India’s largest private thermal power producer, Adani Power Limited, has reported a sharp rise in quarterly earnings, underscoring resilience in a year marked by subdued electricity demand and volatile market conditions.
The company said its consolidated net profit surged 64 per cent year-on-year in the fourth quarter ending 31 March 2026. Annual performance was also robust, with total electricity generation reaching a record 105 billion units in the 2025–26 financial year — the highest in its history.
Revenue for the year rose by 10 per cent to $1.676bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 27 per cent to $681.27m. Post-tax profit increased significantly to approximately $447.77m, up from $272.48m the previous year.
Despite the strong financial showing, the wider power sector faced headwinds. Unseasonal rainfall and a mild winter dampened demand across several Indian states, with national electricity consumption rising by just 0.8 per cent to 1,709 billion units. Peak demand also fell to 243GW from 250GW a year earlier, while increased renewable energy supply contributed to a 13.7 per cent drop in wholesale power prices.
Adani Power’s chief executive, S.B. Khyalia, said thermal energy remained essential to grid stability amid the global transition to renewables.
Regional impact
The company also plays a significant cross-border role in South Asia’s energy supply. Electricity generated at its 1,600MW plant in Jharkhand supplies around 10 per cent of Bangladesh’s national demand.
A mechanical fault at one unit on 22 April caused widespread disruption in northern Bangladesh, particularly in Rajshahi and Rangpur, where outages reportedly lasted up to 11 hours. The unit was repaired and brought back online within five days, helping restore supply.
Despite outstanding dues from the Bangladesh Power Development Board, the company has maintained continuous exports to support Bangladesh’s grid, it said at a press release.
Long-term contracts and expansion
Adani Power has continued to secure long-term supply agreements to underpin future revenues. It recently won a 25-year contract to supply 1,600MW to Maharashtra State Electricity Distribution Company Ltd, while its subsidiary signed a five-year, 558MW deal with a Tamil Nadu distribution company.
These agreements mean around 95 per cent of the firm’s operating capacity is now tied to medium- and long-term contracts.
Meanwhile, construction is progressing on its 23.7GW expansion programme, due for completion by 2032. Key projects in Mahan, Raipur and Raigarh are at various stages of development, with the Korba Phase-II expansion expected to be commissioned in the 2026–27 financial year.
The results highlight the company’s ability to grow earnings even as demand softens — though questions remain over how long coal-based power can maintain its central role as India accelerates its shift towards renewable energy.