Adani Power Stock Hits 11-Month High After Landmark Bhutan Hydropower Deal

For investors tracking India's energy giants, the key question this week is: "What is driving the sharp rally in Adani Power's stock?" The answer lies in a landmark deal announced in Bhutan. Adani Power's share price surged 6% over two days to hit an 11-month high after the company unveiled a major partnership to develop a 570 MW hydroelectric power plant. This strategic move marks the company's entry into hydropower and has significantly boosted investor confidence. This analysis breaks down the details of the project, the market's reaction, and what this signals for Adani Power's growth trajectory.

Table of Contents

1. What is the Landmark Hydropower Project in Bhutan?
2. Why This Deal is a Strategic Win-Win
3. How Has the Stock Market Reacted?
4. What Does This Mean for Adani Power's Future?
5. Frequently Asked Questions (FAQs)

What is the Landmark Hydropower Project in Bhutan?

On September 6, 2025, Adani Power announced that it has signed a formal shareholders' agreement with Druk Green Power Corporation Ltd. (DGPC), Bhutan's state-owned power generation company, to develop the Wangchhu hydroelectric project. This is a major milestone, as it is the first project to be initiated under a broader agreement to jointly develop 5,000 MW of hydropower capacity in Bhutan.

Here are the key details investors need to know:

• Project: The Wangchhu hydroelectric power plant.

• Capacity: 570 MW.

• Location: Wangchhu, Bhutan.

• Total Investment: Approximately ₹6,000 crore.

• Joint Venture Structure: A new public company will be formed in Bhutan, with Adani Power holding a 49% stake and DGPC holding the majority 51%.

• Project Model: It will be developed under a Build, Own, Operate, Transfer (BOOT) model.

• Timeline: Construction is expected to begin in the first half of 2026, with a target completion time of five years.

Why This Deal is a Strategic Win-Win

The Wangchhu project is designed to deliver significant benefits for both Bhutan and India.

• For Bhutan: According to SB Khyalia, CEO of Adani Power, the plant will be crucial for meeting Bhutan's peak electricity demand during the winter months, a period when its hydropower generation is typically low. This aligns with Bhutan's vision of becoming a high-income country, for which reliable energy is critical.

• For India: During the summer months, the surplus power generated by the plant will be exported to India. This will not only help meet India's own energy needs but also strengthen the cross-border grid connectivity between the two nations.

• For Adani Power: This project marks a strategic diversification into hydropower, adding a new, clean energy vertical to its portfolio, which has traditionally been dominated by thermal power.

How Has the Stock Market Reacted?

The announcement of the Bhutan deal has been the primary catalyst behind the recent powerful rally in Adani Power's stock.

• Share Price Surge: The stock hit an 11-month high of ₹648.30 in intraday trade on September 9, 2025.

• Market Outperformance: The stock has significantly outperformed the broader market, surging 12% in the past month alone, compared to a modest 0.56% rise in the BSE Sensex.

• High Trading Volumes: The stock traded with heavy volumes on September 9, indicating strong buying interest from investors.

What Does This Mean for Adani Power's Future?

This hydropower project is a significant step in Adani Power's strategy to diversify its energy portfolio and expand its international footprint. It follows other major project wins, such as securing a tender to develop a 2,400 MW thermal power plant in Bihar. Together, these projects signal a robust and aggressive growth trajectory for India's largest private-sector power producer. The move into hydropower adds a renewable, long-term asset to its portfolio, which is being viewed very positively by the market.

Frequently Asked Questions (FAQs)

Q1: Why did Adani Power's share price hit an 11-month high?
A1: The stock surged after the company announced a major deal to co-develop a 570 MW hydroelectric power plant in Bhutan. This strategic diversification into hydropower was seen as a major positive by investors.

Q2: What is the Wangchhu hydroelectric project?
A2: It is a 570 MW hydropower project in Bhutan that will be developed as a joint venture between Adani Power (49% stake) and Bhutan's state-owned Druk Green Power Corporation (51% stake). The project has an estimated investment of ₹6,000 crore.

Q3: How will this project benefit Adani Power?
A3: This project marks Adani Power's strategic entry into the hydropower sector, diversifying its portfolio beyond thermal power. It also provides a long-term revenue stream through power sales to both Bhutan and India.

Q4: When will the Bhutan hydropower plant be completed?
A4: Construction is expected to start in the first half of 2026, with a target completion timeline of five years.

Q5: Has Adani Power's stock performed well recently?
A5: Yes, the stock has been a strong outperformer. It has rallied 12% in the past month and hit an 11-month high on September 9, 2025, driven by the positive news flow around its new project wins.