Adani Power stock surged 35% in Q1, investors closely watch out for earnings and expansion plans

Going forward, investors will closely watch updates on Adani Power's expansion plans.

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Adani Power Ltd will announce its June quarter earnings on July 31. The stock surged over 35 percent in Q1, and investors are keenly awaiting the results after weak March quarter earnings.

Currently, no analysts cover the stock, resulting in zero buy, hold, or sell ratings. The market capitalization of the stock is Rs 2.76 lakh crore.

In Q4, the firm reported a 48 percent year-over-year drop in net profit to Rs 2,737 crore, whereas total income rose to Rs 13,881.52 crore from Rs 10,795.32 crore. For FY24, net profit nearly doubled to Rs 20,828.79 crore from Rs 10,726.64 crore in FY23.

Expenses in Q4 were Rs 10,323.58 crore, up from Rs 9,897.60 crore. Revenue from operations increased 30 percent to Rs 13,363.69 crore from Rs 10,242.06 crore in the same quarter last year. FY24 revenue was Rs 60,281 crore, a 40 percent rise from Rs 43,041 crore in FY23.

Adani Power currently operates a thermal power capacity of 15.25 gigawatts (Gw). A recent news report said that Adani Energy Solutions is looking to divest the asset to group entity Adani Power. In its annual report for FY24, Adani Energy mentioned plans to carve out the Dahanu asset in the current financial year. The 500 Mw generation unit is a legacy asset. It was part of the Mumbai power distribution business that Adani Energy acquired from Anil Ambani's Reliance Infrastructure in 2018.

Going forward, investors will closely watch updates on Adani Power's expansion plans. With India's surging power demand and government mandates for fuel supply to thermal plants, Adani Power is poised to benefit from long-term demand, the firm stated in its latest analysts call. The firm plans brownfield expansions, ultra-supercritical technology adoption, and inorganic growth, highlighting its growth strategy.

India's power demand is projected to reach 260 gigawatts this summer, driven by economic growth. As renewables grow, thermal power remains crucial. The government has ensured fuel supply and increased projections for new thermal installations from 50 to over 80 gigawatts, Adani Power reported.

Adani Power aims to raise its generation capacity to over 24 gigawatts by seizing growth and inorganic opportunities, leveraging core strengths to enhance stakeholder value.

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