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    Adani Power

    ADANIPOWERGood
    Power·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

    8
    • 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

    Metrics

    10

    Periods

    3

    Headline

    5
    • UPPCL PPA Total Tariff
      5.39 INR/unit
    • Total Debt (June 2025)
      ₹44,372 Cr
    • Net Debt (June 2025)
      ₹37,437 Cr
    • Fuel Cost
      ₹7,319 Cr
    • Godda PLF
      73%

    Q1

    2
    • Power Sales
      $24.6B
      YoY+1.6%
    • Merchant Realization
      6.51 INR/unit

    Q1 FY26

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

    Guidance & targets

    2
    CategoryTargetPriority
    Capacity
    Fresh PPA Tie-ups
    4,520 MW signed; more bids in progress
    High
    Profitability
    EBITDA Margin Outlook
    Similar to FY25 levels until expansion comes online
    Medium

    Risks & concerns

    6
    RiskSeverity

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

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

    medium

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

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

    medium

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

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

    low

    Areas of Evasion(3)

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

    Q&A highlights

    3

    “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)

    1 min read4 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.