Adani Power Share Price Today | ₹588.1 & Stock‑Split Update

Adani Power share price,ADANIPOWER ₹588,stock split proposal Aug 1,Adani Power market cap ₹226k Cr,PE 17.5×,52-week high ₹752,52-week low ₹432,News

Adani Power Share Price Today: ₹588.1 & Stock-Split Update

A detailed analysis on the board meeting decisions, Q1 results, and market performance on August 1, 2025.

Executive Summary

Adani Power Ltd. made significant headlines on Friday, August 1, 2025, as its Board of Directors convened to consider a crucial stock split proposal and announce the company's Q1 FY26 results. The meeting culminated in the approval of a 1:5 stock split, a first for the company, aimed at boosting liquidity and making the shares more accessible to retail investors. However, the day’s trade saw the stock experience a downturn, with the price settling at approximately ₹579, a decline from the previous close of ₹588.1. This was juxtaposed with a decline in Q1 consolidated net profit, which fell by 15% year-on-year, despite steady operational performance. This report provides an in-depth look at these key developments and their implications for investors.

Adani Power Approves 1:5 Stock Split

In a landmark decision, the Adani Power board officially approved the sub-division of its equity shares. The stock split will be in the ratio of 1:5, meaning each existing equity share with a face value of ₹10 will be split into five new equity shares, each with a face value of ₹2. This is the first-ever stock split in the company's history.

What this means for investors: While the total value of an investor's holdings remains unchanged, the number of shares they own will increase fivefold. This action is primarily a strategic move to make the stock more affordable on a per-share basis, thereby attracting a wider pool of retail investors and enhancing the stock's market liquidity.

The implementation of this split is subject to the approval of shareholders and other statutory and regulatory bodies. The company is yet to announce the record date for this corporate action, which will determine the eligibility of shareholders to receive the new shares.

Market Performance on August 1, 2025

Following the board meeting and the announcement of its Q1 results, Adani Power's stock witnessed volatile trading on the National Stock Exchange (NSE). The stock opened at ₹588, touching an intraday high of ₹592.95 before witnessing a sharp correction. By the close of the trading day, the share price had declined to ₹579, marking a notable fall of approximately 1.55% from the previous day's close.

Metric Value (₹)
Previous Close ₹588.1
Opening Price ₹588.0
Intraday High ₹592.95
Intraday Low ₹570.1
Closing Price (Approx.) ₹579.0
P/E Ratio (Trailing) ~17.27×

The market's reaction suggests that while the stock split news was generally positive, the Q1 results announcement may have introduced some near-term uncertainty, leading to the late-day sell-off. The stock's performance reflects the ongoing volatility and investor sentiment surrounding the broader Adani Group.

Q1 FY26 Financial Results Overview

Along with the stock split, Adani Power reported its consolidated financial results for the first quarter of the fiscal year 2026 (Q1 FY26). The results showed a decline in key profitability metrics on a year-on-year basis.

  • Net Profit: The company's consolidated net profit for Q1 FY26 stood at approximately ₹3,305 crore, a decrease of about 15.5% compared to the net profit of ₹3,913 crore reported in the same quarter last year (Q1 FY25).
  • Revenue from Operations: Revenue also saw a slight dip, falling by about 5.9% year-on-year to ₹14,167 crore from ₹15,052 crore.
  • Underlying Factors: The company's management attributed the decline in net profit to lower one-time income compared to the previous year. It's important to note that the previous year's figures were bolstered by gains from asset sales and other non-recurring items. When accounting for these factors, the operational performance remains relatively strong.

Fundamentals and Future Outlook

Despite the recent dip in share price and quarterly profit, the long-term fundamentals of Adani Power remain a key talking point for analysts. The company's trailing twelve-month (TTM) P/E ratio stands at approximately 17.27×, which is a key valuation metric for investors.

Key Financial Highlights

Market Capitalisation

~₹2.27 Lakh Crore

52-Week High

₹752.9

52-Week Low

₹432.0

Book Value per Share (BVPS)

₹138.17 (as of Mar 2025)

The company's strategic focus on expanding its thermal power capacity, coupled with a push towards high-efficiency, low-emission technologies, positions it for long-term growth. The stock split is seen as a move to broaden the shareholder base and enhance liquidity, which could provide additional momentum in the coming quarters. However, investors will be closely watching the company’s ability to sustain operational profitability and manage its debt profile.

Conclusion

Adani Power's decision to split its stock is a significant corporate development that could make its shares more attractive to a wider range of investors. While the stock's performance on August 1, 2025, was subdued due to a dip in Q1 profits, the long-term outlook for the company remains a topic of considerable debate among market analysts. The focus now shifts to the company's ability to capitalize on its operational strengths and deliver consistent earnings in a competitive energy market. Shareholders will eagerly await the announcement of the record date for the stock split, as well as further clarity on the company's future growth strategy.

Post a Comment

0 Comments