Adani Power Share Price & Stock Split 2025: What Investors Need to Know

Adani Power reported a 15.5% drop in Q1 FY26 profit and announced its first-ever 1:5 stock split, aimed at boosting liquidity and making the share more affordable for retail investors. However, share price dipped by around 1–3% on the day.

Adani Power has unveiled its Q1 FY26 financials, highlighting a ₹3,305 crore net profit—15.5% lower year-on-year—and flatlining revenue trends. In tandem, the company’s board approved a 1:5 stock split, turning each ₹10 share into five ₹2 shares. This landmark decision aims to increase retail participation and liquidity in the stock market. Let’s dive into the numbers, share price reaction, future implications, and analyst insights.

Q1 FY26 Financial Performance – Key Highlights

Profit & Revenue Trends

Adani Power’s consolidated net profit stood at ₹3,305 crore, down 15.5% YoY from ₹3,913 crore in Q1 FY25. Revenue declined by 5.7%–6%, settling at ₹14,109 crore—a reflection of softer merchant tariffs and elevated operating costs.

EBITDA dropped from ₹6,290 crore to ₹5,744 crore, though it rebounded 12–13% sequentially. Installed capacity rose to 17,550 MW, yet Plant Load Factor (PLF) fell sharply to 67% from 78%, showing operational inefficiencies.

Catalysts Behind the Dip

Early monsoon & tepid demand reduced electricity consumption.
Dropped merchant tariff realization as power supply outpaced demand.
Higher costs due to integration of newly acquired plants increased total expenses by ~9%.

Stock Split – A Corporate First for Adani Power

Details & Rationale

Adani Power’s Board approved a historic 1:5 stock split, reducing face value from ₹10 to ₹2 per share. This is the first stock split in the company’s history, intended to enhance liquidity and attract retail investors.

Impact on Investors & Liquidity

Post-split, shareholders will hold five times more shares, while the market cap remains unchanged. Stock splits typically make shares more affordable and increase trading volumes—important for liquidity and price discovery.

Record date for split eligibility is yet to be fixed—likely post shareholder approval.

Share Price Reaction & Market Sentiment

Immediate Movement

Following the earnings and split announcement, the share price dropped 1–3%, trading at around ₹581–584. Volume spikes indicated investor repositioning while awaiting clarity on the record date.

Analyst Views

Some analysts warned of margin pressure due to lower PLF and tariff volatility.
Others pointed to the long-term positivity of stock split enhancing retail access and future returns.

Long-Term Outlook – Adani Power Share Fundamentals

Scale & Capacity Expansion

With over 17,550 MW capacity, Adani Power remains India’s largest private thermal power producer. While recent earnings have slowed, expansion through acquisitions provides scope for future revenue growth.

Challenges Ahead

Commodity-linked imported coal costs remain unpredictable.
Merchant tariff volatility.
Regulatory and geopolitical scrutiny around Adani Group continues post‑Hindenburg and US DOJ probes.

Investment Thesis

Core strengths include operational scale, improving retail liquidity post-split, and broadening of investor base. Long-term investors should monitor PLF improvement, tariff trends, and further capacity additions.

FAQs

What is the new face value after Adani Power stock split?
Each existing ₹10 share will split into five ₹2 shares.
Why did Adani Power’s profit fall in Q1 FY26?
Lower merchant tariffs, weak demand due to early monsoons, and increased operating cost lowered net profit by 15.5%.
What is the purpose of the stock split?
To enhance liquidity, widen investor base, and make the share more affordable for retail investors.
Has the record date been announced?
Not yet. It will be determined after shareholder approval.
How has Adani Power share price reacted post-announcement?
The share dipped approximately 1–3%, reflecting short-term earning concerns and investor repositioning.

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Conclusion

Adani Power’s Q1 FY26 results depict near-term challenges: lower PLF, tariff softness, and operational costs weighing down profits. Yet, the first-ever 1:5 stock split signals a strategic move to deepen liquidity and retail engagement. While the earnings theme remains cautious, the split offers potential upside from better market accessibility. Investors should watch for PLF recovery, tariff trends, and the split’s formal record date announcement for future opportunities.