Summary:
Adani Power signed a 25-year agreement to supply 1,234 MW of thermal electricity to Uttarakhand Power Corporation. The deal strengthens its contracted power portfolio, supports capacity expansion and improves long-term revenue visibility, subject to project commissioning and execution.
Adani Power (NSE: ADANIPOWER) has signed a 25-year agreement to supply 1,234 MW of thermal power to Uttarakhand Power Corporation Limited (UPCL). Announced Nov. 4, 2026, the agreement enhances the company’s long-term contracted power portfolio as the company continues to grow generation capacity.
Details of the Uttarakhand Power Accord
The contract is for 1,234 MW of ex-bus net power supply supported by 1,320 MW of installed generation capacity, the company said in a stock exchange filing.
Ex-bus supply is the electricity delivered from the generating station to the transmission system after subtracting the internal power consumption of the plant.
The agreement is based on the Letter of Award received from UPCL on 14th October, 2026.
The contract was won by Adani Power through a competitive tender process by the Uttarakhand utility.
The Power Supply Agreement formalizes the arrangement and sets out the contractual basis for electricity supply for 25 years.
The total financial value of the agreement was not released by the company in its November 4 announcement.
Hence, the final revenue contribution from the contract will be dependent on the applicable tariff structure, generation availability, commissioning and electricity supplied.
BazaarWatch Why Should You Get Long-Term Agreement?
Thermal power companies usually sell electricity via a combination of long-term contracts and short-term merchant markets.
Long-term contracts provide visibility of future electricity sales and reduce dependence on volatile merchant electricity prices.
Supply agreements are particularly important for new power project companies because they require significant up-front capital expenditure.
Adani Power is undertaking a huge expansion program, which will add 23,720 MW of thermal power generation capacity.
Its Q2FY27 operational update said that around 62% of its upcoming thermal capacity, including the Uttarakhand project, had entered into power supply arrangements.
The growing contracted portfolio provides a clearer path for monetizing the additional capacity as individual projects come online.
But the cost of construction, the financing, the availability of coal and the schedule for completing a project are still important factors.
Adani Power’s Recent Financial Performance
The company’s Q2FY27 results showed a sharp rise in earnings.
Consolidated profit after tax increased 141.5% YoY to ₹7,019.32 crore from ₹2,906.46 crore in Q2FY26.
Revenue from operations on a continuing basis grew 29.8% to ₹17,014.06 crore against ₹13,106.34 crore a year ago.
Sales volumes of electricity increased by 11.5% YoY to 26.4 bn units.
Adjusted EBITDA grew by 18.5 percent to Rs 6,320.97 crore from Rs 5,332.71 crore.
The increase in profit also reflected higher one-off income relating to prior periods. That means that the entire profit increase should not be attributed to the recurring nature of electricity sales.
The company’s net debt stood at about ₹45,846 crore as on September 30, 2026, reflecting the scale of the company’s financing needs.
Why Adani Power shares jumped?
Shares of Adani Power closed at about 3.2 per cent higher at ₹201.71 on November 4.
The binding agreement however was announced after trading hours. Today's increase is not a direct consequence of that announcement.
The company has also enjoyed substantial gains in its share price in 2026, driven by expansion plans and increasing electricity demand.
The Uttarakhand pact provides contracted capacity for the long term but its financial contribution will be a function of project commissioning and actual power supply.
The deal strengthens Adani Power’s presence in India’s thermal electricity market and increases the stakes for timely project execution, capital expenditure management and securing fuel supplies for the company’s growing generation portfolio.
