By Chaitanya, BBA Finance Graduate & 6+ Years of Experience in Stock Market & Finance
In a significant development for investors, the board of directors at Adani Power has given its nod for a stock split, marking the company’s first such move since its inception. This strategic decision aims to boost the stock’s accessibility and liquidity, potentially drawing in a wider base of retail investors. The announcement comes alongside the release of the company’s financial results for the first quarter of Fiscal Year 2026 (Q1 FY26), which present a mixed picture of performance.
A Landmark Stock Split for Greater Accessibility
Adani Power has announced a stock split where each existing share with a face value of ₹10 will be divided into five smaller shares. After the split, each new share will carry a face value of ₹2. This move is, of course, subject to the necessary approvals from shareholders. The primary objective behind this historic split is to make Adani Power shares more affordable for individual investors, thereby enhancing the stock’s liquidity in the market. The company has not yet announced the record date for the stock split. It will be decided after shareholders give their approval.
After this important update, Adani Power shares were seen trading between ₹582 and ₹585 on the BSE, as per recent market data. This strategic initiative is widely seen by market analysts as a positive step towards broadening the company’s investor base and improving share availability for trading.
Navigating Q1 FY26: A Look at Financial Performance
Adani Power’s financial performance for Q1 FY26 reveals a nuanced situation. The consolidated net profit for the quarter stood at ₹3,305.13 crore. This reflects a 15.5% drop compared to the ₹3,912.79 crore profit reported in the same quarter last year (Q1 FY25). However, when compared to the previous quarter (Q4 FY25), the company saw a strong recovery, with profits rising 27.2% from ₹2,599.23 crore, showing signs of a bounce-back.
The company’s total revenue for Q1 FY26 reached ₹14,109.15 crore. This is a 5.7% year-on-year reduction from the ₹14,955.63 crore recorded in Q1 FY25. Quarter-on-quarter, the revenue was marginally lower than the ₹14,237.40 crore achieved in Q4 FY25. The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for Q1 FY26 was approximately ₹6,150 crore, showing an 8.38% year-on-year decrease from ₹6,712.63 crore in Q1 FY25. This financial data, as per Adani Power’s official filings, highlights the operational challenges faced during the period.
Adani Power’s lower profit this quarter is mainly due to two reasons higher operating costs, especially after its recent acquisitions, and a drop in merchant power rates. On top of that, the company’s revenue took a hit because of power supply disruptions in many areas, caused by extreme heatwaves followed by early monsoon rains, which led to lower demand for electricity.
Adani Power Shares: Recent Market Trajectory and Valuation
In terms of stock performance, Adani Power shares have shown mixed trends recently. Over the past five days, the stock has managed to rise by just over 1%. In the past month, the stock has slipped by over 2%. But if we look at the bigger picture, Adani Power has delivered solid gains rising more than 15% in the last six months and almost 10% from the beginning of 2025. This longer-term positive trend suggests underlying investor confidence.
Currently, the Price-to-Earnings (P/E) ratio for Adani Power stands at approximately 17.79, based on latest market data available from reputable financial platforms. The company’s market capitalisation is reported to be around ₹2.24 lakh crore, underscoring its significant presence in the Indian power sector.
In conclusion, Adani Power is navigating a period of strategic change and operational adjustments. While the Q1 FY26 financial results reflect some challenges, particularly due to higher costs and external factors affecting demand, the company’s bold move to implement its first-ever stock split signals a forward-looking approach aimed at enhancing market participation and liquidity. Investors will be closely tracking how these new moves impact the company’s growth and share value in the coming quarters.
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