Adani Power Signs 25-Year Maharashtra Power Supply Agreement for 1,600 MW

Market snapshot: Adani Power Limited has signed a binding 25-year Power Supply Agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL) to supply 1,600 MW of thermal power. This long-term contract is set to commence in the financial year 2030-31 from a new ultra-supercritical thermal plant, providing highly secure and stable cash flows.

Data Snapshot

• Adani Power signed a 25-year Power Supply Agreement with MSEDCL to supply 1,600 MW of thermal power on a long-term basis.
• The power supply is scheduled to commence in FY 2030-31 with a first-year quoted tariff of ₹5.3 per kWh.
• Adani Power's Q4 FY26 net profit rose 64.33% YoY to ₹4,271.4 crore from ₹2,599.23 crore in Q4 FY25.

What's Changed

• The agreement formalises the long-term Power Supply Agreement following the receipt of the Letter of Award on March 15, 2026.
• This deal increases the company's secured long-term pipeline to over 55% of its total 23.8 GW under-implementation capacity.
• Adani Power's Q4 FY26 net profit stood at ₹4,271.4 crore, marking a 64.33% YoY increase compared to ₹2,599.23 crore in Q4 FY25.

Key Takeaways

• Adani Power and MSEDCL have signed a binding 25-year Power Supply Agreement for 1,600 MW of power.
• Supply will be delivered from a brand new 2x800 MW Ultra-Supercritical Thermal power plant on Design, Build, Finance, Own & Operate basis.
• Scheduled commencement is in FY 2030-31 at a first-year tariff of ₹5.3 per kWh, with coal linkage secured under the central SHAKTI Policy.
• This deal solidifies Adani Power's aggressive capacity expansion towards its target of 41.87 GW by FY32.

SAHI Perspective

The signing of this 25-year agreement highlights Adani Power's strong execution capabilities and competitive cost structuring. By locking in a tariff of ₹5.3 per kWh, the company reduces exposure to the volatile merchant market. This long-term security is critical as the company undertakes a massive ₹2 lakh crore capex cycle to expand its capacity to 41.87 GW by FY32, positioning it as India's leading private-sector thermal generator.

Market Implications

This agreement provides highly predictable, long-term cash flow visibility starting from FY31. By securing long-term PPAs for more than 55% of its under-implementation pipeline, Adani Power shields itself from merchant market pricing pressures, which had recently soft-landed due to lower international coal prices. This structural derisking should improve the company's credit profile and support capital allocation for ongoing expansions.

Trading Signals

Market Bias: Bullish

The signing of the 25-year Power Supply Agreement for 1,600 MW secures long-term revenue visibility from FY 2030-31 onwards at a first-year tariff of ₹5.3 per kWh. This adds to the company's robust financial position, backed by a 64.33% YoY jump in Q4 FY26 net profit to ₹4,271.4 crore.

Overweight: Power, Utilities, Thermal Generation

Trigger Factors:

• Execution timeline of the 2x800 MW ultra-supercritical plant
• Movement in international and domestic coal prices
• Commissioning of under-implementation capacity of 23.8 GW

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

Industry Context

India's power demand continues to grow, with a 1.6% YoY increase in national power demand recorded in Q4 FY26. Baseload thermal power remains critical to meeting peak demand as coal-based generation continues to anchor the country's energy grid. Adani Power is uniquely positioned to capture this demand growth as it commands the largest private thermal portfolio in India, with over 95% of its operational capacity already locked into long-term contracts.

Key Risks to Watch

• Potential delays in the construction and commissioning of the 2x800 MW ultra-supercritical thermal power plant.
• Fluctuations in coal availability or changes in policy affecting coal linkage allocations under the SHAKTI scheme.
• Inflationary pressures in capex execution over the next few years before the plant becomes operational in FY31.

Recent Developments

Adani Power announced strong Q4 FY26 financial results on April 29, 2026, reporting a 64.33% YoY surge in consolidated net profit to ₹4,271.4 crore. Additionally, on April 2, 2026, the company announced receiving a separate Letter of Award from MSEDCL for the supply of 2,500 MW of Renewable Energy Round-The-Clock power for a period of 25 years.

Closing Insight

By locking in 1,600 MW under a 25-year contract, Adani Power continues to execute on its low-risk, high-visibility business model. The company's combination of near-term earnings growth—as seen in its stellar Q4 results—and long-term structural agreements secures its leadership in India's thermal baseload expansion.

High Performance Trading with SAHI.