Adani Power shares jump 8% in 3 days. Here's why

Shares of Adani Power raced higher for a third consecutive session on Wednesday, hitting Rs 643.95 on the BSE and extending a three-day rally to 8%, as investors bet on a new Bhutan hydroelectric venture and the company’s first-ever stock split.

The twin announcements are seen as a rare shot of growth and liquidity for the company, sparking renewed investor enthusiasm.

Bhutan Hydro Project

Over the weekend, Adani Power signed a shareholders’ agreement (SHA) with Bhutan’s state-owned Druk Green Power Corp (DGPC) to develop a 570 MW hydroelectric project at Wangchhu in Bhutan.

Under the agreement, a public company will be jointly incorporated in Bhutan with a 49:51 shareholding between Adani Power and DGPC, respectively. The initial capital will comprise 4.9 million shares for Adani Power and 5.1 million shares for DGPC, issued at BTN 100 per share.

The agreement also allows both parties to appoint three directors each to the board, with provisions for future capital contributions proportionate to shareholding. The deal marks a significant step in Adani Power’s international expansion, reinforcing its ambition to play a larger role in South Asia’s clean energy transition.

First-ever stock split

Earlier last week, shareholders approved Adani Power’s first-ever stock split since its listing. Each Rs 10 equity share will be subdivided into five fully paid-up shares of Rs 2 each.

Market participants view the move as a milestone aimed at enhancing liquidity, widening the shareholder base, and improving accessibility, particularly for small investors.

The stock has already risen 24% so far in 2025 and climbed 7% over the past week, reflecting heightened investor interest.

GST reforms seen boosting margins

Further support comes from the government’s second phase of goods and services tax (GST) reforms, set to roll out on September 22. Analysts expect Adani Power to benefit from lower coal costs after the removal of the compensation cess, estimating that landed coal prices could fall 8–10%, translating into a tariff benefit of Rs 0.10–0.12 per unit under long-term contracts. This is projected to improve cost pass-through and overall profitability.

Technical indicators signal short-term strength

From a technical standpoint, Adani Power is trading above all eight key simple moving averages (SMA), including the 5-day through 200-day lines, suggesting bullish momentum across short-term and long-term charts.

The Relative Strength Index (RSI) stands at 72.3, entering overbought territory, while the Moving Average Convergence Divergence (MACD) at 10.4 remains above both the center and signal lines, reinforcing the ongoing uptrend.

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