Adani Power’s stock has faced a decline due to a combination of factors:
- Weaker Financial Results: The company reported a 50% drop in net profit for Q2 FY25 compared to the previous year, despite a 2.4% increase in revenue. This significant dip in profitability has raised concerns among investors about operational efficiency and future earnings potential.
- Bangladesh Power Supply Issue: Adani Power has been entangled in disputes with Bangladesh over unpaid electricity bills amounting to $800 million. This led to a reduction in power supply, impacting the company’s revenue from international operations. The situation has added to market uncertainties.
- Wider Market Sentiment: Broader concerns over debt levels and corporate governance issues within the Adani Group have created a cautious market environment, leading to selling pressure across its subsidiaries.
The combination of these factors has caused Adani Power’s stock to decline, reflecting investor concerns over the company’s near-term financial stability and external challenges.