Something that would have seemed implausible four years ago happened quietly this week. Adani Power — a thermal power company with flat revenue growth and no dividend — now has a larger market capitalisation than Infosys, one of India’s most iconic and globally respected companies. The numbers from your screen say it plainly: Adani Power at ₹4,81,770 crore, Infosys at ₹4,72,322 crore. India’s largest private power producer has overtaken India’s second-largest IT company.
The stock that delivered it is up 64% in 2026 alone, and hit a fresh all-time high of ₹252 on May 26 — the same week the crossover occurred.
What drove the results
Adani Power reported a 64% year-on-year surge in consolidated net profit to ₹4,271 crore for Q4 FY26, compared to ₹2,599 crore in the same quarter last year. For the full financial year FY26, consolidated net profit stood at ₹12,971 crore, slightly higher than ₹12,749 crore in FY25. Revenue for Q4 came in at ₹15,989 crore, up 10% year-on-year, with EBITDA climbing 27% to ₹6,498 crore.
The company crossed a significant milestone with 105 billion units of power generation in FY26, while consolidated power sale volume grew 3.4% year-on-year to 99.15 billion units. Capacity tie-ups reached 13.3 GW following addition of 1.6 GW through a new long-term PPA in Q4, with 95% of operating capacity now secured under long and medium-term agreements — providing significant revenue visibility and protection against merchant market volatility.
What the market is actually pricing in
The Q4 numbers are solid but not extraordinary. What the market is buying is the capacity pipeline. Adani Power is raising its generation capacity from 18,150 MW currently to nearly 42 GW by FY32, positioning itself to capitalise on India’s rapidly rising electricity demand — led by prolonged heatwaves, accelerating industrial activity, growing household electrification, and the increasing energy needs of data centres and AI infrastructure.
The company is advancing a 23.7 GW capacity expansion programme with 13 projects in the pipeline by FY32, with significant progress on Mahan Phase-II and Raipur Phase-II. New long-term PPA additions of 10.4 GW were secured in FY26 alone — the fastest capacity tie-up pace in the company’s history. A 1,600 MW Maharashtra DISCOM deal won in Q4 under DBFOO mode provides 25 years of contracted revenue from a single agreement.
This week also brought a fresh acquisition. Adani Power signed agreements to acquire Jaiprakash Associates’ 24% stake in JPVL and the 180 MW Churk plant for ₹4,193.59 crore on May 21, 2026 — adding more distressed thermal assets to its portfolio at competitive valuations, consistent with the company’s strategy of expanding capacity through both greenfield development and inorganic acquisition.
The Infosys comparison
The crossover is symbolic more than analytical. Infosys at ₹4,72,322 crore is trading at a TTM PE of 16x with EPS growing 12.65% year-on-year — a high-quality, cash-generative business with a 4.12% dividend yield. Adani Power trades at 37.51x TTM earnings with near-zero dividend yield and carries the execution risk of doubling its capacity in six years. The market is paying a significant premium for growth optionality over proven cash returns.
Whether that premium is justified will depend entirely on whether India’s power demand growth curve continues its upward trajectory and whether Adani Power executes its 23.7 GW expansion on time and budget. On both counts, the evidence so far is encouraging — but the margin for error at these valuations is thin.