Adani Power Share Price Reacts to ₹80.46 Crore GST Demand Notice

Adani Power Limited (APL), a subsidiary of the Adani Group, is the largest private-sector thermal power producer in India. With an operational capacity of 17.55 GW, its power plants are strategically spread across Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Gujarat, Madhya Pradesh, Tamil Nadu, and Jharkhand. s.

GST Demand Order: A Legal Dispute in Progress

Adani Power recently disclosed a demand order issued by the Joint Commissioner of State Tax, Nava Raipur, Chhattisgarh, under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements. The order concerns a GST demand of ₹80.46 crore for the financial year 2020-21, primarily attributed to an alleged non-reversal of GST credit. Additionally, an interest demand of ₹69.24 crore and a penalty of ₹8.05 crore have been imposed.

However, the company has refuted the claims, deeming the demand erroneous. Adani Power has announced its intention to explore legal remedies, including a rectification application and an appeal. Despite the significant financial implications, the company has reassured stakeholders that the order does not impact its financial, operational, or other activities.

Adani Power Share Price Performance

As of 10:34 AM on March 3, 2025, Adani Power’s share price was trading flat, up marginally by 0.09%. The stock hit an intraday high of ₹497 on the NSE. The 52-week high and low for the stock have been ₹895.85 and a low of ₹432.

February saw a 6.7% decline in the stock price, contributing to a 9.05% drop on a year-to-date (YTD) basis. 

Q3FY25 Financial Performance

In its latest earnings report for the third quarter (Q3) of the financial year 2024-25, Adani Power posted an 11.7% rise in consolidated net profit, reaching ₹3,057.21 crore compared to ₹2,737.96 crore in the same period last year. On a sequential basis, net profit saw a modest growth of 2.5% from ₹2,985.88 crore in Q2FY25.

Consolidated revenue from operations recorded a 5.2% year-on-year (YoY) increase, reaching ₹13,671.18 crore, up from ₹12,991.44 crore. However, on a sequential basis, revenue declined by 8.4% from ₹14,933.80 crore in the previous quarter, indicating short-term challenges in revenue generation.

Conclusion

While Adani Power continues to showcase resilience with steady profit growth, concerns over regulatory demands and revenue declines have led to fluctuations in its share price. 

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