Adani Power Shares Rise After NCLT Approves Merger of 10 Subsidiaries

Adani Power's share price saw an increase of nearly 2% on Friday, 25 September 2026, after the National Company Law Tribunal (NCLT) granted approval for the company’s plan to consolidate 10 of its wholly owned subsidiaries. This approval marks a significant milestone in Adani Power’s ongoing efforts to streamline its corporate structure and enhance operational efficiency.

The most recent sanction came from the NCLT Mumbai Bench, which authorized the merger of Vidarbha Industries Power Ltd (VIPL) into Adani Power through an order dated 24 September 2026. The official order was made publicly available on the NCLT website on 25 September. This decision finalizes the tribunal's approval process for the entire amalgamation scheme.

Earlier, the NCLT Ahmedabad Bench had approved the merger of the remaining nine subsidiaries on 4 August 2026. These entities include Adani Power Dahej Ltd, Kutchh Power Generation Ltd, Resurgent Fuel Management Ltd, Mahan Fuel Management Ltd, Orissa Thermal Energy Ltd, Korba Power Ltd, Anuppur Thermal Energy (MP) Pvt. Ltd, Mirzapur Thermal Energy (UP) Pvt. Ltd, and Emberiza Infra Park Ltd.

Adani Power initially filed the merger proposal for the nine subsidiaries with the Ahmedabad Bench, while the Mumbai Bench handled the case for VIPL. The appointed date for the amalgamation scheme is set as 1 April 2025, but the merger will only become effective once all procedural steps outlined in the approved scheme are completed. The company has committed to informing stock exchanges when the merger officially takes effect.

This corporate restructuring is part of a broader trend among large conglomerates to consolidate subsidiaries to reduce administrative overheads and improve financial reporting transparency. By merging multiple entities into the parent company, Adani Power aims to simplify its business operations and potentially unlock greater shareholder value.

Recent Financial Performance

Adani Power’s recent financial results provide additional context to this strategic move. For the first quarter of fiscal year 2027, the company reported a notable 47.24% year-on-year increase in net profit, reaching ₹4,866.60 crore. This surge was driven by higher revenues and strong demand for electricity across its operational regions.

The company’s profit before tax (PBT) also rose sharply, nearly 50%, from ₹4,204.31 crore in Q1 FY26 to ₹6,300.49 crore in Q1 FY27. Adani Power attributed this growth to sustained operational profitability and a higher one-time income recognition related to prior periods during the quarter.

In addition, Adani Power recorded ₹117.69 crore as its share of profit from an associate company following its stake acquisition in Jaiprakash Power Ventures Ltd. This contributed positively to the overall earnings for the quarter.

During the quarter, the company recognized ₹1,386.34 crore of net revenue related to adjustments from prior periods, mainly due to revisions in historical energy charges under certain power purchase agreements (PPAs). This amount compares with ₹406.21 crore recognized in the previous year’s corresponding quarter.

About Adani Power

Adani Power Limited is a leading power producer in India, operating several thermal power plants across the country. The company is part of the Adani Group, a multinational conglomerate with diversified interests spanning energy, infrastructure, logistics, and more. Adani Power focuses on generating reliable electricity supply while expanding its capacity through ongoing projects and acquisitions.

The company’s efforts to consolidate subsidiaries align with its broader strategy to optimize assets and improve financial metrics in a competitive power sector. This is especially relevant as India’s energy landscape evolves with increasing emphasis on sustainable sources and efficient energy management.

Investors and market watchers will be keenly observing how the merger impacts Adani Power’s operational efficiency and its stock performance in the coming months. The company’s forthcoming updates to stock exchanges will provide further clarity on the implementation of the merger scheme.

Dhanya Nagasundaram, a seasoned financial journalist with over eight years of experience, reported this update. She has a strong background in financial markets, corporate news, and economic trends, providing insightful and clear coverage for investors and professionals alike.