Adani Power shares could see further gains in the coming months, according to brokerage firms JM Financial and Elara Securities. JM Financial has raised its target price for the stock to ₹258 from ₹255 while maintaining its Buy rating. Elara Securities has set a target of ₹220, suggesting that the stock could move above the ₹200 mark if its expectations are met. The positive outlook comes as the company reports strong profit growth and continues to expand its power generation capacity.
Adani Power shares touched ₹188.80 on Tuesday. Based on the brokerage estimates provided, JM Financial sees the stock reaching ₹258 over the next 12 months, while Elara Securities expects it to reach ₹220. These targets indicate potential gains of around 38% and 18%, respectively, from the reference price used in the brokerage estimates. Actual returns will depend on the stock’s market price and how the company’s business performs in the coming quarters.
JM Financial’s revised target price reflects its expectations for Adani Power’s future growth and planned capacity additions. The brokerage has valued the company at 18 times its estimated September 2028 EV/EBITDA. EV/EBITDA is a valuation measure that compares a company’s total value, including debt, with its earnings before interest, taxes, depreciation and amortisation. Analysts use this measure to assess how the market values a company’s operating earnings.
The brokerage reported that Adani Power recorded revenue of ₹16,500 crore in the September quarter of FY27, representing a 29% increase compared with the same period last year. However, revenue was 1% lower than in the previous quarter and came in 5% below JM Financial’s estimate. Despite this shortfall, the brokerage expects the company’s upcoming power projects to support its growth over the next few years.
JM Financial expects Adani Power to commission two 660 MW units at its Korba-II project during the third and fourth quarters of FY27. Commissioning refers to bringing a completed power generation unit into commercial operation. The brokerage also expects the company’s 1,600 MW Mahan-II project to become operational in FY28. It has further estimated that 3,600 MW of capacity could be commissioned in FY29. If these projects proceed as expected, they could add significantly to the company’s ability to generate and supply electricity.
Elara Securities has also highlighted the company’s growth prospects. According to the brokerage, Adani Power’s earnings outlook is supported by its planned 24 GW capacity expansion, increasing Power Purchase Agreement (PPA) coverage and opportunities in the merchant power market. A PPA is a contract under which electricity is supplied at agreed terms, often helping power producers secure buyers for their output. Merchant power, in contrast, is electricity sold in the market rather than under a long-term contracted arrangement. Changes in market prices and demand can affect the returns from these sales.
The company’s latest quarterly results provide further context for the brokerages’ outlook. Adani Power reported a net profit of ₹7,019.32 crore in the second quarter of FY27, up approximately 142% from ₹2,906.46 crore in the corresponding quarter of FY26. This sharp rise in profit indicates a substantial improvement in the company’s reported earnings compared with the previous year.
The company’s operating revenue also increased during the quarter. It rose 29.8% year-on-year to ₹17,014 crore, compared with ₹13,106 crore in the September quarter of the previous financial year. Adani Power also disclosed that ₹2,422.25 crore in revenue relating to previous years was included as a one-time income item during the September quarter. This detail is important when assessing the results because such income may not recur in the same way in future periods.
Adani Power’s performance was also stronger over the first half of FY27, covering April to September. The company reported a profit of ₹11,886 crore for the six-month period, up 91.4% from ₹6,211.59 crore in the corresponding period of FY26. This growth adds to the positive earnings trend highlighted by the brokerages.
However, investors should consider the difference between reported results and future expectations. While profit and revenue have increased, JM Financial noted that quarterly revenue was below its estimate. The expected commissioning dates for new power units and the benefits from capacity expansion also depend on projects progressing as planned. Brokerage target prices are estimates, not guaranteed future market prices, and the stock can move in either direction depending on business performance, market conditions and investor sentiment.
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