Adani Power shares have gained 27% so far in 2026, with domestic brokerage Elara Capital initiating coverage on the stock with an ‘Accumulate’ rating and a target price of ₹220. This target implies an upside of over 16% from the stock’s closing price of ₹189 on the BSE on 9 October, according to livemint.com.
Elara Capital’s coverage initiation report highlights the company’s strong medium-term growth prospects, driven by a substantial capacity expansion pipeline, increasing long-term power purchase agreement coverage, and opportunities in the merchant power market. The brokerage valued Adani Power at 12 times its estimated FY29 enterprise value-to-EBITDA (EV/EBITDA), while cautioning that much of the growth potential is already priced in. Despite the year-to-date gains, the stock has experienced short-term pressure, declining 4.04% in the past week and 11.89% over the past month.
The brokerage underscored the continuing importance of thermal power in India’s energy mix, noting it will remain critical for providing reliable, dispatchable baseload electricity. This complements the increasing share of renewable energy, which faces challenges such as intermittency, transmission constraints, and grid-balancing requirements. Elara Capital’s outlook reflects the sector’s dynamics where thermal power supports energy security amid the transition to renewables.
Adani Power’s stock performance and Elara Capital’s target price set a benchmark for investor expectations, with the next key market movements likely to be influenced by the company’s capacity expansion progress and power purchase agreement developments. The stock closed at ₹189 on 9 October, with Elara Capital’s target price of ₹220 representing a significant valuation milestone.