Adani Power Q3: Profit and Revenue Dip, Yet Shares Rally! What's Driving Investor Confidence?

• Adani Power reported an 18.9% year-on-year decline in Q3 net profit to ₹2,479 crore and an 8.9% drop in revenue to ₹12,451 crore.
• EBITDA also fell by 15.6% to ₹4,238 crore, with the EBITDA margin decreasing from 36.7% to 34%.
• Despite weak financial results, Adani Power's shares saw a rally, trading up by about 1% around midday.
• The market had largely anticipated the weak results, and the actual figures were not worse than expected, leading to investor relief.
• Long-term investor confidence, evidenced by a 30% share price rise over the last year, and viewing the current price as a long-term opportunity, contributed to the rally.

Why It Matters: Adani Power's shares rallied despite weak Q3 results, as the market had priced in the decline.