Adani Power revealed its plan to acquire a 1,200 MW thermal power plant from DB Power Ltd in Chhattisgarh. The transaction, valued at approximately ₹7,017 crore (~$840 million USD), is expected to close within the current fiscal year, subject to regulatory approvals.
The move strengthens Adani Power’s foothold in central India and expands its operational capacity to over 15,450 MW, making the company one of the largest independent power producers in the nation. Company officials said the acquisition aligns with Adani’s strategy to address rising power demand and reinforce supply stability as India pursues ambitious infrastructure and electrification targets.
“This acquisition exemplifies our commitment to scaling capacity while enhancing operational efficiency and reliability for our customers,” said S.B. Khyalia, CEO of Adani Power Ltd, in a press statement.
Jefferies Issues Buy Rating, Raises Target Price
Fueling the rally, Jefferies — a prominent global brokerage — maintained its “Buy” rating on Adani Power following the acquisition news. The firm lifted its price target to ₹680 per share, citing multiple upside catalysts such as capacity expansion, softening coal prices, and robust demand outlooks.
“Adani Power’s latest acquisition not only augments scale but also brings operational synergies and strengthens its competitive position. We expect higher EBITDA margins and improved return ratios over the next two years,” Jefferies analysts wrote in a client note.
Shares of Adani Power jumped over 7% on Tuesday, closing at ₹665.25 on the National Stock Exchange (NSE), its highest level in more than a month. Trading volumes also spiked, reflecting renewed institutional and retail investor interest.
Market Context: Strong Demand and Regulatory Tailwinds
India’s power demand reached record highs this summer due to heatwave conditions and increasing industrial activity, intensifying the need for new generation capacity and more reliable supply chains. The government’s focus on infrastructure development and rural electrification has provided a supportive backdrop for both public and private power producers to expand.
Recent easing of global coal prices and improved domestic coal supply have aided thermal power generators like Adani Power in managing input costs, supporting profitability after a period of squeezed margins.
“India’s power sector is undergoing a structural transformation, with private players like Adani actively contributing to capacity augmentation and grid modernization,” said Kaustubh Shinde, energy market analyst at CRISIL.
Competitive Landscape and Growth Projections
Adani Power competes with both public sector undertakings such as NTPC and other large private entities like Tata Power, all of whom are scaling up to meet surging demand. According to a recent report by the Central Electricity Authority (CEA), India needs to add over 210 GW of new generation capacity by 2030 to meet growing electricity requirements.
Jefferies and other brokerages project Adani Power’s enhanced scale and improved efficiency post-acquisition could lead to a 12-15% annual growth in EBITDA over the next 2-3 years.
Investor Risks and Future Outlook
Despite positive developments, analysts caution that sector risks persist, particularly around fuel supply volatility, environmental regulations, and evolving state electricity board financials. However, diversified assets and long-term power purchase agreements (PPAs) provide Adani Power with greater revenue visibility.
“The DB Power acquisition is a major milestone, but disciplined execution and regulatory clarity will be key to sustaining growth,” said Richa Sharma, head of research at Motilal Oswal.
Industry experts suggest that if Adani Power can manage integration successfully and continue expanding through accretive acquisitions or new projects, it could reinforce its leadership in the nation’s energy transition.
