Ladies and gentlemen, good day, and welcome to Adani Power Q2 and FY27
Earnings Conference Call hosted by Antique Stock Broking Limited. This
conference call may contain forward-looking statements about the company,
which are based on beliefs, opinion and expectation of the company as on date
of this call. These statements are not the guarantee of future performance and
involve risks and uncertainties that are difficult to predict.
As a reminder, participant line will be in the listen-only mode and there will be an
opportunity for you to ask questions after the presentation concludes. Should
you need assistance during the conference call, please signal an operator by
pressing star then zero on your touch-tone phone. Please note that this
conference is being recorded.
I now hand the conference over to Mr. Ishan Verma from Antique Stock Broking
Limited. Thank you, and over to you, Ishan.
Ishan Verma:
Thank you, Danish. Good morning, everyone. On behalf of Antique Stock Broking,
I welcome you all to the Q2 FY27 Earnings Conference Call of Adani Power
Limited. We have with us today from the management, Mr. S.B. Khyalia, CEO; Mr.
Dilip Jha, CFO; and Mr. Nishit Dave, Head of Investor Relations. We will begin with
the brief opening remarks, followed by a Q&A session. Thank you, and over to you,
sir.
Shersingh B. Khyalia:
Good morning, friends. Welcome to our Quarter 2 earnings call. Thank you for
joining us today. Our quarterly results and analyst presentation are available on
the stock exchanges and our website. I hope you have gone through them
already. Joining me today on this call are our CFO, Mr. Dilip Jha; and our Investor
Relations Head, Mr. Nishit Dave.
The recently concluded quarter has been another blockbuster quarter for us.
Power demand has been strong and power selling rates are high. We have seen
healthy volume growth on the same operating capacity year-on-year. As a result,
we have seen strong growth in revenues and EBITDA and ended the quarter with
a solid profit after tax of INR7,000 crores. We have also moved closer to
commissioning the first unit of our ongoing capacity expansion projects.
Now coming to the power market first. India needs abundant and reliable
baseload power supply using domestic coal. This is especially important in times
of
geopolitical
uncertainty,
changing
weather
patterns
and
rapid
industrialization.
Domestic coal-based power remains vital to India's energy security and economic
growth. India's power demand rose 11.5% year-on-year to 502 billion units in
Quarter 2 with lower hydropower output because of weak monsoons. Coal and
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October 26, 2026
lignite stepped up supply 73% of incremental generation needed to meet the
demand. The average thermal PLF increased to 68% from 62% a year earlier.
Now coming to Adani Power's performance in this backdrop. We achieved power
sales growth of 11.5% and supplied 26.4 billion units in this quarter, and our PLF
improved to 70%. This was supported by a high level of plant availability across
our portfolio. This strong operating performance delivered record quarterly
results. Total continuing revenue rose almost 30% to more than INR17,000
crores. Continuing EBITDA rose by more than 18% to INR6,300 crores. This
reflects the strength of our core portfolio despite higher fuel prices.
Reported EBITDA rose by 46% to more than INR8,700 crores. Consolidated profit
after tax rose 142% to more than INR7,000 crores. This was supported by strong
operating profit and onetime prior period revenue.
For H1, total continuing revenue was nearly INR35,500 crores, continuing EBITDA
was INR13,300 crores and profit after tax was nearly INR12,000 crores.
Quarter 2 was also an important quarter for our corporate structure, financial
profile and capacity expansion.
Adani Power's credit rating was upgraded from AA to AA+. The upgrade reflects
our operating track record, strong cash flows, market leadership, revenue
visibility and balance sheet flexibility. We received a letter of award for a 25-year
PPA of 1,320 megawatts from Uttarakhand Power Corporation Limited during this
quarter. It will be supplied from the upcoming Korba 2 power project.
We have now secured long-term PPAs for 62% of our upcoming 24 gigawatt
thermal pipeline. We were declared the successful resolution applicant for GVK
Energy Limited under the CIRP process. This marks our entry into hydro
generation through the operational 330-megawatt Alaknanda plant in
Uttarakhand.
We are expanding into dispatchable green energy by expanding our project
portfolio in Bhutan. We signed a shareholders' agreement with Druk Green Power,
our project partner, for a 770-megawatt hydropower project. The project will be
developed through a 49:51 joint venture. It is our second joint development in
Bhutan after the 570-megawatt Wangchhu hydro project.
We are progressing quickly and steadily on our 24-gigawatt thermal capacity
pipeline. At Korba Phase-II, the first 660 MW unit has been achieved grid
synchronization. Commercial commissioning is expected shortly. The second unit
is planned for quarter 4 of '27.
The 1,600 MW Mahan Phase-II project is also at an advanced stage. Commercial
operations are targeted for early Financial Year '28. Similarly, Raipur Phase-II,
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October 26, 2026
Raigarh Phase-II, Mirzapur, and Anuppur projects are also under execution. We
are also adding the third phase of expansion with a 1,600 MW ultra-supercritical
power plant at Raipur. This will expand the site to 4,570 MW and supply the
second long-term PPA to Maharashtra DISCOM.
In conclusion, India needs more than 100 gigawatts of new thermal capacity by
2032. Adani Power has the execution capability, fuel logistics and balance sheet
to support this growth. We remain committed to reliable, cost competitive roundthe-clock power and sustainable stakeholder value.
Thank you. I will now hand over to our CFO, Mr. Dilip, for the financial and
operational details. Over to you, Dilip.
Dilip Jha:
Thank you, sir, and good morning, everyone. I will walk you through our financial
and operating performance for Quarter 2 FY27. I will provide you an update on
our balance sheet, debt metrics and liquidity position. As Khyalia Sahab
highlighted, Quarter 2 FY27 was marked by intense demand growth, which was
driven by economic momentum and a weak monsoon. Peak demand reached 270
gigawatts and power exchanges saw substantial tariff increase. In this
environment,
Adani Power delivered an outstanding operational quarter: Plant load factor
increased to 70.1% in quarter 2 FY27 from 62.8% in quarter 2 FY26. For H1 FY27,
PLF reached 74.1% against 64.8% last year. Consolidated sales volume expanded
by 11.5% to 26.4 billion units in Quarter 2 FY27, compared to 23.7 billion units in
Quarter 2 of last year. H1 '27 volume grew 14.3% to 55.1 billion units.
Sales under long-term and medium-term PPAs expanded by 29.7% to 23.4 billion
units, reflecting increasing offtake by DISCOMs. We also have a larger capacity
operating under PPAs now as compared to last year. PPA realization improved by
12.7% on a continuing basis, supported by the pass-through of import coal indices
and recent medium-term PPAs.
Merchant and short-term volume were 43% lower year-on-year as we strategically
tied up previously-open capacities under medium-term contract. However, shortterm merchant tariffs surged by 33% per unit, capturing strong demand
momentum.
Turning to revenue, Our Continuing Revenue from Operations for Q2 FY27 grew
by 29.8% to Rs. 17,014 Crore, up from Rs. 13,106 Crore in Q2 FY26. This was driven
by higher dispatch volumes and stronger realization across both PPA and
merchant segments. Our continuing other income was Rs. 514 Crore versus Rs.
533 Crore in Q2 FY26. Our total continuing revenue stood at INR17,528 crores,
which is 28.5% higher year-on-year basis. For H1 FY27, total continuing revenue
stood at INR35,464 crores, which is 27.5% higher. During the quarter, we
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October 26, 2026
recognized 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, for which indexation has been applied in subsequent years.
Including these onetime items, total reported revenue for Q2 FY27 reached
INR19,951 crores. H1 FY27 total reported revenue stood at INR39,273 crores.
Now addressing our cost structure and bottom-line delivery. Total fuel cost for
Q2 FY27 increased by 41.8% to INR10,229 crores, compared to INR7,216 crores in
Q2 of last year. This rise was driven by increased volumes, coupled with an
approximate 50% increase in the landed cost of imported coal. For H1 FY27, fuel
cost stood at INR19,769 crores, higher by 36% Y-o-Y..
Our continuing EBITDA for the quarter for FY27 was INR6,321 crores, compared
to INR5,333 crores in quarter 2 of last year. H1 FY27 continuing EBITDA grew by
20.1% to INR13,304 crores. Reflecting the recognition of prior paid items,
reported EBITDA grew by 45.7% to INR8,743 crores in quarter 2 FY27. Finance
costs for the quarter decreased by 9.7% to INR760 crores in compared to INR842
crores in Q2 of last year, driven by disciplined debt and liquidity management. For
H1 '27, finance costs were INR1,662 crores.
Continuing Profit Before Tax rose by 32.5% to INR4,370 crores in Q2 FY27 from
INR3,298 crores in Q2 of last year. Reported Profit Before Tax grew by 71.2% to
INR6,792 crores. 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.
As a result, Consolidated Profit After Tax for Q2 FY27 rose sharply by 141.5% to
INR7,019 crores, compared to INR2,906 crores in Q2 of last year. For the first half
of FY27, PAT stood at INR11,886 crores, representing a 91.4% increase year-onyear basis.
Moving to our balance sheet and capital position. We have kept a tight control
on borrowings. We are funding our capex primarily through internal accruals. We
rely on debt only to the extent of any gap between accruals and capex funding
requirements. As of September 30, 2026, total debt stood at INR61,860 crores,
compared to INR53,556 crores as of March '26. Net debt stood at INR45,846
crores as of September 30, 2026, compared to INR45,022 crores as of March 31,
'26. Some of the funds drawn down by us near the end of the quarter are
reflecting as cash balance.
Our liquidity profile remains strong, enabling us to support our brownfield and
greenfield capex program, predominantly through internal cash accruals while
maintaining conservative leverage metrics. The recent credit rating upgrade to
AA+ by CARE Ratings and India Ratings acknowledges this financial discipline,
robust liquidity buffers and predictability of cash flow.
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October 26, 2026
In summary, quarter 2 FY27 has been an excellent quarter for Adani Power. Sales
volume increased by 11.5% to INR26.4 billion unit with an operating PLF of 70.1%.
Total continuing revenue grew by 28.5% to INR17,528 crores, with continuing
EBITDA expanding to INR6,321 crores. Reported PAT grew by 141.5% to INR7,019
crores.
Our rating upgrade to AA+ and the operationalization of our subsidiary
amalgamation significantly strengthened our capital profile and structural
efficiency. Our organic expansion projects are progressing on schedule, backed
by disciplined and self-funded capital allocation strategy.
Thank you for your time and continued support. We are now ready to take your
questions, if any. Thank you.
Moderator:
Thank you so much, sir. Ladies and gentlemen, we will now begin with the
question-and-answer session. First question comes from the line of Mohit Kumar
with ICICI Securities.
Mohit Kumar:
Congratulations on a very good set of numbers. My first question is on the fuel
cost, sir. I think the fuel cost has increased materially Q-o-Q. If I do the numbers,
it looks like the fuel cost has risen by 20%. Is there an element of tariff -- PPA
tariff, which you expect to increase further in Q3 as the coal cost prices have
risen very sharply in the quarter?
Shersingh B. Khyalia:
There are different type of PPAs, and the impact depend on the type of PPAs. So
from the Adani Power perspective, tariffs will need to increase to some extent ,
including merchant power rates. As far as Adani Power is concerned, the major
increase in fuel cost is related to the imported coal-based projects. Most of our
capacity has a pass through mechanism, In case of Gujarat, the tariff is linked to
an index, but effectively that also provides a passed through of fuel cost changes.
Therefore,, the increase in fuel cost will naturally have an impact on the tariffs.
With respect to the domestic coal, Coal India has not increased its notified prices.
However, the effective cost of coal has risen slightly due to lower quality of coal
received in the second quarter because of the rainy season, which increase the
fuel cost. That is the phenomenon which we normally see every year in Quarter 2
because of the monsoon season where the quality of coal was down and
therefore, per unit, the coal consumption will go up, but that will not get reflected
directly in the tariffs.
Mohit Kumar:
My question was, sir, was there an element of tariff -- was the lag in the tariff
versus fuel cost for the imported coal-based PPA, which has impacted negatively
in the quarter? That was the question, sir, primarily.
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October 26, 2026
Shersingh B. Khyalia:
No, it has not impacted negatively because the tariffs which are linked to an
index apply
only in case of Gujarat. Even in case of Gujarat,
the per unit
realization was not less than the actual cost of fuel. Yes, in a way, it has impacted
slightly because, otherwise, our margin would have been higher, but it has gone
down. This increase of imported fuel cost will get reflected almost after more
than 6 months.
Therefore, it will not get reflected even in next quarter because the indexing
mechanism is such that whatever fuel prices has remained in this quarter will not
get reflected in next two quarters. Probably it will get reflected in the third
quarter. So obviously, it will have impact.
Mohit Kumar:
And this is the impact of Bangladesh PPA, sir? Is it right to say?
Shersingh B. Khyalia:
In case of Bangladesh PPA, it has positive impact because the Bangladesh tariff
is determined based on international prices. So whenever international price goes
up, it will immediately get reflected in their billing. So there is no question of
time lag there.
Mohit Kumar:
Understood. Very helpful, sir. My second question, sir, when do you expect the
Lanco Korba to initially get commissioned? And is there any site of PPA for Lanco
Korba? Or are you looking to sell this in the merchant for time being, yes?
Shersingh B. Khyalia:
Yes, -- the PPA will start after 4 years. And therefore, for next 4 years, it will be
either sold in the medium term or in merchant. If we will get any PPA for the
medium term, we will also get a coal linkage. If we will sell this in the merchant
market, then in that case, obviously, we have to take the coal from the auctions.
Moderator:
Our next question comes from the line of Abhinav with ICICI Securities.
Abhinav Nalawade:
Sir, my first question is on the -- there has been certain reports of the thermal
capacity addition getting extended beyond the 97 gigawatt, that's the target for
2035. Just wanted some insights from your end on that particular topic?
Shersingh B. Khyalia:
Yes, it is welcome news, and the Government of India has recognized this. You
may be referring the statement of CEA Chairman. We were also of a similar view
earlier, and that is one of the reasons we have planned a very aggressive capacity
addition program. This statement gives us more comfort. Going forward, we may
even have to revisit our strategy of capacity addition.
This statement is in reference to the quarter 2 power shortages. However, we are
of the view that demand is likely to increase further because we have not yet
started seeing the load from the data centers. Data centers are going to be
significant
power guzzlers and they will certainly require baseload thermal
power. When a data center says that it wants to consume the green power, they
are only taking green certificates. Ultimately, reliable 24/7 power, not missing
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Adani Power Limited
October 26, 2026
even a second, can be supplied only by the thermal power projects. So the future
of the thermal sector is quite bright, which is reflected in the statement of the
government. Thank you.
Abhinav Nalawade:
Understood. My second question is on the other expense side. Other expenses
have seen a decline Q-o-Q and also on the other income, which has seen an
increase Q-o-Q. What is the reason behind it?
Dilip Jha:
Other expenses reduction on quarter-on-quarter basis is due to reversal of the
provision of expenses. On quarter-to-quarter basis, this time, the interest income
from our fixed depositsis comparatively lower than the quarter 2 of last year. This
is primarily the reason in reduction of other income, and reduction in expenses is
due to reversal of provisions, which we had made in the Q2 of the last financial
year.
Abhinav Nalawade:
Understood. So my final question is on the Uttarakhand PPA. What is the fixed
charge over there that was signed during the quarter?
Shersingh B. Khyalia:
INR4.30.
Moderator:
Our next question comes from the line of Nikhil Nigania with Bernstein.
Nikhil Nigania:
My first question was on the Jaiprakash assets, where we hold a minority stake.
Just wanted to know if there's any update on that or any plans to take our stake
even higher?
Shersingh B. Khyalia:
At this moment, there is no change. As and when we willevaluate it, we'll inform
the market. No change in status as of now.
Nikhil Nigania:
Got it. Got it. The second question is on future tie-ups. We can see a list of states
which have ongoing tenders, UP, Gujarat, Bengal, Rajasthan. I wanted to check if
there is any -- any of these are in advanced stage where we have submitted the
bids as well, commercial bids? And b, any plans to tie up in discussion for data
centers or C&I customers that we are in?
Shersingh B. Khyalia:
In case of UP, the bids are already submitted and likely to be opened in this month
or early next month. In West Bengal, bid of 1,600 MW is to be submitted in the
first week of next month, unless it is extended because of upcoming Diwali
holidays. In any case, it will happen in the next month. Also Rajasthan bid
submission is in first week of next month. So again, it is at advanced stage.
In case of, preparation stage is that they have done bidder consultations, but they
have yet to approach the regulatory commission. So they are slightly behind as
regards to their level of progress.
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October 26, 2026
Nikhil Nigania:
Got it. And my last question was on the nuclear side. We have long plans until
2035. And given most of these assets take 10 years plus to come, is there any
update on our nuclear aspirations in terms of land or even indicative tariffs that
we are looking at?
So, in case of data centers, we are not signing the PPAs directly with them. My
reference to data center, was only with reference overall increase in power
demand at national level, which will ultimately be met through the thermal
projects. The power tie-up will either be done through our AESL trading platform
or through the DISCOMs. Therefore, we are not dealing directly with power
supplies to data centers. Such arrangements are handled through our trading
platform under AESL. That addresses the data center part of your question. As
regards to your question related to nuclear power, the draft rules and regulation
have been circulated for the comments and the process of taking comments from
the stakeholders has been over, and we expect that the rules and regulation will
be notified soon. Once the rules and regulations will be notified, we will take the
capacity expansion forward. At this stage, other than this, there is no other
update.
Moderator:
Next question comes from the line of Swetha Rakhecha with Cantor Fitzgerald.
Swetha Rakhecha:
Swetha here on the line for Manish. Congrats on a great quarter once again. I
have a question for Khyalia, sir. With lower hydro availability supporting thermal
dispatch in the second quarter as we saw, how should we think about coal-based
generation, particularly Adani Power's PLFs if hydro generation returns to normal
levels going forward?
Shersingh B. Khyalia:
The normal expectation of our thermal projects is to operate at a PLF of around
65%. Due to the lower hydro generation availability during this quarter, our PLF
has been higher than normal. the PLF for the current quarter was around
70%.While the half yearly is, approximately 74%. Going forward, our normal
expectation is 65%.
Swetha Rakhecha:
I had one more follow-up on hydroelectricity in general. Given that we have longterm operating capacity targets for both thermal and nuclear, do we have any
such targets for hydro? You mentioned we have 2 new projects in Bhutan and
with the new assets that you have in Uttarakhand, would love to know if you have
any long-term operating capacity targets for hydro?
Shersingh B. Khyalia:
As per the Group’s strategy Adani Power is expected to pursue hydro projects at
the international level only. Within India, Adani Green is supposed to take the
hydro projects. From that perspective, we have already signed a memorandum of
understanding with Bhutan for 5,000 MW of hydro projects. Out of those 5,000
MWt, as I mentioned earlier in my speech, we have already signed the
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October 26, 2026
shareholders' agreement with the Bhutanese partner for a 1,340 megawatts. As
of now, our target is to reach to this 5,000 MW hydro capacity.
Swetha Rakhecha:
This is in regards to the onetime impact that we have on the income of INR2,422
crores. Just want to clarify if we're going to see this impact in the second half of
'27. Similar, like, if there is any revisions to energy charges for the Gujarat PPAs?
Nishit Dave:
The nature of this income that we have received is, actually there was a fixation
of the base rate to which indexation was to be applied under the revised terms
with the Gujarat DISCOM. So this was done with a retrospective effect, and the
calculation of the incremental income we were supposed to receive on the basis
of that rate revision, that has now been given effect.
We have received the dues from the DISCOM in three installments over the
course of the lasttwo quarters. So we have recognized all the revenue related to
the past period on the basis of this rate revision, and all the past period recovery
has been completed.
On an ongoing basis, the impact of the rate revision is also there in the tariff that
we charge for DISCOM. So that is recognized as part of the regular revenue. There
is no past period recovery remaining in case of the Gujarat DISCOM as of now.
The PLF that you were asking about was for the first quarter, we had 78% PLF.
The second quarter PLF was 70%. So, the average PLF we achieved is 74% for the
first half.
Moderator:
Our next question comes from the line of Apoorva Bahadur with IIFL Capital.
Apoorva Bahadur:
Sir, in your notes to accounts, you have mentioned that there was a derecognition
of revenue of about INR19.7 billion, INR20-odd billion for this alternate coal
compensation claims with Haryana DISCOM. Can you throw some light on this as
to why did we recognize this? And now what's our stance on this issue?
Shersingh B. Khyalia:
This relates to the claims which we have raised regarding domestic coal shortfall.
Tthere are certain issues starting from 2021 to '23 and onwards, and discussions
are ongoing. So we have reversed that at this stage to adopt conservative
accounting principles for the time being,.
Though we have received the money, we want to have a conservative approach
unless it is completely settled and both parties are on the same page. So we
decided that we should reverse it, though we have received the money. So as
soon as this issue is finalized and reached to a settlement, at that time, we will
give the appropriate accounting treatment.
Apoorva Bahadur:
This was the 50% of total amount which we had received, right, not the 100%?
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Adani Power Limited
October 26, 2026
Shersingh B. Khyalia:
50% of the claim.
Apoorva Bahadur:
Right, right. So sir, now what has changed in your discussions, if you can just
provide us some color that we have decided to provide for this despite receiving
the amount? Because I recollect, I mean, our claim was quite strong.
Shersingh B. Khyalia:
See, there are a few discussions which has happened in recent past,. and since
the issue is not closed, as per the advice of the Auditors when the issue is not
completely settled, even accounting for 50% is also not appropriate. So we
accepted their advice, and based on that, we have reversed this.
As and when this is finally concluded, when there is no dispute about that, i.e.
when the payment is made up to 50%, that obviously indicates that other party
has not fully accepted it. So once they will fully accept it, we'll make the
appropriate accounting treatment.
Apoorva Bahadur:
Understood, sir. And lastly, this is the entire amount, right? Or do we need to
provide for anything else on this? Possibly, would we also be providing for interest
cost, say, if we have to refund?
Shersingh B. Khyalia:
No, there may be many other issues. So we don't foresee at this stage that there
will be a net outgo of interest because once we will settle all the issues, we hope
that things will get adjusted and there should not be any net outgo on the
interest part. Nevertheless, we can't make any statement or forecast at this stage
whether we have to make a small provision of interest or not.
It all depends on how and what type of amounts either we will get or in any case,
whatever we have got, we have reversed it, though the money is with us. So,
considering overall situation, we don't foresee much of any implication.
Moderator:
Our next question comes from the line of Bhavik Shah with Invexa Capital.
Bhavik Shah:
In the presentation, I'm saying as of FY26, the continuing EBITDA was around
INR21,300 crores. And as of H1 FY27, when I annualize the number, it is at around
INR26,000-odd crores. There's a INR5,000 crores increase in the continuing
EBITDA, whereas there has been no simultaneous increase in my capacity. So
which all contracts have gone in for recontracting? And what is the, let's say,
EBITDA impact from all these recontracting which we have done? So can you just
help quantify that?
Nishit Dave:
Yes. So Bhavik, see, the reason behind the EBITDA growth primarily is, in FY26,
we had acquired some new capacity. Although the year-end capacity was, of
course there, this newly acquired capacity was not fully utilized for the full year
in FY26. In the current year, we are utilizing these capacities fully. That is one
part.
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October 26, 2026
We have also signed medium-term PPAs as compared to running these capacities
in the merchant market intermittently earlier. So we have been able to get full
revenue and profitability at good tariffs because of the new PPAs that we have
signed over there.
Secondly, we have also been able to get better profitability in some of our PPAs
because of, the tariffs increasing in line with international coal prices. So, there
is additional margin that we are also making in some of the PPAs now.
In one of the plants that we have acquired earlier, that is the Mutiara or Tuticorin
power plant, we have also utilized the plant capacity in a better way because now
we have PPAs for both units of 600 MW and at a better tariff realization. There,
we have also utilized domestic coal. Previously, this plant was running fully on
imported coal. Now we are utilizing domestic coal to the extent of around 35% to
40%. So there, the fuel cost has also come down and our margins have improved.
So, all of these things coming together are now giving us a better EBITDA margin
as compared to the fiscal year '26.
Bhavik Shah:
These fuel cost increases will vary as per the quarter, right? These are not
sustainable in nature, right?
Nishit Dave:
So actually, see, we have certain plants where we have PPAs, where we are
utilizing imported coal. So in all those PPAs, we get a pass-through.
Bhavik Shah:
Understood. And sir, when can we see Korba, in which quarter and then Mahan
in which quarter coming up?
Nishit Dave:
The Korba Unit 3, that is the first 660-megawatt unit, we have recently
synchronized it. We expect that it should be commissioned very soon. So in the
third quarter, it should start operating. And the second unit of Korba is expected
to start operating by around December.
Moderator:
Thank you sir. You may please rejoin the queue for more questions. You have
already asked two questions. Thank you. Our next question comes from the line
of Kriti Tripathi with NVS Brokerage.
Kriti Tripathi:
So, sir, firstly, congratulations on delivering a strong set of numbers in Q2. Sir,
looking at this performance, can we expect H2 FY27 to follow a similar strong
growth trajectory? And also, do you expect the overall power sector to continue
its excellent momentum in FY28 as well?
Nishit Dave:
Kriti, we would not like to give any guidance on such granular basis. We have
given our full year guidance as compared to the initial expectations at the start
of the year. The power market has actually performed better. So obviously, there
is an increase -- overall profitability has also improved in line with that.
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October 26, 2026
Next year also, we expect the power market to be quite strong given the pattern
of demand and the way the demand has been growing. So, I think that our
expectations are being borne out and the plans that we have made in terms of
our capacity expansion are also very much in line with the growth in demand that
we are expecting.
Moderator:
Our next question comes from the line of Mohit Kumar with ICICI Securities.
Mohit Kumar:
My first question is, sir, under the new bids which are happening for the longterm PPA, be it the UP, West Bengal, Gujarat, or AP, is there a restriction that the
power plant has to be commissioned within the state? Can you just please clarify
this?
Shersingh B. Khyalia:
The UP bid does not specify any particular location and allows the project to be
set up anywhere in India. The Rajasthan bid, however, states that the power plant
must be located within Rajasthan. The West Bengal bid specifically mentions the
project location, making it a location-specific bid, essentially linked to their
existing power plant. As far as Gujarat is concerned, no specific location has been
prescribed. Therefore, like the UP bid, it also allows the project to be located
anywhere in India. So, to summarize, the Rajasthan bid is state-specific, the West
Bengal bid is location-specific, and the UP and Gujarat bids permit projects to be
located anywhere in India.
Mohit Kumar:
My second question, have you identified power plant for Uttarakhand PPA? Is the
Korba being assigned to Uttarakhand?
Shersingh B. Khyalia:
Yes. I have already mentioned that Korba is already assigned to Uttarakhand. And
since Uttarakhand power will start after 4 years, so we will be looking for either
medium term or merchant during these 4 years.
Moderator:
Our next question comes from the line of Vishal Periwal with PL Capital.
Vishal Periwal:
Sir, out of our 18 gigawatt of operation portfolio, what sort of tie-up we have done
for -- with AESL?
Shersingh B. Khyalia:
We have not done any tie-up with AESL...
Vishal Periwal:
Okay. And maybe...
Shersingh B. Khyalia:
It is entirely with third parties.
Vishal Periwal:
Okay. Okay. And maybe for our under-construction portfolio that we have with
capacity still open. So any tie-up that we have done even for the under
construction or it's still not done anything with AESL?
Shersingh B. Khyalia:
So far, we have not done anything.
Page 13 of 16
Adani Power Limited
October 26, 2026
Vishal Periwal:
Okay. Okay. And I think just one clarification. Probably you did said like the
margins were a little lower in this quarter. So is it possible to give a breakup of
our EBITDA, which is, say, coming from the merchant capacity charge, energy
charge? Is that number could be handy with me?
Shersingh B. Khyalia:
Yes. So you can connect with Nishit, who is our Investor Relationship Head for all
this granular detail on a one-to-one basis. We'll be happy to share with you all
these details.
Moderator:
Next question comes from the line of Shirom Kapur with Jefferies.
Shirom Kapur:
Just a quick question on your finance costs. You had mentioned in your opening
remarks that they've come down due to disciplined debt and liquidity
management. But if you could just comment a little further on what has -- are you
seeing lower average interest rates or -- because your debt has gone up year-onyear, but your finance costs have come down. So how do we see it even going
ahead? Are we -- is it expected to continue to remain at a lower level? If you could
provide some color?
Dilip Jha:
Yes. So, you rightly pointed out that our debt has gone up. As compared to 31
March 2026, our gross debt stood at around INR 61,000 crore as of 30 September
2026.. However, if you look at the net debt, it has remained almost flat at
approximately INR45,000 crores. So, while the Gross debt has increased, we have
maintained sufficient liquidity in our balance sheet and there is no movement in
net debt during the first half year.
At the same time, you will notice that we have received a significant amount from
GUVNL, which is nearly about INR6,000 crores. This has also contributed to our
internal accruals. We maintain very tight control over liquidity management and
its deployment. and we monitor all these activities very closely.
As a result, although the gross debt has increased, there has been no
corresponding increase in the net debt. Further, the receipt of payment from the
DISCOMs has helped us maintaining finance cost at an almost flat level. In fact,
there is a little reduction in cost, if you will compare with quarter-to-quarter basis.
Shirom Kapur:
Right, sir. So even going -- so this is sort of a steady state that we can see going
ahead. Because last quarter, you did INR900 crores and this quarter it's about
INR760 crores of interest. So is this sort of a steady state we see going ahead?
Or should it -- would it rise further from here?
Dilip Jha:
So, as you have also observed, while market-linked interest rates are increasing,
our credit ratings are improving at the same time. We have now achieved an
upgrade from AA to AA+. As a result of the improvement in our credit rating and
all these things, we are expecting our interest cost and financing costs to remain
Page 14 of 16
Adani Power Limited
October 26, 2026
largely flat. At least, all our efforts are currently focused on maintaining financing
costs at a stable level despite the increase in market interest rates.
Moderator:
Our next question comes from the line of Bharat Shah with Bharat Shah Capital
Ideas Private Limited.
Bharat Shah:
In the presentation, you have indicated by 2032, 42-gigawatt capacity. But I was
In the presentation, capacity buildup that we have talked about from the current
18 gigawatt to about 42 gigawatt by 2032. My question is, my impression was it
was 46 gigawatt by that time, unless I've got that number wrong?
Shersingh B. Khyalia:
Bharat Bhai, the right position is somewhere in between. As mentioned in the
note at the bottom of the presentation, We have indicated that our capacity
would reach 45 gigawatt by that time. The increase from 18 gigawatt to 42
gigawatt. is expected to come from new capacity additions. In addition we have
3 GW to be added through inorganic acquisitions, which you are aware are
currently in the pipeline. That is how the total capacity stacks up to 45 GW. This
has been mentioned in the note at the bottom of several slides in the
presentation, including Slide No. 12.
Bharat Shah:
Sure, sure. Secondly, our credit rating at AA+, I think, still is lower than where it
actually deserves to be because we have not really any borrowing for ongoing
operations. Our ongoing operations are more than fully funded out of our internal
generation. Our entire borrowing is actually for the new projects. Therefore, in
my opinion, given the nature of the business and strong tie-ups and predictability,
this deserves to be rated higher than AA+ is my impression.
Shersingh B. Khyalia:
Thank you, Bharat Bhai, for your trust and confidence in our company and for
your insightful analysis . we are also engaging with the rating agencies along
similar lines, and what you have said largely reflects our own view..In my recent
discussion with the rating agency, I made the same argument that our entire
borrowing can be easily, serviced from my existing operations.
Dilip Jha:
Even the borrowings, which we have taken mainly for the new capacities, they
can also be serviced from our existing profitability,. We hope that it will get
improved. The rating agencies will accept confidence of our investors like you.
And that will help us also. This statement will help us to take up strongly with the
rating agencies that this is the expectation of our investors.
Bharat Shah:
One more thing. What is the peak debt expected in this journey from '26 to '32?
Dilip Jha:
Peak debt, we are expecting that it will be around INR1 lakh crores by FY30 or
FY31
Bharat Shah:
By '30 to '31, peak debt will be about INR1 lakh crores. So, roughly 2x where it is
today.
Page 15 of 16
Adani Power Limited
October 26, 2026
Nishit Dave:
Currently. Yes. So yes, you are right, Bharat Bhai. It would be nearly double of
what it is today.
Bharat Shah:
Okay. And since Dilip-ji has mentioned INR1 lakh crores debt is the peak debt, I'm
tempted to ask this question. When do we expect the EBITDA to be INR1 lakh
crores in this journey?
Shersingh B. Khyalia:
Yes., Bharat Bhai, making that kind of statement at this stage would mean
commenting on something that is still quite far into the future .So, it will not be
appropriate for us to make that statement at this stage. I believe you are a very
knowledgeable person and based on the PPAs we are signing and capacity
addition we are undertaking, you can very well do calculation and you will be more
accurate than us.
Bharat Shah:
I was just being lazy and trying to check, but I can very much figure that out.
Moderator:
Thank you so much. Ladies and gentlemen, that was the last question for today.
I now hand the conference over to the management for closing remarks. Thank
you, and over to you, team.
Dilip Jha:
Thank you very much for your continued support, guidance and engagement with
us. We tender our respect and gratitude to each of you, and we are looking
forward the same support and engagement with us in days to come in future.
Thank you. Thank you so very much. Have a great day.
Moderator:
Thank you so much, sir. Ladies and gentlemen, on behalf of Antique Stock Broking
Limited, that concludes today's call. Thank you for joining us, and you may now
disconnect your lines.
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