Now Reading: Adani Power shares rally 71% in a year after favourable APTEL ruling
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Adani Power shares rally 71% in a year after favourable APTEL ruling
Adani Power shares rally 71% in a year after favourable APTEL ruling
Shares of Adani Power surged nearly 71% over the past year and rose about 1% on Friday after the Appellate Tribunal for Electricity (APTEL) set aside an earlier order of the Maharashtra…
Shares of Adani Power surged nearly 71% over the past year and rose about 1% on Friday after the Appellate Tribunal for Electricity (APTEL) set aside an earlier order of the Maharashtra Electricity Regulatory Commission (MERC). The tribunal directed MERC to recompute the company's Change in Law compensation based on its previous judgment, clearing a regulatory overhang.
The stock hit a 52-week high of Rs 254.15 in May and a low of Rs 116.67 in August. Over three years, it has gained 214%, and over five years, 1,216%. In the June 2026 quarter, Adani Power posted a record net profit of Rs 4,867 crore, up 47% year-on-year, while power dispatch rose 17% to 28.8 billion units.
Analysts see the ruling as a catalyst for cash recovery and lower regulatory risk. They said the key next step is the revised compensation figures from MERC and how quickly state distribution companies process actual payouts. CARE Ratings upgraded Adani Power's bank facilities to AA+ with a stable outlook in August.
Indian Opinion Analysis
The APTEL ruling removes a long-standing uncertainty around receivables that had kept a discount on Adani Power's valuations. The company targets scaling its portfolio to 45 GW, up from its current capacity, and the cash inflow from the compensation will help fund that expansion. Investors should watch MERC's revised order and the pace of discom payments as the next triggers. A delay in either could temper the sentiment-driven rally.
Source: livemint.com
This story was synthesised by AI from the source linked above.
