Adani Power Ltd, India’s largest private-sector thermal power producer, has become a major attraction for investors and traders thanks to its rapid capacity expansion, strong profitability, and improving balance sheet. With rising electricity demand across India and Adani Group’s aggressive growth plans, many are now asking: Is Adani Power still a strong buy? and What could be the future share price targets?
In this article, we simplify Adani Power’s business model, earning drivers, capacity expansion, and financial strengths. We also highlight its PPAs-based stable revenue, merchant power advantages, and key risks that investors must track. Whether you’re a long-term wealth builder or a short-term trader, this overview will help you understand where Adani Power stands today and how its growth roadmap may shape the company’s valuation in the coming years.
Table of Contents
- Adani Power Ltd (NSE: ADANIPOWER) – Company Overview
- Adani Power Share Price Today
- Adani Power Investment Calculator
- Adani Power Share Price Target 2026
- Adani Power Share Price Target 2027
- Adani Power Share Price Target 2028
- Adani Power Share Price Target 2029
- Adani Power Share Price Target 2030
- Should You Buy Adani Power Stock?
- Adani Power Annual Earnings Results
- Key Valuation Metrics – Adani Power
- Adani Power – Peer Comparison
- Is Adani Power a Good Buy for Long Term?
- Final Verdict – Adani Power
- FAQs – Adani Power
1. Adani Power Ltd (NSE: ADANIPOWER) – Company Overview
Adani Power Ltd is India’s largest private-sector thermal power producer, operating a vast network of coal-based supercritical and ultra-supercritical power plants. With over 17,550 MW of operational capacity and major expansions underway, the company plays a key role in meeting India’s fast-growing electricity demand.
The company earns stable, predictable income through long-term PPAs with state utilities while also benefiting from higher margins in the merchant power market. Its diversified presence across multiple states and the strategic Godda plant exporting power to Bangladesh add to its revenue strength.
For investors and traders, Adani Power stands out for its strong profit growth, improving debt profile, and high ROE/ROCE. Real-time stock updates and filings can be tracked on BSE and NSE India. Adani Power continues to draw market attention as it scales toward its ambitious 30,000+ MW capacity target.
2. Adani Power (NSE: ADANIPOWER) Share Price Today
3. Adani Power Investment Calculator
₹0.00 Present Value: ₹0.00 Total Interest: ₹0.00 Future Value: ₹0.00Investment Calculator
4. Adani Power Share Price Target 2026
- Strong momentum from rising thermal power demand and capacity expansion from 17,550 MW to 30,670 MW by 2032 supports long-term earnings visibility.
- Stable cash flows driven by ~85% PPA-based revenue and potential upside from merchant power sales during peak-demand periods.
- Healthy financial strength with ROE ~26%, strong operating margins (35–41%), and moderate debt-to-equity (0.83).
- Additional earnings potential from legal settlements including Lohara Coal Block (₹4,240 Cr) and Udupi TPP (₹1,348 Cr).
- Attractive for long-term investors and traders due to consistent capacity ramp-up, cash flow stability, and operational efficiency.
Based on our projection model, the Adani Power share price target for 2026 is estimated between ₹180 and ₹210, assuming stable PPA revenue, moderate merchant power contribution, and annual profit growth of 15–20%.
| Month | Minimum Price (₹) | Maximum Price (₹) |
|---|---|---|
| January | 180 | 185 |
| February | 182 | 187 |
| March | 185 | 190 |
| April | 187 | 192 |
| May | 188 | 193 |
| June | 190 | 195 |
| July | 192 | 197 |
| August | 193 | 198 |
| September | 195 | 200 |
| October | 197 | 203 |
| November | 198 | 205 |
| December | 200 | 210 |
5. Adani Power Share Price Target 2027
- Earnings expected to rise steadily as new thermal capacity additions and the Godda export plant contribute full-year revenue.
- Strong visibility from 85% PPA-linked revenue along with improving merchant power realizations during peak-demand periods.
- High efficiency operations supported by supercritical & ultra-supercritical technology ensure strong margins and lower coal consumption.
- Financials remain robust with ROE around 26%, consistent profit growth, and a gradually improving debt-to-equity ratio (0.83).
- Short-term volatility may arise from coal price fluctuations and merchant tariff changes, but long-term fundamentals remain solid for investors and traders.
Based on current capacity expansion, financial strength, and growth visibility, the Adani Power share price target for 2027 is estimated between ₹190 and ₹225.
| Year | Minimum Price (₹) | Maximum Price (₹) |
|---|---|---|
| 2027 | 190 | 225 |
6. Adani Power Share Price Target 2028
- Earnings expected to grow steadily as Adani Power moves closer to its 30,670+ MW capacity target, boosting both PPA-based and merchant revenues.
- Higher demand from industrial growth and rising peak-hour consumption support strong merchant power realizations, improving margins further.
- Improved operational efficiency driven by supercritical technology and optimization of coal linkages enhances long-term profitability.
- Financial metrics remain healthy with strong ROE, expanding EBITDA margins, and continued improvement in debt levels.
- Short-term movements may be influenced by coal prices and tariff revisions, but the long-term trend stays positive for investors and traders.
Based on stable capacity expansion, strong cash flows, and margin improvement, the Adani Power share price target for 2028 ranges between ₹200 and ₹240.
| Year | Minimum Price (₹) | Maximum Price (₹) |
|---|---|---|
| 2028 | 200 | 240 |
7. Adani Power Share Price Target 2029
- Continued earnings growth expected as Adani Power strengthens its nationwide thermal capacity and moves closer to the 30,670+ MW target.
- Higher demand from industrial and commercial sectors supports stronger merchant power prices, boosting profitability.
- Operational efficiency improves further with optimized coal linkages, superior plant load factors (PLF), and lower fuel costs.
- Financial performance remains robust with improving debt-to-equity, rising EBITDA margins, and stable ROE levels.
- Stock may see short-term volatility due to coal price swings and regulatory adjustments, but long-term fundamentals stay positive.
Based on sustained growth, margin improvement, and capacity expansion, the Adani Power share price target for 2029 ranges between ₹220 and ₹260.
| Year | Minimum Price (₹) | Maximum Price (₹) |
|---|---|---|
| 2029 | 200 | 260 |
8. Adani Power Share Price Target 2030
- Adani Power may enter a mature growth phase with stable revenue from PPAs and expanding merchant power sales.
- Operational efficiencies, optimized coal sourcing, and economies of scale may drive peak profit margins.
- Diversified capacity mix and long-term contracts ensure steady cash flows and lower earnings volatility.
- Strong financials with improving ROE, ROCE, and lower debt support sustainable growth.
- Stock may still experience short-term volatility due to fuel price fluctuations and regulatory changes.
Based on capacity expansion, margin improvement, and stable contracts, the Adani Power share price target for 2030 ranges between ₹250 and ₹300.
| Year | Minimum Price (₹) | Maximum Price (₹) |
|---|---|---|
| 2030 | 250 | 300 |
9. Should You Buy Adani Power Stock?
| Year | Minimum Price (₹) | Maximum Price (₹) |
|---|---|---|
| 2026 | 180 | 210 |
| 2027 | 190 | 225 |
| 2028 | 200 | 240 |
| 2029 | 220 | 260 |
| 2030 | 250 | 300 |
- Stable cash flows from PPAs and merchant power exposure support revenue predictability and long-term growth.
- Stock may be volatile in the short term due to fuel cost fluctuations, merchant power prices, and regulatory changes.
- Capacity expansion, green energy projects, and operational efficiency provide potential for earnings upside.
- Moderate debt (D/E ~0.83) and improving ROCE/ROE support financial stability and profitability.
- Investors should monitor PPA renewals, merchant sales, and capacity ramp-up to gauge clarity on earnings trajectory.
Valuation Snapshot: Targets reflect Adani Power’s capacity expansion, PPA stability, and merchant power growth. Forecasts account for operational efficiency, low debt, and diversified revenue streams.
Valuation Methodology Used: Projections are based on Price Projection Models (PPM), PPA timelines, merchant power expansion, fuel cost optimization, and earnings stability. Forecasts include domestic and international growth, contract renewals, and long-term profitability.
10. Adani Power Ltd – Annual Earnings
The table below shows key consolidated financials of Adani Power Ltd for the last five fiscal years.
Source: Company filings & investor presentations.
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|---|
| Revenue / Sales (₹ Cr) | 26,221 | 27,711 | 38,773 | 50,351 | 56,203 |
| Expenses (₹ Cr) | 17,533 | 17,830 | 28,677 | 32,124 | 34,785 |
| Operating Profit (₹ Cr) | 8,688 | 9,881 | 10,096 | 18,228 | 21,418 |
| Other Income (₹ Cr) | 1,909 | 3,908 | 4,216 | 9,883 | 2,590 |
| Depreciation (₹ Cr) | 3,202 | 3,118 | 3,304 | 3,931 | 4,309 |
| Profit Before Tax (₹ Cr) | 4,906 | 4,134 | 4,059 | 20,792 | 16,360 |
| Net Profit / PAT (₹ Cr) | 3,913 | 3,298 | 2,940 | 20,829 | 12,750 |
| Net Profit Margin (%) | 15% | 12% | 8% | 41% | 23% |
- Adani Power’s revenue growth has been driven by long-term PPAs, merchant power sales, and capacity expansions.
- Net profit margin variability reflects fuel cost fluctuations, regulatory factors, and operational efficiency.
- The company has maintained a strong ROE and ROCE over the last five years, signaling robust capital utilization.
- Capex investments in new plants, supercritical/ultra-supercritical technology, and digital infrastructure support long-term growth.
- Legal settlements and PPA clarifications have contributed to stability in earnings and cash flow visibility.
Financial Snapshot: Over the last 5 years, Adani Power has delivered strong profit growth, driven by operational efficiency, PPA-backed revenue, and strategic capacity expansion. Net profit CAGR exceeds 65% over this period.
Key Metrics: Current Market Cap: ₹2,89,945 Cr, P/E: 24.1, ROE: 26.1%, ROCE: 22.5%, Debt/Equity: 0.83, EPS: ₹6.24. Stock price CAGR: 5-year 81%, 1-year 42%.
11. Adani Power Ltd – Key Valuation Metrics
Key valuation and profitability ratios showing Adani Power Ltd’s financial strength, pricing, and risk profile.
| Metric | Value |
|---|---|
| TTM PE Ratio | 24.1 |
| PB Ratio | 4.96 |
| Dividend Yield | 0.00% |
| ROCE | 22.5% |
| ROE | 26.1% |
| Debt to Equity | 0.83 |
| Industry PE | 23.0 |
| Industry PB | 2.57 |
12. Adani Power Ltd – Key Peers & Comparison
Focused comparison of Adani Power Ltd with closest power and utilities peers based on valuation multiples and profitability metrics.
| Company | P/E | PB Ratio | Dividend Yield | Market Cap (Cr) | ROCE % |
|---|---|---|---|---|---|
| Tata Power Co. | 31.2 | 3.5 | 0.57% | 126024 | 10.8% |
| Torrent Power | 22.1 | 2.8 | 1.45% | 66168 | 15.9% |
| CESC Ltd. | 15.5 | 2.1 | 3.53% | 22541 | 11.2% |
| Adani Power | 24.1 | 4.96 | 0.00% | 289945 | 22.5% |
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13. Is Adani Power Ltd (NSE: ADANIPOWER) Stock a Good Buy?
Evaluating Adani Power Ltd’s growth prospects, market positioning, valuation, and sector dynamics for potential investors and traders.
Bull Case: Why Adani Power Could Outperform
- Largest private thermal power producer in India with diversified capacity across 7 states and multiple fuel sources.
- Strong financial performance with high ROCE (22.5%) and ROE (26.1%) and consistent PAT growth over 5 years.
- Balanced revenue model with long-term PPAs covering ~85% of capacity ensures stable cash flows and predictable earnings.
- Expansion plans adding ~8,600 MW by 2032, including ultra-supercritical technology to improve efficiency and reduce emissions.
- Moderate debt-to-equity ratio (0.83) providing financial flexibility for capex and growth projects.
Bear Case: Potential Risks for Adani Power
- Exposure to merchant power sales (~15% of capacity) introduces revenue volatility linked to market electricity prices.
- Regulatory and environmental compliance risks could impact operational costs and project timelines.
- Fuel supply disruptions, coal price fluctuations, or logistical challenges may affect plant availability and margins.
- Expansion projects carry execution and funding risk, particularly new ultra-supercritical and green energy projects.
- Currency and cross-border risks for Godda power project exporting to Bangladesh.
Verdict:
Adani Power is a leading power sector company with strong operational metrics, healthy ROCE/ROE, and diversified revenue streams. While regulatory and market risks exist, the company’s growth plans, long-term PPAs, and moderate leverage make it attractive for long-term investors seeking exposure to India’s energy sector expansion.
14. Final Verdict – Adani Power
Adani Power Ltd is a leading private power producer in India with diversified thermal and renewable energy capacity across multiple states. The company benefits from long-term power purchase agreements (PPAs) covering the majority of its capacity, stable cash flows, and strong operational metrics. Its expansion plans, including ultra-supercritical technology and green energy projects, provide visible growth opportunities in the coming years.
Valuations are reasonable relative to peers, supported by healthy ROCE (22.5%) and ROE (26.1%). Moderate debt levels offer financial flexibility for expansion while minimizing leverage risk. Investors and traders should monitor quarterly earnings, merchant power exposure, regulatory updates, fuel supply costs, and project execution timelines, as these can affect short-term stock volatility.
Best for: long-term investors seeking exposure to India’s power sector growth with a company that has stable cash flows, diversified capacity, and moderate leverage; and traders willing to navigate near-term earnings volatility due to market-driven power prices and project timelines.
15. FAQ on Adani Power
Q1. Is Adani Power share good to buy?
Adani Power is a leading private power producer in India with diversified thermal and renewable capacity, long-term PPAs, and moderate leverage. Long-term investors may benefit from stable cash flows, expansion plans, and sector growth, while traders should be prepared for short-term price swings driven by merchant power rates and regulatory developments.
Q2. Adani Power share price target 2030?
Considering its capacity expansion, green energy initiatives, and growing demand for electricity in India, Adani Power could potentially reach ₹250 – ₹300 by 2030, assuming successful project execution and stable regulatory support.
Q3. Why is Adani Power share price falling?
Short-term declines may be due to volatile merchant power prices, fuel cost fluctuations, regulatory uncertainties, or interest rate changes, rather than structural weakness in the business.
Q4. Adani Power share price target 2026?
Based on current capacity, operational efficiency, and planned expansions, the 2026 target range is ₹180 – ₹210, assuming timely project completion and stable demand from state utilities.
Q5. Why is Adani Power rising?
The stock may rise due to strong quarterly earnings, commissioning of new plants, favorable regulatory updates, or improved merchant power margins.
Q6. What is the dividend of Adani Power?
Adani Power has a moderate dividend yield of 0.65%, reflecting its strategy to reinvest profits into capacity expansion, green energy projects, and technology upgrades.
Q7. Is it good to invest in Adani Power?
Adani Power is suitable for long-term investors seeking exposure to India’s power sector growth, with stable cash flows and expansion potential. Traders should be aware of short-term earnings volatility due to merchant power exposure and fuel price changes.
Q8. How exposed is Adani Power to merchant power markets?
Around 15% of Adani Power’s capacity is sold on a merchant basis, which can increase earnings during peak demand or higher tariffs, but also introduces short-term volatility compared to long-term PPAs.
Q9. How strong is Adani Power’s growth pipeline?
Adani Power has a significant expansion plan, including 4,520 MW under construction and 8,600 MW planned by 2032, incorporating supercritical and ultra-supercritical technology, as well as renewable energy projects to enhance portfolio sustainability.
Q10. How does Adani Power compare with peers?
Adani Power has moderate debt (D/E 0.83), strong ROCE (22.5%), and steady profitability compared to other private thermal and integrated power producers in India. Its diversified portfolio, long-term PPAs, and green energy expansion differentiate it from many mid-sized peers.
Disclaimer
This article is for general informational and educational purposes only and should not be considered financial or investment advice. Stock markets involve risks, and actual results may differ from projections. Always conduct your own research or consult a licensed financial professional before making investment decisions. ChartMyWealth.com is not responsible for any financial losses arising from the use of this content.
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