Corporate Participants:
Shersingh B. Khyalia — Chief Executive Officer
Dilip Jha — Chief Financial Officer
Mohit Kumar — Analyst, ICICI Securities Ltd
Presentation
Operator
Ladies and gentlemen, good day and welcome to the Adani Power Limited Q2 FY26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities Limited. Thank you. And over to you, sir.
Mohit Kumar
Thanks, Rajan. On behalf of ICICI Securities, I would like to welcome you all on Q2 FY26 earnings call of Adani Power Limited. Today we have with us from the management, Mr. S.B. Khyalia, CEO; Mr. Dilip Jha, CFO; and Mr. Nishit Dave, Head Investor Relations. We will start with the opening remarks followed by Q&A. Over to you, sir.
Shersingh B. Khyalia
I extend a warm welcome to everyone who has joined us today for our second quarter ’25-26 earnings call. I appreciate that you have taken time out of your busy schedule to connect with us. Before we begin, I encourage you to download and review our quarterly results and the analyst presentation which has been made available on the stock exchanges. With me on the call, I have our CFO Mr. Dilip Jha and Nishit Dave, our Investor Relations head. The Adani Portfolio Company has consistently demonstrated their strength with resilience. Over the past several years, the portfolio scale in terms of investment, revenues, EBITDA, and cash flows has grown by multiples.
Focusing on Adani Power, I am proud to say that our company has made a significant contribution to the group’s earnings growth. During this period, we have navigated a range of challenges in the market and we have emerged stronger each time. Our team has turned these challenges into opportunities, leveraging our experience and agility to drive sustainable growth. Now we are set firmly on our path to raise our generation capacity from 18 gigawatts to 42 gigawatts by 2032. With an even faster growth in earnings and cash flows, we are set to increase our market share in the thermal power sector significantly.
We have won new long-term PPA bids for more than 9 gigawatts out of the 14.5 gigawatts of bids awarded by States so far in the recently concluded quarter. We have announced the award of a 2,400-megawatt EPA in Bihar and 1,600-megawatt in Madhya Pradesh. In addition to this, we have also won a 570-megawatt long-term PPA for 25 years recently from Karnataka which would be supplied from our existing capacity at Raipur. There are another 17 gigawatts of bids which are at various stages of submission. Currently, proactive steps are being taken by states and the central government to meet the ecosystem’s long-term requirement power from all sources.
We are highly confident that we will tie up our upcoming capacities under these emerging opportunities. These PPAs will be value accretive for the company. They will enable us to generate higher returns on investment along with steady cash flows. Our capacity expansion drive is progressing rapidly. There are four projects currently under construction with a total capacity of 6,120 megawatts. They will be completed in stages between 2026-27 and financial year ’28-29. We have fully de-risked our project execution pipeline with 100% advance ordering for boilers, turbines, and generators. This is largely brownfield development and we have 100% land availability.
Similarly, most of the environmental clearances have also been granted or are in advanced stage of approval. Our in-house project management capabilities coupled with our financial strength and proactive strategy will enable us to stay well ahead of the competition and deliver projects on time while maintaining a capital cost leadership. We have revived the operations of the 600-megawatt Butibori plant of Vidarbha Industries Limited which was acquired in July 2025. Within just two months, this plant had been shut down for almost 10 years. We have also signed a 500-megawatt PPA for this plant with Maharashtra DISCOMs for five years recently.
Now let’s talk about our performance during 2Q ’25-26. We have registered more than 7% growth in power sale volumes in the quarter at 23.7 billion units as compared to 22 billion units in quarter two of ’25. The year 2025 has seen an unprecedented early onset and much-delayed retreat of monsoon in recent memory. This has affected overall power demand and peak demand adversely. Merchant power tariffs have also been subdued because of the prolonged rainy season. As a result, we have achieved PLF of 62.8% for quarter two ’26 as compared to 66.9% of quarter two of ’25.
In 1H ’26, we have achieved PLF of 64.8% versus 72.3% in first half of ’25. Despite this, we were still able to post a growth in volumes with the help of our competitive PPAs, low-cost merchant plants, and increased generation capacity. Our long-term demand growth drivers are intact as they are tied to India’s strong economic growth. We expect our PLF to improve as the lingering impacts of weather abate and demand picks up. Adani Power posted total continuing revenue excluding any one-time prior period items of Rupees 13,707 crores in quarter two of ’26. This is a slight growth over quarter two of ’25.
Our EBITDA performance for quarter two of ’26 is also quite stable despite lower tariff realization due to our cost-efficient operations and remunerative PPAs. The continuing EBITDA of 5,325 crores for quarter two of ’26 is close to the continuing EBITDA of quarter two of 2025. Profit after tax for quarter two ’26 is also quite healthy at 2,949 crores and similar to the PAT for quarter two of ’25 demonstrating our tight control on debt and finance cost despite the growing scale of operations and ongoing expansion. Looking forward we expect our power demand growth to pick up again resulting in improved offtake under long-term contracts as well as greater traction in the short-term market.
We intend to tie up more of the open capacity under the PPA similar to the recent 1 gigawatt of awards. I look forward to the upcoming commissioning of new capacities from the next financial year onwards which will lead to the next cycle of rapid earnings growth. Adani Power is excited to play a key role in meeting India’s growing energy demand reliably and enhancing its energy security. I would now like to hand over the call to our CFO Mr. Dilip to elaborate further on the quarter two results. Thank you and over to you Dilip.
Dilip Jha
Thank you, Khaleesam and good afternoon everyone. It is my privilege to present Adani Power’s strong and resilient financial performance for the second quarter and first half of the financial year ’25-26. Despite unprecedented weather conditions and slower pace of power demand growth, Adani Power has delivered a remarkably strong and stable performance this quarter too. The subdued power demand and weakness in the tariff acted as a constraint on revenue growth. Despite the higher power sales volume, total continuing revenue for quarter two FY26 was 13,639 crore, slightly higher than the revenue of 13,465 crore of quarter two last year.
A testament to our resilient business model, total one-time prior period income recognition for quarter two was Rupees 669 crore mainly pertaining to old matters and late payment surcharge for Quarter 2 FY25. This item was broadly similar at Rupees 598 crore for the first half of FY26. Total continuing revenue was 27,000 compared to Rupees 28,570 crore in FY25. For H1 ’26 prior period revenue was 1,075 crore, again similar to the H1 ’25 figure of Rupees 1,020 crore. Now coming to the cost, fuel expenses in Q2 FY26 grew modestly by 2.4% to Rupees 7,205 crore from Rupees 7,032 crore in Quarter 2 last year due to higher volume and newly acquired plants.
For H1 ’26 the fuel cost declined by 2.8% to Rupees 14,514 crore from Rupees 14,930 crore in H1 of last year. Other expenses increased by 24% to Rupees 814 crore in quarter two ’26 from Rupees 655 crore in quarter two of last year primarily due to the full period operation of recently acquired plants and additional maintenance expenditure due to scheduled overhauls. Consequently, continuing EBITDA for quarter two FY26 stood at solid and stable compared to last year. For the first half, continuing EBITDA was broadly similar at Rupees 11,076 crore compared to Rupees 11,692 crore in H1 of last year.
Depreciation charges had increased in line with the acquisition of power plants over the last one year. We have maintained control over finance costs even as we expanded our operations as a result of the flat finance cost. Continuing profit before tax for quarter two FY26 was Rupees 3,298 crore, again broadly similar to the continuing PBT of 3,537 crore of the quarter two of same last year. Continuing PBT for H1 ’26 was 7,096 crore as compared to Rupees 8,020 crore for H1 of last year. In line with the continuing EBITDA and depreciation trend, there has been an increase in deferred tax leading to a higher tax charge for quarter two and H1 ’26 as compared to the corresponding period of last year. Consequently, profit after tax for quarter two FY26 was slightly lower but very healthy at Rupees 2,906 crore compared to Rupees 3,298 crore in quarter two of last year.
Similarly for the first half, profit after tax was commendable at Rupees 6,212 crore as compared to Rupees 7,210 crore in H1 of last year. Our total debt as of 30th September 2025 stands at 47,254 crore compared to Rupees 38,335 crore at the end of March ’25. The increase is mainly due to bridge financing for capital expenditure and working capital needs supporting our organic growth plan. Our net debt position remains steady and healthy at 36,000. We are investing our strong and steady cash accruals into capacity expansion. We are following an efficient capital structure policy without a high reliance on debt. Thank you for your continued support. Let us now open the floor for question and answer.
Questions and Answers
Operator
Thank you very much. Our first question comes from the line of Manish Somaiya from Cantor Fitzgerald and Company. Please go ahead.
Manish Somaiya
Thank you gentlemen. Congratulations. A couple of questions. One, if you can just talk about the expectations on the merchant and PPA tariff realizations in the second half given softness in merchant pricing that we have seen so far.
Dilip Jha
So I am repeating your question. So you are trying to understand the expectation of PPA and merchant price movement in next half of this year?
Manish Somaiya
Yes. If you can just give us a big picture perspective on how we should think about the second half versus the first half.
Shersingh B. Khyalia
Yeah. Good afternoon Manish. As regards to PPA rates are concerned, there will not be any change in the PPA rates because the rates are obviously the long-term rates and if the demand is less it is only impacting the offtake. So there is no different expectation as regard to rates of PPA are concerned. We have an average realization of 5 Rupees 70 paisa during this quarter and we expect the same rate will continue to be realized because under the PPA rates are not getting much of change. As regards to merchant realization is concerned we have achieved 5 Rupees 37 paisa is the rate during this quarter. And for the balance period we are expecting an average realization of around let us say 6 rupees or so which used to be the rate in the last few years. So that is what our expectation is. Thank you.
Manish Somaiya
On the merchant portion itself, I think right now it’s at 88% [PPA]. Are there any plans to try to increase that? So hence to avoid the volatility in pricing. And how do you think about that?
Shersingh B. Khyalia
As I explained in my presentation, we have recently signed the PPA Maharashtra for a medium term of five years at the rate of five rupees fifty-five paisa. And we have now recently received one LOI from the state of Karnataka at five rupees seventy-nine paisa or so. So we have already tied up the quantum what we said earlier, around 1100 megawatts. So if I consider in the overall portfolio, I think now it must be working out 92%, 93%. So we are taking the steps to tie up more and more under the long term or the medium term PPA so that we can reduce the volatility impact. Thank you.
Manish Somaiya
Okay. No, that’s super helpful. I was trying to get to that 92%, 93% and hopefully with more PPAs it’ll be higher. The other question I have is on the capex. Obviously, you have a significant pipeline locked in pipeline. How should we think about CapEx, you know in ’26 but beyond ’26 and how should we also think about the funding mix between internal and external. Thank you.
Dilip Jha
So you know our CAPEX program, we are generating a significant portion of cash flow from our operating assets. So the significant portion we will fund from our internal accruals. In next two, three years there will be an interim bridge requirement of the CAPEX that we will take from market either in the mix of short term or the domestic capital market or domestic bank. So the significant portion we will fund from our internal accruals only.
Operator
Thank you. Our next question comes from the line of Abhinav from ICICI Securities. Please go ahead.
Abhinav
Good evening sir. Thanks for the opportunity. My first question is on the Assam bid. The status over there?
Shersingh B. Khyalia
You are talking about Assam. Yes. Okay. So the bids have been concluded and we are the L1 party there. The approval of the commission is also received. So we hope that we should get the positive communication shortly. So for the time being whatever is in the public domain is that the commission has passed the order.
Abhinav
Thank you. The second question is can you share the revenue EBITDA numbers for the acquired plants Coastal and [Lanco Amarkantak] in H1.
Shersingh B. Khyalia
My revenue for quarter two, Mahan, yeah, it was 1049 crores. [Lanco/Korba] this is 677 crore. If you will talk about EBITDA for this quarter, EBITDA was 54 crore. And then for Korba it was 84 crore. And for Mahan it was 521 crore. Let me repeat it again. For Mahan, revenue for the quarter was 1049 crore. As against EBITDA 521 crore. [Coastal] revenue 677 crore, against that EBITDA 54 crore. Korba revenue 339 crore, and then EBITDA 84 crore. This is operating revenue from the plant.
Operator
Thank you. Our next question comes from the line of Sriram Kapoor with Jefferies. Please go ahead.
Sriram Kapoor
Hi sir, thanks for the opportunity. You mentioned about 17 gigawatts of bids at various stages. Could you break that up into which states are offering these bids?
Shersingh B. Khyalia
The bids are in the public domain. Rajasthan is 3200 megawatt. Uttarakhand it is 1320 megawatt. Maharashtra 1600 megawatt. Uttar Pradesh 4000 megawatt. And West Bengal 2260 megawatt. So it is 12000 megawatt. And apart from that there are bids which are in advanced stage of finalization. Karnataka 1600 megawatt. Gujarat 4000 megawatt and Assam, 3200 megawatt. So if we take the latest figures the total is working out around 22,000 megawatt instead of 17,000 megawatt because recently Gujarat has floated a bid of 4,000 megawatt. So the approximate figure working out is 22,000 MW.
Sriram Kapoor
Thank you. Just want to clarify. So in your presentation you mentioned that about 91% of your operational capacity is tied up under PPAs. And if we see in the later pages about 8.5 gigawatts of the upcoming capacity is also tied up. So would it be a correct figure that totally out of your 42 gigawatt target, about 25 gigawatts is tied up on the PPA currently?
Shersingh B. Khyalia
So the new capacity which we have planned is 23.5 gigawatt. Out of the 23.5 gigawatt, 8.5 gigawatt is already tied up under the PPA. So that is the correct figure. And as I said that over and above this, 3.2 gigawatt [Assam bid] we are L1, and recently we have also tied up around 1100 megawatt from the existing capacity that is 500 megawatts Maharashtra and 570 megawatt Karnataka.
Sriram Kapoor
Sure. Just to clarify from the operating capacity, how much of that in gigawatts is currently tied up on the PPA, including the 1.1 that you have recently signed?
Shersingh B. Khyalia
Broadly the figure is around 16,700 megawatt because sometimes the agreement is at the bus bar, sometimes it is at the state periphery. So there are some minor changes here and there, but broadly it is 16,700 megawatt out of 18,150.
Sriram Kapoor
Great. Just last question. So you’ve got a target of 42 gigawatts by FY32 from you know, 30 gigawatts earlier by FY30. So just want to understand in terms of planning, are we still on track for 30 gigawatt FY30 which will then ramp up to 42 gigawatts by FY32? And of that 30 gigawatts of your original plan, how much of that portion is PPA tied up?
Shersingh B. Khyalia
So when we are saying 30 gigawatt that means it is addition of 12 gigawatts. So roughly 23.5 gigawatt in total. And the first 12 gigawatt is very much on track. We are going to commission in next year around 3 gigawatt, thereafter we are going to commission 2.4 gigawatt, in next to that year 3.2 gigawatt. So we are going to commission more than the capacity of 12 gigawatt which was planned earlier. In fact from the second stage of 12 gigawatt also to some extent the capacity will get commissioned before 29-30.
Sriram Kapoor
Okay, understood. You already ordered out your entire 100% equipment for the upcoming 23.7 gigawatt capacities. Just want to understand how much of this has gone to BHEL and how much to L&T?
Shersingh B. Khyalia
I can give the broader number. We have given 8 machines to L&T, 8 machines of 800 megawatt and balance to BHEL.
Operator
Thank you. Our next question comes from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead.
Aniket Mittal
Yes, thank you for the opportunity. A couple of questions on Godda. So first is we’ve got the approval to connect Godda power plant to the Indian grid. Just want to understand by when can we get connected to the Indian grid? And also correlate to that if once you do get connected would we be allowed to sell power from Godda to the Indian market? Despite you know being in a PPA with Bangladesh.
Shersingh B. Khyalia
We are expecting that it will get connected by December 25th. And as regards to your second question is concerned it is allowed under certain conditions and the certain conditions are already mentioned under the regulations. So the conditions are: either there is persistent no scheduling from the Bangladesh because of they don’t have demand, or there is a payment default under the PPA. So in these two conditions we will be allowed to sell the power in the Indian grid. And these are the precisely two conditions in which we would also like to sell. Otherwise why should we be interested to selling in the Indian grid? So it is basically going to address the issue.
Aniket Mittal
I got that and that is helpful on Godda. Again if you could tell me what was the PLF for the second quarter and at the end of 2Q what’s the total receivables now for Godda?
Shersingh B. Khyalia
So PLF was 72% at the end of the quarter two which was 73% last year. So the PLF is more or less same and PLF for Godda is much better than the Indian grid. And as regards to outstanding payment is concerned, it is outstanding of only now 1 1/2 months. In any case 1 month is not due. So out of the overdue it is only half months overdue.
Aniket Mittal
Understood. It’s just on the bids part. I mean two bids that I remember were in fairly advanced stages was the Rajasthan and the Uttarakhand. If you could describe your estimate or timelines on where the bids are for these two states.
Shersingh B. Khyalia
I don’t think we can estimate anything on behalf of states. You can only view what is the present state. So in case of Rajasthan, I think the bid submission date is in the next month and in case of Uttarakhand the documents are under approval of the regulator.
Aniket Mittal
Just one last question. You mentioned earlier in your comments that the merchant tariff this quarter was about 5.37. Just to get a comparison, what was the same for the same quarter last year?
Shersingh B. Khyalia
Last year our average realization for same quarter was 5.88 and this year it was 5.37. So roughly 50 paisa lower realization has been in this quarter.
Operator
Thank you. Our next question comes from the line of Vipul Agarwal, an investor. Please go ahead.
Vipul Agarwal
What is the total estimated capex for the 23 gigawatt expansion that we are planning now?
Shersingh B. Khyalia
So it is approximately 2 lakh crore.
Vipul Agarwal
Right. Second is out of the additional 23 gigawatt capacity with regards to fuel linkages, are we being providing fuel linkages along with the PPA?
Shersingh B. Khyalia
Applying for the fuel linkages? No, since we have already stated that we will be tying up through the PPAs and nowadays every bid is coming with the attached fuel linkage to the state utilities. So for all this capacity fuel will be provided by the utility under the bid.
Vipul Agarwal
Okay. And third question would be. So these the new PPA that you would be signing will be capacity charge plus fuel charge will be passed through. It’s not like a single levelized tariff?
Shersingh B. Khyalia
No. Under the new standard bidding documents you have to quote for capacity charge. First you are not allowed to quote for 25 years any fixed number. So therefore on the first year number you quote and in case of fuel it is completely passed through based on a formula which includes the station heat rate etc. So in some of the states the capacity charge will go up by 30% of WPI and 2% every year reduction. Whereas in few states it is up by 30% of WPI and 1% reduction. So more or less the capacity charge will remain stagnant and fuel charges [are pass through].
Operator
Thank you. Our next follow up question comes from the line of Manish Somaiya with Cantor Fitzgerald. Please go ahead.
Manish Somaiya
I think you mentioned that you have pre-ordered critical components for the expansion pipeline. Can you give us a sense of pricing on the equipment vis-a-vis what you think before?
Shersingh B. Khyalia
I think it will not be appropriate to discuss the pricing of the equipments in a public platform. So these are obviously confidential information and in the competitive market it is not appropriate to disclose these numbers.
Manish Somaiya
So let me ask you a different question. In terms of the delivery of the equipment, I assume that that’s going to be meeting your timelines based on the conversations you have had with your partners?
Shersingh B. Khyalia
Yeah. The deliveries which we have agreed is ranging from 38 months to 75 months in total and these are staggered deliveries and we are confident that we will get the deliveries as per this time schedule because four projects as we mentioned are under construction and all the four projects are ahead of the time in terms of delivery as well as execution.
Operator
Thank you. Our next question comes from the line of Nirav Shah from GC Holdings. Please go ahead.
Nirav Shah
Yeah. Hi. Good evening sir. So we commissioned the Dhirauli mine and there was an incentive of waiver of the cess. But now in this, the cess has been already completely waived. So now in what form will be… Will we be incentivized on the mining?
Shersingh B. Khyalia
So Dhirauli mine, the compensation cess is one of the activities. Apart from that Dhirauli mine is actually very near to our plant Mahan. So there we have already one operating unit. That means two more phases are coming over there. So compensation is one aspect. Apart from that there will be huge logistics advantages. And generally for mine, we are expecting that by end of this year only the box cutting will be there. And from next year we will have coal from that mine.
Nirav Shah
So the incentive of if we consume the coal within the state, the 400 rupee incentive that was there, I mean now it will no longer be there. Is that fair to say?
Shersingh B. Khyalia
There is no incentive so far as Compensation cess is concerned. Compensation cess is, you know, driven by the GST act, not by any other state incentive.
Operator
Thank you. Our next question comes from the line of Nikhil Nigania with Bernstein. Please go ahead.
Nikhil Nigania
Hi. Thank you for taking my question. It’s interesting to see so many tenders coming for thermal even from renewable rich states like Gujarat who are also doing a lot of battery tenders. So what is management’s view on what do you think is driving it? I mean we understand the need for baseload power but it’s still surprising given states like Gujarat.
Shersingh B. Khyalia
So I think you yourself have commented that is for the base load. So obviously the thermal is for base load and the tenders for battery, whatever has come so far are of let us say for the token quantum it is not really going to meet the baseload requirement. Even the government of India’s projection of installing batteries up to 2030 is a fraction of the total demand. So the tenders which the states are coming out, they have already considered the possibility of installation of battery. And the tenders are coming after considering the battery plant under these studies.
Nikhil Nigania
Related question on that. Most of these tenders, are you seeing a need to set up the thermal plant within the state or are they fine being it somewhere else and you get the coal resource alternative to the state?
Shersingh B. Khyalia
Every state is taking its own call because there are many negatives and positives. Having the power station in the state or at pithead. If you install a power station at pithead, you save in the transportation cost but then you pay the transmission charges and losses. Apart from that, states are also evaluating if you put up the power plant in the states, you get a huge amount of SGST not only on capital expenditure but also during the operations. So there’s a huge benefit of GST revenue on the CAPEX as well as opex. There is a huge possibility of employment generation. On the negative side, if you put up a power plant in the coal bearing states, every state is asking something at variable cost. So like in case of Shakti it is 5%, in case of Odisha it is 12%. So if you supply 5% or 12% power at variable cost, that means the capacity charge of that has to be loaded on the rest of the power.
Nikhil Nigania
Understood. The last question I had is related to point you brought up. So now GST has increased the cess while away from coal. Has the discussion started to reflect that a change in law?
Shersingh B. Khyalia
So it is different position from state to state. Some of the states has issued the change in law notice and some of may be issuing in due course because it has happened last month only. In any case it has to be passed on. So it is only a process part where they have to issue the notice of change in law and then they have to file a petition before the regulatory commissions. And CERC as you may be aware has already initiated suo moto petition to pass an order in this regard.
Nikhil Nigania
Perfect. Thank you so much. Those are my questions. Thanks for asking.
Operator
Thank you participants, you may press star and then one to ask a question as there are no further questions from the participants. I now hand the conference over to the management for the closing remarks.
Shersingh B. Khyalia
Thank you very much for the time and patience to listen us and we hope same level of cooperation in subsequent quarters. Thank you. Thank you very much. Have a great night. Thank you.
Operator
Thank you on behalf of ICICI Securities Ltd. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.