Adani Power shares extend gains, rise 13% in one week: What lies ahead?

Shares of Adani Power rose over 2% on Tuesday, extending gains amid multiple tailwinds and strong technical support. The stock touched a four-month high, rallying 13% over the past week.

The stock climbed to Rs 157.44, its highest level since November, after surging sharply on Monday following a letter of award (LoA) from Maharashtra State Electricity Distribution Company (MSEDCL) for a 1,600 MW thermal power supply order.

Rising expectations of higher power demand as temperatures are likely to remain above normal levels this summer are further boosting the stock.


The technical structure of Adani Power shares also shows signs of bullish momentum as the stock attempts a breakout from a descending trendline formed over the past few months, said Kunal Kamble, Senior Technical Research Analyst at Bonanza.

“The price has rebounded strongly from the rising trendline support near 136 and is now trading above key short-term moving averages, indicating improving strength. The recent bullish candle supported by increased volumes reflects renewed buying interest. Additionally, RSI has moved above the 60 level, signalling strengthening momentum,” he added, advising investors to buy shares of Adani Power at Rs 155, with a stop loss at Rs 145.

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Adani Power bags 1,600 MW order

In an exchange filing on Sunday, the company said the power will be supplied from one of its upcoming ultra-supercritical thermal power projects (USCTPP). The LoA follows Adani Power emerging as the lowest-tariff bidder, quoting a combined tariff of Rs 5.30 per kWh.

The 25-year Power Supply Agreement (PSA) is expected to commence in FY31.

“This achievement marks yet another PSA win for APL during a period of renewed surge in investments in the thermal power sector. Adani Power has established itself as a leading provider of new generation capacity, supporting the nation’s goal of adding 100 GW of thermal power capacity by 2032. During FY25–26, APL has won five long-term PSA bids with a combined capacity of 10,400 MW,” the company said in its exchange filing.

With India’s power demand continuing to rise steadily, long-term and reliable capacity addition is critical to ensuring energy security, said SB Khyalia, CEO of Adani Power.

“This LoA from MSEDCL reflects the competitiveness of Adani Power’s cost structure, our ability to deliver dependable baseload power, and our commitment to supporting India’s growing electricity needs through long-term partnerships. As India's leading private power producer, we are keen to support Maharashtra’s and the nation’s ambitious development goals with a reliable and affordable electricity supply,” the CEO added.

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With the latest LoA, Adani Power has now tied up long-term PSAs of 13.3 GW out of its 23.8 GW under-implementation pipeline. The company said this marks a significant step towards its stated objective of securing almost its entire capacity under such contracts. More than 95% of Adani Power’s current operating capacity of 18.15 GW is now tied up under medium- to long-term PSAs, while over 55% of its upcoming capacity of 23.8 GW is secured under 25-year PSAs.

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