Shares of Adani Power inched up on Thursday after the company entered a power supply agreement and also saw its credit rating being revised.

What Happened: The Adani Group firm entered into a power purchase agreement with the Maharashtra State Electricity Distribution Company (MSEDCL), it said in a press release. Under the deal, the company will supply 1,496 megawatts of power to MSEDCL for 25 years.

In a separate intimation, the company said rating agency CRISIL has upgraded its outlook on the long-term bank facilities of Adani Power to “positive” from “stable”. It has reaffirmed the rating at CRISIL AA-.

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The ratings agency anticipates a significant improvement in the company's business and financial risk profile in the near term, driven by strong power demand, favourable tariffs on merchant power, and low coal prices.

This comes after a much better-than-expected operating performance, the complete recovery of past pending regulatory dues, and a healthy improvement in the liquidity profile during fiscal 2024, CRISIL said. It sees the firm’s performance continuing into fiscal 2025, potentially leading to stronger credit metrics.

“The rating also factors in the completion of most of the regulatory investigations within the Adani group (following the release of the report by Hindenburg Research). Any regulatory/government action or investigation, having a material adverse impact on the group or its entities, will be a key rating sensitivity factor,” the ratings agency added.

Price Action: Adani Power was trading 1.51% higher at ₹601 on Thursday morning.

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