← Throughline · holding view Deep analysis ↗ Q1 FY26
ADANIPOWER Adani Power Ltd · Power & infra Q1 FY26 · concall
Pattern: scope inr 65 billion

Q1FY27 record PAT INR4,867cr (+47% YoY).

3 deflections · 5 weak · 10 clean — pushback across 8 of 18 Q&A turns

Focused evidence 8 of 18

Abhinav · ICICI Securitiesdeflection

The company has given an order of about INR 65 billion to BHEL. What does it exactly entail given that all our equipments are already being tied up for the upcoming capacities?

There is huge demand of 80 GW of the thermal base power load and by 2032, this will increase from 80 GW to 95 GW, which is what we expect. We are currently in the evaluation phase, exploring various opportunities for expansion. All the plans are ramped up and aligned with our strategic goal. We will share all the updates with concrete numbers in due course of time.

Abhinav · ICICI Securitiesdeflection

Apart from this, have you given any other order to any other player related to the equipment?

As I said, we are currently evaluating all the options available and we are evaluating these numbers, units, growth requirements in the country and how it will work out, and then definitely we will come up with all these numbers.

Abhinav · ICICI Securitiesweak

On the recently acquired Coastal, Lanco and Vidarbha assets - how have the operations been? Are you facing any challenges? What is the PLF? And for these three acquired assets, what is the EBITDA we can expect?

Lanco Amarkantak has very few challenges except a small ash disposal issue being addressed. Coastal Energen had one unit fully overhauled and the second unit overhaul will be done this month, after which it will be at par with any other power station. Vidarbha was in shutdown since 2018 but advance planning during the NCLT process means the machines are now properly overhauled and good to give normal availability. So there are no further challenges across the three acquired plants.

Aniket Mittal · SBI Mutual Fundweak

With the recent ruling on FGD, does that change our CAPEX estimates outlook for the under-construction project?

After this notification, power stations under planning and execution where FGD execution has not started do not need FGD now, so we will drop that expenditure. At Mahan and Raipur, where FGDs are in advanced stage of execution, we will continue. To that extent project cost will go down, but it would not be appropriate to discuss the project numbers in detail or the bifurcation.

Jainam Jain · ICICI Securitiesdeflection

What is the revenue and EBITDA guidance for FY26?

We have not provided any specific guidance for revenue or EBITDA. Revenue is variable because tariffs are linked to imported coal prices. Our current business model and tie-up structure give us very stable revenues and EBITDA margin, so till the time our capacity expansion takes place, you can expect similar EBITDA margins as we recorded in the last year.

Jainam Jain · ICICI Securitiesweak

What is the status of pending validations and final settlement of alternate coal compensation from Haryana discom and by when can we expect closure?

Discussion is still ongoing. Haryana is making payment of 50% of the difference of bills which we are raising, and we are also accounting only for 50% of the amounts. Discussions are going on and we expect that the issue should get resolved soon.

Jainam Jain · ICICI Securitiesweak

What is the current total of regulatory receivables outstanding and what proportion is under dispute and what is in the process of realization?

There is hardly anything substantial pending now, except for small regulatory changes coming frequently which we may raise in regular course. There is no claim now pending which can change the revenue or profitability substantially.

Nidhi Shah · ICICI Securitiesweak

Are there any other PPAs that could be signed in the near-term in the pipeline for our other upcoming projects?

We have already elaborated that the tenders of Rajasthan, Uttarakhand, Bihar, Madhya Pradesh are under progress. As soon as these bids are finalized, we hope that we should be in a better position to win these bids and consequently sign the PPAs.

▸ Other Q&A (10)
Abhinav · ICICI Securities

What was the merchant realization in the 1st Quarter and merchant outlook for this year?

Our merchant realization for 1st Quarter was Rs.6.51 per kWh as against last year's same quarter, it was Rs.7.60. Khyalia added that merchant rates in Q1 FY26 were lower because monsoon came in May with weather disturbances in April, making April-May-June power demand sluggish. Since monsoon came early it should also end early, so Q2 demand and merchant rates should pick up and be better than last year.

Aniket Mittal · SBI Mutual Fund

On the upcoming tenders in Bihar, Rajasthan, MP, Uttarakhand - which of these tenders have the requirement where the plant needs to be set up in the same state?

In Bihar, Rajasthan, and MP, the tender condition requires the project to be constructed in the respective state. For Uttarakhand, the project location is not specified, so the project can be anywhere in India.

Aniket Mittal · SBI Mutual Fund

What was the PLF for Godda during this quarter?

During the quarter, the PLF for Godda was 73%.

Nirav Shah · GeeCee Holdings

We have repaid Rs.2,580-odd crores of unsecured perpetual securities towards principal. Any distribution that has been made in the first Quarter over and above this amount?

Rs.2,579 crores was paid in principal. Apart from that, we also paid Rs.1,146 crores as distribution. Now, we have only Rs.478 crores pending as of 30th June, which we have paid in July. There is no pending so far as perpetual security is concerned.

Nirav Shah · GeeCee Holdings

Any further distribution made in July along with this or now it is almost done?

In July, we have paid balance amount of Rs.478 crores along with distribution. So, there is no outstanding including distribution. Nil.

Nirav Shah · GeeCee Holdings

Any target commissioning date for the Dhirauli mine, which is supposed to be in this year?

The production should start by September or October, somewhere. So, we are on time as per the plan which we gave earlier.

Nidhi Shah · ICICI Securities

On the recently signed PPA with UPPCL - what was the tariff of that PPA?

We have signed the PPA with UPPCL where the capacity charge is 3.73 and the total tariff is 5.39.

Nidhi Shah · ICICI Securities

The PPA was for 1,500 MW but capacity is 1,600 MW - are we looking to tie up the remaining 100 MW for merchant or PPA?

No, that is the net capacity of the plant. When we say 1,500 MW, that is after auxiliary consumption. So, there is nothing left out.

Nidhi Shah · ICICI Securities

About Rs.6,000 to 7,000 crores of debt has increased this quarter for the existing entities while it has remained the same for the under-construction projects. What is the purpose of this debt?

On annual basis, our FFO is more than Rs.21,000 crores and in the next five years, it will be more than Rs.1 lakh crore. Our CAPEX program is also of that amount in aggregate, so we will generate sufficient cash flow to meet CAPEX requirements. Recently we took some interim bridge funding from banks only to meet interim capital expenditure requirements.

Nidhi Shah · ICICI Securities

What can we expect the debt profile to look like going forward for the rest of the year? Are we expecting to take any further debt for the under-construction projects?

As of now, what we are anticipating is that our internal accruals will be sufficient to meet our CAPEX requirement for the year.

▸ Prepared remarks (5 blocks)
Good afternoon, everyone. Thank you for joining us today to discuss Adani Power's Financial Results for the first Quarter of '25-26. In the recently concluded quarter, Adani Power has again demonstrated its competitive strength and the resilience of its business model. In spite of weather-induced demand softness and a high base, we have delivered a quarter with great power dispatch and robust profitability. We have also expanded our capacity further by acquiring Vidarbha Industries Power Ltd., which has 600 MW capacity that has been revived by us. This acquisition will expand our presence in the state of Maharashtra and provide further opportunities for growth. Apart from this, we have also received more than US <strong>$500 million</strong> payment from the Bangladesh Power Development Board towards their outstanding dues in the end of June and in July. The customer has been paying us now regularly. As a result, the outstanding receivables position has now been brought to near normal level, which was so far an issue of concern. During the first Quarter of Financial Year '26, while the all India demand has shrunk by 1.6% due to early monsoon, Adani Power supplied 1.6% more power with 24.6 billion units as compared to Q1 of FY25. You may recall that the 1st Quarter of the previous year was marked by an intense heat wave, which led to a surge in power demand. While offtake under PPAs reduced due to weaker power demand in Quarter 1 of FY26, APL sales volume was supported by the additional 2,300 MW capacity acquired by us last year and higher short-term sales under bilateral and exchange models. Our strategically located merchant capacity continues to enjoy significant competitive advantage in the short-term market, thus providing a market-linked upside to our earnings. Consequently, APL registered a stable continuing total revenue of Rs.14,167 crores, healthy EBITDA of Rs.5,744 crores, and a strong profit after tax of Rs. 3,305 crores in Q1 of FY26. Tariff realization was lower during Q1 of FY26 due to lower import coal prices in addition to lower short-term tariffs. In the short term, operating expenses are elevated due to the recent acquisitions. We are undertaking various initiatives to turn the units around quickly and improve their profitability. Now, to talk about the long-term outlook: We are firm believers in the promise of the power sector, which is closely aligned with India's economic prospects. We are confident that the path to a secure and sustainable energy future passes through the thermal power landscape and that coal will continue to be an important energy source for many decades to come. Given India's economic growth prospects, we anticipate power deficits to arise once again as demand improves across the nation. The Government has already given a target of 80 GW of additional thermal power capacity to meet this demand and now this target is being raised again to 95 GW in view of emerging trends.
This gives rise to a very attractive opportunity and financially strong and experienced private sector players are ideally positioned to capitalize on it. With this vision, we have locked in the supplies of boilers, turbines and generators for the entire 11.2 GW new capacity addition. We are also tying up contracts for erection and commissioning, Balance of Plant, etc., in a phased manner for the upcoming projects. As you would be aware, we already possess all the land required for expansion, which is a result of the foresight employed in identifying this opportunity in advance and acquiring the right resources at the right locations. We are funding these projects mostly from our own cash flows, which removes the reliance on project lenders. We also have a proven in-house project management capability and an experienced team which will help us monitor and execute these projects efficiently. We have achieved rapid progress in project execution of 4,800 MW of capacity expansion out of our targeted addition of 12,520 MW by 2030. The ongoing Phase-II project at Mahan in Madhya Pradesh has already crossed 66% of execution, while the Raipur Phase-II project in Chhattisgarh has crossed 25% and Raigarh Phase-II has crossed 20% within a short period. We have also received environmental clearance for the Korba Phase-II expansion revival, which will add 1,320 MW capacity upon completion. On the PPA tie-up front, we have recently signed a long-term PPA with Uttar Pradesh Discom for 1,600 MW gross capacity, which brings our fresh capacity tie-up to 4,520 MW. We are also bidding for various large PPAs in states such as Bihar, Madhya Pradesh, Rajasthan, Uttarakhand, etc. We are highly confident that our unparalleled competitive advantages coupled with the early-mover advantage that we also possess will help us to succeed in these bids. As we have mentioned earlier also, when the Discoms invite these bids, they indicate the mines from which coal will be supplied to the project. These coal linkages will be provided from mines earmarked for the state, under the SHAKTI policy based on their requirements. The new risk-mitigated model of the PPA will generate attractive returns for the developers that are able to set up projects on time with control on capital costs. In conclusion, we are highly enthused by the thermal power investment opportunity. We are sure that it will continue to play a key role for supporting India's economy for the foreseeable future and that Adani Power will play a key role in attaining the targeted capacity addition of 80 GW or more by the country.
Thank you, Khyalia Sahab, and good afternoon, ladies and gentlemen. It is my privilege to present Adani Power's Financial Performance for the first quarter of FY26. I am pleased to report that despite a challenging operating environment; Adani Power has delivered another quarter of robust and resilient performance. The recent slackness in power demand affected the offtake of power under PPAs by Discoms. It also affected tariffs in the merchant market. However, Adani Power was able to beat these trends with higher operating capacity and short-term tie-ups for the merchant capacity to deliver results in line with expectations. These results underscore our financial discipline and strategic foresight in navigating market volatility while maintaining profitability. As Khyalia ji has already said in his speech, we have already received more than US <strong>$500 million</strong> payment from Bangladesh Power Development Board towards outstanding dues in June and July. The customer has been paying us regularly. Another key development during the quarter was the amalgamation of Adani Power (Jharkhand) Limited.
This brings the 1,600 MW Godda plant into APL's standalone entity. This has led to an implicit credit rating upgrade of Godda to AA Stable, reducing finance costs. As we know, India's power demand is growing strongly even after taking weather-induced variability into account. There is a clear-cut requirement of more thermal power capacity to meet anticipated deficits and we expect that the additional capacity required will go from 80 GW to 95 GW as Khyalia ji mentioned. In closing, I want to emphasize that Adani Power is strongly positioned for the future. Our strong balance sheet, strategic acquisitions, and disciplined executions are driving sustainable growth. We remain committed to delivering reliable, affordable, and clean energy to power India's progress.
Talking about the Financial Performance for Q1 FY26, let me begin with the headline numbers that Khyalia Saab has also quoted: The total consolidated continuing revenue for Q1 FY26 was Rs.<strong>14,167 crore</strong>s, slightly lower year-on-year compared to Rs.15,052 crores in Q1 FY25 due to softer merchant tariffs and imported coal prices, but stable sequentially compared to Rs.14,522 crores in Q4 FY25. We were able to exert control over the cost of fuel at Rs.7,319 crores in Q1 FY26 as compared to Rs.8,074 crores in Q1 FY25. This compares favorably with the trend in continuing operating revenues between the two periods. Operating expenses have gone up from Rs.852 crores in Q1 FY25 to Rs.1,105 crores in Q1 FY26. This is primarily due to the acquisition of 2,300 MW capacity under the inorganic route, but it also includes the impact of higher CSR expenses. Consolidated continuing EBITDA came in at Rs.5,744 crores, reflecting our ability to manage fuel costs and optimize operation even as we expanded our footprint. It was higher in comparison to Rs.5,098 crores for Q4 FY25, but lower in comparison to Rs.6,290 crores in Q1 FY25. Depreciation for the quarter increased to Rs.1,105 crores in Q1 FY26 due to the recent acquisitions.
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