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Motilal Oswal starts Adani Power at Buy, targets ₹250 a share
The brokerage forecasts coal and lignite capacity in India could rise by about 86 GW between FY26 and FY36, underpinning demand for thermal generation.
Motilal Oswal Financial Services has initiated coverage of Adani Power with a Buy rating and a target price of ₹250 per share, implying more than 20% upside from a reference level of ₹207. The brokerage described Adani Power as a key beneficiary of India’s growing thermal power needs as electricity demand rises and a large expansion pipeline develops.
In its note, MOFSL pointed to ambitious growth plans, saying Adani Power’s capacity could expand from about 2.3 times to 42 GW by FY32. The firm also cited Adani Power’s execution record through acquisitions and turnaround of distressed plants, alongside what it called “optionality” from a nuclear foray.
MOFSL linked the outlook to government projections that coal and lignite capacity could increase by around 86 GW between FY26 and FY36, from roughly 229 GW to 315 GW. It further said resource adequacy plans of the top five power-consuming states point to 32.6 GW of incremental thermal capacity, compared with 14.2 GW implied by the national plan.
On competition, the brokerage said solar currently has a tariff advantage of more than ₹3 per kWh over thermal, but it expects the gap to narrow by 15.0% to 20.0% over the next three to four years due to the withdrawal of the ISTS waiver and cost escalation tied to ALMM II and III. MOFSL said Adani Power, as India’s largest private thermal producer, has about 18 GW of operational thermal capacity at the end of FY26 and 41,830 MW total capacity including its pipeline, with a goal to reach 42 GW by FY32.