India’s growth story depends heavily on power. And as the country races to become a global economic force, its energy needs are rising fast.

By 2030, 400 million more Indians will enter the middle class. At the same time, the government is aiming for 500 GW of clean energy capacity.

This means one thing — massive demand. To meet it, India is overhauling its energy system with a clear focus on renewables, modernising its power grid, and opening up private participation in power distribution.

In this booming sector, one widely tracked stock is Jaiprakash Power (JP Power).

Shares of JP Power surprised investors today by surging 20%.

Let’s find out why the stock is rising and what lies ahead.

Why JP Power Share Price is Rising

Shares of Jaiprakash Power Ventures (JP Power) surged 20% today after media reports suggested that Adani Group has emerged as the highest bidder to acquire Jaiprakash Associates (JP Associates).

The rally also comes a day after the company held its AGM.

Last week on Friday, it was reported that the Adani Group has emerged as the frontrunner to acquire JP Associates, which is currently undergoing insolvency proceedings. The Gautam Adani-led conglomerate has made a bid of Rs 12,500 crore to acquire the company.

JP Associates is part of JP Power’s promoter group. The rally in JP Power could have been triggered because acquisition by a well-managed and financially strong group like Adani not only bodes well for JP Associates, but also for JP Power, wherein JP Associates holds a 24% stake.

JP Power Shareholding as on March 2025

Source: BSE

About JP Power

Jaiprakash Power is part of the Jaypee Group, promoted by Jaiprakash Associates. The company is engaged in the generation of power through a 400 megawatts hydropower project in Uttarakhand, and two thermal power projects located in Madhya Pradesh.

Its total power generation capacity is 2,220 MW, of which 1,820 MW is thermal and 400 MW is hydroelectricity.

About 56% of the company’s capacity is under a long-term power purchase agreement, whereas the rest is sold to merchants on a short-term basis.

Financial Snapshot

In FY25, the company’s revenue fell 19% due to the shutdown of both thermal plants for a certain time period for annual maintenance. As a result, the net profit also slightly dipped.

Over the past few years, the company has made a decent turnaround by managing costs and also bringing down its debt.

Financial Snapshot

Particulars (in Rs Cr.)	FY20	FY21	FY22	FY23	FY24	FY25
Revenue	3,284	3,302	4,625	5,787	6,763	5,462
EBITDA	887	1,157	1,113	1,121	2,236	1,855
EBITDA Margin (%)	27%	35%	24%	19%	33%	34%
Net Profit	-2,147	281	107	55	1,022	814
Total Borrowings	6,023	5,227	5,078	4,761	4,246	3,778

Source: Company, Screener

What Next?

The acquisition of JP Group’s assets by a powerful conglomerate like the Adani Group signals a positive shift. With deep pockets and operational expertise, Adani could help unlock the full potential of these legacy assets and improve efficiencies.

Looking ahead, JP Power is set to invest ₹1,500 crore over the next two years to set up a flue-gas desulfurisation (FGD) unit at its thermal power plant. This move will not only curb emissions but also produce useful byproducts like gypsum — while enhancing the plant’s overall efficiency.

All of this points to one thing — India’s power sector is entering a new phase. With strong private players stepping in, cleaner technologies being adopted, and fresh investments flowing in, the sector looks poised for long-term growth.

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