← Throughline · holding view Deep analysis ↗ Q1 FY27
ADANIPOWER Adani Power Ltd · Power & infra Q1 FY27 · concall
Pattern: nuclear power technology fuel

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

3 deflections · 4 weak · 19 clean — pushback across 7 of 26 Q&A turns

Focused evidence 7 of 26

Abhinav Nalawade · ICICI Securitiesweak

On nuclear, you are targeting 10 GW by 2035. Details on technology tie-up, domestic vs imported technology, fuel sourcing, and when first plant can be expected?

It depends on government guidelines - rules under the Act have not been notified yet. We are evaluating both domestic and foreign technologies, decision will depend on per-MW cost. Sites are being made ready and studies are being carried out. As soon as rules come, we can move fast.

Apoorva Bahadur · IIFL Capitalweak

Nuclear target increased from 5 to 10 GW by 2035 - when will you order plants to commission by 2035?

Ordering can happen only when rules from Government of India come. Execution timeline for a nuclear plant should be at least 5 years by our standards.

Apoorva Bahadur · IIFL Capitalweak

The board has approved an equity raise - any specific use case for capital deployment?

The QIP is an enabling provision requested through EGM. We have a massive capex program of more than INR2 lakhs crores. Internal accruals are significant but interim gap between cash accruals and capex is being met through shorter-term debt. The QIP is an enabling provision for when needed.

Swetha Rakhecha · Cantor Fitzgeralddeflection

What is the expected execution timeline for the QIP and how should we model the resulting per share equity dilution?

As of now this is an enabling provision with shareholder approval through EGM. The timeline, we will communicate it as and when it will be finalized. As and when there is a need for raising funds and the market opportunity also presents itself, we would come out with our plans and announcement at that time.

Swetha Rakhecha · Cantor Fitzgeralddeflection

Do we have a capital allocation plan in place for nuclear for the next 5 years?

For nuclear, we have only stated our intention. Until Government of India notifies the rules, we cannot decide investment amounts or commissioning timelines. We are waiting for about 6 months for the rules to come but they have not come yet.

Nikhil Nigania · Bernsteinweak

The EBITDA bridge shows a gain of INR2,200 crores due to change in fuel cost - is this from indexation of variable tariffs rather than actual fuel costs coming down?

Volume has increased, imported coal indices are higher, and merchant prices have also increased.

Nikhil Nigania · Bernsteindeflection

Can you share commercial terms of the 570 MW Bhutan hydro PPA and future plans?

PPA is yet not finalized. When finalized we will share. Regulatory structure - cost-plus or fixed tariff - is also yet to be finalized, whatever is the best opportunity will be captured.

▸ Other Q&A (19)
Abhinav Nalawade · ICICI Securities

Will Jaiprakash be consolidated in accounts and do you have expansion plans at Nigri and Bina? What will you do with the 11% shareholding at Prayagraj?

In JPVL, we have taken a 24% stake; for accounting it is an associate - we consolidate our percentage of profit. P&L and balance sheet are not consolidated, only the share of profit. At Bina and Nigri, good land is available and could be used for thermal or nuclear expansion in future.

Abhinav Nalawade · ICICI Securities

What are the receivables from Bangladesh PPA and the year-ago number?

As of June 30, 2026, receivables are near about USD400 million and we are receiving on average USD100 million per month from BPDB. There is significant reduction quarter-on-quarter vs the all-time high in June last year.

Apoorva Bahadur · IIFL Capital

You highlighted an incremental 3 GW capacity plan - can you elaborate? Will it be captive for group companies or more bids expected?

Part of the 3 GW can come from the 24% stake in JPVL (2,220 MW). Additionally, many states are facing power deficits and contemplating thermal bids. The additional 3 GW is planned for state-specific locations where new bids may come; it is at planning stage only.

Apoorva Bahadur · IIFL Capital

Can you provide generation numbers and realized tariff for Godda in Q1FY27?

Generation in Godda for Q1FY27 was 2.519 billion units vs 2.362 billion last year. Total revenue for Q1 was INR2,473 crores vs INR2,135 crores same quarter last year.

Apoorva Bahadur · IIFL Capital

Does Adani Power have any PPA arrangements similar to Adani Green with Adani Energy for the energy management solution business?

Neither do we have any agreement with Adani Green Energy nor with PTSL. We don't have any PPAs with Adani Energy.

Dhruv Muchhal · HDFC Asset Management

What was merchant capacity in Q1FY27 vs Q1FY26? Was merchant capacity converted to PPAs?

Merchant capacity has reduced. Butibori and Tuticorin plants were on merchant basis earlier, now under PPAs. Merchant volume was 4 billion units in Q1FY27 vs 6 billion units in Q1FY26 - a one-third reduction - along with capacity reduction in open capacity.

Dhruv Muchhal · HDFC Asset Management

Maharashtra approved a PPA sold to Adani Energy Bombay with Adani Power supplying 540 MW thermal - how does this RTC contract work for Adani Power?

It will be a PPA based on capacity charges, not just units sold. The RTC exposure is taken by PTSL. For Adani Power, the contract structure is exactly like a typical PPA - we get fixed charges and the ramp up/down volatility is handled by the other party.

Vivek Ramakrishnan · DSP Mutual Fund

Over the next 2-3 years with large expansion and acquisitions, how will net debt-to-EBITDA move and what is guidance?

Annual FFO is INR20,000 crores. Over the capex program period, FFO will be more than INR1.4 lakh crore vs INR2 lakh crore capex. Interim requirement of around INR60,000 crores from debt. Net debt-to-EBITDA is slightly higher than 2x now and will not cross 3x at any point.

Girish Acchipalia · Morgan Stanley

With 13.2 GW bids in market and 11.1 GW untied, which states will bid close this fiscal? And on the 2.5 GW MSEDCL RE RTC contract - is it captured in the PPA tie-up bucket?

Active bids: UP 4,000 MW, Gujarat 4,000 MW, Uttarakhand 1,320 MW, West Bengal 3,800 MW - about 13,000 MW total. The 2,500 MW MSEDCL is a supply contract needing minimum 51% green - multiple sources will serve it through a trading platform.

Girish Acchipalia · Morgan Stanley

In FY27 and FY28, which quarters and which plants are 1,320 MW and 1,600 MW expected to commission?

Korba Phase-II will come before December end this year. Mahan Phase-II first unit expected in Q1 of next financial year, second unit with 6-month gap in Q3 (but trying to bring it to Q2).

Girish Acchipalia · Morgan Stanley

What will be the annual capex run rate for next 2-3 years?

FY27 expansion capex near about INR25,000 crores. FY28 near about INR33,000 crores. Thereafter more than INR35,000 crores.

Swetha Rakhecha · Cantor Fitzgerald

Regarding the proposed 3 GW addition - is the capacity from Jaiprakash currently under PPA or open?

The 3 GW is at a planning stage for future state bids - capex and equipment ordering not yet firmed up. As regards JPVL, we have 24% stake and if we get opportunity to increase stake, we will take it forward. No PPAs tied up yet.

Shirom Kapur · Jefferies

The Korba PPA has not been signed yet - will it be supplying under PPA or merchant market after commissioning in December?

Even if a PPA is signed during the current year under long-term bids, there would be some period of maybe a year or two in merchant market from this capacity. We have participated in a bid where results are pending, and we hope to tie up capacity in the current year.

Shirom Kapur · Jefferies

Is the 180 MW Jaiprakash plant operational? Will it contribute to financials from Q2 onwards and is it tied up under any PPA?

It is not operational - similar condition to what we acquired in Butibori. Will take about 6 months to revive. We don't foresee much contribution during the current year. Not tied under any PPA.

Vishal Periwal · PL Capital

Continuing EBITDA grew 22% with only 4-5% capacity increase and merchant revenues largely flat - what explains the strong EBITDA increase?

Revenue consists of two parts - capacity charges and energy charges. Tuticorin and Raipur conversions from merchant to PPA brought significantly higher capacity charges. Energy charges also higher due to imported coal indices. Altogether volume increase, higher capacity charges and energy charge contribution drove the EBITDA improvement.

Sumit · Subji Enterprise

Can we expect dividend or bonus given sufficient reserves?

We have a huge capex program for the next 6-7 years. We are reinvesting in the capex program as return on capital is quite good. We are giving more capital appreciation than dividend and therefore reinvesting whatever surplus we are generating.

Sumit · Subji Enterprise

Have we considered Bangladesh disputable portion in results?

No, we are not considering whatever is disputed. We are considering as revenue only that which is not disputed.

Diganth Kumar · SAMIL

What are the major short-term catalysts and risks for the company in the next 6-12 months?

95% capacity is tied up in long-term PPAs with DISCOMs, only 5% open capacity. Two-part tariff mechanism provides stable EBITDA. Q1 is typically peak because of high temperatures. As monsoon rains arrive, power drawdown goes down a little. With largely long-term contracts, we expect stability in revenues and EBITDA.

Nitin Prajapati · Suyog Management

Company guided INR25,000 crores capex in FY27 and INR33,000 crores in FY28, and proposed INR15,000 crores equity raise. Has anything changed in capex plan or is this preparation for expansion beyond 23.7 GW?

No change in the capex program. Very firm and confident on INR2 lakhs crore capex in defined timeline. INR25,000 crores this year, INR33,000 crores next year, more than INR35,000 crores thereafter. Internal accruals will fund majority of capex; interim gaps funded from debt. Target is now 45 GW (revised from 42 GW) on same timeline.

▸ Prepared remarks (4 blocks)
Good afternoon, friends. I want to extend a warm welcome to everyone who has joined us today for our first quarter '26-'27 earnings call. As we begin the new financial year, one thing is increasingly clear - in times of geopolitical uncertainty and extreme weather events, a nation needs abundant, reliable, and domestically available energy. As India's economy continues to advance, the importance of reliable baseload power for the country's growth story has become even more evident. During the quarter, India experienced a hotter-than-usual summer with sustained heat waves across most regions. Due to these high temperatures, peak demand shot up to a record high of around 271 GW in May '26, while overall energy consumption rose by <strong>8.4%</strong> on a year-on-year to 485 billion units for quarter 1, FY27. This has also put to rest concerns over any demand slowdown that has arisen in the previous year. Thermal power was once again the mainstay for fulfilling the nation's electricity needs during this period of surging demand. I'm immensely proud to say the Adani Power stepped up to this challenge. We achieved our highest ever quarterly power generation of 31 billion units and dispatched 28.8 billion units, a growth of 17%, which was a result of improved PLF as well as greater operating capacity. We have once again demonstrated the strength of our efficient, cost-effective portfolio and operational excellence by reliably supplying power when the country needed the most. Financially, we have started the year on a strong note, posting our highest ever quarterly performance. Total continuing revenue for the first quarter of FY27 is INR17,936 crores, which is a growth of 27% over the corresponding quarter of FY26. Continuing EBITDA without prior period items for the quarter is INR6,983 crores which is 22% higher year-on-year. The company has reported 47% higher profit after tax on year-on-year at INR4,867 crores for quarter 1 FY27, reflecting our operational profitability and excellent management of the capital structure. Beyond our financial and operational milestones, this quarter has been defining for our strategic growth. We are consolidating firmly on the paths to expand our portfolio to 45 GW. A major highlight of the recently concluded quarter was the successful acquisition of the stake of Jaiprakash Associates in various power assets under the corporate insolvency resolution process.
This strategic move adds 180-MW Churk power plant to our portfolio, alongside a 24% stake in Jaiprakash Power Ventures and an 11.49% stake in Prayagraj Power Generation Company. These acquisitions further expand our reach and operational footprint. Additionally, we secured our revenue visibility further by signing a 25-year power supply agreement with the Maharashtra DISCOM for supply of 1,600 MW of power on a long-term basis from a 2x800-MW Ultra-Supercritical thermal power plant. We have announced the receipt of the letter of award for this PPA earlier in March '26. Our capacity expansion program is progressing at an excellent pace. We are on track to commission the 1,320 MW Korba Phase-II project this year, while the 1,600-MW Mahan Phase-II project is scheduled for commercial operation in quarter 1 of the next financial year. Furthermore, execution is advancing rapidly at Raipur Phase-II and Raigarh Phase-II, which have achieved over 62% and 54% progress, respectively, and we have commenced execution for our 1,600-MW Mirzapur greenfield project and other projects. As you would be aware, we have ordered the entire 24 GWs of BTG supply in advance and secured the land required for the expansion program. We have tied up 56% of our upcoming capacity already under long-term PPAs, and we are confident of tying up the balance capacity soon through ongoing and upcoming bids. Further, I'm thrilled to say the Adani Power has been ranked as India's most valued energy brand by Brand Finance with a brand value of USD1.8 billion and a AAA rating. This is a testament to the trust our stakeholders place in us. Looking beyond the horizon, we are entering new and exciting territories as we expand our thermal base, we are also diversifying into international hydropower projects and preparing ourselves for new opportunities in the nuclear power field. We are strongly committed to helping India meet its long-term development goals with the supply of reliable and competitive electricity, and I look forward to interacting with you as we progress on this path.
Thank you, sir, and good afternoon, everyone. I will take you through the financial and operating performance for quarter 1 FY '27 and then share a brief update on our balance sheet and liquidity. So let me start with our operational backdrop. As Khyalia sir mentioned, quarter 1 FY27 was characterized by exceptional demand driven by persistent heatwaves. Consequently, power offtake under PPAs improved significantly, while merchant prices also strengthened materially. In this environment, APL achieved a phenomenal operating performance. Our consolidated plant load factor jumped significantly to 78% in quarter 1 FY '27 compared to 67% in the corresponding quarter last year. Our consolidated power sales volume was higher by nearly 17%, reaching 29 billion units against 25 billion units in quarter 1 last year. This strong volume growth was supported by higher operating capacity, robust power demand, and PPA tie-ups for our previously open capacities at Butibori and Tuticorin power plants. Specifically, power sales under PPAs grew by 30% to 25 billion units. Merchant volumes were 4 billion units in quarter 1 as compared to 6 units billion in the same quarter last year, due to our tying up capacity in PPAs increasingly and incrementally during this period. Coming to revenues, I am very pleased to say that Adani Power has posted its strongest quarter yet in terms of continuing revenue and continuing EBITDA. The strong generation volumes combined with improved realizations translated into our strongest performance yet. Continuing revenue from operations for quarter 1 FY27 increased by a robust 28% to INR17,550 crores. Total continuing revenue, which includes other income, stood at INR17,936 crores, reflecting a 27% growth year-on-year. Our total reported revenue, including one-time prior period item reached to INR19,322 crores, a nearly 33% increase from quarter 1 last year. Our tariff realization under PPA improved by 8% to INR5.93 per unit and merchant and short-term realization improved by 13% to INR7.04 per unit, directly benefiting from the strong demand environment.
Our PPA realizations include the fixed capacity charges of PPAs that we have signed recently for previously open capacity, that is in Butibori and Tuticorin. During the quarter, we have reported a one-time net recognition of prior period revenues of INR<strong>1,386 crore</strong>s, primarily due to the revision in historic energy charges under certain PPAs. Moving to profitability. During quarter 1 FY27, we have showcased core profitability strength despite an increase in fuel cost. The Fuel cost for the quarter was higher by 30% at INR9,513 crores, which was driven by larger dispatch volumes and higher imported imported coal indices. Even with this, our continuing EBITDA grew by 22% to INR6,983 crores. Reported EBITDA surged by 36% to INR8,369 crores. This improvement was primarily driven by higher volumes and an improved PPA contribution. At the bottom line, profit Before T on a continuing basis registered a strong 29% increase to INR4,914 crores. Reported profit before tax jumped to nearly 50% to INR6,300 crores. Ultimately, our Profit After Tax for quarter 1 FY '2y rose by a stellar 47% year-on-year to INR4,867 crores, up from INR3,305 crores in quarter 1 FY '26. Let me now touch upon the balance sheet and our financial discipline. Despite our growing capacity, recent acquisitions, and an ongoing capital expenditure program, we maintained very tight control on our finance costs. We continue to follow a conservative capital management policy. Our strong liquidity and healthy profitability have helped us keep our leverage in check. As of June 30, '26, our total debt outstanding stood at INR58,381 crores, and our net debt stood at INR47,643 crores. Our rapid capacity expansion is largely supported by predominantly self-financed capital expenditure strategy, strong project execution, track record and in-house management capabilities. Together, these factors give us a structural cost advantage and ensure that we deliver our capacity addition in a timely and cost effectively manner. Now to summarize, we delivered our highest ever operating and financial performance on a continuing basis this quarter. Capacity utilization remained exceptional with PLF of nearly 78%. We are expanding both organically and through strategic acquisitions. Our balance sheet remains robust and supportive of our 45-GW vision.
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