Adani Power (APL) shares gained 2.04% to ₹207.71 following the announcement that credit rating agency CARE Ratings has upgraded the company's long-term rating to 'CARE AA+' from 'CARE AA' with a 'stable' outlook. The agency has also reaffirmed the company's short-term rating at 'CARE A1+' and upgraded the credit rating assigned to APL's Non-Convertible Debentures to 'AA+' with stable outlook. According to reports from Business Standard, this upgrade reflects the sustenance of strong operational and financial performance by India's largest private thermal power producer. The stock has delivered exceptional multibagger returns with 37% gains this year, 214% over three years, and 1,216% over five years as per BSE data, demonstrating strong long-term performance despite recent market volatility.
Adani Power shares gained momentum after the Appellate Tribunal for Electricity (APTEL) ruled in the company's favor on change-in-law compensation matters. In an exchange filing on August 20, 2026, APL announced that APTEL set aside the Maharashtra Electricity Regulatory Commission's (MERC) earlier order, directing MERC to issue consequential orders and recompute the company's Change in Law compensation based on APTEL's previous judgment. According to market experts, this regulatory relief matters more for what it removes than what it immediately adds, as regulatory disputes of this kind have been sitting as an unquantified overhang on power sector stocks. The compensation is directed to be computed under the applicable framework, with the cash impact arriving with a lag and the quantum only known on determination, making this a sentiment relief rather than an earnings event.
APL demonstrated exceptional operational performance with actual plant availability factor (PAF) remaining above normative levels at 96% in Q1 FY27 and 89% in FY26 across its operational portfolio, leading to full recovery of capacity charges. The company's power purchase agreements cover nearly 95% of installed capacity as of June 2026, up from 85% in August 2024, significantly reducing market risk. For Q1 FY27, APL reported consolidated revenue of ₹18,901.89 crore and net profit of ₹4,748.91 crore, representing substantial increases from ₹14,109.15 crore and ₹3,305.13 crore respectively in Q1 FY26. The company maintains strong financial metrics with cash and cash equivalents of ₹10,739 crore as of June 2026 and continuing EBITDA above ₹18,000 crore over FY24-FY26.
APL operates with total operational thermal power generation capacity of 18.33 GW and under development capacity of nearly 24 GW, positioning it as India's largest private thermal independent power producer. According to CARE Ratings, the company expects EBITDA to sustain above ₹22,000 crore over the medium term, supported by contracted capacity, improved fuel availability, and progressive contribution from under-development capacities. The rating agency expects the company's leverage to remain well within upper threshold limits despite the proposed equity raise of up to ₹15,000 crore through qualified institutional placement, which would reduce reliance on external debt for growth capex. The credit upgrade specifically lowers the cost of capital funding the group's roadmap toward roughly 42 GW by FY32 from about 18 GW today, as noted by market experts.
Adani Power is currently trading near the crucial ₹200 support zone, which coincides with the monthly pivot support, making it an important level to watch. According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, an RSI near 37 indicates weak momentum and suggests the stock is approaching oversold territory, while the MACD appears to be losing downside momentum, hinting at possible stabilisation. The stock hit a 52-week high of ₹254.15 on May 29, 2026, and a 52-week low of ₹116.67 on August 29, 2026. Vipin Kumar, AVP-Research at Globe Capital Market, notes that after hitting a lifetime high in May 2026, the stock has been going through a corrective phase and has almost reached a support confluence zone—its six-month-long exponential moving average placed at ₹199 and the 50% Fibonacci retracement level of the previous up move placed at ₹192. Experts suggest the stock may enter a consolidation phase between ₹195 and ₹205 in the near term, with a sustained move above ₹205 potentially triggering fresh buying interest.
