Stock jumps nearly 90% from February lows amid acquisitions, strong earnings growth, and rising electricity demand outlook

Shares of Adani Power continued their strong upward rally on Tuesday, hitting a fresh all-time high of ₹245.40 on the BSE amid heavy investor buying. The stock gained nearly 5 per cent during intraday trade and has now surged around 12 per cent over the last two trading sessions.

The rally has been even more remarkable over the past few months, with the stock soaring nearly 89 per cent from its February 2026 low of ₹130.15. Strong quarterly earnings, strategic acquisitions, expansion projects, and improving power demand expectations are driving renewed investor confidence in the company.

At around 12:47 PM, Adani Power shares were trading near ₹244, significantly outperforming the broader market where the BSE Sensex was trading lower during the session.

Heavy Trading Volumes Reflect Strong Market Interest

The sharp rally in Adani Power was accompanied by unusually high trading activity across exchanges.

Combined trading volumes on the NSE and BSE crossed 66 million shares during the session, nearly doubling average daily trading volumes. Market participants believe the strong activity reflects growing institutional and retail participation in power sector stocks amid expectations of sustained electricity demand growth in India.

Analysts note that investors are increasingly focusing on companies with expanding generation capacity and strong long-term demand visibility.

Strategic Acquisition From Jaiprakash Group Boosts Sentiment

One of the biggest triggers behind the recent rally was Adani Power’s announcement regarding the acquisition of key thermal power assets from Jaiprakash Associates.

The company recently signed definitive agreements to acquire:

• A 24 per cent stake in Jaiprakash Power Ventures
• A 180 MW thermal power plant in Churk
• Related thermal power assets
• Stake in Prayagraj Power Generation Company

The acquisition deal, valued at around ₹4,193 crore, is expected to strengthen Adani Power’s thermal generation portfolio and expand its operational footprint.

Market experts believe the acquisition aligns with the company’s long-term strategy of scaling capacity and improving market share in India’s growing power sector.

Strong Q4 Earnings Support Stock Rally

Investor sentiment also received a major boost from the company’s strong March quarter earnings performance.

Adani Power reported EBITDA of ₹6,498 crore for Q4FY26, registering an impressive 27 per cent year-on-year increase despite weather-related demand volatility and subdued merchant power prices during most of FY26.

The company stated that lower temperatures and increased renewable energy generation had impacted short-term pricing trends during the year. However, management believes the long-term structural demand drivers for electricity consumption remain intact.

Power Demand Revival Strengthens Outlook

Management highlighted during the Q4 earnings conference call that electricity demand has already started showing strong recovery from March onwards as temperatures increased across the country.

Peak power demand recently crossed 256 gigawatts and is expected to rise further during FY27 due to:

• Higher industrial activity
• Economic growth
• Rising summer temperatures
• Increased urban consumption
• Expanding infrastructure and manufacturing sectors

The company expects stronger Power Purchase Agreement (PPA) offtake and improved bilateral power demand during the coming financial year.

Massive Capacity Expansion Underway

Adani Power is also aggressively expanding generation capacity through multiple ongoing projects.

Key expansion projects include:

• 1,600 MW Mahan Phase-II project in Madhya Pradesh, currently 86 per cent complete
• Raipur Phase-II project in Chhattisgarh with 54 per cent progress
• Raigarh Phase-II project with 47 per cent completion
• Korba Phase-II project nearing commissioning

Management expects the Korba Phase-II project to be commissioned during the current financial year.

Analysts believe the commissioning of these projects could significantly enhance future earnings, operating cash flows, and long-term profitability.

New PPAs Expected to Drive Earnings Growth

The company said newly secured power purchase agreements are expected to remain highly earnings-accretive and generate substantial cash flows over the coming years.

Long-term PPAs provide:

• Revenue visibility
• Stable cash generation
• Lower merchant pricing risk
• Better capacity utilisation

Industry experts believe power companies with long-term contracted capacity are better positioned to benefit from India’s growing electricity demand cycle.

India’s Power Sector Attracts Renewed Investor Attention

India’s power sector has witnessed renewed investor interest amid expectations of sustained electricity demand growth driven by:

• Rapid industrialisation
• Manufacturing expansion
• Data centre growth
• Electric vehicle adoption
• Urbanisation and infrastructure development

Market participants believe thermal power producers may continue benefiting in the near-to-medium term despite the rapid growth of renewable energy capacity.

However, analysts also caution that fuel costs, regulatory developments, environmental policies, and merchant pricing trends will remain key variables influencing future profitability across the sector.