Adani Power shares climbed 1.5% to ₹188.75 on Wednesday morning, tracking a regulatory filing that confirmed a significant long-term revenue stream. The company disclosed it received a Letter of Award (LoA) from Uttarakhand Power Corporation Ltd (UPCL) for the supply of thermal power.
The deal is substantial. It covers the supply of 1,234 MW over a 25-year period, sourced from a plant with a total installed capacity of 1,320 MW. According to the BSE filing, UPCL issued the award on Tuesday, October 13, after market hours, triggering the price action on Wednesday.
This isn't the first major expansion move this month. Last week, Adani Power announced a shareholders' agreement with Bhutan’s Druk Green Power Corp to co-develop the 770 MW Chamkharchhu-I Hydroelectric Project in Zhemgang District. The two firms will operate under a 49:51 equity split using a Build, Own, Operate and Transfer (BOOT) model.
The hydro project slots into a broader 5,000 MW bilateral renewable energy framework, designed to meet Bhutan's winter demand while exporting surplus clean electricity to India during summer months. For investors watching the balance sheet, the thermal LoA provides immediate, stable cash flow while the hydro venture offers longer-term, capacity-neutral growth.
The stock has already delivered a 27% return year-to-date and sits up 22% over the trailing 12 months. With the thermal contract locked in and the Bhutan project moving from agreement to execution, the immediate catalysts are shifting from speculation to contractual certainty.