Adani Power profit jumps 42% as board approves ₹15,000cr raise
Adani Power's record quarterly earnings and a proposed ₹15,000 crore fundraise highlight its aggressive pivot towards nuclear and hydro power, even as elevated coal costs pressure its core generation business.
Adani Power reported a 42% year-on-year increase in net profit to ₹4,806 crore for the first quarter of fiscal 2027, driven by higher revenues and a one-time adjustment to legacy power contracts. The board simultaneously approved a proposal to raise up to ₹15,000 crore through a Qualified Institutions Placement.
Revenue climbed 34% to ₹18,902 crore, while continuing EBITDA rose 21.6% to a record ₹6,983 crore. However, the headline earnings growth was partly inflated by a ₹1,386.34 crore one-time recognition of historical energy charges under certain power purchase agreements, up significantly from ₹406.21 crore a year earlier. While these revisions provide a near-term boost, underlying profitability continues to face pressure as fuel costs surged 30.15% year-on-year to ₹9,512.70 crore due to higher imported coal prices.
The planned capital raise signals the conglomerate's intent to accelerate its 45 GW capacity expansion target. Adani Power is relying on strong operational cash flows to fund this growth, which includes the pending acquisition of Jaiprakash Associates' power assets. Beyond its traditional thermal base, the company is actively diversifying into domestic and international hydropower and preparing to explore the nuclear power segment.
Despite the robust operational metrics and ambitious growth roadmap, the equity market has yet to reward the stock with a decisive breakout. Shares opened at ₹220.70 on the BSE and fluctuated between an intraday low of ₹212 and a high of ₹221.60. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, observed that the stock has been trapped in a ₹212-236 consolidation range since early June.
"The stock's 20-day and 50-day exponential moving averages (EMAs) have flattened, signalling weakening short-term momentum," Shah said. He noted that a subdued Average Directional Index and a MACD hovering below the zero line reinforce this sideways movement. A decisive breakout above ₹236 or a breakdown below ₹212 is required to determine the stock's next meaningful directional move.
