Adani Power Surpasses Infosys to Become India's 11th Most Valuable Firm Amid 66% Year-to-Date Rally

Adani Power Surpasses Infosys in Market Capitalisation

On Wednesday, 27 May, Adani Power emerged as the 11th most-valuable Indian company, surpassing IT major Infosys in terms of market capitalisation. Adani Power's market cap rose to over ₹4.80 lakh crore, a 3% rise in the stock to a fresh peak of ₹252.60, following a sharp rally in the power stock.

Meanwhile, a decline in Infosys' share price pulled its market cap from near ₹4.73 lakh crore a day ago to ₹4.68 lakh crore currently. The decline in Infosys' market cap is attributed to the company's struggles amidst fears of AI-led disruption for the labour-intensive IT services sector. The company has lost 29% on a year-to-date (YTD) basis and 26% for the year.

What's driving Adani Power stock?

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Adani group's most valuable stock has seen a strong interest from investors this year amid rising power demand during the peak summer season. The power demand in India has been hitting record highs, with the country's peak power demand hitting a record high of 270.82 GW last week as the prevailing heat wave increased the use of cooling devices like air conditioners and desert coolers.

The power ministry had earlier projected that the peak power demand would reach 270 GW this summer. Experts said demand and consumption of electricity may rise further due to the continued heat wave, which has swept the entire nation and caused the frequent use of air conditioners, air coolers, and other appliances by consumers, thus benefiting power companies like Adani Power and driving investor interest in the counter.

Adani Power is India's largest private thermal power producer, operating 18.15 GW capacity and generating 105 BU in FY26. The company targets 42 GW capacity by FY32, supported by major projects such as Korba Phase-II and Mahan Phase-II, while also expanding into hydro through a 570 MW Bhutan project. Prabhudas Lilladher, in its latest report, named Adani Power as one of the three top picks among Adani group stocks.

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India's Peak Power Demand

The Indian Meteorological Department (IMD) has forecast the continuation of the heat wave in many parts of the country, with temperatures slated to hover around 45 degrees Celsius. The country's peak power demand has risen in line with rising temperatures from April onwards, intensifying further in May.