Adani Power announced on June 25, 2026, that its wholly-owned subsidiary, Adani Atomic Energy Limited, has incorporated a new step-down subsidiary named Progressive-UP Atomic Energy Limited. The new entity has been established to operate within the nuclear energy sector, specifically to generate, transmit, and distribute power derived from nuclear and atomic sources. This expansion marks the group's entry into the nuclear power business through a dedicated subsidiary structure.

Progressive-UP Atomic Energy Limited was incorporated in India on June 25, 2026. The company is wholly owned by Adani Atomic Energy Limited, which itself is a wholly-owned subsidiary of Adani Power. The incorporation was conducted via a cash consideration, with no governmental or regulatory approvals required for the initial setup.

The financial structure of the newly formed entity includes an authorized capital of ₹5,00,000, divided into 50,000 equity shares with a face value of ₹10 each. Adani Atomic Energy Limited holds 100% of the shareholding in Progressive-UP Atomic Energy Limited, maintaining full control over the new venture.

Details of Progressive-UP Atomic Energy Limited

The key particulars of the newly incorporated entity are outlined below:

The filing was submitted to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The disclosure was made by Puneet Bansal, Company Secretary of Adani Power Limited.

Morgan Stanley has initiated coverage on Adani Power with an Overweight rating and a raised target price of ₹275, underscoring the company's strategic transformation into a lower-risk, annuity-style power business. The brokerage's assessment reflects confidence in the company's large-scale capacity pipeline, cost competitiveness, and return-accretive growth profile.

Key Investment Highlights

Morgan Stanley's bullish stance is anchored in several structural positives that distinguish Adani Power within the Indian power sector. The following table summarises the key factors cited by the brokerage:

The 24GW of capacity currently under construction, entirely backed by Power Purchase Agreements, provides revenue visibility and reduces merchant exposure — a key attribute of the annuity-style business model that Morgan Stanley highlights. The company's strong execution track record further reinforces confidence in timely project delivery at scale.

Cost Competitiveness and Leverage

A notable competitive advantage cited by Morgan Stanley is Adani Power's ability to achieve 10–30% lower capital expenditure costs through pre-ordered equipment. This cost discipline, combined with superior leverage, positions the company to generate returns that are accretive relative to peers. The brokerage also pointed to significant bidding opportunities as a potential driver of further capacity additions beyond the current pipeline.

Key Risks to Monitor

Despite the positive outlook, Morgan Stanley identified several risks that could weigh on the investment thesis:

• Demand weakness: A slowdown in power demand could impact capacity utilisation and revenue realisation.
• Commissioning delays: Project execution at the scale of 24GW carries inherent risks of timeline slippages.
• Capex inflation: Rising equipment or construction costs could erode the current cost advantage.
• Receivable risks: Delays in collections from distribution companies remain a sector-wide concern.

Outlook

Morgan Stanley's Overweight rating and raised target price of ₹275 reflect a broadly constructive view on Adani Power's long-term positioning in India's power sector. The combination of a large PPA-backed pipeline, cost advantages from pre-ordered equipment, and a strong execution record forms the core of the brokerage's investment case, even as near-term risks around demand, delays, and receivables warrant close monitoring.