AdPower Limited (APL) has emerged as India’s largest private coal-based independent power producer (IPP) with a portfolio of 18,150 MW spread across 12 plants in eight states. Its aggressive growth strategy has been driven by acquisitions of stressed assets, turning them into profitable ventures while ensuring plant availability consistently above 90%.
Successful Turnarounds of Stressed Assets
APL has demonstrated a strong ability to revive distressed projects.
- Raipur Plant (1,370 MW) – EBITDA grew twelvefold from ₹2.1 billion to ₹24 billion since its 2019 acquisition.
- Mahan Plant (1,200 MW) – EBITDA quadrupled to ₹19 billion within three years, with full debt repayment.
- Raigarh Plant – once idle, now contributes ₹12.7 billion in annual EBITDA.
The company is also integrating 2,900 MW of new capacity, including Mutiara, Korba, Butibori, and Dahanu plants.
Strengthening Financials and Balance Sheet
APL’s financial turnaround is striking. Its net debt-to-EBITDA ratio improved from 9.7x in FY19 to 1.8x in FY25, aided by recovery of regulatory dues and favorable rulings. Regulatory clarity from both the Supreme Court and SEBI has also boosted investor confidence, removing legacy concerns that had weighed down the group.
Market Leadership and Future Pipeline
Currently holding an 8% share in India’s coal capacity, APL is second only to NTPC. Morgan Stanley projects its market share to rise to 15% by FY32, supported by a 41.9 GW pipeline—2.5 times its present capacity. The brokerage forecasts capacity and EBITDA to increase 2.5x and 3x respectively by FY33, assigning an ‘Overweight’ rating with a price target of ₹818.
Balancing Growth with Energy Transition
While APL’s execution capabilities, including the record-time completion of Mundra’s 4,620 MW supercritical plant and the Godda transnational project, showcase engineering prowess, its heavy reliance on coal raises questions about India’s energy transition. The company’s dominance may ensure near-term stability, but aligning with long-term sustainability goals will be its biggest test.
