Antique Broking Initiates ‘Buy’ Rating On Adani Power; Sets Rs 187 Target

Analysts at Antique Stock Broking on Tuesday commenced coverage of Adani Power Limited, issuing a ‘Buy’ rating with a target price of Rs 187 per share.

Currently trading near Rs 144, the stock shows approximately 30 per cent upside potential due to strong earnings visibility and ambitious expansion plans.

Reports from Antique highlighted that Adani Power is entering a multi-year earnings upcycle, supported by substantial increases in installed capacity and growing electricity demand across India.

Plans include more than doubling capacity from 18.15 GW in FY25 to 41.9 GW by FY33.

Expansion efforts position Adani Power as the most efficient private sector baseload power producer in India, reflecting a marked turnaround from its previous phase as a stressed thermal power player.

Observers noted that India is experiencing a structural upcycle in power demand, with electricity consumption projected to grow at six per cent annually between FY22 and FY32.

Factors such as electric vehicles, data centres, artificial intelligence applications, and manufacturing are pushing peak electricity requirements higher. This trend continues to support the need for reliable coal-based power generation, with Adani Power establishing a dominant presence.

Strong Performance in Thermal Power Procurement Cycle

Results show that Adani Power has emerged as a leader in the ongoing state-led thermal power procurement cycle.

So far, the company has secured around 70 per cent of the awarded capacity, winning 12.4 GW out of a total of 17.7 GW, reflecting cost advantages, strong execution, and project readiness.

Earnings visibility remains robust for Adani Power, as nearly 90 per cent of its operational capacity and about 67 per cent of its total 41.9 GW portfolio are secured under long-term power purchase agreements.

Projections indicate consolidated revenue, EBITDA, and profit after tax growth of 16 per cent, 19 per cent, and 17 per cent, respectively, between FY25 and FY32.

Plans show that Adani Power intends to finance roughly 60 per cent of its nearly Rs 2 lakh crore capital expenditure through internal accruals.

Adani Power expects this strategy to drive steady deleveraging, with the company reducing net debt-to-EBITDA below 1x by FY32 and maintaining a return on equity above 15 per cent.

Overall, robust earnings visibility, strategic capacity expansion, and efficient project execution position Adani Power for long-term growth, making it an attractive opportunity for investors seeking exposure to India’s growing power sector.

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