Adani Power signs 25-year 1,234 MW supply deal

Adani Power Limited (NSE: ADANIPOWER) signed a 25-year Power Supply Agreement with Uttarakhand Power Corporation Limited on 4 November 2026. The agreement covers 1,234 MW of net thermal power supply from 1,320 MW installed capacity. The agreement follows the company's selection as the successful bidder in UPCL's tender. Adani Power had earlier received the Letter of Award for this capacity. The long-term agreement adds to the company's contracted capacity and improves visibility for future power sales. In its Q2 FY27 update, the company stated that this tie-up would take the total tie-ups for its upcoming 23.72 GW thermal capacity to 62%. My view: The duration and contracted capacity are positive for long-term business visibility. However, the actual earnings contribution will depend on the supply commencement timeline, tariff structure, plant readiness and operating costs. Capacity tie-ups should not be treated as immediate revenue. What to watch next: Updates on supply commencement, project execution and the remaining capacity tie-ups. Stance: The agreement strengthens long-term visibility, while execution and profitability remain the key factors to monitor.