Adani Power — Q1 FY26 earnings call

Call held 1 Aug 2025

Management summary

Adani Power delivered resilient Q1 FY26 results despite weather-induced demand softness from early monsoon. Revenue declined 5.9% YoY but was stable QoQ, with EBITDA up 12.7% sequentially. The key positive was Bangladesh receivables normalizing with USD 500M+ received, resolving a long-standing investor concern. Mahan Phase 2 expansion at 66% progress is on track for March-April 2027 commissioning. A new 1,600 MW PPA with UPPCL took total fresh capacity tie-ups to 4,520 MW. The company also fully retired perpetual securities, cleaning up the balance sheet.

Highlights

  • Q1 FY26 Continuing Revenue at INR 14,167 crore (vs INR 15,052 crore YoY); EBITDA at INR 5,744 crore

  • PAT at INR 3,305 crore vs INR 3,913 crore YoY; INR 2,599 crore QoQ (sequential improvement)

  • Power sales of 24.6 billion units, +1.6% YoY despite all-India demand decline of 1.6%

  • Q1 FY26 merchant realization at INR 6.51/unit vs INR 7.60/unit YoY due to early monsoon

  • Bangladesh receivables normalized: USD 500M+ received in June-July; outstanding near normal levels

  • Mahan Phase 2 crossed 66% execution; Raipur 25%; Raigarh 20%

  • Signed 1,600 MW PPA with UPPCL at total tariff of INR 5.39/unit (capacity charge INR 3.73)

  • Unsecured Perpetual Securities fully repaid (INR 2,579 crore principal + INR 1,146 crore distribution)

Key financials

3 periods

Headline

  • UPPCL PPA Total Tariff
    ₹5.39/unit
  • Total Debt (June 2025)
    ₹44,372 Cr
  • Net Debt (June 2025)
    ₹37,437 Cr
  • Fuel Cost
    ₹7,319 Cr
  • Godda PLF
    73%

Q1

  • Power Sales
    24.6 billion units
    YoY +1.6%
  • Merchant Realization
    ₹6.51/unit

Q1 FY26

  • Continuing Revenue
    ₹14,167 Cr
    YoY -5.9%
  • Continuing EBITDA
    ₹5,744 Cr
  • PAT
    ₹3,305 Cr

What they filed

Q1 FY27: revenue up 34.0%, net profit up 47.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue13,339 13,671 14,237 14,109 13,457 +1%12,451 −9%14,223 −0%18,902 +34%
EBITDA5,276 5,023 4,813 5,685 5,150 −2%4,238 −16%4,732 −2%7,949 +40%
Net profit3,298 2,940 2,599 3,305 2,906 −12%2,488 −15%4,271 +64%4,867 +47%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Capacity

  • Fresh PPA Tie-ups Capacity · Near term · High confidence 4,520 MW signed; more bids in progress

    Previously 2,920 MW → 4,520 MW signed; more bids in progress

    we have recently signed a long-term PPA with Uttar Pradesh Discom for 1,600 MW gross capacity, which brings our fresh capacity tie-up to 4,520 MW

    — S B Khyalia

Profitability

  • EBITDA Margin Outlook Profitability · FY26 · Medium confidence Similar to FY25 levels until expansion comes online
    till the time our capacity expansion takes place, you can expect similar EBITDA margins as we have recorded in the last year

    — Nishit Dave

Risks & concerns

  • Merchant realization declined to INR 6.51/unit from INR 7.60/unit YoY

    medium

    Early monsoon caused demand softness; management expects Q2 onwards to be better as monsoon ends early

    Both downplayed

  • Total debt increased to INR 44,372 crore from INR 38,775 crore QoQ

    medium

    INR 6,000 crore debt increase for interim bridge funding; management says internal accruals sufficient for full year

    Analyst acknowledged

  • Acquired assets (Coastal, Lanco, Vidarbha) still being turned around with elevated opex

    low

    Coastal unit overhauling in progress; Vidarbha was shut since 2018 now revived; opex elevated at INR 1,105 crore vs INR 852 crore YoY

    Both acknowledged

Areas of evasion (3)

  • New BHEL order details
  • Revenue/EBITDA guidance
  • Project cost breakdown

Q&A highlights

2 direct, 1 evasive
FGD requirement dropped for most expansion projects saving capex Direct
the power stations which are under planning and execution, where we have not started the execution of FGD, do not have a requirement of FGD now

FGD exemption for most new projects reduces capex significantly; only Mahan and Raipur will retain FGDs

Asked by Aniket Mittal (SBI MF)

Bangladesh receivables normalized; perpetual securities fully retired Direct
we have already received more than US $500 million payment from Bangladesh Power Development Board... outstanding receivables position has now been brought to near normal level

Two key investor concerns resolved simultaneously - Bangladesh payment risk and related-party perpetual securities

Additional BHEL order of INR 65 billion signals capacity beyond 30 GW Evasive
We are currently in the evaluation phase, exploring various opportunities for expansion. We will share all the updates with concrete numbers in due course

Management hinting at expansion beyond announced 30 GW target; refuses to provide specific details yet

Asked by Abhinav (ICICI Securities)

1 min read 4 chapters

Detailed narrative

Resilient Performance Despite Weather Headwinds

Q1 FY26 saw all-India power demand decline 1.6% due to early monsoon, but Adani Power grew sales 1.6% to 24.6 billion units supported by 2,300 MW acquired capacity. Merchant realization at INR 6.51/unit was lower than INR 7.60/unit YoY. EBITDA improved 12.7% sequentially to INR 5,744 crore with controlled fuel costs at INR 7,319 crore.

Bangladesh Receivables Resolution and Balance Sheet Cleanup

USD 500M+ received from Bangladesh in June-July normalized outstanding receivables. Unsecured Perpetual Securities fully repaid (principal INR 2,579 crore + distribution INR 1,146 crore + balance INR 478 crore in July). Both long-standing investor concerns resolved, strengthening corporate governance narrative.

Expansion Progress and New PPA Additions

Mahan Phase 2 at 66%, Raipur at 25%, Raigarh at 20%. New 1,600 MW PPA with UPPCL at INR 5.39/unit total tariff takes fresh tie-ups to 4,520 MW. FGD exemption for most new projects will reduce capex. Additional INR 65 billion BHEL order hints at expansion beyond 30 GW target but management deferred details.

Dhirauli Coal Mine to Start Production

First captive coal mine at Dhirauli in Singrauli to begin production by September-October 2025, primarily serving merchant capacity at nearby Mahan plant. Total 4 mines with 14 MTPA capacity for 3,000 MW equivalent, with key savings from eliminated transportation costs.

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