Mumbai, September 22, 2025 – Adani Power Ltd. (NSE: ADANIPOWER) witnessed a dramatic surge in investor interest on Monday as its shares jumped nearly 20%, hitting an intraday high of ₹170.25 and a fresh 52-week peak. The rally, which lifted the company’s market capitalization beyond ₹6.5 lakh crore, came on the back of its historic stock split, regulatory relief from SEBI, and renewed optimism from global analysts and institutional investors.
The day’s sharp rally followed the company’s first-ever stock split in its history. Shareholders had approved the 1:5 split on September 5, with the record date fixed for September 22. Under the new structure, each share of ₹10 face value was subdivided into five shares of ₹2 each. As a result, the share price adjusted from Friday’s pre-split close of around ₹850 to roughly ₹170, creating the illusion of an 80% crash on trading screens in the morning. However, on an adjusted basis, the stock actually posted a strong 20% gain. This move was designed to increase affordability and liquidity, especially for retail and small investors who were previously priced out of the counter. For instance, an investor holding 100 shares before the split now owns 500 shares, with the overall value of the investment unchanged.
The market reaction was swift and powerful. Trading volumes soared to more than 10 crore shares by midday, nearly five times the daily average, and the stock hit its upper circuit limit of 20% within hours. This is not the first time the Adani Group has deployed such a strategy to improve liquidity; earlier stock splits had been carried out in Adani Ports (2010) and Adani Enterprises (2004). The rally also highlighted the group’s remarkable comeback since the Hindenburg Research report of January 2023. From its post-Hindenburg lows in February 2023, Adani Power has now delivered a staggering 388% return.
Adding to the excitement was SEBI’s final order on September 18, which cleared Adani Group of the most critical allegations raised by Hindenburg Research. The U.S.-based short seller had accused Adani firms of accounting fraud and share price manipulation through related-party transactions. SEBI’s ruling found that the flagged transactions did not qualify as related-party deals and were in compliance with disclosure norms. This effectively ended a two-year regulatory overhang that had once erased more than $100 billion in Adani Group market value.
The SEBI clean chit triggered a group-wide rally. Adani Power, which had already climbed 13.4% on Friday to ₹716 (pre-split), extended its gains by another 20% today. Adani Total Gas rose 17%, Adani Green Energy gained 9%, Adani Enterprises advanced 3-5%, and Adani Ports climbed 2%. Together, these moves added around ₹50,000 crore in market capitalization for the Adani conglomerate in just two sessions.
Brokerages and analysts further stoked the bullish momentum. Last week, Morgan Stanley initiated coverage on Adani Power with an “Overweight” rating and a pre-split target price of ₹900, implying a 30% upside. The firm highlighted the company’s transition to long-term power purchase agreements, which now cover 80% of its capacity. This shields it from volatile merchant tariffs that weighed on Q1 FY26 profits, which had slipped 15.5% year-on-year to ₹3,305 crore. Despite this dip, Adani Power’s FY25 net profit rose to ₹12,750 crore, supported by long-term contracts and strategic acquisitions. The company also reported Q1 EBITDA of ₹5,686 crore, down 8% due to costs associated with new projects, but analysts see earnings growing at a 20-25% CAGR given its strong order book.
Fresh institutional interest is also boosting confidence. Over the weekend, reports suggested that SBI Mutual Fund and Citadel Securities acquired stakes from GQG Partners, signaling renewed trust among big-ticket investors. At the same time, Adani Power announced new project wins, including an 800 MW thermal project in Madhya Pradesh and a 2,400 MW power purchase agreement with the Bihar government, adding to its already significant 16 GW capacity portfolio.
The broader power sector outlook in India is also favorable, with demand growing at 6-7% annually. Adani Power has aligned itself with this momentum through its ambitious investment plans. The Adani Group aims to invest $60 billion in power infrastructure by FY32, of which $17 billion will be channeled into Adani Energy Solutions for building 30,000 km of transmission lines. As India’s largest private power producer with a promoter holding of 74% and a foreign institutional investor holding of 12%, Adani Power is seen as a key player in bridging the country’s energy supply-demand gap.
Challenges remain, particularly in the form of volatile global coal prices and operational costs that have pressured profit margins. Q1 margins slipped to 40.3% due to higher expenses. Additionally, debt levels continue to draw caution from skeptics, with interest expenses accounting for 6% of revenue. Still, with regulatory clarity, improved liquidity through the stock split, and strong institutional support, market watchers expect the stock to test the ₹180-200 range in the near term.
For retail investors, the stock split has opened the door to one of India’s most prominent multibagger stories. Adani Power has returned 1,856% over the past five years, and the latest developments suggest that momentum could continue. While bulls see this as a validation of the company’s execution capabilities and the growing opportunities in India’s power sector, bears warn of debt risks and valuation concerns. As one social media user commented, “From seeming 80% crash to 20% moonshot – classic split magic!”
Adani Power’s rise today is more than just a one-day surge. It reflects renewed investor confidence, regulatory clarity, and the company’s central role in India’s expanding power infrastructure.
Disclaimer: This article is for informational purposes only. Please consult a financial advisor before making investment decisions. Data referenced is sourced from NSE, BSE, and market reports as of September 22, 2025.
