 1, 2025:
- Past 1 week: –0.46%
- Past 1 month: +0.38%
- Past 3 months: +10.5%
- Past 6 months: +14.6%
- Past 1 year: –19.9%
- Past 3 years: +87%
- Past 5 years: +1,561%
The long-term returns remain impressive, highlighting investor confidence in the company’s future despite short-term fluctuations.
Conclusion
Adani Power appears to be in a transitional phase, balancing short-term earnings pressure with long-term bullish indicators such as the stock split, major acquisitions, and capacity growth. While the Q1 FY26 results may have dampened near-term sentiment, the company’s overall strategy points to a strong future.
Regulatory challenges persist, especially related to SEBI’s scrutiny and past controversies. However, the Supreme Court clearance in 2024 has restored confidence, and strategic moves in energy infrastructure continue to strengthen its position.
F.A.Q.
– What is the new stock split announced by Adani Power?
Adani Power’s board has approved a 1:5 stock split, meaning each ₹10 face value share will be split into five shares of ₹2 each, subject to shareholder and regulatory approval.
– Why did Adani Power’s profit decline in Q1 FY26?
The company’s net profit fell by around 15–16% year-on-year to ₹3,305 crore due to lower revenues and operational costs, despite improved EBITDA margins.
– How has Adani Power performed over the past year?
While the stock is down 19.9% in the past year, it has seen strong long-term growth, with a 1,561% gain over the last five years.
– What are analysts saying about Adani Power?
Brokerages like Jefferies and ICICI Securities maintain a “strong buy” rating, with ICICI projecting a 24% upside and a target price of ₹600.
– What are Adani Power’s future expansion plans?
The company plans to expand capacity to 30.67 GW by FY2030, recently acquired Vidarbha Industries Power (600 MW), and is exploring international hydropower projects in Bhutan.
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