Adani Power Shares Show 80% Crash in One Day: The Truth Behind the Numbers

Investors woke up to startling headlines claiming that Adani Power shares had collapsed by nearly 80% in a single trading session. On the surface, the drop looked catastrophic, raising fears of a sudden meltdown in the energy giant’s stock. But a closer look reveals that this dramatic fall was not a sign of crisis, but rather a technical adjustment due to a stock split.

Why did the price suddenly fall?

Adani Power recently approved a subdivision of its equity shares, splitting each share with a face value of ₹10 into five shares of ₹2 each. This move came into effect after the record date of September 19, when shareholders’ accounts were credited with the new split-adjusted shares.

In simple terms, if an investor owned 100 shares before the split, they now hold 500 shares. The overall value of their investment, however, remains exactly the same.

When the market opened on Monday, the quoted price per share reflected this adjustment. Instead of trading around ₹716 (its pre-split price), the stock opened near ₹147, instantly creating the impression of a dramatic collapse.

The numbers in context

• Pre-split closing price: around ₹716 per share.
• Post-split opening price: around ₹147 per share.
• Percentage change on the screen: roughly –80%.

But in reality, the change was purely mathematical. Investors did not lose money simply because of this price shift.

During the first hour of trading, the stock even recovered from its initial lows, rising to around ₹168. This showed that the market quickly absorbed the split adjustment, and the so-called “crash” was just a technical illusion.

Strong fundamentals remain intact

The panic around the price masked the fact that Adani Power has been delivering robust financial performance.

• In its latest June quarter, the company posted a net profit of nearly ₹8,800 crore, marking an increase of over 80% compared to the same period last year.
• Revenue growth has been supported by rising demand for electricity and the company’s expanding capacity in both conventional and renewable energy segments.
• Market analysts remain optimistic about the long-term outlook. Adani Power is expected to scale up its total generation capacity significantly over the next decade, with projections going beyond 40 GW by 2032.

Why do companies split shares?

Stock splits are a common corporate strategy aimed at making shares more affordable for retail investors. As stock prices climb, they sometimes become too expensive for small investors to buy in large quantities. By splitting shares, the company lowers the price per share while keeping the overall market capitalization unchanged.

For example, a ₹700 share becoming ₹140 after a split doesn’t mean the company is worth less — it just means more people can participate in trading the stock.

Should investors be worried?

The short answer is: No.

This 80% “fall” is not a reflection of weakening business fundamentals or investor confidence. Instead, it is a mechanical outcome of the stock split. Shareholders still hold the same overall value of investment, just in more units of stock.

What matters more is the company’s growth trajectory, profitability, and future expansion plans — and on those fronts, Adani Power continues to show strength.

Final takeaway

The dramatic headlines about Adani Power’s share price crashing by 80% are misleading without context. The fall was a mathematical adjustment due to the stock split, not a wipeout of value.

For investors, the key lesson is this: always look beyond raw numbers and understand why a stock is moving. In this case, the so-called crash is actually a sign of the company’s confidence in making its stock more accessible to the wider market.