Adani Power, India’s largest private-sector thermal power producer, has reported a 141.5% year-on-year jump in second-quarter net profit, driven by stronger electricity demand, higher tariffs and a one-off income boost.
Net profit after tax for the July-September quarter of the 2026-27 financial year rose to Tk 9,125.12 crore (Rs 7,019.32 crore), equivalent to around Tk 91.25 billion (Rs 70.19 billion), from Tk 3,778.40 crore (Rs 2,906.46 crore) a year earlier. For the first half of the financial year, net profit increased by 91.4% to Tk 15,451.70 crore (Rs 11,885.92 crore).
Revenue from continuing operations rose 29.8% to Tk 22,118.28 crore (Rs 17,014.06 crore), while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 18.5% to Tk 8,217.26 crore (Rs 6,320.97 crore).
However, the results were significantly boosted by the recognition of Tk 3,148.93 crore (Rs 2,422.25 crore) in prior-period income, mainly linked to revised historical energy charges under certain power purchase agreements.
Including this one-off item, reported revenue increased 39.4% to Tk 25,935.78 crore (Rs 19,950.60 crore), while EBITDA climbed 45.7% to Tk 11,366.19 crore (Rs 8,743.22 crore). Pre-tax profit rose 71.2% to Tk 8,829.29 crore (Rs 6,791.76 crore).
The company also recorded a tax credit of Tk 299.78 crore (Rs 230.60 crore), compared with a tax charge of Tk 1,377.66 crore (Rs 1,059.74 crore) in the corresponding quarter last year.
Rising electricity demand lifts generation
India’s electricity demand rose 11.5% year on year to 502 billion units during the quarter, supported by economic growth and a weak monsoon. Peak power demand reached 270 gigawatts (GW), compared with 230GW a year earlier.
Adani Power’s plant load factor — a measure of how intensively its generating capacity was used — increased to 70.1% from 62.8%. Electricity sales rose to 26.4 billion units from 23.7 billion units.
Sales under long-term power purchase agreements (PPAs) increased 29.7% to 23.4 billion units, while average tariff realisation rose 12.7% to Tk 8.32 (Rs 6.40) per kilowatt-hour.
Realisation from merchant and short-term sales climbed 33.1% to Tk 9.36 (Rs 7.20) per unit. Volumes in this segment, however, fell 43% as more available capacity was committed under medium-term contracts.
Higher coal costs weigh on margins
Despite stronger revenue and generation, fuel costs rose 41.8% to Tk 13,298.19 crore (Rs 10,229.38 crore), reflecting higher output and a 50% increase in the landed cost of imported coal.
Finance costs provided some relief, falling 9.7% to Tk 988.30 crore (Rs 760.23 crore).
Adani Power’s total debt stood at Tk 80,418.48 crore (Rs 61,860.37 crore) on 30 September, up from Tk 69,622.20 crore (Rs 53,555.54 crore) at the end of March. Net debt increased to Tk 59,599.70 crore (Rs 45,845.92 crore), from Tk 58,528.63 crore (Rs 45,022.02 crore).
Expansion into hydropower and new thermal capacity
The company is broadening its portfolio beyond thermal generation. It has been declared the successful resolution applicant for insolvent GVK Energy, which owns the 330MW Alaknanda hydroelectric plant in Uttarakhand, marking Adani Power’s entry into hydropower.
It has also received a letter of award from Uttarakhand Power Corporation for electricity supply from a planned 1,320MW supercritical power plant under a 25-year agreement. The company said tie-ups for its planned 23.72GW of additional thermal capacity had reached 62%.
In Bhutan, Adani Power signed a shareholders’ agreement with state-owned Druk Green Power Corporation for the 770MW Chamkarchhu hydropower project. The two partners will hold 49% and 51% stakes respectively.
The company’s credit ratings have also improved, with CARE Ratings and India Ratings upgrading them to “AA+; Stable” from “AA; Stable”.
A merger involving 10 wholly owned subsidiaries, including Korba Power and Vidarbha Industries Power, took effect on 25 September.
New projects progress
Adani Power said the first 660MW unit of its Korba Phase-II project had been synchronised with the electricity grid, with the second unit expected to follow in the fourth quarter of FY2026-27.
The 1,600MW Mahan Phase-II project is scheduled to come on stream in early financial year 2027-28. Meanwhile, the Raipur and Raigarh Phase-II projects, each with a planned capacity of 1,600MW and more than 65% complete, are targeted for FY2028-29.
Chief executive S. B. Khyalia said the company remained focused on ensuring reliable electricity supplies to meet India’s growing baseload requirements.
He also highlighted Adani Power’s role in supporting India’s target of adding 100GW of new thermal power capacity by 2032.