Adani Power (ADANIPOWER) Q1 25/26 earnings summary

Executive summary

• Operating capacity increased to 18,150 MW after the VIPL acquisition and amalgamation of Adani Power (Jharkhand) Limited, with 1,500 MW new PPA signed for 25 years with UPPCL in Uttar Pradesh.

• Q1 FY26 saw resilient dispatch and a 1.6% year-over-year rise in power sales to 24.6 BU, 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.

• Over $500 million was received from Bangladesh Power Development Board, normalizing outstanding receivables.

• Amalgamation of APJL with APL effective from April 2024 further strengthened the business.

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.

• 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 reduced to ₹7,319 crore from ₹8,074 crore year-over-year.

• Operating expenses increased 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 secured land and equipment.

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

• Merchant rates expected to improve in Q2 FY26 as monsoon impact shifts from Q2 to Q1 this year.

• No specific revenue or EBITDA guidance provided; expects stable EBITDA margins until capacity expansion is realized.