Buy Adani Power; target of Rs 259: Prabhudas Lilladher

What happened

Prabhudas Lilladher maintained a BUY rating on Adani Power with a target price of Rs 259 per share. The report cited strong Q2 results, including adjusted EBITDA rising 21% year over year, sales volume up 11%, and plant load factor reaching 70.1%.

Confirmed

Global impact / market context

The target price tells investors the analyst sees the shares as worth more than they trade at. Growth depends on finishing new power plants, and profit gains came mostly from contracted capacity rather than volatile merchant sales, which makes future earnings more predictable.

Analyst inference

Adani Power is spending heavily on new plants, with capital spending of INR125bn in 1HFY27, while net debt stayed broadly stable at INR 458.5bn. Internal cash is expected to fund much of this spending, so plant completion speed and power purchase agreements will shape investor views.

Analyst inference

What to watch

1. The first 660 MW unit of Korba Phase II has achieved grid synchronization, with commissioning expected shortly, followed by the second unit around December 2026, according to the report. Confirmed
2. The company targets about 45 GW of capacity by FY32, a 16% annual growth rate over FY26-32, including roughly 3 GW through acquisitions, while exploring nuclear power and Bhutan hydro projects. Proposed
3. Watch whether Mahan Phase II (1,600 MW) reaches commercial operation by early FY28 and whether more power purchase agreements are signed, since 62% of under-construction capacity already has them. Analyst inference

Evidence

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