Shares of Adani Power Ltd., part of the Adani Group conglomerate, climbed approximately 3–3.5% intraday on July 29, 2025, following a regulatory filing that its board will meet on August 1 to consider a stock split proposal for its ₹10 face‑value equity shares. This marks the firm’s first-ever move toward a corporate stock subdivision.
Stock Split Details & Market Reaction
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The proposed stock split involves subdividing every ₹10 face‑value equity share into smaller denominations, subject to board, shareholder, and regulatory approvals.
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News of the board meeting alone triggered buying momentum—shares touched approximately ₹590, against the previous close around ₹570—boosting Adani Power’s market cap to ₹2.26 lakh crore.
Q4 FY25 & FY25 Financial Results
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For the quarter ending Q4 FY25, Adani Power’s consolidated net profit dropped by ~5% YoY to ₹2,599 crore, due to lower non‑recurring income. Full-year FY25 profit stood at ₹12,750 crore, down from ₹20,829 crore in FY24, impacted by higher tax expenses and weaker one-time gains.
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The company will also release its Q1 FY26 results on August 1, likely coinciding with stock split approval.
Strategic Context
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The stock split proposal—once executed—could improve liquidity and affordability, making the stock more accessible to retail investors by lowering per-share price.
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This move reflects strategic leadership’s intent to broaden shareholder base and potentially unlock valuation re-rating over time.
Technical Trends & Valuation Outlook
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Adani Power’s shares have delivered ~12% gains over the past six months, supported by technical recovery and renewed investor confidence. Despite a sharp drop from its 52-week high of ₹896 (a 40% correction), the stock shows signs of stabilizing around its 200-day moving average.
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Analysts hold mixed views: some maintain strong buy views with ₹630–₹650 targets, while others highlight caution due to elevated valuations (current P/E ~17×, P/B ~3.8×) and profitability pressures.
Key Implications for Stakeholders
| Stakeholder | Implication |
|---|---|
| Retail Investors | Split may enable investment at smaller lot sizes, increasing accessibility |
| Institutional Investors | May assess split timing and valuation impact before increasing exposure |
| Company Management | Must balance split approval, Q1 earnings, and regulatory filings seamlessly |
Conclusion
Adani Power’s potential move to split its ₹10 equity shares reflects a milestone in its corporate structuring strategy—likely aimed at boosting market participation and future liquidity. The news triggered a strong share price rally, even before formal approval. With Q1 FY26 earnings and board decisions due on August 1, investors should track the outcome closely. Stock performance hinges on valuation discipline, earnings resilience, and broader investor sentiment toward Indian utilities.
