Adani Power Q2 profit jumps 141% on surging demand

India's largest private-sector thermal power producer, Adani Power Ltd, reported a 141.5% rise in second-quarter net profit on strong demand, higher tariffs and a one-time income boost.

Profit after tax for July-September, the second quarter of fiscal 2026-27, rose to Tk9,125.12 crore (Rs7,019.32 crore), from Tk3,778.40 crore (Rs2,906.46 crore) a year earlier. For the first half of the year, profit after tax rose 91.4% to Tk15,451.70 crore (Rs11,885.92 crore).

Revenue from continuing operations grew 29.8% to Tk22,118.28 crore (Rs17,014.06 crore). Continuing EBITDA rose 18.5% to Tk8,217.26 crore (Rs6,320.97 crore). 

Including a one-time recognition of prior-period income of Tk3,148.93 crore (Rs2,422.25 crore), mainly from revised historical energy charges under certain power purchase agreements, reported revenue rose 39.4% to Tk25,935.78 crore (Rs19,950.60 crore) and reported EBITDA rose 45.7% to Tk11,366.19 crore (Rs8,743.22 crore). 

Reported pre-tax profit climbed 71.2% to Tk8,829.29 crore (Rs6,791.76 crore). The company also booked a tax credit of Tk299.78 crore (Rs 230.60 crore), against a tax charge of Tk1,377.66 crore (Rs1,059.74 crore) a year earlier.

India's power demand grew 11.5% to 502 billion units in the quarter, driven by economic growth and a weak monsoon, while peak demand reached 270GW, up from 230GW. Adani Power's plant load factor rose to 70.1% from 62.8%, and units sold increased to 26.4 billion from 23.7 billion.

Sales under long-term PPAs grew 29.7% to 23.4 billion units, with tariff realisation up 12.7% to Tk8.32 (Rs6.4) per kWh. Merchant and short-term realisation rose 33.1% to Tk9.36 (Rs7.2) per kWh, although volumes fell 43% as more open capacity was tied up in medium-term contracts.

Fuel costs rose 41.8% to Tk13,298.19 crore (Rs10,229.38 crore), reflecting higher volumes and a 50% rise in the landed cost of imported coal. Finance costs fell 9.7% to Tk988.30 crore (Rs760.23 crore). Total debt stood at Tk80,418.48 crore (Rs61,860.37 crore) on 30 September, up from Tk69,622.20 crore (Rs53,555.54 crore) at the end of March, while net debt was Tk59,599.70 crore (Rs45,845.92 crore), against Tk58,528.63 crore (Rs45,022.02 crore).

The company was declared the successful resolution applicant for insolvent GVK Energy Ltd, which owns the 330MW Alaknanda hydroelectric plant in Uttarakhand, marking its entry into hydropower. It also received a letter of award from Uttarakhand Power Corporation for supply from a 1,320MW supercritical plant under a 25-year agreement, lifting tie-ups for its planned 23.72GW of new thermal capacity to 62%.

In Bhutan, it signed a shareholders' agreement with state-owned Druk Green Power Corporation for the 770MW Chamkarchhu hydropower project, with a 49:51 shareholding.

CARE Ratings and India Ratings upgraded the company's credit rating to "AA+; Stable" from "AA; Stable". The merger of 10 wholly owned subsidiaries, including Korba Power and Vidarbha Industries Power, took effect on 25 September.

The first 660MW unit of the Korba Phase-II project has been synchronised with the grid, with the second expected in the fourth quarter of FY27. The 1,600MW Mahan Phase-II project is due early in FY2027-28, and the Raipur and Raigarh Phase-II projects, each 1,600MW and over 65% complete, are slated for FY2028-29.

Commenting on the results, APL Chief Executive Officer SB Khyalia said the company remained focused on ensuring reliable power supply to meet India's growing baseload requirements. 

He also highlighted the company's role in supporting the country's target of adding 100GW of new thermal power capacity by 2032.