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 has announced that its Board of Directors will meet on 1 August 2025, to consider a stock split of its existing equity shares. The proposal involves subdividing fully paid-up shares with a face value of ₹10 each, though the exact split ratio will be determined during the meeting (Moneycontrol).

Following the announcement, Adani Power’s share price surged by 3.45%, reaching ₹590.30 on the Bombay Stock Exchange (BSE), up from the previous close of ₹570.60. Trading volume also spiked, with over 1.61 lakh shares exchanged, generating a turnover of ₹9.21 crore (Business Today).

The Adani Power stock split aims to enhance retail investor accessibility and market liquidity, aligning with the Adani Group’s broader strategy to democratise equity ownership and attract new investors. The move is subject to shareholder and regulatory approvals.

In addition, Adani Power will also release its Q1 FY26 financial results on 1 August, with a scheduled investor conference call to discuss performance metrics. 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.

• Strong Financials

Adani Power Ltd. reported strong financials for FY25. Continuing revenue rose 10.8% year-on-year to ₹56,473 crore. This was driven by higher power sales volumes, which reached 95.9 billion units (BU)—a 20.7% increase from FY24. Continuing EBITDA increased 14.8% to ₹21,575 crore, while continuing profit before tax surged 21.4% to ₹13,926 crore.

However, reported profit after tax declined 38.8% to ₹12,750 crore due to lower one-time income and higher tax charges.

In Q4 FY25, revenue stood at ₹14,522 crore, up 5.3% YoY, with net profit at ₹2,599 crore. (Adani)

• 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

Adani Power stock has delivered stellar returns over the past five years, with its stock price surging from ₹49.80 (Stock Price Archive) in 2020 to ₹592.55 in 2025 (Tickertape), an impressive gain of over 1,045.9% and a CAGR of over 62.9% (Stock Price Archive).

As of 29 July 2025, the stock has a market cap of ₹2.2 trillion (Tickertape). Its trailing PE ratio stands at 17.66 (Tickertape), showing moderate valuation. Key profitability metrics include ROE of 26.64, ROA of 11.95%, and ROCE of 22.63% (Moneycontrol).

However, on the downside, the company pays no dividends, but the industry dividend yield stood at 1.41% (Tickertape). Also, Adani Power has a debt-to-equity ratio of 0.80 (Moneycontrol).

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. (Reuters)

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. (Economic Times)

Conclusion

Adani Power’s share split has sparked investor interest by aiming to improve liquidity and make shares more affordable. While its growing capacity, strong order book, and solid performance highlight long-term potential, investors must also consider regulatory hurdles and legal challenges. With expansion plans underway and financial results around the corner, keeping an eye on the 1 August announcement will be key.

Sources:

Moneycontrol
Business Today
Financial Express
Adani Energy Solutions
DSIJ
Adani
Indian Express
Adani Power
Stock Price Archive
Tickertape
Reuters
Economic Times