Adani Power’s Bankruptcy Bet on stressed assets Pays Off

has emerged as India’s most prolific buyer of distressed power assets under the Insolvency and Bankruptcy Code (IBC), completing eight acquisitions including the recent approval to acquire GVK Energy. Roughly one‑third of its 18.3GW operational capacity now stems from such deals. Capital efficiency: By purchasing stranded plants at steep discounts compared to greenfield costs, Adani Power has added 7.8GW capacity at a fraction of the expense. Analysts note costs as low as ₹21–28 per watt for certain acquisitions, significantly undercutting peers like Torrent Power and JSW Energy. Successful turnarounds: Post‑acquisition, Adani Power has revitalized assets into cash‑generating units. For example, Essar Power MP Ltd (renamed Mahan Energen) grew EBITDA from ₹550 crore in FY21 to ₹1,600 crore in FY26, cumulatively generating over ₹6,300 crore against a ₹2,500‑crore purchase price. Expansion roadmap: The company plans to add 23.7GW of new capacity, with 10.9GW at acquired sites, targeting a total of 42GW by FY32. This positions Adani Power closer to NTPC’s 61GW capacity, supported by advance orders for turbines and boilers to mitigate equipment shortages. Disciplined growth philosophy: Management emphasizes that acquisitions are guided by asset quality, operational potential, and strategic fit. The company highlights its expertise in project execution, logistics, and cost optimization as key to unlocking value and supporting India’s energy security. Financial strength: Adani Power remains the most profitable entity in the conglomerate, reporting ₹12,971 crore net profit in FY26. Its stock has surged nearly 40% since January, with a market capitalization of ₹4 trillion, reflecting investor confidence in its expansion model.