Metrics raised 1
- Capacity target raised to 45 GW from 42 GW on the same timeline
Event Participants
Executives
3
Dilip Jha, Nishit Dave, S B Khyalia
Analysts
12
Abhinav Nalawade, Apoorva Bahadur, Dhruv Muchhal, Diganth Kumar, Girish Acchipalia, Nikhil Nigania, Nitin Prajawati, Shirom Kapur, Sumit, Swetha Rakhecha, Vishal Periwal, Vivek Ramakrishnan
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Continuing Revenue | ₹17,936 crores | +27% YoY; highest ever quarter, driven by 17% volume growth and improved PPA/merchant realizations |
| Continuing Revenue from Operations | ₹17,550 crores | +28% YoY |
| Total Reported Revenue | ₹19,322 crores | +33% YoY; includes ₹1,386 crores one-time prior period revenue from revision in historic energy charges |
| Continuing EBITDA (excl. prior period) | ₹6,983 crores | +22% YoY; aided by higher volumes, capacity charges and energy charge contribution |
| Reported EBITDA | ₹8,369 crores | +36% YoY |
| Profit After Tax | ₹4,867 crores | +47% YoY (vs ₹3,305 crores); supported by operational profitability and capital structure management |
| Fuel Cost | ₹9,513 crores | +30% YoY on higher dispatch volumes and elevated imported coal indices |
| Consolidated Plant Load Factor | 78% | vs 67% YoY (+1,100 bps); record summer demand drove offtake |
| Power Sales Volume | 29 billion units | +17% YoY; PPA sales 25 BUs (+30%), merchant sales 4 BUs (vs 6 BUs) |
| PPA Tariff Realization | ₹5.93/unit | +8% YoY; includes fixed capacity charges from new PPAs (Butibori, Tuticorin) |
| Merchant & Short-Term Realization | ₹7.04/unit | +13% YoY; strong merchant prices during heatwave |
| Total Debt (Jun 30, 2026) | ₹58,381 crores | Net debt ₹47,643 crores |
| Net Debt/EBITDA | ~2x | Management expects to maintain 2–3x during capex cycle, not exceeding 3x |
| Capex Program | >₹2 lakh crores | FY27 ~₹25,000 cr, FY28 ~₹33,000 cr, thereafter >₹35,000 cr annually |
Geographic & Segment Commentary
India Thermal Operations: Delivered highest ever quarterly generation of 31 billion units and dispatched 28.8 billion units (+17% YoY). Peak demand hit a record ~271 GW in May 2026; Q1 energy consumption rose 8.4% YoY to 485 BUs, reinforcing thermal baseload relevance.
Godda (Bangladesh Exports): Generation 2.519 billion units (vs 2.362 BUs YoY); revenue ₹2,473 crores (vs ₹2,135 crores YoY). Bangladesh receivables at ~USD400 million as of June 30, 2026, with monthly receipts averaging ~USD100 million; disputed portion not recognized as revenue.
Maharashtra / New PPAs: Signed a 25-year PPA with Maharashtra DISCOM for 1,600 MW from a 2×800 MW ultra-supercritical thermal plant (LOA received March 2026). Also converted previously open capacities at Butibori (600 MW) and Tuticorin (600 MW) to long-term PPAs; Raipur capacity tied up with Karnataka.
Jaiprakash Acquisition: Acquired 180 MW Churk plant (non-operational, expected ~6 months to revive), 24% stake in Jaiprakash Power Ventures (accounted as associate; only share of profit consolidated), and 11.49% stake in Prayagraj Power Generation Company under CIRP.
Under-Construction Projects: Korba Phase-II (1,320 MW) expected commissioning before December 2026; Mahan Phase-II (1,600 MW) scheduled Q1 FY28 (first unit) and Q3 FY28 (second unit). Raipur Phase-II at 62% progress, Raigarh Phase-II at 54%; Mirzapur greenfield (1,600 MW) execution commenced.
Nuclear & Hydro Diversification: Targeting 10 GW nuclear capacity by 2035, pending government rules under the Act; evaluating domestic vs imported technology. International hydropower projects (570 MW in Bhutan) under development; PPA terms not yet finalized.
Company-Specific & Strategic Commentary
45 GW Expansion Vision: Portfolio target revised from 42 GW to 45 GW on same timeline. Entire 24 GW of BTG supply ordered in advance; land secured for all expansion projects; 56% of upcoming capacity already tied under long-term PPAs.
PPA-Led Revenue Visibility: Capacity increasingly contracted — 95% of operating capacity now under PPAs, reducing merchant volatility. Merchant volumes fell to 4 BUs from 6 BUs YoY as open capacities were converted to long-term contracts.
Self-Financed Capex Strategy: Capex of >₹2 lakh crores largely funded through internal accruals (FFO
₹20,000 crores/year); interim funding gap (₹60,000 crores) to be met via debt. A QIP enabling resolution was moved to shareholders via EGM but remains a standby provision only.New Growth Areas: Entering international hydropower and preparing for nuclear power; additional ~3 GW capacity planned at the drawing-board stage to capture upcoming state-specific bids, including a potential increase in JPVL stake.
Brand Recognition: Ranked India's most valued energy brand by Brand Finance with USD1.8 billion brand value and AAA rating.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Capex Run-Rate | FY27: ~₹25,000 cr; FY28: ~₹33,000 cr; FY29 onwards: >₹35,000 cr/yr | Majority from internal accruals; interim gap via debt; management confident of ₹2 lakh cr program |
| Net Debt/EBITDA | 2–3x through capex cycle; not to exceed 3x | Conservative capital management despite acquisitions and expansion |
| Korba Phase-II COD | Before December 2026 | 1,320 MW; PPA expected to be tied in current year but may run merchant for 1–2 years |
| Mahan Phase-II COD | First unit Q1 FY28; second unit Q3 FY28 (advancement to Q2 under evaluation) | 1,600 MW |
| Capacity Target | 45 GW by same timeline as earlier 42 GW plan | 24 GW BTG ordered; 56% tied under PPAs; balance via ongoing/upcoming bids |
| Nuclear Capacity | ~10 GW by 2035 | Contingent on notification of government rules; site studies underway |
| Additional 3 GW | Planning stage | For future state bids; may include higher stake in JPVL |
Risks & Constraints
| Risk | Context |
|---|---|
| Nuclear Regulatory Uncertainty | Government rules under the Act not yet notified; technology selection, capital allocation, and project ordering cannot proceed until clarity emerges. Management has been waiting ~6 months; 10 GW by 2035 target is contingent. |
| Fuel Cost Inflation | Imported coal indices rose, pushing fuel cost up 30% YoY to ₹9,513 crores; partially offset by higher realizations but remains a margin swing factor. |
| Merchant Price Volatility | ~5% of capacity remains open; new Korba plant may initially sell into merchant market for 1–2 years if PPA signing delays, exposing earnings to price swings. |
| Bangladesh Receivables | Outstanding receivables of |
| Execution Risk on Large Capex | ₹2 lakh crores program across multiple sites (Korba, Mahan, Raipur, Raigarh, Mirzapur); any slippage in commissioning timelines could delay PPA tie-ups and cash flows. |
| PPA Signing Risk | 44% of upcoming capacity still untied; competitive bidding by states (UP, Gujarat, Uttarakhand, West Bengal) could result in lower strike rates or extended open-market exposure. |
Q&A Highlights
Jaiprakash Acquisition & Consolidation
- Question: Will JPVL be consolidated? What about expansion at Nigri and Bina? (Abhinav Nalawade)
- Answer: JPVL's 24% stake is accounted as an associate — only the share of profit is consolidated, not P&L/balance sheet. Bina and Nigri offer large land banks for future thermal or nuclear expansion; Bina is being assessed for nuclear suitability. (Dilip Jha, S B Khyalia)
Nuclear Power Strategy
- Question: Technology tie-up, fuel sourcing, and timeline for the 10 GW nuclear target? (Abhinav Nalawade, Apoorva Bahadur)
- Answer: All decisions await government rules under the Act. Both domestic and foreign technologies are being evaluated on per-MW cost to keep tariffs affordable for DISCOMs. Typical execution expected at ~5 years; sites are being prepared. (S B Khyalia)
Bangladesh Receivables & Godda Performance
- Question: What are the Bangladesh receivables vs a year ago? Godda generation and tariff? (Abhinav Nalawade, Apoorva Bahadur)
- Answer: Receivables were ~USD400 million at end-June vs all-time high in Q1 FY26; monthly receipts average ~USD100 million and are running above monthly billing. Godda generation was 2.519 BUs (vs 2.362 BUs), revenue ₹2,473 crores (vs ₹2,135 crores). (Dilip Jha)
Additional 3 GW & PPA Pipeline
- Question: What drives the incremental 3 GW capacity plan? (Apoorva Bahadur, Swetha Rakhecha)
- Answer: Planning-stage capacity to capture state-specific bids expected from resource adequacy deficits; includes potential further stake in JPVL. Bids in progress: UP 4,000 MW, Gujarat 4,000 MW, Uttarakhand 1,320 MW, West Bengal ~3,800 MW; Andhra Pradesh also seeking coal linkage. (S B Khyalia)
EBITDA Growth Bridge
- Question: How did continuing EBITDA rise 22% with only ~4-5% capacity growth? (Vishal Periwal, Nikhil Nigania)
- Answer: Higher capacity charges from new PPAs (Butibori, Tuticorin, Raipur-Karnataka), higher dispatch volumes, elevated imported coal index pass-through, and stronger merchant prices collectively drove the EBITDA uplift. (Dilip Jha)
Balance Sheet, Capex Funding & QIP
- Question: Net debt/EBITDA trajectory? QIP timeline and dilution? (Vivek Ramakrishnan, Swetha Rakhecha, Nitin Prajawati)
- Answer: Net debt/EBITDA is slightly above 2x and expected to stay between 2–3x. Capex of ₹2 lakh crores will be funded by FFO of ~₹20,000 crores/year, with ~₹60,000 crores interim debt. QIP is an enabling provision only — no timeline or pricing announced; no change to the 45 GW plan. (Dilip Jha, Nishit Dave)
Korba PPA & Merchant Exposure
- Question: Is Korba Phase-II PPA signed? Will it run on merchant initially? (Shirom Kapur)
- Answer: PPA not yet signed; even if signed this year, project could be merchant for 1–2 years. Management is participating in multiple bids and hopeful to tie capacity within the current fiscal. (S B Khyalia)
Capital Allocation & Short-Term Outlook
- Question: Dividend possibility and near-term catalysts/risks? (Sumit, Diganth Kumar)
- Answer: No dividend — surplus is being reinvested into the ₹2 lakh crore capex program for capital appreciation. With 95% of capacity under PPAs and two-part tariff mechanism, EBITDA stability is high; Q1 is seasonally peak while monsoon months see softer offtake. (S B Khyalia, Nishit Dave)
Key Takeaway
Adani Power delivered its strongest ever quarter in Q1 FY27, with continuing revenue of ₹17,936 crores (+27% YoY), continuing EBITDA of ₹6,983 crores (+22%), and PAT of ₹4,867 crores (+47%). Record PLF of 78% and 29 BU sales volume were buoyed by heatwave-driven demand, while conversion of open capacity to PPAs reduced merchant exposure. Strategically, the company advanced its 45 GW target (revised from 42 GW) with the Jaiprakash acquisition (180 MW Churk, 24% JPVL, 11.49% Prayagraj), a 25-year 1,600 MW Maharashtra PPA, and steady progress at Korba, Mahan, Raipur, Raigarh, and Mirzapur. The balance sheet remains strong with net debt/EBITDA of ~2x, and the ₹2 lakh crore capex program is largely self-financed through ~₹20,000 crores annual FFO, with QIP kept as a standby. Watch items include nuclear regulatory clarity, fuel cost inflation, USD400 million Bangladesh receivables, and potential merchant-market exposure for Korba. Management remains confident of tying up the balance 44% of upcoming capacity and achieving 45 GW on the earlier timeline.
Transcript incomplete? No — full transcript available for summary.