Adani Power Shares Rise 6% on Bhutan Hydro Expansion JV Plans

On Monday, the Adani Power shares rose by 5.6 percent, touching a day’s high price of Rs 644 on NSE after the exchange filing revealed that it has taken a major step in its international expansion by signing a shareholders agreement with Bhutan's state-owned Druk Green Power Corporation (DGPC) for the development of a 570 MW hydroelectric project at Wangchhu in Bhutan. This agreement was executed on September 5, 2025, under which Adani Power and DGPC will jointly incorporate a public company in Bhutan, with Adani Power holding a 49 percent stake and DGPC holding 51 percent. The deal not only includes the shareholders' pact but also comprises the initialling of a power purchase agreement and a concession agreement, enabling the construction to commence by the first half of 2026, targeting completion in five years. The Wangchhu project, under the Build, Own, Operate, Transfer (BOOT) model, has a planned investment of approximately Rs 6,000 crore, signifying Adani Group’s ongoing commitment to cross-border renewable infrastructure.

Earlier, in May 2025, the Adani Group and DGPC signed a Memorandum of Understanding (MoU) to jointly develop up to 5,000 MW of hydropower projects in Bhutan. The Wangchhu venture is the first such project, marking a strategic alliance aimed at meeting Bhutan’s peak winter demand and exporting surplus power to India during the summer months. The DGPC, backed by Druk Holding & Investments, the Royal Government of Bhutan’s commercial arm, envisions scaling its generation capacity to 25,000 MW by 2040, making this collaboration a milestone in regional energy integration.

Adani Power has recently announced a share split in the ratio of 1:5, improving accessibility for retail investors. The board approved the split of one equity share of Rs 10 face value into five shares of Rs 2 face value, with the record date set for September 22, 2025. This move comes following shareholder approval through a postal ballot conducted in August. The share split responds to Adani Power’s rising share price and aims to broaden participation.

In terms of group-level investments, the Adani Group has announced an ambitious plan to invest $60 billion in its power and renewable businesses by FY32, leveraging robust sectoral growth and policy support. The investment will be divided as follows:

• Adani Green Energy (Renewables): More than $21 billion by FY30 to scale up renewable energy capacity from 14.2 GW to 50 GW, establishing it as a leader in solar and wind infrastructure.

• Adani Energy Solutions (Transmission/Distribution): More than $17 billion by FY30 to build 30,000 km of transmission lines, up from 19,200 km in FY25, supporting grid modernization and smart metering.

• Adani Power (Thermal/Generation): More than $22 billion by FY32 to expand thermal and other power generation, targeting an increase from 17.6 GW in FY25 to 41.9 GW, thus playing a pivotal role in stable supply amid growing demand.

For the quarter ended June 2025 (Q1FY26), Adani Power reported a marginal decline in its consolidated revenue from operations, which fell around 5.6 percent year-on-year to Rs 14,109 crore versus Rs 14,956 crore in Q1FY25. Net profit also slipped by about 15.53 percent year-on-year to Rs 3,305 crore from Rs 3,913 crore in the prior-year period. Total debt outstanding increased to Rs 44,372 crore as of June 2025, up from Rs 38,335 crore in March 2025, as the company took bridge financing for capex and working capital to support its expanding operations. Adani Power, India’s largest private thermal power producer, continues to operate on long-term, medium-term, and merchant PPAs, trading and investing across segments, with consolidated installed capacity at 18,150 MW as on July 2025.