Adani Power rally: 12% in 2 days on FY26 cues

Stock extends gains and prints fresh highs

Adani Power shares extended their up move, rallying 12% over the past two trading days. The stock touched a new high of ₹245.40, and the move has kept the counter in focus amid heavy attention on power demand heading into the summer months. From its February low of ₹130.15 on the BSE, the stock has risen 89%.

On 25 May 2026 at 03:59 PM IST, Adani Power was at ₹233.38. The stock was up 6.42% versus the previous price of ₹219.33, according to the data cited.

Deal catalyst: 24% stake buy in Jaiprakash Power Ventures

A key near-term trigger is Adani Power’s acquisition announcement. On 21 May 2026, the company said it entered definitive agreements to acquire a 24% stake in Jaiprakash Power Ventures and other thermal assets from Jaiprakash Associates for about ₹4,193.59 crore.

As per the regulatory filing referenced, Adani Power signed a Share Purchase Agreement to acquire 24% shares of Jaiprakash Power Ventures Ltd held by Jaiprakash Associates. It also signed a Business Transfer Agreement to acquire Jaiprakash Associates’ 180 MW thermal power plant located in Churk, along with other related assets.

The filing also mentioned the acquisition of 11.49% shares of Prayagraj Power Generation Company Ltd held by Jaiprakash Associates, packaged as part of the broader asset arrangement.

FY26 operating performance: Q4 EBITDA at ₹6,498 crore

The rally has also been linked to the company’s reported operating performance. Adani Power’s fourth-quarter performance for January to March 2026 was described as particularly strong, with EBITDA of ₹6,498 crore. That represented a 27% year-on-year increase.

The company flagged that FY26 saw weather-induced demand volatility, lower peak temperatures, and increased renewable generation. Even so, it said core demand drivers linked to economic growth remain intact and that demand recovery was already visible as it moved into FY27.

Management commentary: demand revival signs from March

In the Q4 earnings conference call referenced, management said it started to see a good revival in power demand from March as warmer weather arrived. Peak demand recently reached 256 gigawatts, and management expects that to rise further in the current year.

Separately, broader market chatter has also pointed to heat wave alerts across regions, with daytime temperatures reaching up to 45°C. The text also cited concerns of a strong El Niño ahead, which has historically been associated with higher power demand.

Capacity additions: project progress updates

Alongside near-term demand, investors are tracking commissioning timelines. Adani Power’s 1,600 MW Mahan Phase-II project in Madhya Pradesh was said to be 86% complete.

In Chhattisgarh, Raipur Phase-II achieved 54% progress and Raigarh Phase-II was 47% complete. The Korba Phase II project was described as close to completion, and management expects to commission Korba Phase-II during the course of the current year.

Management also indicated that upcoming capacity commissioning would drive the next phase of EBITDA and cash flow growth, and that new power purchase arrangements are expected to be earnings-accretive.

Contracts in focus: MSEDCL award and long-term offtake

The article text referenced two separate long-term contract datapoints that were part of market narratives around the stock.

First, on 1 April 2026, Adani Power informed that it received a Letter of Award from Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) for supply of 2,500 MW RE RTC power for 25 years from the scheduled commencement date, after being declared the successful bidder in e-RA results.

Second, another cited note described an LoA linked to a 1,600 MW power supply from an upcoming ultra-supercritical thermal power project under a 25-year Power Supply Agreement, with operations expected from FY31 and a first-year tariff of ₹5.30 per kWh.

Other cited drivers: gas disruption, legal overhang, and April momentum

A separate April 2026 explanation in the provided text listed three simultaneous shocks behind a sharp move. It said Delhi recorded 38.2°C on April 17, described as its hottest day of the year, while India’s gas-based power generation fell from 12 GW to 2 GW after the Iran-US conflict disrupted LNG supply chains.

The same text also said a US court accepted dismissal pleas in regulatory cases against the Adani Group, lifting an overhang that had suppressed the stock since November 2024. It additionally stated that the rally was being driven by momentum traders, not long-term institutional accumulation.

Key numbers at a glance

Why this matters for investors

The set of triggers spans both company-specific and sector-wide factors. The acquisition announcement provides a clear corporate action with a disclosed consideration and asset details, while Q4 EBITDA growth adds a reported operating metric that traders often track.

At the same time, the demand narrative has strengthened with management pointing to a March revival and peak demand at 256 GW. The market has also been reacting to weather-led demand expectations and supply-side developments mentioned in the text, including disruptions in gas-based generation.

Closing note

Adani Power’s move in late May has been supported by a combination of the JP Power-related acquisition, a strong Q4 operating print, and expectations of stronger power demand as temperatures rise. Near-term attention is likely to remain on project commissioning progress, demand trends through the summer, and any further updates tied to long-duration power supply arrangements already referenced by the company.