Adani Power — Q4 FY26 earnings call

Call held 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

  • 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

  • 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

3 periods

Headline

  • Operating Capacity
    18.15 gigawatts

Q4 FY26

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

FY26

  • PLF
    66.5%

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.

Order book

high confidence

Total value

13.3 gigawatts

as of 2026-03-31 quantified

Inflow this quarter

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

high confidence
  • Capex ₹25,000 Cr
    • Expansion for FY26-27, including Korba Phase-II (1.32 GW) ₹25,000 Cr
    • Expansion for FY27-28, including 1.6 GW capacity addition ₹33,000 Cr
    • Overall expansion plan ₹2,00,000 Cr
    • Korba expansion (total including acquisition and new units) ₹8,000 Cr
    In FY26-27, we are adding Korba Phase-ll of 1.32 GW, and, capex for FY26-27 will be near about INR25,000 crores, for our expansion. For FY27-28, it will be near about INR33,000 crores. Next year, our capacity addition will be 1.6 GW. In terms of capex, for FY27-28, as I said, it will be near about INR33,000 crores. ... overall gamut of INR2 lakh crores of expansion plan. ... As regards to the Korba is concerned, the overall capex in addition to the amount which we spent on acquiring this asset, around INR4,100 crores, we are going to spend another INR4,000 crores. So, it would be roughly INR8,000 crores to INR8,500 crores in total, which includes the first two units commissioned and these two new units, which we are going to commission.
  • Debt Gross ₹53,556 Cr · Net ₹45,022 Cr Cost 8%
    • New borrowing Secured non-convertible debentures ₹7,500 Cr
    • New borrowing Raised interim funds from banks in the form of corporate debt
    On the balance sheet and funding front, at March 31, '26, total debt stood at INR53,556 crores, while net debt was INR45,022 crores. ... So recently, the rate getting from the market, is about 8%, and its either DCM or from domestic banks.
  • M&A SPV in Bhutan Joint venture · Announced

    Setting up a 570-megawatt hydro power plant

    We have recently incorporated an SPV in Bhutan setting up a 570-megawatt hydro power plant.
  • M&A Jaiprakash Associates Limited (JAL) asset Acquisition · Pending regulatory

    Acquisition of a small 180 MW capacity asset within JAL as implementing agency.

    There is one asset within JAL, which has a small capacity at 180 MW. So that will be taken over by Adani Power as the implementing agency.
  • M&A Jaiprakash Power Ventures Limited (JPVL) shareholding Acquisition · Pending regulatory

    Acquisition of 24% shareholding of JPVL as implementing agency, which includes generating stations at Nigrie, Bina, and Vishnuprayag.

    Apart from that JAL is having 24% shareholding of JPVL, i.e. Jaiprakash Power Ventures. So that 24% shareholding will again be taken over by Adani Power as the implementing agency. So, these are the two generating assets in case of JPVL actually generating stations are three. One is Nigrie, the other is Bina, and third one is Vishnuprayag.
  • M&A Vidarbha assets Acquisition · Closed

    Acquired assets from the market, contributing to fixed asset increase.

    Also, we have acquired some assets, Vidarbha, from the market. So operating capacity addition of Vidarbha has been added to the fixed assets.
  • Liquidity Liquidity disclosed Company maintains strong credit rating and liquidity, with expansion funded primarily by internal accruals over time.
    We have continuously maintained strong credit rating and liquidity. We continue to follow a conservative capital management approach with the majority portion of expansion being funded for internal accruals over time.

Guidance & targets

Capacity

  • Total thermal capacity addition Capacity · by 2032 · High confidence 23.7 gigawatts
    Our capacity expansion program is a cornerstone of our strategy. We are making excellent progress towards our goal of adding 23.7 gigawatts of thermal capacity by 2032.

    — S. B. Khyalia, Chief Executive Officer

  • Total tie-up expansion capacity Capacity · current · High confidence 13.3 gigawatts
    With this, our total tie-up expansion capacity now stands at an impressive 13.3 gigawatts.

    — S. B. Khyalia, Chief Executive Officer

  • Korba Phase-II commissioning Capacity · FY27 · High confidence during the course of the current year
    We expect to commission Korba Phase-Il during the course of the current year.

    — S. B. Khyalia, Chief Executive Officer

  • Korba commissioning timeline Capacity · FY27 · High confidence June to September (first unit in Q2, second unit before year-end)
    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.

    — S. B. Khyalia, Chief Executive Officer

  • Mahan Phase-I commissioning timeline Capacity · FY27 Q4 / FY28 Q1 · Medium confidence last quarter of this year (FY27) or first quarter of next year (FY28)

    Previously last quarter of this year (FY27) → last quarter of this year (FY27) or first quarter of next year (FY28)

    And as regards to Mahan is concerned, Mahan's first unit is likely to get commissioned in the last quarter of this year. But at the most, it will get commissioned in the first quarter of the next year and second unit six months thereafter.

    — S. B. Khyalia, Chief Executive Officer

  • Capacity addition for FY27 Capacity · FY27 · High confidence 1.32 GW

    Previously 2.9 gigawatts → 1.32 GW

    And therefore, on a conservative side, we have considered this year 1.3-gigawatt, next year, 1.6 gigawatt.

    — S. B. Khyalia, Chief Executive Officer

  • Capacity addition for FY28 Capacity · FY28 · High confidence 1.6 GW

    Previously 2.4 gigawatts → 1.6 GW

    — S. B. Khyalia, Chief Executive Officer

  • Total planned capacity Capacity · by FY31-32 · High confidence 42 gigawatts
    So, we are confident that by FY31-32 our capacity will be 42 gigawatt from a planned capacity.

    — Dilip Jha, Chief Financial Officer

Capex

  • Capex for FY27 Capex · FY27 · High confidence INR25,000 crores
    In FY26-27, we are adding Korba Phase-ll of 1.32 GW, and, capex for FY26-27 will be near about INR25,000 crores, for our expansion.

    — Dilip Jha, Chief Financial Officer

  • Capex for FY28 Capex · FY28 · High confidence INR33,000 crores
    For FY27-28, it will be near about INR33,000 crores.

    — Dilip Jha, Chief Financial Officer

EBITDA

  • EBITDA target EBITDA · by FY2031 (conservatively) · Medium confidence INR50,000 crore
    So, Bharat Bhai, we should be in a position to achieve INR50,000 crore conservatively by FY 2031. If what we have planned today, if we could achieve that and let's say, no issues arise during this period related to like what presently we have et cetera. In that case, we can touch this even in 2030. But if we see issues because of any reasons, then at most, it would be 2031.

    — S. B. Khyalia, Chief Executive Officer

Merchant Capacity

  • Merchant capacity percentage Merchant Capacity · Q1 FY27 · High confidence 5%
    No. This year, since we have already achieved the 95% tie-up under the medium-term or the long-term PPA. So obviously, 5% of capacity will be available for merchant during this current quarter.

    — S. B. Khyalia, Chief Executive Officer

What to watch in Q1 FY27

Korba Phase-II commissioning

Q2 FY27 and before year-end FY27
Current Expected during current year (FY27)
Target First 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

  • Geopolitical impact on project commissioning

    medium

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

    Management acknowledged

  • Decline in merchant power prices

    medium

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

    Management acknowledged

  • Imported coal price volatility

    low

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

    Management acknowledged

Q&A highlights

6 direct
MSEDCL PPA details (project assignment, tariff, timeline) Direct
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

Korba and Mahan commissioning delays and revised capacity addition trajectory Direct
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. And as regards to Mahan is concerned, Mahan's first unit is likely to get commissioned in the last quarter of this year. But at the most, it will get commissioned in the first quarter of the next year and second unit six months thereafter. ... because of this geopolitical issue, we are taking a conservative approach because certain things, as I said earlier, the issue of availability of workforce, there are issues of availability of certain critical resources like LPG, et cetera.

Clarifies the revised commissioning timelines for key expansion projects (Korba and Mahan) and explains the reasons for delays, which impacts near-term capacity additions and EBITDA contributions.

Asked by Manish Somaiya, Ishan Verma, Shirom Kapur

Merchant power strategy and PPA vs Merchant EBITDA trajectory Partial
So as I stated in the speech that today, the merchant capacity is only 5%. ... So, it all depends on the weather volatility. So, we will not be in a position to forecast or make a comment exactly on whether the merchant would be better or whether the PPA would be better. But obviously, in PPA, you get surety, you get complete sight of what we are going to get at the end of the year. But in case of merchant, it can give you upside. But at the same time, sometimes because of weather problems, your realization may go down also.

Explains the company's current low merchant capacity and the rationale behind prioritizing PPAs for stability, while acknowledging the potential volatility and upside/downside of merchant power.

Asked by Abhinav Nalawade, Vishal Periwal

Debt profile and cost of borrowing Direct
On the balance sheet and funding front, at March 31, '26, total debt stood at INR53,556 crores, while net debt was INR45,022 crores. ... So recently, the rate getting from the market, is about 8%, and its either DCM or from domestic banks.

Provides crucial details on the company's debt levels and the current cost of borrowing, which are key indicators of financial health and capital structure management.

Asked by Ishan Verma

Jaiprakash resolution plan role Direct
There is one asset within JAL, which has a small capacity at 180 MW. So that will be taken over by Adani Power as the implementing agency. Apart from that JAL is having 24% shareholding of JPVL, i.e. Jaiprakash Power Ventures. So that 24% shareholding will again be taken over by Adani Power as the implementing agency.

Clarifies Adani Power's involvement in the Jaiprakash resolution plan, detailing the specific assets and shareholdings being taken over, indicating potential future capacity additions.

Asked by Uma Menon

Nuclear power plans Partial
So far, the government of India has not notified the rules. So, we are only getting ourselves ready as and when the rules come, which will give us clarity on the type of size of capacity and how we will proceed. ... At this stage, we are only preparing ourselves. Therefore, we are identifying the sites. Wherever we have the sites already, we are applying for the necessary approvals.

Highlights the company's strategic interest in nuclear power and preparatory steps being taken, signaling a potential long-term diversification into this energy source, despite current regulatory uncertainties.

Asked by Uma Menon

Coal shortages and mitigation Direct
So far, there is no coal shortage that we are facing, since the domestic coal supply is not directly impacted by the geopolitical issue and the production of coal in India is sufficient. ... As far as imported coal is concerned, there is some impact on the price because of increase in bunker fuel, et cetera. The shipping cost has gone slightly high, but since it is passed through, we will not get impacted by that.

Addresses concerns about coal availability and pricing, providing reassurance on domestic supply and explaining how imported coal cost increases are managed through pass-through mechanisms.

Asked by Kartik Sharma

EBITDA target of INR50,000 crore and cash flow deployment Direct
So, Bharat Bhai, we should be in a position to achieve INR50,000 crore conservatively by FY 2031. ... But it's time to focus on execution and achieve our planned capacity of 24 gigawatts. So, we are confident that by FY31-32 our capacity will be 42 gigawatt from a planned capacity. And the quantum of surplus we will have, multiple avenues we have, we can deploy to leverage far more better and it may be a debt-free company.

Outlines an ambitious long-term EBITDA target and discusses the strategic deployment of future cash flows, including potential debt reduction and further expansion, providing insight into long-term value creation.

Asked by Bharat Shah

2 min read 5 chapters

Detailed narrative

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%.

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.

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.

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.

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.

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