Q2 FY27 · NSE: ADANIPOWER

Adani Power

Results filed 23 October 2026 · Market cap ₹3,64,481 crore · PE 20

GrowthTranscript read

Revenue: +44.5%; on a year ago
EBITDA: +59.8%; on a year ago
Profit to shareholders: +134.3%; on a year ago
EBITDA margin: 42.3%; +0.3 pts on last quarter

Adani Power reported a 141.5% YoY rise in consolidated PAT to INR 7,019 crore for Q2 FY27, substantially driven by INR 2,422 crore of one-time prior period revenue recognition from Gujarat PPAs. Continuing revenue grew 28.5% YoY to INR 17,528 crore on higher generation volumes and improved PPA and merchant realizations, offset by a 41.8% jump in fuel costs. The company advanced its 23.7 GW expansion pipeline, secured an LOA for 1,320 MW in Uttarakhand, and projected peak debt of approximately INR 1 lakh crore by FY30-FY31.

Adani Power Limited, Q2 FY27₹ crore, consolidated

	Q2 FY27	Q1 FY27	vs previous quarter	Q2 FY26	vs a year ago
Revenue	19,439	18,902	+2.8%	13,457	+44.5%
Operating profit (EBIT)	7,040	6,781	+3.8%	3,957	+77.9%
Operating margin	36.2%	35.9%	+34 bps	29.4%	+681 bps
Other income	512	420	+21.8%	851	−39.8%
Exceptional items	0	0	–	0	–
Profit before exceptional items and tax	6,792	6,300	+7.8%	3,966	+71.2%
Profit to shareholders	6,919	4,806	+44.0%	2,953	+134.3%
Share of joint ventures' and associates' profit	−3.04	118	n.m.	0	n.m.
Earnings per share (₹)	3.59	2.49	+44.2%	1.53	+134.6%

Source: Adani Power Limited’s filing to NSE, 23 October 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.

What stood out

Significant one-time prior period revenue boosted reported net profit and EBITDA
Source
Management reported a 'onetime net prior period revenue of INR2,422 crores compared to Rs 669 crores in Q2FY26, primarily arising from revision of the initial energy charges for the Gujarat PPAs' (Dilip Jha, Concall Transcript p. 5).
Conservative derecognition of alternate coal compensation claims with Haryana DISCOM
Source
Analyst noted 'derecognition of revenue of about INR19.7 billion, INR20-odd billion for this alternate coal compensation claims with Haryana DISCOM', which CEO confirmed was reversed on auditor advice despite cash being received (Concall Transcript p. 10-11).
Peak gross debt projected to touch INR 1,00,000 crore by FY30-FY31
Source
CFO stated: 'Peak debt, we are expecting that it will be around INR1 lakh crores by FY30 or FY31' (Dilip Jha, Concall Transcript p. 15).

Guidance

Metric	Guidance	Period
Normal thermal PLF Source 'The normal expectation of our thermal projects is to operate at a PLF of around 65%... Going forward, our normal expectation is 65%' (Shersingh Khyalia, Concall Transcript p. 9).	Around 65%	Going forward
Peak Debt Source 'Peak debt, we are expecting that it will be around INR1 lakh crores by FY30 or FY31' (Dilip Jha, Concall Transcript p. 15).	Around INR 1 lakh crores	FY30 or FY31

Tailwinds

Higher power generation volumes and plant load factor (PLF)
Source
PLF rose to 70.1% in Q2 FY27 from 62.8% in Q2 FY26, and consolidated sales volume expanded 11.5% to 26.4 billion units (Concall Transcript p. 4).
Tariff surge and improved realizations across PPA and merchant segments
Source
PPA tariffs rose to INR 6.4/unit (up 12.7% YoY) and short-term merchant tariffs surged 33.1% YoY to INR 7.2/unit (Presentation slide 3; Concall Transcript p. 4).
Credit rating upgraded to AA+ by CARE Ratings and India Ratings
Source
'Adani Power's credit rating was upgraded from AA to AA+' (Concall Transcript p. 3; Presentation slide 15, 23).
Net tax credit in Q2 FY27 following amalgamation of subsidiaries
Source
'The quarter included a net tax credit of INR231 crores, which is due to the reversal of provisions made earlier following the amalgamation of subsidiaries with Adani Power' (Dilip Jha, Concall Transcript p. 5).

Headwinds

Higher fuel costs due to higher imported coal prices and monsoon coal quality
Source
Total fuel cost increased by 41.8% YoY to INR 10,229 crores driven by volume and 'an approximate 50% increase in the landed cost of imported coal' along with lower domestic coal quality in rainy season (Dilip Jha & Shersingh Khyalia, Concall Transcript p. 5-6).
Lag in imported coal indexation pass-through for Gujarat PPA
Source
'This increase of imported fuel cost will get reflected almost after more than 6 months... it will not get reflected even in next quarter' (Shersingh Khyalia, Concall Transcript p. 7).
Decline in merchant sales volume
Source
'Merchant and short-term volume were 43% lower year-on-year as we strategically tied up previously-open capacities under medium-term contract' (Dilip Jha, Concall Transcript p. 4).

New businesses and products

partnership · Shareholders' agreement signed

Chamkharchhu Hydropower Project (Bhutan)

Expected benefit: Part of 5,000 MW Bhutan hydro collaboration framework to supply cross-border power
Risks: Cross-border regulatory and long construction gestation periods typical for hydro projects
Timeline: Under development
Investment: Developed through 49:51 joint venture with Druk Green Power Corporation (not specifically quantified)

Source

Signed shareholders' agreement with Druk Green Power for a 770 MW hydropower project through a 49:51 JV (Concall Transcript p. 3; Presentation slide 15).

acquisition · Declared Successful Resolution Applicant under CIRP

Acquisition of GVK Energy Limited (Alaknanda Hydro)

Expected benefit: Entry into hydro generation with an operational 330 MW plant
Risks: NCLT approval processes and integration
Timeline: Under implementation / CIRP conclusion

Source

'APL declared Successful Resolution Applicant under the Corporate Insolvency Resolution Process of GVK Energy Limited, which owns and operates the 330 MW Alaknanda Hydroelectric power plant in Uttarakhand' (Presentation slide 15).

capacity expansion · Under execution (Korba Phase-II Unit 1 synchronized)

23.7 GW Thermal Capacity Expansion Pipeline

Expected benefit: Takes operating capacity towards 45 GW by FY32, with 62% of pipeline already tied up under long-term PPAs
Risks: Supply chain execution and capital expenditure funding
Timeline: By FY 2031-32; Korba Unit 1 commercial commissioning shortly, Unit 2 in Q4 FY27
Investment: Estimated capex of INR 2 trillion

Source

'Ongoing capacity expansion of 23.7 GW thermal power plants with estimated capex of ₹ 2 Trillion and targeted completion by FY 2031-32' (Presentation slide 16; Concall Transcript p. 3-4).

new business · Awaiting regulatory notification

Nuclear Power Entry via Adani Atomic Energy Ltd.

Expected benefit: Targeting 10 GW baseload clean nuclear power by 2035
Risks: Regulatory, legislative framework, and long project gestations (>10 years)
Timeline: By 2035

Source

'APL has set up a wholly owned subsidiary, Adani Atomic Energy Ltd... Targeting capacity of 10 GW by 2035; sites identified for project location' (Presentation slide 16; Concall Transcript p. 9).

Things to check

Significant dispute on domestic coal shortfall claims leading to derecognition
Source
Management reversed INR ~20 billion of alternate coal compensation claims with Haryana DISCOM on auditor advice because the issue is unresolved and disputed despite 50% payment received (Concall Transcript p. 10-11).
High share of one-offs in reported profitability
Source
Reported PAT of INR 7,019 crore included INR 2,422 crore net one-time prior period revenue and INR 231 crore tax credit from subsidiary amalgamation (Concall Transcript p. 5).

How the call went

The call offered clear color on operational drivers, project commissioning timelines, and the accounting treatment of past claims, but management avoided providing forward-looking guidance or granular unit economics.

Specific or vague: Management gave precise numbers for debt, past dues, capacity milestones, and PLF, but declined to provide quarterly/annual forward projections or merchant EBITDA splits on the call.
Candour: Management was forthright about the 50% coal price surge, regulatory lag in Gujarat PPA indexation, and derecognition of Haryana claims on auditor advice, though they deflected future EBITDA calculations back to the analyst.
The hard questions: Hard questions about the INR ~20 billion derecognition of revenue for Haryana DISCOM and the trajectory of gross debt versus finance costs were addressed directly.

What analysts pressed on

Impact and lag of imported coal price rises on tariffs and margins
Derecognition of ~INR 20 billion alternate coal claims with Haryana DISCOM despite receiving the cash
Sustainability of finance cost levels given gross debt increased to ~INR 61,860 crore
Expected timeline and monetization for upcoming capacities (Korba Phase-II) prior to long-term PPA start

Answers that sidestepped

Deflected request for breakdown of EBITDA between merchant capacity and energy charge to a one-on-one offline call with IR (Concall Transcript p. 14).
Declined to provide EBITDA outlook against the INR 1 lakh crore peak debt target, stating that forecasting that far out was inappropriate (Concall Transcript p. 16).

Numbers against the story

The narrative emphasized a 'blockbuster quarter' with reported PAT surging 141.5% to INR 7,019 crore. However, the numbers show that core continuing EBITDA grew a more modest 18.5% YoY to INR 6,321 crore, with reported figures materially augmented by INR 2,422 crore of one-time prior period revenue and a tax credit of INR 231 crore. Fuel costs rose 41.8% YoY due to a 50% increase in imported coal prices.

Sources

Concall transcript · filed 30-Oct-2026
Investor presentation · filed 25-Oct-2026
Figures: the company’s results filing with NSE, linked under the table.

Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.