Adani Power Ltd (NSE: ADANIPOWER) Q4 2025 Earnings Call dated May. 01, 2025
Corporate Participants:
Shersingh B. Khyalia — Chief Executive Officer
Dilip Kumar Jha — Chief Financial Officer
Anupam Misra — Head of Group Corporate Finance
Analysts:
Mohit Kumar — Analyst
Abhinav — Analyst
Yash Agarwal — Analyst
Nikhil Nigania — Analyst
Mahesh Patil — Analyst
Darshan — Analyst
Nikhil Abhyankar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Adani Power Limited Q4 FY ’25 Earnings Conference Call hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you and over to you, sir.
Mohit Kumar — Analyst
Yeah. Thank you, Sejal. Good afternoon. On behalf of ICICI Securities, we are pleased to welcome you all to the Q4 FY ’25 Earnings Call of Adani Power Limited. Today, we have with us the management team represented by Mr. S. B. Khyalia sir, CEO; Mr. Dilip Jha, CFO; and Mr. Nishit Dave, AVP, Investor Relations. We also have with us Mr. Anupam Misra, Group Head, Corporate Finance with us.
We’ll start with brief opening remarks, which will be followed by Q&A. Over to you, sir.
Shersingh B. Khyalia — Chief Executive Officer
Good afternoon, everyone. Thank you for joining us today to discuss Adani Power’s financial results for the fourth quarter and fiscal year ’24-’25. It has been a remarkable year for us. We have achieved significant milestones and made strategic advancements. This has strengthened our position as the largest private thermal power producer in India. At Adani Power, our objective is to provide a reliable, sustainable and scalable energy solutions. Our performance for financial year ’25 demonstrates our deep commitment to this mission.
I’m happy to note that Adani Power generated 102 billion units of power in financial year ’25 and achieved 91% plant availability. We are proud to support India’s economic growth by making reliable and affordable power across all markets. During financial year ’25, our power sale volume increased by 20.7% to 95.9 billion units. In the fourth quarter of financial year ’25, we achieved a power sales growth of 19% with sale of 26.4 billion units.
This growth is due to strong power demand and higher operating capacity, followed by acquisition of 2,300 megawatt operating capacity during the year, which takes our operating capacity to 17,550 megawatts. The power market has shown robust growth. All India power demand increased by 4.2% to 1,695 billion units for the financial year ’25. Despite a slowdown due to cold weather, demand picked up in the month of March, growing by 6.6% over March ’24. This had some impact on merchant tariffs in the second half of the year. However, we have been able to achieve higher volumes in the merchant and shorter market due to our competitive advantages like a cost-efficient operating fleet, high plant availability, and low cost of fuel logistics.
Looking ahead, we are excited about the opportunities. We are expanding our capacity to 30,670 megawatt by 2030. We are constructing three brownfield projects of 1,600 megawatt each at Mahan, Raipur, and Raigarh. The project activities are in full swing. We are also reviving the 1,320 megawatt expansion project of Korba Limited at Korba. Altogether, we have given advance orders for 11.2 gigawatt of ultra-supercritical boilers, turbines and generators to secure our supply chain. This is a strong competitive advantage for us as we will have capacity getting commissioned ahead of the competition. We are taking a number of steps to address execution risks for our expansion plan. The brownfield model of expansion along with a package-based contract execution model will allow us to shorten execution times and improve flexibility as well as back-to-back assurances from vendors and suppliers.
As you might know, we have signed PPAs for 2.92 gigawatt of the upcoming capacity. We are participating in various bids of the long-term thermal power PPAs from state DISCOMs. There are more than 14 gigawatt bids at various stages currently and more than 10 gigawatt bids are expected to be launched soon. These bids are being invited with coal linkage earmarked for states under SHAKTI B (iv) policy. As on date, 24 gigawatt of coal allocation has been made to various states for inviting the bids under this policy. This step goes a long way in mitigating the fuel risk for our upcoming power plants and there is an equitable distribution of risk between the developer and the DISCOM under the new PPA model.
In addition to this, we are also entering the area of commercial coal mining for our captive use. We have won four mine auctions with a total of 14 MTPA capacity. Three of these mines are in Madhya Pradesh and one is in Maharashtra. One of the mines in MP, which is in the Dhirauli block in Singrauli, will start production of coal during this year. This will help us augmenting our coal supply, sharpen our logistics advantage, and develop a long-term source for open capacities. We are highly confident that thermal power will continue to play a key role in India’s energy mix in the foreseeable future and Adani Power will play a key role in achieving India’s energy goals in the coming years.
In conclusion, I would like to thank you dedicated team, our partners and our stakeholders for their support. Together we are building a sustainable and prosperous future. Thank you and over to our CFO, Mr. Dilip.
Dilip Kumar Jha — Chief Financial Officer
Thank you, sir. Good afternoon, everyone. I am pleased to present the financial performance of Adani Power for the full fiscal year and fourth quarter of FY ’24-’25. This year has been one of the robust growth and strategic advancements. For the full fiscal year, our total continuing revenues increased by 10.8% to INR56,473 crores. Our continuing EBITDA grew by 14.8% to INR21,575 crores and this was due to higher revenue and lower fuel prices. The depreciation charge for FY ’25 increased to INR4,309 crores from INR3,931 crores in FY ’24 and this is due to addition of new acquired assets.
Interest charge for FY ’25 was nearly identical at INR3,380 crores for FY ’25 as compared to INR3,388 crores for FY ’24 and this is despite the acquisition of new assets during the year. Our continuing profit before tax for FY ’25 increased by 21.3% to INR13,926 crores. During FY ’25, we had much lower one-time prior period income recognition of INR2,433 crores as compared to INR9,322 crores in FY ’24. As a result, the reported profit before tax was INR16,360 crores in FY ’25 as compared to INR20,792 crores in FY ’24.
During FY ’25, we have provided for a higher tax expense of INR3,610 crores primarily due to deferred tax liability and as compared to tax credit of INR37 crores in FY ’24. As a result, the profit after tax achieved in FY ’25 is INR12,750 crores as against INR20,829 crores. With this robust profitability and cash flows, we have ended the fiscal year ’24-’25 with a stronger balance sheet and sound liquidity.
Now talking about the fourth quarter of FY ’24-’25, our power sales volume for quarter four FY ’25 increased by 19% to 26.4 billion units. The continuing revenue for the quarter is INR14,522 crores as compared to INR13,787 crores in quarter four of last year.
APL has achieved continuing EBITDA of INR5,098 crores in Q4 FY ’25 as compared to INR5,273 crores in quarter four of last year. We recognized lower one-time prior period income of only INR13 crores in the quarter as compared to INR94 crores in quarter four of last year. Continuing profit before tax is INR3,248 crores in quarter four FY ’25 as compared to INR3,464 crores in quarter four of last year. Profit after tax for the quarter is INR2,599 crores as compared to INR2,737 crores in quarter four of last year.
Now coming to the business, we have made significant progress in advancing our business strategy. The amalgamation of Adani Power Jharkhand Limited with Adani Power Limited was completed recently on 25th April. Its 1600 megawatt capacity now forms part of APL’s standalone capacity. Adani Power Jharkhand was rated as BBB level. However, after this amalgamation, the combined facilities of Adani Power and Adani Jharkhand within the standalone entity of APL are now rated as AA level.
Further, we received the committee of creditors’ approval for our resolution plan for the acquisition of Vidarbha Industries Power Limited which operates at 600 megawatt power plant at Butibori near Nagpur. We hope to conclude this acquisition soon, which will take our install capacity to 18,150 megawatt.
Our strong financial performance and sound capital management over the last few years have increased our financial strength tremendously. This is further evidenced by our credit ratings. APL is now rated AA stable by four rating agencies. This reflects our strong financial position and the confidence the market has in us.
Looking ahead, we remain focused on executing our expansion projects and maintaining our operational and financial discipline. We are confident in our ability to deliver superior returns to our stakeholders while continuing to invest in sustainable and innovative energy solutions.
In conclusion, I would like to thank our investors and analysts for their support and confidence in Adani Power. We look forward to another year of growth and success. Thank you. Now we would like to open the floor for questions and answers. Thank you.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] The first question is from the line of Abhinav from ICICI Securities. Please go ahead.
Abhinav
Hi, sir. Good afternoon. Thanks for the opportunity. My number one question is, can you please update on the progress of under-construction power plants and what has been the capex incurred in FY ’25 and what will be our guidance for FY ’26?
Dilip Kumar Jha
To address your first question about expansion of our project, APL has initiated development of six 2 x 800 megawatt, 1600 megawatt each of ultra supercritical thermal power plant expansion projects at its existing plants, Raipur, Raigarh, Kawai, Mahan, Korba and a new site at Mirzapur. BTG contracts has awarded to BHEL and it will take approx four years for construction. Raipur-2 and Raigarh-2 achieved physical progress of 21% and 16% respectively. Mahan has already achieved significant progress. Power supply. Regarding this, we have already signed PPA with MSEDCL for supply of 1,496 megawatt power. MERC by its order dated 26th September 2024 has adopted a tariff discovery under the bid capacity.
Now, to summary the project expansion plan, we have already incurred around INR8,000 crores in financial year ’25 itself, and we have plan of INR13,307 crores for next year and this is including all, Mahan phase 2, Raigarh phase 2, Raipur phase 2, Mirzapur, Kawai and then Korba, Mahan phase 3 and Korba phase 3. Thank you.
Abhinav
Thank you, sir. My second question is, is it possible to give us an update on the receivables from Bangladesh and also can you help us with revenue, EBITDA and PAT for the Godda power plant?
Dilip Kumar Jha
Yeah. So as of now, the total billing we have done so far is around $2,000 million. We have already received, out of $2,000 million, $1,207 million and we have also billed LPS of $136 million. So, as of now, on gross basis including LPS, our outstanding is around $900 million.
Abhinav
And sir, can you help us with the revenue, PAT and EBITDA for Godda power plant?
Dilip Kumar Jha
Yeah. For the Godda plant, on annual basis, we have EBITDA of INR4,820 crores and for this quarter, this is INR831 crores. And in terms of revenue, we have INR8,352 crores on annual basis. Anything else you want to know?
Abhinav
No, sir, thank you. That was helpful. Thanks a lot, yeah.
Dilip Kumar Jha
Thank you.
Operator
Thank you. The next question is from the line of Yash Agarwal from JM Financial. Please go ahead.
Yash Agarwal
Hello. Yes, good afternoon. I wanted to know what was the merchant realization in the fourth quarter and the volumes and also the year-on-year number for the last year.
Dilip Kumar Jha
Yeah. So the merchant realization in quarter four of FY ’25 is INR5.03 in quarter four and in the last year in the same quarter, it was INR6.17 per unit. On yearly basis for FY ’24- ’25, the realization was INR5.93 as against, last year FY ’23-’24, it was INR6.92. Total summary, on annual basis against last year, the realization is INR5.93 against INR6.92 and on quarterly basis, INR5.03 as against last year quarter it was INR6.17.
Yash Agarwal
And sir, the outlook for merchant rates for this financial year, how do you see that panning out?
Shersingh B. Khyalia
If we see from March ’25 onwards, the outlook of demand is quite encouraging, and the rates from March onwards has also gone quite high. So, we assume that throughout the year, this year we should be hoping to have good rates and good demand. The economy is growing and there is very less capacity likely to get commissioned during the year, particularly from thermal side. So, we hope to have good rates this year.
Yash Agarwal
Sure, sir. And sir, what is the capex for FY ’26? I didn’t get that number, the plan of capex for FY ’26.
Shersingh B. Khyalia
It’s INR13,000 crores.
Yash Agarwal
INR13,000 crores. Got it. And all the NCLT plants, they have commissioned or there is something left to come onstream in FY ’26 that we have bought? The inorganic plants are all now commissioned or there is something more to come in FY ’26?
Shersingh B. Khyalia
Whatever plants we have acquired, except in Lanco Amarkantak, two units are under construction and which are likely to be get commissioned either end of this year or first half of the next year. Other than this, VIPL is a commissioned plant. So, once the NCLT order is pronounced, that will get added as a commissioned unit. There are two units of total 600 megawatt capacity. So, that capacity will get added.
Yash Agarwal
Got it. Got it. Okay, sir. Okay. Thank you so much for answering my question.
Operator
Thank you. The next question is from the line of Nikhil Nigania from Alliance Bernstein AMC. Please go ahead.
Nikhil Nigania
Hi. Thank you for taking my question. My first question is around the capacity expansion only. So, just wanted to clarify, you said Lanco Amarkantak late this year, early next year. After that, the next set of capacity we’ll be adding would be Mahan, 1,600 megawatt. And in how much time, if you could clarify that. And after that, it would be the Raipur expansion. Am I correct?
Shersingh B. Khyalia
Mahan will come on stream, and will get commissioned in the March ’27 or April ’27, something around that period. And thereafter, we have lined up the capacity, which will come up almost every six months, let us say, one unit. So, broadly, you can take that thereafter every six months, you will have one unit commissioned of 800 megawatt.
Nikhil Nigania
Understood. That’s very helpful. Just in terms of PPA, I mean, if you could share some more color. I mean, the presentation is helpful. But given there is so much capacity we have ordered, for most of these assets, we are already in discussion for a potential PPA through bidding route or how do we get the comfort given such a huge quantum we are adding?
Shersingh B. Khyalia
See, as we already said during — I said in my speech also that 24 gigawatt equivalent to coal has been allocated to various states for carrying out the bidding. So, we expect that in near future, that type of capacity will be bid. And already, let us say, 4,100 megawatt Madhya Pradesh bid is on, Bihar 2,400 megawatt bid is on, Rajasthan 3,200 megawatt bid is on, and Uttarakhand 1,320 megawatt bid is on. So, a lot of capacity is already there in the market for inviting the bids.
On top of that, you must have heard nowadays in last one or two days that the Government of India has increased the target of capacity addition from 80 gigawatt to 100 gigawatt. So, when we are talking about adding the capacity, obviously this capacity is not going to be added by entirely by the government utilities, it will be added through private sector, and for which, obviously bids will come. So, we are hopeful that our this entire capacity will get signed through PPAs. And not only this capacity, probably the states will need much more capacity than ours also. And if other bidders would be there in the market, everybody would get the opportunity.
Nikhil Nigania
Appreciate that. That’s very, very helpful. One clarification on Bangladesh, that we are still supplying to Bangladesh — power to Bangladesh or due to balance payment, we have stopped supplying for now? Just wanted to clarify that.
Shersingh B. Khyalia
We are supplying full power to Bangladesh and we have never stated that there was an issue to the level that would we have to stop the supply. Fortunately, in the last quarter, the outstanding has gone down by around INR500 crores. So, the payment which we are getting now is more than the billing — monthly billing.
So, we are hopeful that not only are we going to get the payment equivalent to the current month billing, but we are going to get the old outstanding dues also liquidated. So — and the payments which is coming up is also showing that indication.
Nikhil Nigania
Got it, sir. Then the last question I had was on the merchant side. So, Adani Power has done well to make the most of the merchant market last three years. But going forward, especially during solar hours, as we see prices fall to INR0.50, even INR0.10 on a few days, and even renewable curtailment come in. What is the strategy you have, given the good sort of merchant exposure the company has, to tackle this very low afternoon power prices that we are seeing?
Shersingh B. Khyalia
So, we are not keeping the entire capacity for the day ahead market. We are, most of the time, tying up through the bilateral contracts for a month ahead, two months ahead, three months ahead, sometimes even six months or a year. So, though it is merchant, but it’s not kept completely floating capacity for the day ahead market. So when we do the tie-up for a quarterly basis or six-monthly basis, we get good realizations and that is what we would be doing.
Nikhil Nigania
Understood. So, it’s a mix of bilateral and exchange we are using to balance the profile.
Shersingh B. Khyalia
Correct, yeah.
Nikhil Nigania
Understood, understood. Thank you, sir. Those are my questions. Thank you so much.
Operator
Thank you. [Operator Instructions] The next question is from the line of Mahesh Patil from ICICI Securities. Please go ahead.
Mahesh Patil
Yeah. Hi, sir. Thanks for the opportunity. So, my first question is on the merchant power. When you say merchant sales, how do you exactly define it? Does that mean all the power that is excluding the long-term contracts? Does it also include the medium-term contracts in the merchant sales? Do you include that?
Shersingh B. Khyalia
If the power is sold in medium term, which is more than one year, in that case, it doesn’t remain the merchant. So, when we are talking about merchant, that means it is not sold for more than one year. So we are talking about less than one year and for less than one year, we can have bilateral contracts for — ranging from, let us say, a week to a year. So, depending on the expected price curve for the next one year, if we are getting a good rate in the market in line with the expected price curve, then we do tie up in the short term through bilateral contracts.
So, we are keeping only — for day ahead, only the residual power which is sometimes we are keeping as a reserve also because when you have so much of capacity, so many times the station will go to — for outage, and at that time, I should not fail to supply. So, only we are keeping some residual power and that power, if all the stations are in operation, so that residual power only we sell in day ahead. So, we are not taking exposure for the entire capacity on day ahead market.
Mahesh Patil
Okay, sir. Understood. Sir, my second question is on the status of the fuel supply agreement for the new upcoming capacity. So, could you throw some light on that and any tenders that are floated by the states regarding this fuel supply agreement?
Shersingh B. Khyalia
I have already given the entire details. Let me just — for the sake of repetition. Already tenders from Madhya Pradesh 4,100 megawatt, Bihar 2,400 megawatt, Rajasthan 3,200 megawatt, and Uttarakhand 1,320 megawatt. All these tenders are with coal supply. So Government of India has allotted coal to these states and states are offering from their side as an input to the bidder. So, whatever new tenders are coming for procurement of power, they all are coming with coal availability as the responsibility of the state. So there is no concern about availability of coal. Otherwise also there is abundant availability of coal now in the system. States are getting the coal allocation from the Ministry of Coal easily and states are offering that coal to the bidder.
Mahesh Patil
Okay, sir. Got it, got it. Thank you. And sir, one more question on the Q4 numbers. The other income that we have compared to last Q4, that has come down quite a bit. In the notes, I can see that you have mentioned that LPS payments of around INR367 crores have been received this year, out of which Q4 had just INR7 crores of LPS payments. So, could you throw some light on that? I mean, why it was higher in the nine months and it’s lower in the fourth quarter and if you can share the overall LPS amount that is pending as on date?
Dilip Kumar Jha
To answer your first question of other income, in Q4, actually, on the last year, we had received a income of customs duty refund of INR259 crores. This year, we don’t have such a refund. That is one of the impact we have done — we have recorded this year. That is why the other income is lower in comparison to the last year. Second part, so LPS. So LPS, in most of the cases we are receiving payment on time from all our Indian DISCOMs. Only one DISCOM, where we have already said that there is — the gross overdue is from Bangladesh. There we have recorded $136 million of LPS. Out of that, 50% of LPS they have already admitted and accepted. So we are expecting very soon this amount also we will get from Bangladesh. From Indian DISCOMs, there is no delay in payment. We are getting all the payments on right time.
Mahesh Patil
Okay, sir. Got it, got it. And sir, my last question is for the capex in the near term, especially in this fiscal. How will be the funding? Is there any debt that you are planning to raise for this capex?
Dilip Kumar Jha
For most of the year, capex, we will fund from our internal accruals only. We have also reported that on a continuing basis, last year only we have — it is more than INR21,000 crores EBITDA, and this year also we are expecting more than that. So, our internal accruals will be sufficient to meet our capex requirement.
And Anupam, if you would like to add something on funding side?
Anupam Misra
I think if you look at the presentation, this time around, we have added a slide on how the cash flow generation of the existing portfolio of assets of Adani Power is very strong and against an EBITDA of about INR24,000 crores. And if you multiply that over the next six years, you will see that it more or less covers — it’s actually in excess of what we need to spend as capex. So, in that format, you will see that we actually do not even need to have any additional borrowing also to be able to meet our capex plan. So, that way, the balance sheet position is expected to be very, very strong from current level. It’s already very strong, it’s in the range of 1.4 to 1.5 times net debt to EBITDA.
That number is going to improve further and not only with it the credit rating of APL improves, but at the same time, the flexibility that is available for APL is unmatched. There’s no other company in the country which has the ability to contract assets without having financing, and therefore, that’s the reason why we’ve been able to put in orders for 11.2 gigawatt of coal power projects. So, that de-risks our project execution and our ability to get these projects up and running.
Mahesh Patil
Okay, sir. Thank you so much.
Operator
Thank you. The next question is from the line of Darshan from Jefferies Group. Please go ahead.
Darshan
Good afternoon, sir. Am I audible?
Operator
Yes, sir.
Dilip Kumar Jha
Yeah, yeah. You’re very much audible.
Darshan
Sir, I just had one question, can you share the average PPA tariff for FY ’25?
Dilip Kumar Jha
Yeah, yeah. For FY ’25, my PPA tariff is INR5.60.
Darshan
All right, sir. Thank you.
Dilip Kumar Jha
Per unit.
Operator
Thank you. The next question is from the line of Nikhil Abhyankar from UTI Mutual Fund. Please go ahead.
Nikhil Abhyankar
Yeah. Thanks for the opportunity, sir. Sir, you mentioned just a while ago that most of your capex will be done through internal accruals. Can you just elaborate why exactly is this the reason because if we are able to — I mean, instead of giving dividends, if you’re making such humongous cash, I mean, we are hampering our ROEs going forward.
Dilip Kumar Jha
Yeah. Sorry, can you repeat your question please. The last part you’re — so this is ROA or ROE?
Nikhil Abhyankar
ROE, sir. I mean if the [Speech Overlap]
Operator
Sorry to interrupt, sir. The audio is not very clear.
Anupam Misra
Is it clearer now?
Operator
Yes, sir.
Anupam Misra
So I think the aspect that you’re missing out is that the returns on the asset itself are so attractive that when we build these assets and we’re able to derive the EBITDA that we derive from them, that itself means that we are operating in an environment where the ROEs are very attractive. So, it is not going to be ROE-dilutive in any form or manner. At the same time, the capex opportunity — we’re trying to see if there can be a bigger capex opportunity.
We’re currently targeting around INR120,000 crores over the course of next six years. If that number can be increased, that is where leverage will come into play. Dividend is a decision that the Board will take at the right time when the returns that they are generating from incremental cash flow investment are lower than the marginal rate of return that the investors are looking for. At that point, it would make sense for the company to start paying significant dividends from a cash flow.
You must have seen the Government of India has actually revised the target from 80 gigawatt to about 100 gigawatt now. And there are talks of further revisions upwards as well. So, there are opportunities here which can come into play. It’s an evolving situation, but I think the point I wanted to highlight is the company sits in a very comfortable position based on the free cash flow generation. That means that there is strategic flexibility to whichever direction that the organization want to go into, and the returns on assets are very attractive going forward as well. Our cost per megawatt is much lower than what other people are building.
And that is primarily driven by our speed, swiftness and our historical advantages that we have in what Dilip and Khyalia sir touched upon about how we have been executing projects over the past many years. You must have seen Adani Green this year had added 3.4 gigawatt. It’s the largest greenfield capacity added in India by any renewable company. We are targeting to add about 5 gigawatt next year. So, that’s a common thread across the group that is project execution and executing projects within cost and time budgets, which means that our assets generate a higher ROA as compared to the competitive landscape.
Nikhil Abhyankar
Sure. Understood, sir. And sir, you also mentioned about it in your comments. Can we expect a significantly higher capacity addition announcement in coming times as well? I mean, currently we have a target of, say, 30 gigawatt. How large can it be, if at all?
Shersingh B. Khyalia
I think it will not be fair to say anything on that, further, at this stage. Once we finalize it, we will certainly come out in public. So at this stage, whatever we have already announced should be taken as officially announced. Thank you.
Nikhil Abhyankar
Sure. And for this commercial coal mining, you mentioned the total capacity of 14 million tonnes. I mean, how much of our coal requirement will be sourced through this?
Dilip Kumar Jha
So the total capacity of all the four coal mines are 14 million metric tonne per annum. And out of that, one is in the state of Maharashtra and three blocks are in the state of Madhya Pradesh. At peak capacity, it will provide 14 million metric tonne per annum.
Shersingh B. Khyalia
In terms of megawatt capacity, it can cater to 3,000 megawatt. Mainly, it will be used for merchant capacity because all the PPA plants will have a linkage from the state side. So the PPA plants don’t need the captive mine coal. The Maharashtra is obviously — will be used at the nearest plant in Maharashtra. And the rest of the three mines are in Madhya Pradesh, Singrauli, where we have this Mahan Power Plant, where phase 3 is also coming, which is not yet tied up and phase 1 is also not tied up with — under any PPA. So, we have good capacity at that location. So there we can optimize our resources, optimize our EBITDA by using the captive mine coal. Particularly, we save — when we use the captive mine very near to the power plant, a good saving is on account of cost of transportation.
Nikhil Abhyankar
So, any ballpark number as to what will be the cost of mining?
Shersingh B. Khyalia
The cost of mining is almost same or near to whatever the coal we get from Coal India. So, in terms of cost of coal, there will not be much of saving, but in most of the power plants, almost 50% to 100% of the coal cost goes to the transportation, and that would be almost entirely savings.
Nikhil Abhyankar
Sure. Sure, sir. Thank you and all the very best.
Operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Dilip Kumar Jha
Thank you. Thanks a lot for your time and we are looking forward to the same energy, same spirit in the financial year ’25-’26. Thank you. Thanks a lot.
Operator
[Operator Closing Remarks]