Adani Power Ltd. has announced a significant surge in its financial performance for the June quarter, with consolidated profit after tax (PAT) rising by 47.2% year-over-year to ₹4,867 crore. This strong showing comes as global brokerages reassess their outlook, setting new share price targets for the Adani Group firm.
Strong Q1 Financial Performance
The power generation giant's consolidated continuing total revenue for the first quarter of the fiscal year climbed 26.6% to ₹17,936 crore, up from ₹14,167 crore in the corresponding period last year. This growth was attributed to increased power selling rates and a substantial rise in power sale volumes.
- Profit After Tax (PAT): ₹4,867 crore (up 47.2% YoY)
- Total Revenue: ₹17,936 crore (up 26.6% YoY)
- Power Sale Volume: 28.8 BU (up 16.9% YoY), driven by higher operating capacity and robust demand.
- EBITDA: ₹6,983 crore (up 21.6% YoY), marking the company's highest-ever quarterly performance.
Adani Power also noted a one-time net recognition of revenues from prior periods totaling ₹1,386.34 crore, primarily due to revisions in historic energy charges under certain Power Purchase Agreements (PPAs).
Brokerage Targets and Outlook
Following these impressive results, three prominent global brokerages have issued 'Overweight' or 'Outperform' ratings for Adani Power's stock:
- Morgan Stanley: Maintained an 'Overweight/In-line' recommendation with a target price of ₹275 per share.
- Cantor Fitzgerald: Issued an 'Overweight' rating, setting a target of ₹266 per share.
- Bernstein: Gave an 'Outperform' stance with the lowest target among the three, at ₹220 per share.
The consensus target price from nine analyst estimates stands at ₹247.67 per share, suggesting a potential upside of 14.2% from Thursday's pre-market price of ₹219.95 apiece. These targets collectively indicate a potential nil to 25% upside for the counter.
Strategic Acquisitions and Future Expansion
During the quarter, Adani Power completed the acquisition of power assets from Jaiprakash Associates under a Corporate Insolvency Resolution Process. This includes the 180 MW Churk power plant, a 24% stake in Jaiprakash Power Ventures Limited, and an 11.49% stake in Prayagraj Power Generation Company Limited.
S. B. Khyalia, CEO of Adani Power, commented on the company's strategic direction, stating, "APL has consolidated firmly on the path to expand its portfolio to 45GW, with rapid progress on ongoing projects and strong liquidity from current operations." This statement underscores the company's commitment to aggressive growth and capacity expansion.