Don’t Miss Out: Adani Power Stock Split Buzz Explained for Investors

Adani Power’s latest move—a proposed stock split—has stirred up quite a bit of noise on Dalal Street. Stock splits aren’t new, and they usually don’t change the fundamentals. But when a company as visible as Adani Power does it, everyone pays attention.

The idea is simple: make each share cheaper by increasing the number of shares, without changing the company’s total value. For everyday investors, it often means the stock becomes more affordable and easier to trade. And when timed right, it can boost interest and liquidity.

Given the stock’s strong run lately, this split could bring in more retail participation. But the bigger question is—what is the thinking behind it? Is this just a tactical move, or part of a larger play?

Let’s unpack what’s going on—and why it might matter to you as an investor.

The Announcement at a Glance

Adani Power Ltd announced its first-ever stock split on 1 August 2025. The board approved a 1:5 split, converting each ₹10 face value equity share into five shares of ₹2 each. This move aims to enhance liquidity and retail investor participation. The record date will be announced post shareholder approval. Pre-split, the company had 2,480 crore authorised shares totalling ₹24,800 crore; post-split, it will have 12,400 crore shares of ₹2 each, maintaining the same capital value.

Following the announcement, Adani Power shares closed at ₹567 on NSE, down by 3.6%. In addition, Adani Power also released its Q1 FY26 financial results on 1 August.

It is important to mention that the trading window remains closed under insider trading norms until 48 hours after the results announcement.

Adani Power After the Split: Should You Buy In?

Here are some parameters investors should review before deciding on the Adani stock split investment:

• Strong Order Book

Adani Power recently secured a 25-year power purchase agreement with Uttar Pradesh Power Corporation Ltd. The deal covers 1,500 MW of thermal power. The agreed tariff is ₹5.383 per unit, which includes ₹3.727 as fixed charges and ₹1.656 as fuel charges. The supply will originate from a new 1,600 MW (2×800 MW) ultra-supercritical plant, with operations expected by FY2030 (Financial Express).

In smart metering, Adani’s energy segment installed 55.44 lakh metres, aiming to surpass one crore meters by FY26 (Adani Energy Solutions). Additionally, Diamond Power Infrastructure Ltd secured a ₹1,349.11 crore supply contract from Adani Energy for 24,080 km of AL-59 conductors (DSIJ), scheduled for completion by June 2028. These deals reinforce Adani Power’s aggressive expansion in both generation and transmission.

• Financial Performance

Adani Power reported a consolidated net profit of ₹3,305.13 crore in Q1 FY26, down 15.5% YoY from ₹3,912.79 crore. Revenue from operations declined 5.7% YoY to ₹14,109.15 crore from ₹14,955.63 crore . EBITDA fell 8.4% YoY to ₹6,149.83 crore from ₹6,712.63 crore, impacted by elevated operating expenses and lower merchant tariffs . Additionally, the plant load factor dropped to 67.0% from 78.0% YoY.

However, on the positive side, there was a 1.6% YoY increase in units sold, rising to 24.6 BU. Merchant sales also rose 7.7% YoY to 5.7 Billion Units (BU).

• Operating Capacity

Adani Power has an operating capacity of 18,150 MW, making it India’s largest private thermal power producer. This includes the recent acquisition of Vidarbha Industries Power Ltd., a 600 MW coal-fired plant in Butibori, Maharashtra (Indian Express). The company operates 12 thermal power plants (Adani Power) across Gujarat, Rajasthan, Maharashtra, Karnataka, Tamil Nadu, Madhya Pradesh, Chhattisgarh, and Jharkhand.

Its installed capacity grew from 15,250 MW to 17,550 MW during FY25 due to acquisitions of Moxie Power (1,200 MW), Korba Power (600 MW), and Dahanu Thermal (500 MW). Also, the Godda Ultra-Supercritical Thermal Power Plant (1,600 MW) in Jharkhand was amalgamated into APL’s portfolio (Adani).

By 2030, Adani Power aims to expand its operational capacity to 30,670 MW through a mix of brownfield and greenfield projects (Indian Express).

• Stock Performance

Despite a drop in the intraday trading session, Adani Power stock has delivered stellar returns over the past five years, with its stock price surging from ₹49.80 in 2020 to ₹567 in 2025 , an impressive gain of over 1,038.5% and a CAGR of 62.17%.

As of 1 August 2025, the stock has a market cap of ₹2.2 trillion. Its trailing PE ratio stands at 16.90, showing moderate valuation. Key profitability metrics include ROE of 24.27, ROA of 11.45%, and ROCE of 2 0.41%.

However, on the downside, the company pays no dividends, but the industry dividend yield stood at 1.42%. Also, Adani Power has a debt-to-equity ratio of 0. 71.

Challenges for Adani Power

Adani Power confronts a range of serious non‑financial headwinds, from international contract disputes to legal and environmental scrutiny. Its 1,600 MW Godda plant supplying Bangladesh has been embroiled in a tariff and unpaid‑dues controversy, leading to reduced power delivery and arbitration tensions over a 2017 agreement signed without competitive bidding.

Domestically, environmental litigation challenges projects in Uttar Pradesh and Mumbai, with the National Green Tribunal probing alleged construction on forest or reclaimed coastal land without clearances.

Conclusion

Adani Power’s share split has sparked investor interest by aiming to improve liquidity and make shares more affordable. While its growing capacity and strong order book highlight long-term potential, investors must also consider recent financials, regulatory hurdles and legal challenges. With expansion plans underway, tracking Adani Power’s performance is important for long-term investors.