Adani Group Power Companies Poised For Strong Upside, Says Jefferies
Valuations of Adani Group's power companies are highly attractive, Jefferies said in its note.
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Adani Group’s listed power companies — Adani Energy Solutions Ltd., Adani Green Energy Ltd., and Adani Power Ltd. — are well-positioned for a strong rebound, according to Jefferies.
Their fundamentals have strengthened, with financial year 2022-24 Ebitda doubling by 105%, it said. Jefferies forecasts a further 42% rise in Ebitda between fiscal 2024-26, paving the way for substantial growth.
Valuations are highly attractive, according to a note by Jefferies. Adani Energy Solutions and Adani Green Energy are trading at steep discounts of 78% and 57%, respectively, to their January 2023 peak one-year forward EV/Ebitda multiples. This creates meaningful upside potential as execution improves. While APL trades at a premium, improved execution visibility supports a positive outlook.
Execution across the group has been strong, the brokerage further added. Adani Energy Solutions’ under-construction transmission projects have quadrupled since January 2023 to Rs 59,900 crore. Its transmission network grew by 35% to 26,696 circuit kilometres by fiscal 2025, reinforcing its position as the second-largest player after Power Grid Corporation. Adani Energy Solutions has also significantly scaled up its smart metering projects and enhanced efficiency in its Mumbai distribution circle.
Adani Green has increased its installed capacity by 94% to 14 GW since January 2023, with another 1 GW expected to be commissioned shortly. The company is focused on achieving its ambitious 50 GW target by 2030. Its Ebitda rose at a 44% CAGR during financial year 2022-24 and is forecast to grow at a 24% CAGR over fiscal 2024-26.
Adani Power has expanded its installed capacity by 29% to 18 GW since January 2023. Its Ebitda surged 2.6 times over financial year 2022-24 and is expected to rise by over 25% during fiscal 2024-26, the brokerage added. Adani Power’s profitability trajectory has seen sharp improvement, supported by a robust capacity expansion plan targeting a 20% CAGR through financial year 2030.
With strong capacity growth, robust Ebitda expansion, attractive valuations, and improved operational execution, Jefferies sees significant upside potential for Adani Group’s power companies, marking a promising new phase for investors, following last year’s correction.
