Global brokerages stay bullish on Adani Power after strong Q2; raise price targets up to Rs 195
Global brokerage firms remain upbeat on Adani Power Limited (APL) following its strong operational performance in the September quarter (Q2 FY26), with Morgan Stanley, Jefferies, and Cantor Fitzgerald all maintaining positive views and raising their price targets on the stock on Friday.
Morgan Stanley reiterated its ‘Overweight’ rating on Adani Power with an industry view of ‘In-Line’ and set a price target of Rs 163.60 -- implying a modest 1 per cent upside from the October 30 closing price of Rs 162.57.
The brokerage highlighted the company’s strong project execution pipeline and healthy receivables position.
Jefferies, meanwhile, retained its ‘Buy’ rating and sharply increased its price target to Rs 195 from Rs 138 earlier -- implying a 20 per cent upside.
The brokerage said Adani Power deserves a valuation premium to state-run NTPC due to its ‘significantly higher margins and growth rates,’ noting that its P/E multiple trades at an 80 per cent premium to NTPC’s 10x.
Similarly, Cantor Fitzgerald also maintained an ‘Overweight’ stance and raised its price target by 32 per cent to Rs 184 -- citing the company’s expanding power purchase agreements (PPAs) and strong earnings visibility.
Adani Power’s latest earnings call revealed that its new PPA bidding pipeline now stands at around 22 GW, with 14.5 GW already awarded. The company is currently L1 in a 3.2 GW Assam thermal bid, while bids for Rajasthan (3.2 GW) and Uttarakhand (1.3 GW) are in progress.
Meanwhile, earlier this week, Adani Power reported a steady financial performance for the quarter, with consolidated revenue at Rs 13,106 crore and EBITDA at Rs 6,001 crore, as well as a 7.4 per cent increase in power sale volumes despite monsoon-related disruptions.
The company’s management reiterated its focus on expanding its total capacity to 42 GW by 2031-32, underscoring confidence in India’s growing electricity demand and Adani Power’s leadership position in the sector.
“Our strong profitability and liquidity position us well to achieve our enhanced capacity expansion goal of 42 GW by 2031-32. We have already arranged ordering for equipment and land for the entire 23.7 GW expansion, with project implementation progressing rapidly,” said SB Khyalia, CEO, Adani Power Limited on October 30.
