Adani Power Stock Split Sparks Retail Buzz Ahead of Festive Quarter

Adani Power’s first-ever 1:5 stock split, announced early September 2025, has sparked fresh interest among retail investors. The move comes just as India enters the festive quarter—a period linked with stronger consumption trends and positive market sentiment—adding momentum to already rising retail participation in equities.

Adani Stock Split: Key Details

Adani Power has announced a 1:5 stock split, converting each fully paid equity share of ₹10 face value into five shares of ₹2 each. This corporate action, approved by shareholders on 5 September 2025, marks the company’s first-ever stock split. The record date for eligibility is set as 22 September 2025. Post-split, the total number of equity shares will expand from 2,480 crore to 12,400 crore.

The move follows Adani Power’s Q2 FY25 results and aims to make shares more affordable for small investors. As of 11 September 2025, Adani Power traded at ₹624.65. The stock is holding above key Exponential Moving Averages (20, 50, 100, and 200-day), indicating strength. However, the Relative Strength Index (RSI) at 65.76 points to mild consolidation.

Reasons Behind Adani Power Announcing a Split

There are multiple reasons behind the stock split decisions, such as:

• The company reported a 15.5% decline in net profit for Q1 FY2026. With the stock split, it is recalibrating its capital structure to attract broader retail participation.

• Over the past year, Adani Power’s stock has experienced notable volatility, declining over 6% from its peak, yet still delivering a year-to-date gain of 21%, outperforming the benchmark Sensex’s modest rise. This performance divergence underscores the need to democratise ownership and make shares more affordable for small investors.

• The move also coincides with a broader trend among Indian energy firms seeking to optimise shareholder value amid rising retail interest in power sector equities.

Adani Power Stock Split: Festive Quarter Catalysts

Adani Power’s stock split comes at a strategically opportune moment as India enters its festive quarter, October to December, a period historically marked by peak electricity demand. The festive season, driven by Diwali, Dussehra, and regional celebrations, triggers a surge in industrial production, commercial activity, and residential consumption, especially in Tier 2 and Tier 3 cities.

The festive quarter is expected to support the company due to higher plant load factors and increased merchant power sales. With the recent acquisition of Vidarbha Industries Power Ltd, adding 600 MW, Adani Power’s installed capacity now exceeds 15 GW, positioning it to capitalise on seasonal demand spikes.

Adani Power: Fundamentals and Project Wins

Adani Power Ltd. reported a resilient Q1 FY26 performance despite demand disruptions from early monsoons. Consolidated revenue declined 5.7% year-on-year to ₹14,109 crore due to lower merchant tariffs and elevated operating expenses following acquisitions. Power sales volume rose 1.6% to 24.6 BU, while operating capacity expanded to 18,150 MW.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹5,744 crore, down from ₹6,290 crore in Q1 FY25, but up 12.7% sequentially due to improved merchant realisation and lower fuel costs. Net profit fell 15.5% YoY to ₹3,305 crore, yet surged 27.2% over Q4 FY25, aided by one-time income.

• In May 2025, the company secured a Letter of Award (LoA) for a 1,600 MW thermal power supply project from the Uttar Pradesh government. The project is part of the state’s base load capacity expansion to meet rising industrial and residential demand.

• In August, it was awarded a 2,400 MW thermal power supply contract by the Bihar government. This includes two 1,200 MW units under the DBFOO (Design, Build, Finance, Own, and Operate) model.

• It has also received LoA for 800 MW from MP Power Management Company Limited (MPPMCL). The power will be supplied from a new ultra-supercritical thermal plant in Anuppur district.

• In September 2025, MPPMCL exercised the greenshoe option, awarding an additional 800 MW to Adani Power. The total capacity awarded in MP now stands at 1,600 MW. This marks India’s first use of a greenshoe mechanism in a thermal power tender.

These wins contribute to Adani Power’s goal of reaching 41.87 GW generation capacity by FY 2031–32. The company currently operates 18.15 GW across 12 thermal plants. These projects reinforce Adani’s role in India’s energy security and industrial growth.

Risks Investors Should Consider

While the stock split has sparked strong retail interest, investors may want to track a few sector dynamics. The power sector is highly policy-driven — tariffs, fuel linkages, and subsidies are influenced by government decisions. This means regulatory updates can directly affect profitability. Large-scale thermal and hydro projects typically involve long construction timelines, so delays can shift revenue recognition and cash flow patterns. At the same time, the group’s growth push requires heavy capital spending, making debt levels an important metric that analysts often monitor. For retail investors, lower share prices after a split improve accessibility, but it’s worth remembering that fundamentals and sector trends ultimately drive performance.

Conclusion

Adani Power’s 1:5 stock split is more than a technical adjustment. It is a strategic move to democratise access and ride the wave of retail enthusiasm ahead of India’s festive quarter. While fundamentals remain unchanged, the psychological and liquidity effects could drive short-term momentum.

For retail investors, this presents a timely opportunity to enter a high-cap utility stock with strong long-term prospects. But as always, valuation discipline and macro awareness should guide decision-making.

Read more:

Infosys Buyback News: What It Means for Shareholders

Sources

Mint
Good Returns
Stock Price Archive
Market in India
Business Standard
Adani
The Economic Times