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    Adani Power

    ADANIPOWER
    Power·30 Apr 2026
    Management Summary

    Adani Power delivered a strong Q4 FY26 performance with significant growth in EBITDA and PAT, driven by robust operating capacity and PPA tie-ups. The company is making substantial progress on its capacity expansion plans, targeting 23.7 GW by 2032, and has secured new long-term PPAs. While geopolitical factors are causing some project delays, management remains confident in its long-term growth trajectory and strategic capital allocation towards thermal, hydro, and nuclear power.

    Highlights

    5

    • Full year FY26 power generation reached 105 billion units, demonstrating strong performance.

    • Q4 FY26 EBITDA grew significantly by 27% YoY to INR6,498 crores, indicating operational resilience.

    • Net profit after tax for Q4 FY26 surged by 64% YoY to INR4,271 crores.

    • Secured a 1,600 MW PPA from Maharashtra DISCOM, contributing to 13.3 GW of total tie-up expansion capacity.

    • High PPA coverage for existing operations, with 95% of 18.15 GW capacity under long-term/medium-term PPAs, ensuring revenue stability.

    Concerns

    3

    • Geopolitical situation impacting availability of labor and LPG, leading to conservative approach and potential delays in project commissioning (e.g., Mahan project).

    • Anticipated decline in merchant power prices due to increasing renewable energy penetration, posing a risk to profitability from open capacity.

    • Delay in commissioning of Mahan Phase-I project, now expected in Q4 FY27 or Q1 FY28, from an earlier target of Q4 FY26.

    Key financials

    Metrics

    6

    Periods

    3

    Headline

    1
    • Operating Capacity
      18.15 gigawatts

    Q4 FY26

    4
    • Revenue
      ₹15,059 Cr
      YoY+4%
    • Reported EBITDA
      ₹6,498 Cr
      YoY+27%
    • PAT
      ₹4,271 Cr
      YoY+64%
    • PLF
      74%

    FY26

    1
    • PLF
      66.5%

    Order Book

    high confidence

    Total Value

    13.3 gigawatts

    as of 2026-03-31

    quantified

    Inflow this qtr

    1.6 gigawatts

    Pipeline

    L1 awaiting loa

    Upcoming PPA bids in the market from various states including Uttar Pradesh, Rajasthan, Uttarakhand, West Bengal, and Gujarat.

    "The company has successfully tied up significant expansion capacity under long-term PPAs, ensuring revenue visibility and de-risking the business from short-term market volatility."

    Source:
    Prepared remarks

    Capital allocation

    7
    high confidence
    CategoryHeadline
    Capex

    ₹25,000 crores

    Debt

    Gross ₹53,556 crores · Net ₹45,022 crores

    Cost 8.0%

    M&A

    SPV in Bhutan

    joint venture · announced

    M&A

    Jaiprakash Associates Limited (JAL) asset

    acquisition · pending regulatory

    M&A

    Jaiprakash Power Ventures Limited (JPVL) shareholding

    acquisition · pending regulatory

    Guidance & targets

    12
    CategoryTargetPriority
    Capacity
    Total thermal capacity addition
    23.7 gigawatts
    		High
    Capacity
    Total tie-up expansion capacity
    13.3 gigawatts
    		High
    Capacity
    Korba Phase-II commissioning
    during the course of the current year
    		High
    Capacity
    Korba commissioning timeline
    June to September (first unit in Q2, second unit before year-end)
    		High
    Capacity
    Mahan Phase-I commissioning timeline
    last quarter of this year (FY27) or first quarter of next year (FY28)
    		Medium
    Capacity
    Capacity addition for FY27
    1.32 GW
    		High
    Capacity
    Capacity addition for FY28
    1.6 GW
    		High
    Capacity
    Total planned capacity
    42 gigawatts
    		High
    Capex
    Capex for FY27
    INR25,000 crores
    		High
    Capex
    Capex for FY28
    INR33,000 crores
    		High
    EBITDA
    EBITDA target
    INR50,000 crore
    		Medium
    Merchant Capacity
    Merchant capacity percentage
    5%
    		High

    What to watch in Q1 FY27

    5

    Korba Phase-II commissioning

    Q2 FY27 and before year-end FY27
    CurrentExpected during current year (FY27)
    TargetFirst unit commissioned in Q2 FY27, second unit before year-end

    Why it matters

    Timely commissioning of Korba Phase-II is crucial for realizing planned capacity additions and associated EBITDA contributions.

    Korba will get commissioned something between June to September. The first unit will be in the second quarter of this year, and the second unit will get commissioned before the year-end.

    Risks & concerns

    3
    RiskSeverity

    Geopolitical impact on project commissioning

    Geopolitical situation impacting availability of labor and LPG, leading to a conservative approach and potential delays in project commissioning, specifically for Mahan. — Management acknowledged

    medium

    Decline in merchant power prices

    Increasing renewable energy penetration is expected to suppress merchant power prices, impacting profitability from open capacity. — Management acknowledged

    medium

    Imported coal price volatility

    Impact on imported coal prices due to increased bunker fuel and shipping costs, though these are passed through to customers. — Management acknowledged

    low

    Q&A highlights

    8

    “We have yet not assigned the project location so far. So, the probability is either Raigarh or Raipur. So, these are the two probabilities, or at the most it can be Korba. ... As regards to the tariff is concerned, it is INR5.30/unit, which consists of INR4.11 as the capacity charge and INR1.19 as the energy charge. ... We expect that in the next 3 months, we should be in a position to get the PPA signed. Then we will need 48 months. So, from now onwards, you can consider 4 to 5 years for commissioning the project related to this PPA.”

    Provides specific details on the recently secured 1,600 MW PPA, including potential locations, tariff structure, and a clear commissioning timeline, which is crucial for future revenue visibility.

    asked by Uma Menon

    2 min read5 chapters

    Detailed Narrative

    01

    Q4 FY26 Financial and Operational Performance

    Adani Power reported a robust Q4 FY26, with revenue reaching INR15,059 crores, marking a nearly 4% year-on-year increase. Reported EBITDA for the quarter stood at INR6,498 crores, a significant 27% increase compared to the previous year. Net profit after tax (PAT) for Q4 FY26 surged by 64% year-on-year to INR4,271 crores. For the full financial year 2026, the company generated 105 billion units of power, achieving an annual Plant Load Factor (PLF) of 66.5%, with Q4 PLF at a healthy 74%.

    02

    Capacity Expansion and PPA Strategy

    The company is on track to add 23.7 gigawatts of thermal capacity by 2032. Adani Power has successfully tied up 10.4 gigawatts of expansion capacity under long-term Power Purchase Agreements (PPAs), bringing the total tie-up to an impressive 13.3 gigawatts. A key highlight was securing a Letter of Award for a 1,600-megawatt PPA from Maharashtra DISCOM. Furthermore, 95% of the existing 18.15 gigawatts operating capacity is now covered by long-term and medium-term PPAs, providing stability and de-risking the business from market volatility🌐.

    03

    Project Commissioning Updates and Capex Plans

    Korba Phase-II (1.32 GW) is expected to be commissioned during FY27, with the first unit in Q2 and the second before year-end. The Mahan Phase-I project's first unit is now anticipated in Q4 FY27 or Q1 FY28, a slight delay attributed to geopolitical factors affecting labor and LPG availability. Capex for FY27 is projected at INR25,000 crores, and for FY28, it is estimated at INR33,000 crores, as part of an overall INR2 lakh crores expansion plan. The 1,600 MW Maharashtra PPA is expected to be signed within three months, with commissioning anticipated in 4-5 years.

    04

    Capital Structure and Funding

    As of March 31, 2026, total debt stood at INR53,556 crores, with net debt at INR45,022 crores. During the quarter, the company successfully raised INR7,500 crores through non-convertible debentures and also secured interim funds from banks. The current weighted average cost of borrowing is approximately 8%, sourced from DCM or domestic banks. Management emphasized a conservative capital management approach, with expansion primarily funded by internal accruals.

    05

    Strategic Initiatives and Long-term Vision

    Adani Power is exploring new growth avenues, including incorporating an SPV in Bhutan for a 570-megawatt hydro power plant and establishing SPVs in India for nuclear power projects, awaiting regulatory clarity. The company is also involved in the Jaiprakash resolution plan, taking over a 180 MW asset and a 24% shareholding in Jaiprakash Power Ventures. The long-term vision includes achieving 42 gigawatts of capacity by FY31-32 and targeting INR50,000 crore EBITDA conservatively by FY2031, with surplus cash flows potentially leading to a debt-free status.

    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.