Adani Power Ltd has notified the stock exchanges that its board of directors will meet on Thursday, August 1, 2025, to evaluate a proposal for the sub-division of its equity shares. The development triggered positive investor sentiment on Monday, with shares of the company rising nearly 2 percent in intraday trade.
In its official regulatory filing with the Bombay Stock Exchange, Adani Power stated that the board would consider and approve a stock split of equity shares currently having a face value of ₹10 each. The company has not yet disclosed the split ratio or the new face value that may be proposed.
“A meeting of the board of directors of the company is scheduled to be held on Thursday, August 1, 2025, to consider and approve the proposal for sub-division/split of the equity shares of the company having a face value of ₹10 each,” the company said.
The announcement pushed Adani Power’s stock up by 1.96 percent to reach an intraday high of ₹882.70 on the BSE, compared to its previous close of ₹865.75. The news was welcomed by market participants who view stock splits as a positive move to increase share affordability and trading liquidity.
The timing of the proposed stock split aligns with the company’s ongoing efforts to expand its investor base. With a stock price nearing ₹900, analysts said a split could make shares more accessible to a wider segment of retail investors, thereby enhancing daily trading volumes and overall market participation.
Stock splits are a non-dilutive corporate action. While they increase the number of outstanding shares in proportion to the split ratio, they do not change the company’s overall market capitalization. Instead, they lower the per-share price, which can appeal to small investors who may be discouraged by high absolute prices.
For example, in a 2-for-1 split, each shareholder receives one additional share for every share held, and the price per share is halved. Although the number of shares held doubles, the total value of the investment remains the same.
Adani Power’s decision comes at a time when the company is showing strong financial performance. For the quarter ended March 2025, Adani Power reported a consolidated net profit of ₹5,290 crore, an increase from ₹4,645 crore in the same period a year ago. Revenue from operations for the quarter was ₹13,860 crore, reflecting healthy demand for power and operational stability across its assets.
The company currently operates a total power generation capacity of 15,250 megawatts, with plants located across Gujarat, Maharashtra, Rajasthan, Chhattisgarh, and Karnataka. These projects supply electricity to both industrial and state utilities across India, making Adani Power a key player in the country’s energy infrastructure.
The Adani Group’s power business has also benefited from its integrated approach, including coal mining, logistics, and transmission support. This has allowed Adani Power to manage input costs and maintain efficient power generation, which is critical in an environment of fluctuating energy prices and rising demand.
In recent years, the Indian equity market has seen a rising number of companies opting for stock splits. These actions are typically taken after a period of sustained stock price growth. Analysts believe they help refresh interest in the stock and encourage more retail investors to enter the market. Companies in various sectors such as IT, FMCG, and manufacturing have recently gone for splits to widen their retail shareholding.
Adani Power, which has a market capitalization exceeding ₹3.4 lakh crore, has attracted increasing attention from institutional and retail investors alike. The stock has gained over 25 percent in the past six months, driven by improved earnings, higher power consumption across India, and favourable market sentiment toward energy companies.
Market observers say that while a stock split has no fundamental impact on a company’s profitability or cash flows, it often reflects management’s confidence in the company’s growth trajectory. It also indicates a willingness to improve accessibility and build long-term relationships with a wider shareholder base.
If the board approves the stock split proposal, the company will be required to seek shareholder approval through either a postal ballot or its next general meeting. Only after that will the company declare a record date to identify which shareholders are eligible for the benefit.
No official comment has been made by Adani Power regarding the potential timeline for implementation. Investors are expected to watch the outcome of the board meeting closely, as it may influence short-term stock movements and trading behaviour.
Shares of Adani Power closed the day slightly below their intraday high but remained in positive territory, reflecting confidence in the company’s corporate strategy. With India’s energy sector expected to grow significantly over the next decade, Adani Power’s move is seen as a step to prepare for deeper investor participation in its growth story.
Know Adani group Business Model
Adani Group is a conglomerate that has its headquarters in Ahmedabad, Gujarat. The company has a very impressive portfolio across various sectors under the leadership of Chairman Gautam Adani, who is one of the richest in India. The group had more than 17,000 employees in 2021 and has proven to be a challenger in the Indian privately owned sector.
The story of how a single trading company turned into a multi-billion dollar empire with the assistance of strategic diversification and government alignment is bold testimony to how much strategic diversity and government alignment matter. Adani Group today operates across the whole energy sector (the renewable energy business as well as the traditional energy business) to the airport business, leading it to form a key part of the Indian infrastructure backbone.
Core Business Segments: The Pillars of Adani’s Success
1. Energy and Power Generation
Adani Power Limited serves as the energy arm of the conglomerate, operating as India’s largest private thermal power producer with a capacity of 15,250 MW. The company’s power generation strategy includes:
- Thermal Power Plants: Operating massive coal-based facilities, including the world-renowned Mundra Thermal Power Station (4,620 MW)
- Renewable Energy: Through Adani Green Energy Ltd, the group operates solar parks and wind farms across India
- Solar Projects: The company commissioned a 40 MW solar power project in Kutch, Gujarat, marking its entry into clean energy
The power segment generates revenue through long-term power purchase agreements with state governments, including Gujarat, Maharashtra, Haryana, Rajasthan, Karnataka, and Punjab.
2. Ports and Logistics
Adani’s logistics empire centers around its port operations, which include:
- Mundra Port: India’s largest private seaport and the world’s largest coal terminal
- Multiple Port Facilities: Including Krishnapatnam port and Hazira port
- Special Economic Zones (SEZ): Operating several SEZs near seaports to boost economic activity
The ports and logistics segment generates revenue through cargo handling fees, storage charges, and logistics services for millions of tonnes of goods transported via sea and land routes.
3. Mining Operations
The group’s mining division focuses on:
- Coal Mining: Operating coal mines both in India and internationally, including a controversial $7 billion project in Australia
- Iron Ore Mining: Extracting valuable minerals for steel production
- Resource Trading: Importing and trading coal and other minerals globally
4. Food and Agribusiness
Through Adani Wilmar, the group has established a strong presence in India’s food sector:
- Edible Oil Production: Manufacturing the popular Fortune brand oil, a household name across India
- Food Processing: Producing soybeans, rice, pulses, and other essential food items
- Market Leadership: Serving millions of middle-class Indian consumers
5. Oil and Gas
The group’s energy portfolio extends to oil and gas through:
- IndianOil-Adani Gas Pvt. Ltd: A joint venture with Indian Oil Corporation
- Adani Total Gas: Operating city gas distribution networks for CNG and PNG
- Infrastructure Development: Building gas pipeline networks across Indian cities
6. Airport Operations
Adani has expanded into airport management, taking responsibility for operating several Indian airports including Jaipur and Guwahati, diversifying its infrastructure portfolio.
What Makes Adani’s Business Model Unique?
Strategic Government Alignment
One of Adani Group’s most distinctive characteristics is its strategic alignment with government interests and policies. This approach has enabled the company to secure major contracts and concessions across various sectors, particularly in infrastructure development.
Diversification Strategy
Unlike companies that focus on a single industry, Adani has deliberately spread its investments across multiple sectors. This diversification strategy serves several purposes:
- Risk Mitigation: Losses in one sector can be offset by profits in another
- Multiple Revenue Streams: Reducing dependence on any single business line
- Market Opportunities: Capitalizing on growth opportunities across different industries
International Expansion
The group’s global presence, particularly in Australia and other countries, provides additional revenue streams and reduces dependence on the Indian market alone.
Focus on High-Growth Sectors
Adani strategically invests in sectors with growing demand, particularly:
- Renewable Energy: Capitalizing on India’s clean energy transition
- Infrastructure: Supporting India’s massive infrastructure development needs
- Essential Commodities: Focusing on products and services with consistent demand
Revenue Generation Strategies
Primary Revenue Sources
The Adani Group generates revenue through multiple channels:
- Trading Operations: Importing and trading coal, edible oils, and other commodities at profitable margins
- Port Operations: Earning revenue from shipping companies through cargo handling and storage services
- Power Generation: Long-term electricity supply contracts with state governments and private entities
- Government Contracts: Securing lucrative contracts in defense, aerospace, and infrastructure sectors
- International Operations: Profits from overseas investments and operations
- Consumer Products: Direct sales of food products and edible oils to end consumers
Target Market Analysis
The Adani Group serves a diverse customer base:
- B2C Segment: Middle-class consumers purchasing food products like Fortune oil
- B2B Segment: Large corporations requiring logistics, power, and infrastructure services
- Government Sector: State and central government contracts for various projects
- International Markets: Global clients across 50 countries.
Financial Performance and Market Position
The group’s financial success is evident from several key milestones:
- Market capitalization crossing $100 billion in April 2021
- Consistent growth across multiple business segments
- Strong revenue generation from diversified operations
- Strategic acquisitions expanding market presence
Recent acquisitions include Lanco Amarkantak in 2024 and DB Power Limited for approximately Rs 7,017 crore in 2022, demonstrating continued expansion strategies.
Challenges and Controversies
Despite its success, the Adani Group has faced several challenges:
Hindenburg Research Allegations
In January 2023, Hindenburg Research published allegations of stock manipulation and accounting malpractices against the Adani Group. While the company denied these allegations as “unfounded and ill-intentioned,” the accusations led to significant volatility in Adani stock prices and bond values.
Environmental Concerns
The group’s coal mining operations, particularly the Australian project, have faced environmental criticism and regulatory challenges.
Regulatory Scrutiny
As a major infrastructure player, Adani faces ongoing regulatory oversight across multiple sectors and countries.
Future Growth Prospects
The Adani Group continues to expand with several ambitious projects:
Upcoming Power Projects
- 1,600 MW Godda Power Project in Jharkhand (approximately Rs 14,000 crores investment)
- Multiple thermal power plants in Chhattisgarh and Uttar Pradesh
- Continued expansion in renewable energy sector
Infrastructure Development
- Airport operations expansion
- Port capacity enhancement
- SEZ development projects
International Expansion
- Exploration of opportunities in new markets
- Strengthening existing international operations
Key Success Factors
Several factors contribute to Adani Group’s business model success:
- Strategic Vision: Long-term planning and execution across multiple sectors
- Government Relations: Strong relationships with various government entities
- Operational Excellence: Efficient management of large-scale operations
- Financial Management: Effective capital allocation and risk management
- Market Timing: Entering sectors at optimal growth phases
Lessons from Adani’s Business Model
The Adani Group’s business model offers valuable insights for understanding successful conglomerate strategies in emerging markets. Key takeaways include:
- Diversification as Risk Management: Spreading investments across multiple sectors reduces overall business risk
- Infrastructure Focus: Building essential infrastructure creates long-term value and competitive advantages
- Government Partnership: Aligning with national priorities can create significant business opportunities
- Scale Advantages: Large-scale operations enable cost efficiencies and market dominance
- Continuous Expansion: Strategic acquisitions and organic growth maintain competitive positioning
The Adani Group experience of transforming itself from a trading firm to become a $100+ billion organization proves the possibility of the effective strategic approach to designing business models in the dynamic Indian economy. With its diversity and infrastructure, the group is strategically placed to grow despite the challenges and controversies surrounding the Group in India with its booming economy.
India is still moving towards becoming a fully developed nation in terms of infrastructure and the like. Firms such as Adani Group will therefore be important companies in the near future of the Indian economy. It is interesting to learn about their business models, which offer great understanding of the best approaches to doing business in one of the largest and most complex markets in the world.
