Adani Power Share Price Jumps Over 5% After Winning 1,600 MW Long-Term Power Supply Contract from MSEDCL

Despite weak overall market sentiment, the stock witnessed strong early trading activity. The share price opened at ₹149.90 compared with its previous close of ₹146.57, reflecting an early gain of ₹3.33. During the session, the stock climbed to a high of ₹153.25 before touching a low of ₹146.40. As of 10:30 IST, the stock was trading at ₹150.68, up ₹4.11 or 2.80% from the previous close. 

Over the past five trading sessions, the stock has gained more than 8%. On a broader basis, the stock has risen 1.49% year-to-date and has delivered a strong 47.44% return over the past year.

Details of the 25-Year Power Supply Agreement

The LoA awarded by Maharashtra State Electricity Distribution Company Limited is for the supply of 1,600 MW of thermal power under a long-term Power Supply Agreement (PSA). The agreement is expected to run for a period of 25 years.

Adani Power Limited emerged as the lowest-tariff bidder in the competitive bidding process by offering electricity at a combined tariff of ₹5.30 per kWh. The company stated that the supply of power under this agreement is scheduled to begin in the financial year 2030–31.

The electricity will be supplied from one of the company’s upcoming ultra-supercritical thermal power projects (USCTPP), which are designed to deliver higher efficiency and lower emissions compared with conventional thermal plants.

Strengthening Long-Term Capacity Tie-Ups

With this latest contract, Adani Power Limited has secured long-term PSAs for 13.3 GW of its 23.8 GW capacity that is currently under implementation. The company highlighted that more than 95% of its existing operating capacity of 18.15 GW is already tied up under medium- to long-term power supply agreements.

In addition, over 55% of its upcoming 23.8 GW capacity pipeline is now secured under long-term 25-year PSAs. This strategy ensures revenue visibility and stable power offtake for the company over the long term.

Strong Order Wins in FY25-26

The company stated that this LoA represents another significant milestone during a period of renewed investment in the thermal power sector. During FY25–26, Adani Power Limited has won five long-term PSA bids with a combined capacity of 10,400 MW.

According to the company, these contracts reinforce its position as a key provider of new power generation capacity in India, supporting the country’s objective of adding 100 GW of thermal power capacity by 2032.

Coal Linkage and Fuel Security

The MSEDCL bid includes a pre-determined coal linkage, which ensures long-term fuel security for the project. According to the company, this arrangement supports a reliable and cost-effective electricity supply over the duration of the contract.

Massive Expansion Plan and Investment

Adani Power Limited is currently undertaking what it describes as India’s largest private-sector thermal power capital expenditure programme. The company plans to expand its total generation capacity from the current 18.15 GW to 41.87 GW by FY31-32.

This expansion will involve investments of approximately ₹2 lakh crore. The company noted that these projects are aligned with India’s rising electricity demand driven by economic expansion, rapid urbanisation, industrial growth, and increasing household electrification.

During the construction and development phases, the projects are expected to generate employment for tens of thousands of people while also boosting industrial demand across multiple sectors