Adani Power shares in focus: Adani firm signs PSA for 1,600 MW thermal power supply
In a filing to NSE and BSE, Adani Power said the coal linkage for the power plant has been allocated under the SHAKTI policy of the government.
- Jul 16, 2026,
- Updated Jul 16, 2026 8:31 AM IST
Shares of Adani Power Ltd are in focus on Thursday after the Adani group firm said it has signed a 25-year power supply agreement (PSA) with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for supply of 1600 MW power on long term basis from a 2x800 MW Ultra-Supercritical Thermal power plant to be established under Design, Build, Finance, Own & Operate (DBFOO) basis.
In a filing to NSE and BSE, Adani Power said the coal linkage for the power plant has been allocated under the SHAKTI policy of the government.
IIFL Securities, last week, said it likes Adani Power's strategy of capturing counter- cyclical arbitrage in asset creation, which earns outsized returns in a structurally 'utility' sector. With a large growth pipeline, industry- leading execution, and complementary group renewables and energy-management businesses, it estimated Adani Power to quadruple Ebitda by FY33-35.
"While 60 per cent of our fair value rests on unexecuted projects and the stock trades at a rich 4.6 times FY28E P/BV, we think its industry-leading asset base and cash-flow profile justify the growth optionality. BUY," IIFL Securities said.
IIFL said Adani's willingness to take anti-consensus, counter-cyclical bets has translated into the best returns in the segment. It assembled a c.7.3GW portfolio of stressed assets at an average capital cost of c.Rs42mn/MW, which now earn a median book RoE of 50 per cent against sector's 10 per cent average.
"On the same logic, ordering boiler, turbine, generator (BTG) equipment ahead of the coal-capex revival locked in capex of c.Rs100mn/MW, c. 20 per cent below peers, which, we estimate, yields 350-400bps higher RoE at comparable tariffs," it said.
Earlier in June 24 note, Morgan Stanley said Adani Power's incremental business is much lower risk, highly return accretive, fastest growing and backed by a track record of executing complex projects. This is a rare combination which merits closer attention by markets, it said.
Shares of Adani Power Ltd are in focus on Thursday after the Adani group firm said it has signed a 25-year power supply agreement (PSA) with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for supply of 1600 MW power on long term basis from a 2x800 MW Ultra-Supercritical Thermal power plant to be established under Design, Build, Finance, Own & Operate (DBFOO) basis.
In a filing to NSE and BSE, Adani Power said the coal linkage for the power plant has been allocated under the SHAKTI policy of the government.
IIFL Securities, last week, said it likes Adani Power's strategy of capturing counter- cyclical arbitrage in asset creation, which earns outsized returns in a structurally 'utility' sector. With a large growth pipeline, industry- leading execution, and complementary group renewables and energy-management businesses, it estimated Adani Power to quadruple Ebitda by FY33-35.
"While 60 per cent of our fair value rests on unexecuted projects and the stock trades at a rich 4.6 times FY28E P/BV, we think its industry-leading asset base and cash-flow profile justify the growth optionality. BUY," IIFL Securities said.
IIFL said Adani's willingness to take anti-consensus, counter-cyclical bets has translated into the best returns in the segment. It assembled a c.7.3GW portfolio of stressed assets at an average capital cost of c.Rs42mn/MW, which now earn a median book RoE of 50 per cent against sector's 10 per cent average.
"On the same logic, ordering boiler, turbine, generator (BTG) equipment ahead of the coal-capex revival locked in capex of c.Rs100mn/MW, c. 20 per cent below peers, which, we estimate, yields 350-400bps higher RoE at comparable tariffs," it said.
Earlier in June 24 note, Morgan Stanley said Adani Power's incremental business is much lower risk, highly return accretive, fastest growing and backed by a track record of executing complex projects. This is a rare combination which merits closer attention by markets, it said.