Adani Power Ltd (NSE: ADANIPOWER) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Dilip Jha — Chief Financial Officer
Nishit Dave — Head, Investor Relations
Analysts:
Mohit Kumar — Analyst
Abhinav Nalawade — Analyst
Dhruv Muchhal — Analyst
Aniket Mittal — Analyst
Manish Somaiya — Analyst
Nikhil Abhyankar — Analyst
Nikhil Nigania — Analyst
Ishan Verma — Analyst
Shirom Kapur — Analyst
Kalpit Sabhaya — Analyst
Sucrit Patil — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Adani Power Limited Q3 FY26 earnings conference call hosted by ICICI Securities Limited. 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. [Operator Instructions]
I now hand the conference over to Mr. Mohit Kumar from ICICI Securities Limited. Thank you. And over to you, sir.
Mohit Kumar — Analyst
Yeah. Thank you. Ruthuja. Good evening. On behalf of ICICI Securities, I would like to welcome you all to Q3 FY26 earnings call of Adani Power Limited. Today, we have with us from the management Mr. Dilip Jha, CFO; Mr. Nishit Dave, Head, Investor Relations.
We’ll start with brief opening remarks, which will be followed by Q&A. Over to you, sir.
Dilip Jha — Chief Financial Officer
Hi. Thank you, Mohit. Good afternoon. Good afternoon, everyone, and thank you for joining the call. Our CEO, Mr. S.B. Khyalia, could not join us today due to some business exigency, and we apologize for this.
Now, let me take you through our performance for the quarter of FY26 and nine months. On operational — operating environment, let me brief you that power demand in quarter three FY26 was weaker than last year. As you know, this year monsoons started early in May and extended up to October. Temperatures were also cooler compared to last year. As a result, all India power demand was marginally lower at about 392 billion units. This was broadly flat versus the same period last year. Higher renewable generation also impacted thermal demand. Together, these factors led to lower merchant markets — market price. The average market clearing price in the day-ahead market declined sharply year-on-year.
Now on operational performance, despite this environment, our operations remain resilient due to our few logistics cost advantages, long-term tie-ups, and competitive merit order position in most PPAs. Our installed capacity stands at 18.15 gigawatt as of 31 December, 25. This was higher than last year due to acquisition of Vidarbha plant.
Power sales in Q3 FY26 were 23.6 billion units. This was slightly higher than 23.3 billion units same period last year. This increase came despite a lower plant load factor of 62.6%. PLF declined from 63.9% last year due to weaker demand. Higher operating capacity helped offset lower utilization. For the nine-month period, power sales increased to 71.8 billion units. This was up from 69.5 billion units in nine months last year. The increase was driven by our capacity additions. One important development is that we have made the 600-megawatt Butibori power plant fully operational now.
When we acquired it in July 2025, it had been in a shutdown state for several years. We have tied up its capacity in a five years’ PPA with Maharashtra DISCOM, which is being supplied at full capacity now. On revenue performance, continuing total revenue for quarter three FY26 was INR12,717 crores. This was slightly lower than INR13,434 crores in the same period last year. The decline was mainly due to lower power selling rates. Merchant price was significantly lower year on year. Import coal prices were also lower, because of which energy charges lowered in some import coal-linked PPAs. However, we have been able to get higher realization due to short-term bilateral tie-ups.
Other income for quarter three of last year was higher, mainly due to higher late payment surcharge income as compared to quarter three of this year. For the nine-month period, continuing revenue was INR40,524 crore. This compares with INR41,951 crore in nine months ’25. Higher volumes have largely offset the impact of lower rate for nine-month period. Fuel cost for quarter three FY26 was 9.7% lower in quarter three FY26 at INR6,800 crores as compared to INR7,500 crore for quarter three of the same — last year. This reflects the reduction in import coal prices I explained you. Fuel cost was similarly lower by 5.4% between the two corresponding my — nine-month period ended 31 December.
Continuing operating expenses were higher by 14.8% at INR1,280 crore in quarter three FY26 as compared to INR1,115 crore in quarter three FY25, and this is largely due to the recently acquired assets being operational for the full period under consideration, overhauling expenses at various plants, and higher outlay for CSR expenses — spend.
EBITDA performance, so despite lower revenue, profitability remained strong. Continuing EBITDA for quarter three FY26 was INR4,636 crore, which was slightly lower than NR4,786 crore in quarter three FY25. This decline reflects lower realization. However, cost control and operating efficiency helped protect margin. Contribution from newly acquired assets also supported EBITDA.
For the nine-month period, continuing EBITDA was INR15,713 crore. This compares with INR16,478 crore last year. Lower powering sale rate and higher CSR spend were partly offset by scale benefit. On profit before tax and PAT front, continuing profit before tax for quarter three FY26 was INR2,800 crore. This was higher than INR2,659 crore in quarter three FY25. The improvement was driven by lower finance cost. This offsets the decline in EBITDA. Profit after tax for quarter three FY26 was INR2,488 crore. This compares with INR2,940 crore last year.
Last year, PAT in quarter three was higher due to higher one-time prior period income recognized in quarter three FY25 as compared to quarter three FY26. In quarter three FY25, prior period income was slightly higher at INR1,400 crore as compared to INR278 crore for quarter three this year. Similarly, total prior period income for nine months ended December ’25 was INR1,353 crore as compared to INR2,420 crore for the corresponding period of FY25. For the nine-month period, PAT was INR8,700 crores. This compares with INR10,150 crore in nine months FY25.
Now turning to the balance sheet, we continue to maintain strong liquidity with timely payments being received from all customers, including Bangladesh. Total debt as of December 31, ’25 was INR45,331 crore. Net debt stood at INR38,679 crore. Debt increased from March ’25 level. This was mainly due to bridge financing for capital expenditure. Importantly, leverage remains comfortable. Strong cash generation supports ongoing expansion.
Now let me brief you on PPA portfolio and visibility. Its key strength for us remain our contracted revenue profile. During the quarter, we received a letter of award for a 3,200-megawatt project in Assam. This project will be developed on greenfield basis under the DBFOO model. Fuel linkage will be arranged under SHAKTI policy. With these, half of our upcoming capacity is already tied up under long-term PPA. We have now tied up existing operating capacities under long-term and medium-term PPAs with various state DISCOMs. Out of our present operating fleet of 18.15 gigawatt, we have almost tied up under PPA 90%. This provides strong revenue visibility. It also reduces exposure to short-term market volatility.
On capital raising and credit profile, recently, we further strengthened our funding profile. We raised INR7,500 crore through AA-rated non-convertible debentures. The issuance was done in four trenches. Tenures range from two to five years, and coupons rate range from 8% to 8.4%. We have been able to get investment from some of the largest mutual funds and commercial banks, among others. The fund will support capacity expansion and working capital. Our credit rating continue to be AA stable even with the new additions of debt. This reflect our strong business and financial position.
Now on project execution front, let me now update some of our project executions. We are progressing well on the 23.7-gigawatt thermal expansion program. Mahan phase is about 80% complete. Raipur Phase II is around 44% complete. Raigarh Phase II is close to 38% complete. Construction at Korba Phase II project has also resumed. These projects are scheduled to be commissioned in phases from FY27 onward. Advanced equipment ordering and in-house execution provide us strong competitive advantages. We are looking at ongoing bids of 15 gigawatts to fill up the balance 12-gigawatt capacity. We also expect the other states to come up with their long-term PPA bids for thermal power soon.
Now let me conclude with our business outlook. We expect the return on a strong power — we expect to return the strong power demand in the ensuring year as the base effect two wears out. We are already witnessing good bilateral PPA demand with high tariff being tied up. However, we are focusing on capacity tie-up under long-term and medium-term contracts to moderate exposure to rate volatility. Our increasing share of contracted capacity provides stability to earnings as well as visibility to revenue and liquidity. Our upcoming capacity additions will drive earnings growth. It is worth repeating here that the new PPAs generate EBITDA from plant availability while fuel charges are a pass-through. These new PPAs have much better higher capacity charges than our legacy PPAs. This will lead to much better per-megawatt EBITDA in the coming years.
In conclusion, our balance sheet is strong, liquidity is excellent, and we are well positioned to fund growth. We remain confident in the long-term power demand outlook for India.
Thank you for your time. We will now be happy to take your questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Abhinav Nalawade from ICICI Securities. Please go ahead.
Abhinav Nalawade
Yeah. Good evening, sir. Thanks for the opportunity. My first question is for the Assam and Karnataka PPA. What is the tariff, fixed and variable charge? Also, have we signed any extra 200-megawatt PPA with Assam?
Dilip Jha
So Assam PPA for 3,200 megawatts, the energy charges is INR6.30. Out of that, capacity is INR4.16. Or you are asking for Raipur, Karnataka?
Abhinav Nalawade
Karnataka PPA, right?
Dilip Jha
Yeah. This is INR5.78 per unit for Karnataka.
Abhinav Nalawade
And the fixed component will be?
Dilip Jha
INR4.5.
Abhinav Nalawade
Understood. My second question is on capex. What is the capex incurred in nine months FY ’26? We had estimated about INR130 billion for the whole year. So where are we now? And also, can you give the exact timelines in terms of which quarter we can expect the upcoming three facilities, Mahan, Raipur, and Raigarh, to get commissioned?
Dilip Jha
So we have spent capex in this year as on 31 — just give me one minute. On expansion side, this year, we have incurred capex of near about, you can say, the INR15,000 crores, including advance payments we have given to our BTG suppliers.
Abhinav Nalawade
Okay. And in terms of timelines, when can we expect the upcoming — I mean, if you can get specific in terms of quarter, in which quarter we can expect?
Dilip Jha
Yeah. This is as per the scheduled target. Next year, we are going to add — we have already scheduled for addition of Korba, 660 into two, this year — next year We’ll add. And also — though this is the scheduled — the Mahan, we are also putting all the best possible efforts also to complete Mahan Phase II as well.
Abhinav Nalawade
Mahan Phase II is in next year?
Dilip Jha
Yeah. And for the other plants, you can expect commissioning six months after Mahan, one unit after the other.
Abhinav Nalawade
Understood.
Dilip Jha
So by the middle of FY ’29, all these three projects would be completed. So all projects are going on as per the scheduled plan. And next year, we will be adding the Korba, and also we are putting efforts for Mahan and then every single project. So these are as per the scheduled timelines. We were confident that we will be able to complete all the projects as per pre-scheduled targeted timelines.
Abhinav Nalawade
Understood. My next question is on — if you can give PLF revenue and EBITDA for Godda power plant?
Dilip Jha
Godda power plant — just give me one minute. Godda quarter three revenue is INR2,210 crores; continuing EBITDA, INR1,092 crores. And if you’ll ask for nine months, right, the revenue is INR6,700 crores, and continuing EBITDA is INR3,247 crores.
Abhinav Nalawade
Okay. Sir, my last question is, given the Vidarbha and Karnataka get operational, would the dependence on merchant reduce in coming quarters?
Dilip Jha
Yeah. So you might be witnessing our strategy. So if you’ll see that two years ago, our open capacity and the PPA was 80/20, which got reduced to 84/16. Now this is 90 and 10. So we are very much mindful about the merchant tariffs and rate. And what we have strategized that we are minimizing — so our portfolio to open capacity, so resulting into maximizing our — so resulting into ensuring the assured revenue EBITDA irrespective of market volatility. So this is already at 10%, the open capacity.
Abhinav Nalawade
Thank you, sir. That’s helpful. Thank you.
Operator
Thank you. The next question is from the line of Dhruv Muchhal from HDFC Asset Management. Please go ahead.
Dhruv Muchhal
Yeah, sir. Thank you so much. Sir, just one question is if you can give the volume, long-term, and merchant volumes for the quarter?
Dilip Jha
Yeah. Just give me a moment. Merchant volume for the quarter was 4.3 billion unit. And for nine months, this is 15.65 billion units.
Dhruv Muchhal
15.65. All right, sir.
Dilip Jha
For nine months. And for quarter three, this is 4.3 billion.
Dhruv Muchhal
4.3. That’s the only question, sir. Thank you so much, and all the best. Thank you.
Dilip Jha
Thank you.
Operator
Thank you. The next question is from the line of Aniket Mittal from SBI Mutual Fund.
Aniket Mittal
Yes. Thank you. So in your opening remarks, sir, you mentioned about the impact of merchant prices being significantly lower as well as imported coal price impacting the energy charges. Just to understand, could you quantify both of these on a YoY basis? Hello?
Operator
Sir, are you able to hear us? Hello?
Dilip Jha
Yeah, sorry, we were on mute. Just a second, please. I’m sorry. It wasn’t mute. This is — sorry I missed that. So merchant realization in terms of tariff, if you see for this quarter, this is INR4.37, right? As against that, if you see in the same period last year, it was INR4.56. And if you will talk about nine months, this nine month — this year’s nine months, INR5.44 and it was INR6.16 paise.
So I’m repeating it again for quarter-on-quarter basis per unit realization, this year for quarter three, INR4.37. Same period same quarter last year, it was four INR4.56. For nine months, it is INR5.44. Last year for nine months, it was INR6.16. But as I explained to you that we are mindful about this market volatility, and we have — what we have done? We have now around more than 90% capacity under PPA and only we have 10% in open capacity. And it is our strategy also, over the period of time, we are also trying to reduce this capacity, maybe by 3% to 4% over the period of time. So over the period of six, seven years, it is — it will further reduce from 10% to 3% to 4%.
Aniket Mittal
Understood. And on the imported coal price, what’s the cost at which you have bought or incurred at a landed basis this quarter versus the same quarter last year?
Dilip Jha
Yeah. So let me brief you about the indices. This time quarter three, the indices — so I’m talking about the HBA Index. It is $104 as against the same quarter last year it was $123. So $123 versus $104, right? And if you talk on year-on-year basis, this is against $138 to $108. So there is reduction of near about $15, $16 on per metric ton basis. This resulted into a little bit — so in — so because our revenue in some of the plants is based on the imported coal, so if imported coal indices will reduce, our revenue also will reduce.
Aniket Mittal
Yeah, I understand that. Just on the earlier question, I missed the PLF number for Godda. If you could let me know for this quarter versus last year, as well as you mentioned this year’s revenue EBITDA. Could you also let me know the same for the same quarter last year for Godda?
Dilip Jha
So the PLF for Jharkhand, for Godda this year is — on quarter basis, this is 68%. And same period last quarter — last year, it was 50%. So quarter three last year, 50% PLF. This time it is 68% PLF. So there is increase in PLF in Godda by 18%. So supply of units has also increased. In comparison to last year, this year the supply has also increased in Jharkhand.
Aniket Mittal
Right. And the revenue EBITDA number for last year same quarter for Godda?
Dilip Jha
Last year, give me some time. I have to check. So this last year number is I have to check. Just give me one minute. Yeah. So quarter three FY25, the revenue was INR2,132 crore and EBITDA was INR1,222 crore. And if you will ask for nine months same period, it was INR6,604 crore and EBITDA was INR3,989 crore. Now it is on the comparative basis, right? For nine months, this EBITDA is for this year INR3,247 crore as against the nine month last year INR3,989 crore. So there is reduction of INR700 crore. This is due to the reduction in the indices.
Aniket Mittal
And of that, almost — this quarter the reduction is close to INR120 crores on a YoY basis — and EBITDA?
Dilip Jha
Yeah.
Aniket Mittal
Okay. The other part to understand was there are two essentially large PPAs that were in the works for Rajasthan and Uttarakhand, which we were expecting to come. I think there’s been some sort of news with respect to the regulator not approving the Rajasthan tender. Just your thoughts on that, and going forward, when can we expect these tenders to…
Nishit Dave
Yeah. Dhruv [Phonetic], Nishit here. Just to actually clarify about the regulator’s view, the regulator felt, based on the submissions given, that the full 3,200 megawatt PPA may not be required at the same — at — altogether, which was actually based on the resource adequacy plans that the regulator had seen, which were submitted by the DISCOM. This is based on the proceedings in the regulatory hearings. So the DISCOM has represented that they would like to revisit the assumptions and, through their excellency, actually sort of support their case, emphasize their case that they require this sort of power require — 3,200 megawatts of PPA, and the regulator has given them that permission to present their case again. So I think that should take place in some time, and we should see the PPA moving ahead after that. So it was the case of Rajasthan. And so — because the state DISCOM actually felt that the numbers considered by the CEA were a bit more conservative as compared to what the DISCOM itself saw in terms of the demand for power.
In case of Uttarakhand, again, the bid documents have been released. I think that it’s going to take a little bit longer in case of Uttarakhand, but we should see the PPAs, the bids being submitted over the course of the next few months.
Aniket Mittal
Okay. Fair enough. Just two more questions. One is I can see that the interest cost has been declining fairly well. How is the average cost of borrowing now looking for us compared to, let’s say, one year back?
Dilip Jha
So if you see on the long-term rate, this is near about 8.5%, right? So the PFC, the funding for Jharkhand, because Jharkhand is already merged with Adani Power and now Jharkhand is also being part of Adani standalone entity, this asset is also rated AA. So the interest cost has also got reduced significantly. Apart from that, our working capital rate is also near about 6.5% to 6.8%. And the non-fund based, the rates are also very, very competitive. So if you see on overall basis, there is significant reduction in interest cost in comparison to the last year.
Aniket Mittal
Okay. What would be the weighted average, sir, right now?
Dilip Jha
Weighted average cost will be near — it will be less than 9% this year.
Aniket Mittal
Okay. On the merchant portfolio that’s remaining, the remaining 10% of, let’s say, 18.1, which is about 1.8 gigawatt, could you quantify that across plants, like the merchant 1.8 gigawatt?
Dilip Jha
Yeah. Just give me a moment. So we have readily available. So if you want to quantify it, for Kawai, we have 50 megawatt. For our Udupi, we have near about — they’re very insignificant to 7 megawatt to 10 megawatt. In Mundra, we have 226 megawatt. Raigarh, we have near about 100 megawatt. In Raipur operating plant, this is near about the 400 megawatt. In Mahan operating plant, we have near about 600 megawatt, and some small parts in some of the other plants. So making it total, so 10% of overall fleet.
Aniket Mittal
Understood. Fair. Those are my questions. Thank you.
Dilip Jha
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Manish Somaiya from Cantor. Please go ahead.
Manish Somaiya
Good afternoon. Good evening. By the way, that’s not fair that I only get two questions and everybody else gets five. But that’s okay. I’m kidding, by the way. But just a couple of questions. I guess I’ll limit it to two. First is you talked about renewable capacity scaling, which impacted merchant pricing. So how should we think about that as renewable capacity increases over the next few years? How should we think about the structural impact on thermal dispatch and merchant pricing?
Dilip Jha
Okay. So let me brief you. We have 18.15 gigawatt of operating capacity and we have the plans for capacity expansion of another 23.8, so near about 24 gigawatts, making it total 42 gigawatts over the period of next six, seven years, so in financial year ’31, ’32. From our — and being the baseload power, this is two-part tariff. One, fixed capacity charges on the basis of availability of the plant, and then energy charges out of operating capacity of 18 gigawatt. This is again fixed capacity charges and energy charges. Fixed capacity capacity charges which is available of the plant where we are ensuring that our plant is available. So we are about 90%-plus. In terms of PLF, it is driven by the market, right, where this depends upon the demand and supply. If demand is high, then the PLF will be high and subject to the merit order dispatch. So our revenues and EBITDA — mainly EBITDA is coming out from the — mainly from the capacity charges basis available of the plant.
Now coming to the addition of the plant, 24 gigawatt, our 100% EBITDA is driven by capacity charges only because fuels are 100% pass-through. There will be no impact in terms of whether there is demand or not. If plant is available, we will raise our bill, and our EBITDA will be ensured. So to sum it up your question — to answer to your question, operating assets 18.15, then majority of the EBITDA is driven by capacity. Yes, there is some energy efficiency contributing to the energy charges, but 24 gigawatt, 100% EBITDA is driven by the capacity charges. That is why from our operating asset we have 90% in the PPA and 10% open. We have mitigated the market volatility risk.
Manish Somaiya
And I believe. I think in the past…
Dilip Jha
Yeah, yeah. Go ahead.
Manish Somaiya
No, I was just going to say that I think in the — I think in the past you have said that the goal is to get the PPAs even higher, right? So maybe closer to 100%. Obviously, it may not be possible to get to exactly 100%, but close to it. Is that still the plan?
Dilip Jha
Yeah. So you have to see the base load and thermal capacity differently because this is part of resource adequacy irrespective of sources of the power. Now as — ao every state has to demonstrate that they have proper resource. And to demonstrate proper resource, they are tying up all these PPAs. Now this — the base load, which is mainly from the thermal, irrespective of the sourcing of power, this resource availability is there. And to ensure resource availability, every single state and DISCOMs, they are paying the capacity charges.
Now over and above this resource adequacy capacity charges, if any DISCOM will source from thermal, then the energy surges will be added, the fuel charges. If it is from green, then green charges will be added. So the resource adequacy part for baseload capacity is constant irrespective of sourcing of power. And that is where the base load is ensuring that our EBITDA is driven by availability of the plant, not on the basis of demand.
Nishit Dave
Yeah, Manish, just to sort of go back to that original question that you had related to the increasing penetration of renewables. So in the last quarter and also the year till date, till December, what has actually happened is that because of the extended monsoons, we have seen a good amount of increasing hydropower generation, and the cooler temperatures, etc., have also taken the peak off a little bit. So this is generally the time when thermal power comes in to supply more power. But this is where hydropower and, to some extent, the other sources of renewable power have also been able to meet the demand.
So if you look at the mix overall, the contribution of thermal energy in Q3 FY26 fell to 73% from 76% earlier. And for the total renewable energy contribution, which was around 20% earlier, that is both normal renewables plus large hydro, it has actually increased to around 24%. But that is actually a transient sort of phenomenon. Of course, as renewable energy capacity increases, we’ll start to see more and more power being supplied into the grid. But when it comes to merchant power, it would still have to contend with the inability to generate power on demand.
Again, for hydropower, etc., as the hydropower resources get used up, actually on a seasonal basis, the contribution comes down. And we are starting to see that also in terms of the daily merchant price movements on a 15-minute to 15-minute basis, hour-to-hour basis. So over a longer period of time, of course, the edge will come up a little bit. But at the same time, we also believe that peak demand will start to increase as more of household consumption of power increases and as also the industrialization-related drivers come into place. So we expect to see that sort of 388 to 400 gigawatt peak capacity, peak requirement by fiscal ’32, which would mean that there will still be good demand in the merchant market. And for the coming year at least, we are hoping to see better merchant prices as compared to the last year — the current year.
Manish Somaiya
Okay. That’s helpful. And then just for my second question, as obviously we’re sort of towards the end of January. Maybe if you can just give us a sense for how some of the operating metrics might be looking like on O&M availability, PLF, and should we be aware of any exceptional items in this March quarter?
Dilip Jha
Yeah. We hope — if you see the the demand for December and January, this has already increased on a year-on-year basis. So this is the demand is higher by 10%, 12% on month-to-month basis. What you are expecting that in quarter four the demand will definitely be higher than the current quarter. And so O&M availability, 90% anyway is there. And we think that PLF will also be better than quarter three.
Nishit Dave
So as we approach the hotter months, Manish, typically we see the PLFs going up. In the current year, when it comes to availability, we have carried out regular scheduled maintenance, both annual overhauls and capital overhauls in large number of units, and we expect to catch up with overall — we are actually very much compliant with the normative capacity that you provide under PPAs. But for the full year, we should be ending with more than 90% overall plant availability, anyway. Now that the — you can say the overhauls have been completed, right? Also, you also have to consider that we actually have acquired some of these plants that have been — not been operated very well, not been maintained very well in the past. So we have undertaken lots of, you can say, activities to improve their efficiency and uptime. It should start to show fruits going forward.
Manish Somaiya
Okay. Thank you. Thank you so much.
Dilip Jha
Thank you.
Operator
Thank you. The next question is from the line of Nikhil Abhyankar from UTI Asset Management. Please go ahead.
Nikhil Abhyankar
Thank you, sir. Just got a couple of questions. Can you just repeat again the physical progress plant-wise which you had mentioned in the opening remarks? And also, I think you mentioned that Korba is likely to get commissioned next year. I mean, I believe that there is no PPA for Korba as of now. So what are the plans over there?
Dilip Jha
Sorry, can you repeat the first part of the question again?
Nikhil Abhyankar
Can you mention the physical progress plant-wise, which you mentioned in opening remarks?
Nishit Dave
Okay. Yeah, yeah, yeah, sure. So Mahan, we have actually progressed nearly 80% Mahan Phase II. Raipur Phase II, we are at around 44%. And Raigarh Phase II, around 38%. So these two plants, actually, we started just around one, one and a half years ago. And Mahan, we have started a little bit more than two years ago. We have actually achieved excellent progress when it comes to execution of these power plants. Korba Phase II, as you would know, we actually acquired this Phase II project in a defunct state and we have now revived the project. We have received the clearances, etc., also necessary for carrying out the activities, and now we have started the work on this.
So this project should get commissioned somewhere around the middle — the first unit somewhere around the middle of next year and the next second unit by the end of next year. And we are looking at various opportunities in the market for bidding for PPAs. This would be a plant capacity that would be ready immediately. While states might require power in the, let’s say, five-year time horizon. So depending on the opportunity, we can sell power in the medium-term market. We can also look at supplying power in the merchant market because actually this plant is located right in the middle of some very large mines. So it’s got an excellent fuel cost advantage over there.
Nikhil Abhyankar
Understood. And sir, broadly, I mean in terms of the 24 gigawatt of underconstruction capacity, can you just break it down as to how much is likely to get commissioned, say, by FY28, FY30, and beyond?
Nishit Dave
Broadly speaking, next year around 2.9 gigawatt gets commissioned; in fiscal ’28, another 2.4 gigawatts; in fiscal ’29, 2.4 gigawatts; in fiscal ’30, we have 8 gigawatts being commissioned altogether; in fiscal ’31, we will have 5.6 gigawatts and then 2.4 gigawatts. So the entire capacity, this is how it is actually expected to take place — shape up. And the plants that we expect to get commissioned in fiscal ’30, we have started work on some of these plants. We’ll progress ahead as and when we get the environmental clearances for the rest of the power plants. Everything else that is required for setting up these power plants is already with us.
Nikhil Abhyankar
Sure. And just a final one short question. This Uttarakhand PPA that we have signed for 400-odd megawatts, I guess, what is the tariff for that?
Dilip Jha
Sorry?
Nishit Dave
Uttarakhand medium-term PPA tariff.
Dilip Jha
Okay. So its tariff is INR5.85. And…
Nikhil Abhyankar
Capacity would be around?
Dilip Jha
Yeah, this is 50%-50%.
Nikhil Abhyankar
50%-50%, fixed cost for 2.9?
Dilip Jha
Yeah. Correct.
Nikhil Abhyankar
Thank you. Thank you, and all the best.
Dilip Jha
Thank you.
Operator
Thank you. The next question is from the line of Nikhil Nigania from Bernstein. Please go ahead.
Nikhil Nigania
Hi. Thank you for taking my question. My first question is on the Bangladesh power plant, the Godda power plant. I wanted to clarify now that coal exports are allowed from India. Are we allowed to use domestic coal for this plant? A. And B, there was some recent press article around the plant. So just wanted to make sure contractually there are no termination clauses that are there in the contract and that we are well protected.
Dilip Jha
So let me apprise you about this plant, which is situated in the Godda district of Jharkhand, the northern Jharkhand you can say, and dedicatedly supplying power to Bangladesh. You will appreciate that this plant we completed in record time, in a scheduled time, and that too under Covid by connecting three countries, China, Bangladesh, and India. We are supplying around in the 10% of Bangladesh total effective capacity, the required. And the zone where we are supplying this power, this is around 20%.
Also, you will appreciate that we continued our supply when there was a huge turmoil. There was a very hardship time over there. But we never ever stopped; we continued our supplies. The receivable were all-time high. But we continued our supply, right? Now this is the plant, the dedicated supplying and earning around $1 billion forex for the country. Now, the supply is regular, the payment collection is regular. The relationship is very much the normal. Even in the difficult time, the August last year also, their controller were engaged with us, our operational team and then the power supplies got continued. In the extreme difficult time also, we supported, we supplied on as-usual basis. So the relationship in terms of the supply, payment, everything is continued. It’s normal. But we are mindful.
We are very much mindful about the circumstances and environment over there, and you guys also must be. So there may be some sort of in that country, but we are mindful that the circumstances and environment, and we are keeping watch on it. But our — the operation, supply, and everything is on a continued. And we think that these are very temporary period, and then these things will be over.
Nishit Dave
Yeah. Nikhil — yeah.
Nikhil Nigania
Yeah. Please.
Nishit Dave
Yeah. And related to this coal use, actually, Nikhil, in August ’24, the government of India modified its guidelines related to the export of power from India on a cross-border basis. So that is to nearby countries, right? So what the amended policy says is actually that electricity that is generated from coal-based power plants will be permitted only if this electricity is generated utilizing either imported coal or spot e-auction coal or coal that is obtained from commercial miner or if the government allows any specific other use. So this was not permitted earlier. Later on, they have eased this policy now that there is commercially mined coal available in India. And now the Mining Act actually allows bidders to bid for coal mines without specifying any end use, which means that they can sell coal also in the open market. Previously, it was only imported coal. But now domestically sourced coal, as long as not the government-controlled price coal, as you could call it, that is not used, you can actually use domestically.
Nikhil Nigania
Got it. Appreciate the detailed answer. Very helpful and very clear. Second question I had was on this pipeline of 15 gigawatt of ongoing thermal tenders. Could you give some more color on that? I think the color of Rajasthan helped. Out of the 15, have any of them progressed to financial bid submission, or are they still in the bid invitation stage only?
Nishit Dave
Yeah. As we understand, Maharashtra financial bidding has been done. But the bidding process, we — I think it is still to be closed. In other cases, I think we are at the pre-qualification bids, or you can say discussion on the bidding document stage.
Nikhil Nigania
And no other state reconsidering, like Rajasthan, at least that’s come to your notice?
Nishit Dave
No, none. None at all. In case of Rajasthan, it is primarily sort of — as I said, this is more about how the regulator sees what the CEA has worked out as part of the resource adequacy plan and what the DISCOM itself says about their future requirements. It is actually only about, you can say, a small difference between the two. And the DISCOM has been permitted by the regulator to come and present its case again with all the supporting information.
Nikhil Nigania
Perfect. Those were my questions. Thanks a lot for answering them. Thank you.
Dilip Jha
Thank you.
Operator
Thank you. The next question is from the line of Ishan Verma from Antique Stock Broking. Please go ahead.
Ishan Verma
Hi, sir. Most of my questions have been answered. Thank you.
Operator
Thank you. Thank you. The next question is from the line of Shirom Kapur from Jefferies. Please go ahead.
Shirom Kapur
Hi, sir. Thanks for the opportunity. Just had a bookkeeping question on your open versus PPA tied-up capacity. So obviously, your presentation mentions and you mentioned on call it 90%, though in your presentation we see that 5.5% is yet to be operationalized. Is that 5.5% a part of that 90%, which means currently 84.5% of the operational capacity has operational PPAs? Is that understanding correct?
Nishit Dave
So altogether, out of the total 100% capacity that we have, so some of these PPAs are being operationalized as we go along. But on an average basis, you can consider that 90% of the capacity is tied up and ready to supply power under the long-term PPAs. Some of the additional capacity will start over the next few months, and then this could increase to around 93%.
Shirom Kapur
Understood. Okay. So this 5.5% is not — is part of that — maybe some of it is part of that 10%, which is not tied up yet and eventually will get operationalized, just double-checking.
Nishit Dave
Correct, correct.
Shirom Kapur
Got it. So similarly, on that 370-megawatt PPA that’s been tied up with Uttarakhand, did that happen at the beginning of the quarter? Did you see — get the full impact of that during this quarter? Or is this going to be operationalized after the quarter three? Could you give some timeline on that?
Nishit Dave
Just a second. Uttarakhand PPA, you mean?
Shirom Kapur
Yes.
Nishit Dave
So these PPAs that we are talking about primarily that are not yet operationalized, they are PPAs that are with our group companies where you’ll actually start to see them getting operationalized. Uttarakhand PPA, we will start supplying it from next month onwards.
Shirom Kapur
Got it. From next month. Okay. And just lastly on the employee costs this quarter, so it was about INR216 crores, but in your notes you mentioned that INR56 crores is from increase in provisions regarding new labor codes. Just want to understand whether that is a part of this INR216 crores and how much of that is a one-time increase and how much is going to be recurring from that?
Nishit Dave
Yeah. Yeah. It’s part of the P&L. It’s actually charged to the P&L, and it’s actually part of the regular number. So we have not set it out as a one-time prior period item. The amount is around INR56 crores.
Shirom Kapur
Got it. So this INR216 crore, which includes this INR56 crores, and it will be — it’s a recurring item. This is not a one-off expense that we should…
Nishit Dave
No, no. So we have not categorized it as a one-time expense when we are talking about continuing revenues and expenses. But otherwise, that INR56 crore charge is a one-time charge.
Shirom Kapur
Okay. So excluding that, your staff cost would be about INR159 crores, INR160 crores, which shows a 25% decline year-on-year. So what would — excluding that amount, what has driven this decline in employee cost year-on-year because 3Q25, I see, is about INR211 crores. Was any one-off in that as well?
Nishit Dave
No, there is no one-off over there. But some of the employees have shifted to other parts of the organization. So that actually accounts for this reduction.
Shirom Kapur
Okay. So this INR150 crores, INR160 crores is what we should take as the base going forward for subsequent quarters as well, right?
Nishit Dave
See, the organization is also growing, so I can’t actually put a number to this aspect. But generally, it would be in that ballpark, you can say.
Shirom Kapur
Got it, got it. Understood. Thank you so much.
Operator
Thank you. The next question is from the line of Kalpit Sabhaya from GYR Capital Advisors. Please go ahead.
Kalpit Sabhaya
Thank you. Thank you very much for taking my question. My question is like for 3,200 megawatt Assam greenfield project, what is the estimated capex per megawatt and what may be the equity and debt mix for your plan — for the expansion you are planning?
Dilip Jha
Yeah. So we are not going for any project-wise financial closure in Adani Power. So if you see, our performance from operating assets, the EBITDA, continuing EBITDA, is very good, and so FFO on yearly basis from the operating assets is also very good, so near about INR20,000 crore FFO. And majority of our capex, we are funding from our internal accruals. So there is no project-specific funding we are doing. Now in terms of the capex cost is concerned for Assam, it will be near about the INR10 crore per megawatt basis?
Kalpit Sabhaya
Okay. Okay, understood. And sir, regarding the note, it is presented in the results that Godda power plant, it is mentioned that the significant amount from the Bangladesh board in the nine months that we have received some — recovered significant amount. So could you please quantify the current outstanding receivable from Bangladesh board as on the 31 December?
Dilip Jha
Yeah. So what I explained to you is that the borrowing from Bangladesh is regular, right? And even we are getting — so the — so let understand the Bangladesh, supplies regular, billing is regular, payment also we are getting on regular basis. So if you see on — so the dues are near about equal to — so one month, it’s not due. So there are about two months due is there so far Bangladesh is concerned. We are getting payment regularly from Bangladesh. So it’s a regular deal.
Kalpit Sabhaya
Okay, sir. Understood. And sir, another question is like regarding the unsecured perpetual securities. A company has paid around INR3,000 crore in the first nine months. And what is the outstanding balance of the securities? How are we planning to fully extinguish this? Are we planning to extinguish this by the end of this financial year?
Dilip Jha
Yeah. So we have paid entire amount. So if you ask what is outstanding, as of now, there is no outstanding at all. So you can say the nil. No outstanding.
Kalpit Sabhaya
Okay. Understood, sir. Understood. That’s all, sir. All other questions were covered up by previous Q&A. Thank you.
Dilip Jha
Thank you so much.
Operator
Thank you. [Operator Instructions] The next question is from the line of Sucrit Patil from Eyesight Fintrade Private Limited. Please go ahead.
Sucrit Patil
Good evening to the team. I have a forward-looking question. With power demand remaining strong and thermal generation continuing to play a critical role in grid stability, how is Adani Power thinking about optimizing its operating portfolio between contracted and merchant exposure? In this context, how do you prioritize sourcing tactics, plant efficiency improvements, and long-term capacity utilization to ensure sustainable returns across different demand and pricing scales? Thank you.
Nishit Dave
Yeah. Thanks. Sukrit, actually, if you followed the discussion, see, we have 18 gigawatts capacity now. We are adding another 24 gigawatts. Now for the new capacities that we are setting up actually, we intend to tie up the entire capacity in long-term PPAs and the existing capacity also has 90% tie-up in long-term PPAs. So we actually are reducing our merchant exposure going forward. Now, if you look at the overall structure of the new PPAs, in this case, now the entire game has become keeping generation capacity available to help integrate more renewable power into the grid and to continue to supply baseload power.
So the PPAs now will act or you can say the power plants will now act more as — increasingly as we go along, they will start to act more as balancing power plants. And therefore, the focus would be on keeping the plant uptime as high as possible rather than actually trying to maximize the PLF out of them. But that said, actually these power plants that we are setting up are the state of art in technology with very good levels of thermal efficiency, which means that they utilize lesser amount of coal to generate a unit of power, up to around 5% to 10% advantage over the older technology power plants. And they would be able to do it at a lower cost as well because most of these power plants are located very close to the coal sources.
So the loading of logistics cost on the coal price would also be lesser. So to the extent that the cost economics allow in terms of how the overall energy mix works out, actually they will continue to see a high level of utilization. And as we are using the latest technology, which is also technically — technologically more advanced, we actually also have the ability to control finer aspects of the power plant’s operations more granularly. We are employing technology to improve the predictability of plant operations and to carry out the preventive maintenance, etc. So as an organization, we are very much involved and invested in utilizing the latest available technologies to improve power plant efficiency.
Sucrit Patil
Thank you. And just one question for Mr. Jha. Can I ask my question, please?
Nishit Dave
Yeah, please. Very shortly.
Sucrit Patil
Thank you. Thank you. Given the constant volatility in the fuel cost and the constant regulatory compliances, which will also keep on changing from time to time, just want to understand what is your vision on approaching margin visibility and cash flow across the board. Additionally, can you just shed some light on the capital allocation and balance sheet priority as the company balances debt, maintaining capex and potential growth? Just want to understand your view on this. Thank you.
Dilip Jha
Yeah. So as you know, as we are briefing that, our overall capex plan over the period of six, seven years to add 24 gigawatt is near about INR2 trillion. So in dollar term, we can say that $22 billion, so INR2 lakhs crores from capex program we have in Adani Power that we are going to incur over the period of five, six years. Now, the funding arrangement, majority of the funding arrangement we will do from our internal accruals. So we have operating assets of 18.15 gigawatt. From that, on yearly basis, we are generating an EBITDA of — so we are about INR22,000 crore and FFO INR20,000 crore. So in the same period of time, so over the period of five, six yearsm we are generating from our operating assets only INR1.4 trillion, so INR1.4 lakhs crore. So there is a gap of INR60,000 crore, and this interim gap is — so we are — so funding from a mix — from the domestic capital market as well as from the domestic bank and this recent NCD issue of INR7,500 crores maybe another one of the example the investor confidence and part of our — the planned program to mitigate this interim gap.
Now if you see this time presently, our operating capacity 18.15, we are adding 24 gigawatts; our capacity will be 42 gigawatt. On an average basis, our EBITDA is INR22,000 crore. Our FFO is INR20,000 crore. You will see by ’31, ’32, where we will add our entire capacity. By that point of time, our EBITDA and cash flow, we will have sufficient cash flow, we can pay our entire debt. And even after paying entire debt, we will have significant amount of cash flow in hand. So we are not going for any project-wise funding. We are funding our entire capex majority from our internal accruals, and the gap interim we will be funding from domestic capital market as well as domestic banks.
Nishit Dave
So Sucrit, thank you. I hope that answer — explained these matters to you well, and we would now like to close the call.
Operator
Sure, sir. In regards, if you have any closing remarks, please go ahead.
Dilip Jha
Yeah. Thank you very much for your kind time and attention. And Adani Power is from operating assets, revenue is visible, liquidity is very clear. And then the growth plan is sufficiently funded by ensured liquidity from our operating assets. And we are very much confident that in the planned way, we will add our capacity, and also, we will move from 18.15 gigawatt capacity to 42 gigawatt capacity by ’31 and ’32. And so our return on assets, it will be one of the best in the industry. Thank you very much.
Operator
[Operator Closing Remarks]