SYNOPSIS: Adani Group company has secured a 25-year power supply contract from MSEDCL for a 1,600 MW thermal project, with the first-year tariff set at Rs. 5.30 per kWh, providing long-term revenue visibility.
During Monday’s trading session, shares of the largest private power producer in India, with a generation capacity of 18.15 GW, surged nearly 5 percent on BSE, after the company announced winning a 1,600 MW long-term power supply contract from the Government of Maharashtra.
With a market cap of Rs. 2.91 lakh crores, shares of Adani Power Limited were trading in the green at Rs. 151.4 on BSE, up by over 3 percent, compared to its previous closing price of Rs. 146.7. The stock has delivered positive returns of over 49 percent in one year, and has gained by nearly 7 percent in the last one month.
What’s the News:
As per its latest regulatory disclosures with the stock exchanges, Adani Power Limited has received a Letter of Award (LoA) from Maharashtra State Electricity Distribution Company Limited (MSEDCL). The award comes after the company emerged as the successful bidder in the tender process conducted by MSEDCL for a long-term power supply arrangement.
Under the terms of the agreement, Adani Power will supply electricity from a 1,600 MW thermal power project through a Power Supply Agreement (PSA) spanning 25 years. The contract specifies a quoted tariff of Rs. 5.30 per kWh for the first year, ensuring long-term revenue visibility for the company from this project.
Financials & More:
Adani Power Limited, part of the Adani portfolio, sells power under long-term/medium-term/short-term Power Purchase Agreements (PPAs) and Supplemental Power Purchase Agreements (SPPAs) on a merchant basis, and is also engaged in business of trading, investment, and other business activities.
It is the largest private thermal power producer in India, with an installed thermal power capacity of 18,110 MW spread across 12 power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, apart from a 40 MW solar power plant in Gujarat.
Adani Power reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of around 9 percent, from Rs. 13,671 crores in Q3 FY25 to Rs. 12,451 crores in Q3 FY26. Likewise, its net profit declined during the same period from Rs. 2,940 crores to Rs. 2,488 crores, representing a fall of more than 15 percent YoY.
The company is targeting a total power generation capacity of 41,870 MW across 17 assets as part of its future expansion plans. Of this planned capacity, around 83 percent is expected to come from organic growth, while the remaining 17 percent will be through inorganic opportunities. In terms of technology mix, the target portfolio is projected to comprise 57 percent ultra-supercritical technology, 25 percent supercritical technology, and 17 percent from other technologies.
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