Adinarayana Rao was born in 1915 in Kakinada of East Godavari district in Andhra Pradesh to Penupatruni Krishnayya Gowd and Penupatruni Anasuya. He completed his matriculation in Kakinada. He started his film career as a child artiste at the age of six, under Rajarajeswari Naatya Mandali's baton playing the roles of mythological characters such as "Narada" and "Savitri". Later, he studied classical music under Patrayani Sitaramsastry in Saluru. By age of 12, he played many musical instruments and had shown his talent in both music as a composer, and on stage as a playwright.
Theatre
He was well known in Kakinada theatre circle, with plays like Black Market, Vasanta Sena and Veedhi Gaayakulu, with which he still continued after entering the film industry and was affectionately given a nickname "Abbayi Garu". The play Street Singers written by him was admired, and his wife Anjali Devi received a Gold medal and a citation from Sir Arthur Hope, then governor of the Madras Presidency in 1943. He fine-tuned his skills to become a well known artiste while working under the 'Burmah Shell Amateurs Troupe', through the famous 'Young Mens Happy Club', which produced stalwarts from the Telugu film industry like Relangi Venkata Ramaiah, S. V. Ranga Rao, Gandikota Jagannatham and Anjali Devi. Here he met his future wife Anjali Devi.
Film
He and S. V. Ranga Rao made their debut into the film industry with the film Varudhini in 1946. Adinarayana Rao wrote lyrics and composed music for two songs in that film. He wrote lyrics and composed music for two more films. He got a break with the film Gollabhama directed by C. Pullaiah, in which his wife Anjali Devi made her debut. He was the music director for the film Palletoori Pilla in 1950. He married Anjali Devi in 1948, and they had two sons. His granddaughter Saila Rao is also an actress. During the 1980s, he mainly composed music and wrote lyrics under Padmalaya Studios for the actor Krishna until the former's death in 1991.
Aswini Pictures
Adinarayana Rao founded "Aswini Pictures", together with Akkineni Nageswara Rao and makeup artist K. Gopala Rao, to produce movies like "Maayalamaari" in 1951 in Telugu, "Mayakkaari" in Tamil, and "Annadhata" in 1954, for which he wrote lyrics and composed music.
Anjali Pictures
He started a production house 'Anjali Pictures' in 1951, using the name of his wife after parting ways with Aswini Pictures. He produced some of the blockbusters in the film industry like Paradesi in 1952 in Telegu, which was directed by L. V. Prasad, Poongottai in Tamil, Anarkali in 1955, Suvarna Sundari in 1957 and Bhakta Tukaram in 1973. In all these movies, his wife Anjali Devi acted as the lead heroine. Most of the movies he produced had Akkineni Nageswara Rao as a lead actor. He also produced movies in Hindi such as Phoolon Ki Sej in 1964 and Suvarna Sundari, for which he wrote the script.