Adani Power Projects ₹23,000 Crore FY27 Capex for 45 GW Long-Term Capacity Target

Market snapshot: Adani Power has announced a substantial scale-up in its long-term growth roadmap, targeting a power generation capacity of 45 GW by FY2031-32. To fund this expansion, the company has outlined a multi-year capital expenditure program of ₹2 lakh crore, starting with ₹23,000 crore in FY2027 and over ₹30,000 crore in FY2028.

Data Snapshot

• Long-term power generation capacity target of 45 GW by FY2031-32.
• Total projected capital expenditure of ₹2 lakh crore over the coming years.
• Guided capital expenditure of approximately ₹23,000 crore for FY2027 and more than ₹30,000 crore for FY2028.

What's Changed

• Long-term capacity target has been revised upward to 45 GW, compared to the company's previous guidance of 42 GW.
• Board-approved enabling resolutions have raised borrowing limits from ₹75,000 crore to ₹1,00,000 crore to support capex.
• Q1 FY2027 performance posted a 42% YoY jump in consolidated net profit to ₹4,806 crore, alongside a 34% YoY increase in revenue from operations to ₹18,902 crore.

Key Takeaways

• The capacity expansion to 45 GW by FY2031-32 is supported by a comprehensive ₹2 lakh crore capital program.
• Near-term execution begins with a guided capex of ₹23,000 crore in FY2027 and more than ₹30,000 crore in FY2028.
• Asset execution risk is largely mitigated as 100% of the land and major boiler-turbine-generator equipment have already been secured.
• Financial posture is robust, backed by board-approved enabling actions to raise up to ₹15,000 crore via QIP.

SAHI Perspective

Adani Power is pairing aggressive physical expansion with bold balance sheet engineering. By increasing its borrowing limits to ₹1,00,000 crore and seeking ₹15,000 crore in fresh enabling equity, the company is positioning itself to absorb high levels of growth capital. Transitioning its asset portfolio toward securing long-term power purchase agreements (PPAs) provides highly predictable, utility-grade cash flows that insulate its margins from merchant price volatility.

Market Implications

The significant capital outlay signals a structured pathway to expand Adani Power's market share in India's thermal generation segment to approximately 14% by FY2032. While capital expenditure will remain elevated, the company's low leverage profile on a trailing continuing EBITDA basis ensures that its credit metrics are well-defended. Strong baseload power requirements will sustain optimal plant utilization levels, driving long-term earnings growth.

Trading Signals

Market Bias: Bullish

Robust operational performance in Q1 FY27, combined with high visibility on its ₹2 lakh crore expansion blueprint, underpins a bullish outlook. Near-term capex of ₹23,000 crore is securely supported by internal cash generation and enabling capital raises.

Overweight: Power Generation, Thermal Utilities, Heavy Electrical Equipment

Trigger Factors:

• Pricing and allocation details of the proposed ₹15,000 crore QIP
• Progress on commissioning the 1,320 MW Korba Phase II project by December 2026
• Signing of additional long-term PPAs for upcoming thermal capacities

Time Horizon: Medium-term (3–12 months)

Industry Context

India is witnessing a multi-decade transition with rising peak electricity demand driven by industrial growth, urbanization, and rapid expansion of digital infrastructure. Thermal power remains critical for meeting the country's baseload requirements and grid reliability, as private utility capital steps forward to bridge the domestic capacity gap.

Key Risks to Watch

• Fluctuations in the price of imported coal could strain fuel margins if tariff pass-throughs are delayed.
• Delays in executing and formalizing long-term PPAs with state-owned power distribution companies.
• Project commissioning bottlenecks that could affect the phased capacity expansion timeline.

Recent Developments

In July 2026, Adani Power's board approved raising up to ₹15,000 crore via QIP or other permissible securities, alongside raising its borrowing limits to ₹1,00,000 crore. Additionally, in September 2026, the foundation stone was laid for the company's 3,200 MW Assam power project, further expanding its regional footprint.

Closing Insight

Adani Power's upward revision of its capacity target to 45 GW, backed by a robust ₹2 lakh crore capex blueprint, solidifies its position as India's premier private baseload utility. The company's focus on securing long-term PPAs and establishing enabling funding channels positions it exceptionally well to capture the country's structural energy demand.

High Performance Trading with SAHI.