A strong rally of nearly 50% in 2026 has pushed Adani Power to the top of India’s listed power sector in terms of market value, overtaking NTPC. The company’s market capitalisation has risen to around ₹4.24 lakh crore, compared to NTPC’s ₹3.9 lakh crore, making it not only the most valuable power stock in India but also the most valuable company within the Adani Group.
The sharp rise has been driven by strong earnings performance, rising electricity demand, high plant load factors, improved tariff agreements, and increasing institutional investor interest. The stock now holds a significant valuation gap over peers such as Tata Power, JSW Energy, Torrent Power, and CESC, collectively dominating a large share of the private thermal power space.
Despite NTPC having much larger installed capacity and stronger government backing, the market has assigned a higher valuation to Adani Power, reflecting expectations of faster growth.
Brokerage firm Jefferies remains optimistic on the stock and has raised its price target, citing strong demand outlook and improved earnings visibility through FY28–FY30. It highlighted that recent power purchase agreements at higher tariffs and better-than-expected operational performance have strengthened profitability.
The company also plans aggressive expansion, targeting capacity growth from 18.2 GW to 31 GW by 2030 and 42 GW by 2032.
Analysts, however, have flagged risks including tariff volatility, regulatory issues, fuel supply concerns, payment delays from overseas projects, and demand fluctuations.
A key driver of the re-rating is India’s rising electricity demand, fuelled by extreme weather, industrial growth, electrification, and data centre expansion. Thermal power plants, once seen as declining assets, are now regaining importance due to their role in meeting base-load demand.
Adani Power has also reported higher plant utilisation rates compared to peers, boosting earnings growth. Additionally, increasing exposure to merchant power markets allows the company to benefit from higher tariffs during peak demand periods.
Institutional investors have steadily increased their holdings in the company over the past several quarters, reflecting growing confidence in its long-term growth story.
However, the stock’s valuation remains dependent on stable fuel supply, regulatory support, and sustained demand growth, while long-term risks from renewable energy expansion and market cycles continue to exist.
