Adani Power (ADANIPOWER) Q1 25/26 earnings summary

Executive summary

• Operating capacity increased to 18,150 MW after the VIPL acquisition and other plant integrations, with a new 1,500 MW PPA signed for 25 years with UPPCL in Uttar Pradesh.

• Q1 FY26 saw resilient profitability and dispatch performance despite a 1.6% decline in all-India power demand due to early monsoons.

• Profit after tax for Q1 FY26 was ₹3,305 crore, down 15.5% year-over-year but up 27.1% sequentially.

• Amalgamation of Adani Power (Jharkhand) Limited with the parent company effective April 2024, strengthening the business and leading to a credit rating upgrade for Godda to AA stable.

• Over $500 million in payments received from Bangladesh Power Development Board, normalizing receivables.

Financial highlights

• Q1 FY26 consolidated revenue was ₹14,167 crore, down 5.9% year-over-year, mainly due to lower merchant tariffs and coal prices.

• EBITDA for Q1 FY26 was ₹5,744 crore, down 8.7% year-over-year but up 12.7% sequentially, with a margin of 42%.

• Profit after tax for Q1 FY26 was ₹3,305 crore, compared to ₹3,913 crore in Q1 FY25 and ₹2,599 crore in Q4 FY25.

• Cost of fuel was ₹7,319 crore, down from ₹8,074 crore in Q1 FY25.

• Operating expenses increased to ₹1,105 crore from ₹852 crore due to recent acquisitions and higher CSR expenses.

Outlook and guidance

• Targeting expansion to 30,670 MW by 2030 through seven brownfield and one greenfield project totaling 12,520 MW, with 100% land and equipment secured.

• Strong pipeline of new PPAs and brownfield expansion projects to meet India's rising base load demand.

• Management expects stable EBITDA margins until capacity expansion is realized and anticipates power deficits as demand improves.