Adani Power (ADANIPOWER) Q2 25/26 earnings summary

Executive summary

• Power sales volume grew 7.4% year-over-year to 23.7 billion units in Q2 FY26, supported by new capacity, long-term PPAs, and resilience despite subdued demand and lower PLF due to unusual monsoon patterns.

• Operating capacity increased to 18,150 MW as of September 2025, following the acquisition of Vidarbha Industries Power Ltd and other major plants.

• Secured over 5 GW of new long-term PPAs, including major agreements in Bihar, Madhya Pradesh, and Karnataka, supporting future growth.

• Revived operations at the Butibori plant within two months of acquisition, signing a 500 MW PPA with Maharashtra.

• Business demonstrated robust profitability and stable revenues despite subdued tariffs and demand variability.

Financial highlights

• Q2 FY26 consolidated revenue was ₹14,308 crore, up 1.7% year-over-year; H1 FY26 revenue was ₹28,882 crore, down 2.2% year-over-year.

• Q2 FY26 EBITDA was ₹6,001 crore, stable year-over-year; H1 FY26 EBITDA was ₹12,151 crore, down 4.4% year-over-year.

• Q2 FY26 profit after tax was ₹2,906 crore, down 11.9% year-over-year, mainly due to higher depreciation and tax expenses.

• Total debt as of 30 September 2025 was ₹47,254 crore, with net debt at ₹36,776 crore, reflecting increased capex and working capital needs.

• Free cash flow from operations remained strong, with H1 FY26 net cash from operations at ₹14,939 crore.

Outlook and guidance

• Targeted capacity expansion increased to 41,870 MW by FY 2031-32, with 23,720 MW of projects in advanced development stages, fully secured with land and equipment.

• Expectation of improved PLF and power demand as weather impacts subside.

• Merchant realization expected to rise to around ₹6 per unit in the second half, with PPA rates stable at ₹5.70 per unit.

• Ongoing efforts to tie up more capacity under long-term PPAs to reduce merchant volatility, with current PPA coverage at 92-93%.

• Government policy and rising demand support long-term growth, with 80 GW of new thermal capacity needed by FY32.