Synopsis: Power stock is in focus as its subsidiary, Moxie Power, won a 5-year TNPDCL contract to supply 558 MW from Tuticorin at ₹5.910/unit from April 2026. With 95%+ capacity under long-term PPAs, the deal boosts revenue stability and ensures Tamil Nadu consumers reliable, affordable power.
The shares of the Large-cap company, which specializes in coal-based power generation, power trading, and the development of large-scale power projects, are in the spotlight upon bagging a competitive 5-Year Power Supply Deal from Tamil Nadu Power Distribution Corporation Limited (TNPDCL).
With a market capitalization of Rs. 2,76,542.52 Crores on the Day’s Trade, the shares of Adani Power Ltd declined by 1.07 percent, reaching a low of Rs. 142.45 compared to its previous close of Rs. 144.00.
What Happened
Adani Power’s subsidiary, Moxie Power Generation Ltd. (MPGL), has received a Letter of Award (LoA) from Tamil Nadu Power Distribution Corporation Limited (TNPDCL) for the supply of 558 MW of power for five years. Moxie Power, which operates a 1,200 MW (2×600 MW) plant in Tuticorin, Tamil Nadu, emerged as the lowest bidder with a tariff of Rs. 5.910 per unit, with supply set to begin from 1 April 2026.
With both units of the Tuticorin plant now under power supply agreements, over 95% of Adani Power’s operating capacity is secured through medium- to long-term contracts, providing strong revenue visibility and reducing exposure to short-term market fluctuations. The company plans to achieve a near 100% PPA tie-up across all operational and upcoming plants in the coming years.
This agreement will benefit Tamil Nadu consumers by ensuring an additional 558 MW of reliable power, enhancing grid stability, and supporting uninterrupted electricity supply to households, businesses, and industries. By securing power at a competitive tariff, the arrangement is expected to make energy more affordable and dependable for consumers.
Financials & Others
The company’s revenue declined by 8.92 percent from Rs. 13,671 crores in December 2024 to Rs. 12,451 crores in December 2025. Meanwhile, Net profit declined from Rs. 2,940 crore to Rs. 2,488 crores in the same period.
The company demonstrates strong financial performance, with a Return on Capital Employed (ROCE) of 22.5% and a Return on Equity (ROE) of 26.1%, supported by a moderate debt-to-equity ratio of 0.83. Its PEG ratio of 0.64 indicates the stock may be undervalued relative to its earnings growth potential.
Over the last five years, the company has delivered impressive profit growth, achieving a 65.7% CAGR, reflecting robust operational efficiency and market positioning. Its track record of consistently high ROE, with an average of 40.4% over three years, underscores strong shareholder value creation and effective capital management.
Adani Power (APL), part of the Adani portfolio, is India’s largest private thermal power producer. The company has an installed thermal power capacity of 18,110 MW across twelve power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, along with a 40 MW solar power plant in Gujarat.
With a world-class team of experts in every field of power, Adani Power is poised to achieve its growth potential. By harnessing technology and innovation, the company aims to transform India into a power-surplus nation and provide high-quality, affordable electricity to all.
APL is capitalizing on India’s thermal power growth with a 23.7 GW capacity expansion, advance equipment orders, and in-house project management, giving it a strong cost advantage. Its brownfield projects are progressing well: Mahan Phase-II at 80%, Raipur Phase-II at 44%, and Raigarh Phase-II at 38% completion.
Additionally, APL’s wholly owned subsidiary, Korba Power Ltd, has restarted construction on its 1,320 MW Supercritical power project in Korba, Chhattisgarh. These projects are planned to be commissioned in phases between FY 2026-27 and FY 2028-29, positioning the company for significant growth in India’s thermal power market.
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