Stock split boosts liquidity and accessibility
As part of the corporate action, each existing equity share with a face value of Rs 10 has been subdivided into five shares with a face value of Rs 2 each. The total number of shares outstanding has increased, but the overall value of holdings and the company’s market capitalisation remain unchanged.
Shareholders holding shares in their demat accounts as of the record date on September 19 are eligible for the split. For instance, an investor who owned 100 shares now holds 500 shares, though the total investment value remains the same.
“The approved and recommended share split is to facilitate greater participation from retail and small investors,” Adani Power had said in its board meeting on August 1. The company emphasised that the split does not change the authorised, issued, subscribed, or paid-up share capital.
Morgan Stanley’s bullish rating fuels institutional interest
Last week, Morgan Stanley initiated coverage on Adani Power with an Overweight rating and a price target of Rs 818 per share. The brokerage highlighted Adani Power as India’s largest private coal-based independent power producer with 18.15 GW of operational capacity. It projected the company’s portfolio to nearly 2.5x to 41.9 GW by FY32, lifting its market share in coal-based capacity from 8% in FY25 to 15% by FY32.
Adani Power plans to spend about $22 billion on under-construction capacity of 23.7 GW, Morgan Stanley noted, while factoring in potential cost overruns that could push total capital expenditure to US$27 billion.
The brokerage’s recommendation comes shortly after Sebi cleared the Adani group in the Hindenburg case, marking the first major endorsement by an international institution in more than a decade, according to PTI.
Sebi clearance
The rally also comes in the wake of the Securities and Exchange Board of India (Sebi) clearing the Adani Group of stock manipulation allegations, reinforcing investor confidence in the conglomerate.
Sebi, in two detailed orders on Thursday, dismissed claims by U.S.-based short-seller Hindenburg Research that Adani entities had routed funds through related parties to manipulate stock prices.
The regulator also found no violations involving substantial acquisition of securities or control that could mislead investors, concluding that there was no basis for liability or penalties. Gautam Adani welcomed the ruling, calling for an apology from those who spread what he described as Hindenburg Research’s “fraudulent and motivated” claims.
Strong quarterly earnings underpin confidence
The stock split comes on the back of robust Q1 FY26 earnings in July. Adani Power reported a consolidated net profit of Rs 8,759 crore for the quarter ended June 2025, up 83% from Rs 4,779 crore a year ago, supported by higher power demand and improved realisations.
While Q1 FY26 saw a 15.5% decline in consolidated net profit to Rs 3,305 crore compared with Rs 3,913 crore a year earlier due to lower merchant tariffs and elevated operating expenses, the long-term growth story remains intact. Revenue from operations slipped 5.6% YoY to Rs 14,109 crore, and EBITDA fell 8.22% to Rs 5,686 crore, with margins contracting to 40.3% from 41.4% in Q1 FY25.
Massive planned investments in power and renewables
The Adani Group aims to invest $60 billion in the power sector by FY32, with $21 billion allocated to renewable energy expansion. Adani Power plans to scale its renewable energy capacity from 14.2 GW in FY25 to 50 GW by FY30, demonstrating the company’s commitment to the energy transition and long-term growth.
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