Antique Stock Broking has initiated coverage on Adani Power Limited with a ‘Buy’ recommendation and a target price of Rs 187 per share, citing strong growth visibility and improving financial fundamentals.

With Adani Power currently trading near Rs 144, the brokerage sees an upside potential of nearly 30 per cent. The positive outlook is driven by robust earnings prospects, an aggressive capacity expansion roadmap, and a strengthening balance sheet.

In its initiation report, Antique noted that Adani Power is poised to enter a sustained multi-year earnings growth phase, supported by rising power demand across India and a significant increase in generation capacity.

The company plans to more than double its installed capacity from 18.15 GW in FY25 to 41.9 GW by FY33, positioning itself as one of the most efficient private-sector baseload power producers in the country. This expansion marks a strong turnaround from its earlier period of financial stress.

Antique highlighted a structural uptrend in India’s electricity demand, with consumption expected to grow at a 6 per cent compound annual rate between FY22 and FY32. Growing demand from electric vehicles, data centres, artificial intelligence applications, and manufacturing is also driving higher peak power requirements, reinforcing the importance of dependable thermal power generation.

The brokerage further pointed out that Adani Power has emerged as a frontrunner in the ongoing state-led thermal power procurement process, having secured 12.4 GW — nearly 70 per cent — of the 17.7 GW capacity awarded so far. This reflects the company’s cost competitiveness and strong project execution capabilities.

Earnings visibility remains strong, with around 90 per cent of the company’s operational capacity and nearly 67 per cent of its total planned portfolio already locked in through long-term power purchase agreements.

Looking ahead, Antique expects Adani Power’s consolidated revenue, EBITDA, and profit after tax to grow at compounded rates of 16 per cent, 19 per cent, and 17 per cent, respectively, between FY25 and FY32.

The brokerage also noted that Adani Power plans to finance nearly 60 per cent of its estimated Rs 2 lakh crore capital expenditure pipeline through internal accruals. This strategy is expected to support steady deleveraging, with net debt-to-EBITDA projected to fall below 1x by FY32, while return on equity is likely to remain above 15 per cent.