Adani Power Ltd (NSE: ADANIPOWER) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Shersingh B. Khyalia — Chief Executive Officer
Dilip Kumar Jha — Chief Financial Officer
Analysts:
Mohit Kumar — Analyst
Abhinav Nalawade — Analyst
Manish Somaiya — Analyst
Uma Menon — Analyst
Ishan Verma — Analyst
Vishal Periwal — Analyst
Kartik Sharma — Analyst
Shirom Kapur — Analyst
Bharat Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Adani Power Limited Q4 FY ’26 Earnings Conference Call hosted by ICICI Securities. 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] 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
Thank you, Swapnali. Good morning. On behalf of ICICI Securities, I would like to welcome you all to Q4 FY ’26 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’ll start with a brief opening remarks, which will be followed by Q&A.
Thank you and over to you, sir.
Shersingh B. Khyalia — Chief Executive Officer
Good morning, friends. I want to extend a warm welcome to everyone who has joined us today for our fourth quarter and full year ’25-’26 earnings call. I appreciate you taking 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 are available on the stock exchange and our website. With me on the call today are our CFO, Mr. Dilip Jha; and our Head of Investor Relations, Nishit Dave. As you all know, the world is trying to endure a major energy price shock which happened due to geopolitical reasons. Most of the people have nothing to do with this event and therefore, they can’t avoid such things. The only way to combat this is to mitigate the fallout, which means we have to become self-sufficient in our energy needs. It is vital for economic health and growth. Luckily for India, we have alternative resources namely solar and wind energy or coal.
They help us enhance our energy security and lead us to a position where we can enjoy energy sovereignty. Now the world has also come to realize that fossil fuel-generated power cannot be just wished away. It has a crucial role to play to balance the grid as renewable energy penetration increases. As our power needs become more intense, it is reliable and domestic energy sources like coal that come to our help and provide electricity that runs our ACs, our factories, our data centers. I’m proud to say that Adani Power has consistently delivered a strong performance and supplied power reliably for its customers. In the financial year ’25-’26, we achieved a milestone by generating 405 billion units of power. This is in the backdrop of tepid growth in power demand, which was only 0.08% for FY ’26 and 1.6% for Q4 FY ’26 over the previous year. As you all know, this slow growth in demand was due to an early and extended monsoon that lasted almost till November and cold weather in some parts of the country following that.
However, we have started to see a good revival in power demand from March as warmer weather has arrived. Peak demand has recently touched 256 gigawatts and it is expected to rise further in the current year. We believe that 2027 will see a strong growth in overall power demand as well as peak demand. Despite a dynamic demand environment influenced by variable weather patterns, we reported a robust EBITDA of INR7,341 crores for the full year. Our performance in the fourth quarter was particularly strong with a EBITDA of INR6,498 crore marking a significant 27% increase year-over-year. This demonstrates our operational resilience and financial discipline. We have ended financial year ’26 with a solid INR12,971 crore profit after tax. Our capacity expansion program is a cornerstone of our strategy. We are making excellent progress towards our goal of adding 23.7 gigawatt of thermal capacity by 2032.
During the year, we have successfully tied up 10.4 gigawatt of our expansion capacity under long-term PPAs. A key highlight this quarter was securing a LoA for a 1,600 megawatt PPA from Maharashtra DISCOM. With this, our total tied-up expansion capacity now stands at an impressive 13.3 gigawatt. Furthermore, we have ensured revenue visibility for our current operations with 95% of our operating capacity now tied up under long-term and medium-term PPAs. This strategy provides stability and de-risks our business from short-term market volatility. We expect higher PPA offtake and stronger bilateral demand in 2027. As we look ahead, we are sure of reaching our capacity expansion goals according to our target timelines. The 1,600 megawatt Mahan Phase-II project in Madhya Pradesh is 86% complete. In Chhattisgarh, the Raipur Phase-II has achieved 54% progress and Raigarh Phase-II is 47% complete and the Korba Phase-II project is close to completion.
We expect to commission Korba Phase-II during the course of this current year. Our upcoming capacity commissioning will drive the next phase of EBITDA and cash flow growth. We expect significant earnings growth in the years to come. These new PPAs are highly earning assisting, which will generate significant cash flows in the coming years. We will maintain a careful approach to capital allocation to take advantage of new opportunities in India’s expanding energy sector. We are expanding our area of focus beyond the Indian territory. We will evaluate international projects in the thermal, hydro, and transmission sectors and invest in attractive opportunities that qualify. We have recently incorporated an SPV in Bhutan for setting up a 500 megawatt hydropower plant with the same. We are also aligning ourselves to the emerging long-term opportunities in the power sector such as nuclear power. We have incorporated several SPVs in India for investment in nuclear power projects. We are identifying lands for these projects and seeking necessary approvals. This is a very exciting time for the committed IPP players in India like us.
I would now like to hand over the call to our CFO, Mr. Dilip, to elaborate further on the quarter four results and full year results. Thank you and over to you, Mr. Dilip.
Dilip Kumar Jha — Chief Financial Officer
Thank you, Khyalia, sir, and good morning, everyone. I will take you through the financial and operational performance for quarter four and FY ’26 and then share a brief update on our balance sheet. On operating environment front, let me start with the operating backdrop. FY ’26 was marked by weather-induced demand volatility, lower peak temperatures, and increased renewable generation. As a result, merchant prices remained subdued through most of the year. However, core demand drivers linked to economy growth remain intact and demand recovery is already visible as we move into FY ’27. On operational performance: despite this environment, Adani Power achieved excellent operating performance in the recently concluded quarter. Consolidated PLF for quarter four remained healthy and at quarter four this is 74%. On annual basis, this is 66.5% reflecting competitive strength in the middle of demand volatility.
Our quarter four power sales reached 27.2 billion units while full year sales increased 3.4% to 99.1 billion units. The volumes were supported by higher operating capacity, stable plant availability, and new PPAs for the existing capacities. On revenue performance, quarter four FY ’26 continuing revenue grew to INR15,059 crore, up nearly 4% year-on-year. Reported revenue for quarter four FY ’26 grew 9% to INR15,989 crore. For FY ’26, continuing revenue was INR55,583 crore, broadly stable despite lower merchant rates. Tariff for imported coal in PPAs were also lower due to reduction in import coal prices. On EBITDA performance, continuing EBITDA for quarter four FY ’26 increased 9% year-over-year to INR5,573 crore. At the same time, reported EBITDA was INR6,498 crore, up 27% year-on-year versus the EBITDA for quarter four last year. This improvement was driven by higher PPA tariff contribution, cost discipline, better operating efficiency, and contribution from recently acquired assets.
For FY ’26, continuing EBITDA was INR21,285 crore, broadly stable year-on-year basis. On profitability part, at the bottom line, Q4 FY ’26 PAT increased sharply by 64% year-on-year to INR4,471 crore. This was aided by strong operating performance and lower tax charges. For FY ’26, PAT increased to INR12,971 crore, broadly in line with last year and demonstrating earning resilience despite market volatility. On the balance sheet and funding front, as of March 31st, ’26, total debt stood at INR53,556 crore while net debt was INR45,022 crore. The increase in leverage primarily reflects planned bridge financing for ongoing capex. During the recent quarter, we successfully raised INR7,500 crore through secured non-convertible debentures. We also have credit entering funds from banks in the form of corporate debt. We have continuously maintained strong credit rating and liquidity access.
We continue to follow a conservative capital management approach with the majority portion of expenses being funded for internal accruals over time. On contracted portfolio and visibility front, 95% of our operated operating capacity of 18.15 gigawatt now tied up under long-term and medium-term PPAs. We have also tied up 13.3 gigawatt of long-term PPAs for the ongoing 23.7 gigawatt expansion. These PPAs provide availability-based fixed charges, offering stable firm gigawatt EBITDA. New PPAs carry materially better capacity charges, improving future return metrics. As you may be aware, the fuel cost is pass-through for these PPAs. The fuel availability is also assured as the states have to first obtain fuel allocation and then operate to the winning bidders. Now to summarize, our business fundamentals remain strong. Operations continue to be highly liquid and profitable. Capacity expansion is progressing well. Liquidity and funding access are robust. Earnings visibility has improved materially.
Thank you for your continued confidence in Adani Power. We will now be happy to take your questions. Handing it over to moderator. Thank you. 13.34
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and the answer session. [Operator Instructions] We will take the first question from the line of Abhinav Nalawade from ICICI Securities. Please go ahead.
Abhinav Nalawade
Yeah, hi. Good morning. Thanks for the opportunity. My first question is can you help us with the detailed contours of RE-RTC, the 2.5 gigawatt MSEDCL cell contract? If possible, can you also share the tariff?
Shersingh B. Khyalia
This capacity which we have signed in Maharashtra is not a capacity only for Adani Power. We are having the group, all type of products. Renewable is with AGEL. The battery installation is also happening with AGEL. Adani Power is having thermal capacity. Whatever will be left out from the PPAs will be obviously offered under the, this, trading platform. This PPA is signed from the point of view of offering these residual capacity again by creating a suitable product as per the requirement of the customer. So this PPA will be served through the trading platform, which we are going to create under Agroftic companies. That is the intent of this agreement.
Abhinav Nalawade
Sorry, sir. I mean there will be some coal capacity that will be signed. That is the right understanding?
Shersingh B. Khyalia
Can you repeat?
Abhinav Nalawade
There will be certain coal capacity that will be signed, and that will be what Adani Power will be supplying, right? That understanding is correct?
Shersingh B. Khyalia
Yeah. Whatever coal capacity is left out, let’s say we have been saying is that at the end of all the tie-ups which we will be doing, there is a possibility of 1% to 1.5% capacity left out. Small capacity in different power stations. So that capacity will also be used under this PPA. We will also use the renewable, either wind or solar. We will also use the ESP. We will also use the batteries. This would be a product created by the trading platform and through the trading platform, we will be servicing this PPA.
Abhinav Nalawade
Understood. My second question is on merchant power. When you say merchant sales, trying to understand how you exactly define it. Given that 20%, 21% of total units sold was merchant, that will roughly come out to be about 4 GW. So how much of this capacity is under medium-term and I mean is there anything that will get converted into long term?
Shersingh B. Khyalia
So as stated in the RFP that today the merchant capacity is only 5%. The meaning of merchant is it is not tied up under long term and the medium term. So if you take 5% of 18,000, it let us say works out only about 1,000 megawatt on RTC basis. But in the beginning of the year, we were at 16% merchant capacity. So these units are supplied through the average capacity we may have remained throughout the year ranging from 16 to today it is five. So that is the way we have achieved this quantum. Apart from that, sometimes when a PP-based power station is out and there is a possibility and there is a, let us say facility which is allowed that you can buy from the market and you can service this quantum which is to be supplied under the PPA medium-term or long-term through buying from the market. So that type of quantum is also considered under merchant.
Abhinav Nalawade
Understood. My final question is on capacities that we expect to get commissioned in FY ’27-’28, and what will be the capex plan for FY ’27-’28 and the funding for it?
Shersingh B. Khyalia
’27-’28?
Abhinav Nalawade
Yes, FY ’27.
Dilip Kumar Jha
So capacity is, we are 100% sure of that. In FY ’26-’27, we are adding Korba, 1.32 gigawatt. In terms of capex for FY ’26-’27, it will be near about INR25,000 crore for our expansion. You’re asking ’27-’28, it will be near about INR32,000 to INR33,000 crore. Roughly you can say INR33,000 crore.
Abhinav Nalawade
What capacity will be commissioned?
Dilip Kumar Jha
Next year our capacity will be 1.6 gigawatt. Precisely for FY ’26-’27, our capacity addition will be 1.32 gigawatt. For ’27-’28, our capacity addition will be 1.6 gigawatt. In terms of capex, FY ’26-’27, it is roughly INR25,000 crore. For FY ’27-’28, it will be near about INR33,000 crore.
Abhinav Nalawade
Understood. Yeah. Thanks. That’s helpful. Thank you.
Operator
Thank you. We have the next question from the line of Manish Somaiya from Cantor. Please go ahead.
Manish Somaiya
Good morning, gentlemen. Just to stay on the last topic on Korba and maybe if you can also help us with Mahan. First with Korba, what quarter should we expect the commissioning in ’27? Then, with Mahan, if you can just give us some sense of commissioning. I would imagine that’s fiscal ’28. If you can also just help us with EBITDA contribution from Korba and from Mahan, if you please.
Shersingh B. Khyalia
Manish, your voice is not very clear, but what I understood is that you are checking the details of when the Korba and the Mahan will get commissioned. Korba will get commissioned something between June to September. So it will be in the second quarter of this year, first unit. And the second unit will get commissioned before the year end. As regards to Mahan is concerned, Mahan’s first unit is likely to get commissioned in the last quarter of this year. But at the most it will get commissioned in the first quarter of the next year and second unit six months thereafter.
Manish Somaiya
Okay. That’s helpful. How should we think about the EBITDA contribution from Korba and from Mahan in 2027 and 2028?
Dilip Kumar Jha
Yeah. In terms of contribution, this is an estimated number as you are adding this year only. Its EBITDA will be contributed roughly near about INR1,000 crore and subsequently it will add in its contribution. From next year ’27-’28, it will be full year and it will contribute roughly IN 2,500 crore plus. At its peak, when it will be under PPA, we are expecting that the contribution will go to near about INR3,000 crore. In terms of Mahan, as we are adding this capacity in FY ’27-’28, we are expecting that EBITDA will be near about INR2,200 crore or INR2,300 crore.
Manish Somaiya
Okay. That super helpful. Then just to go back to the plant load factor. Obviously we saw nice improvement in the fourth quarter sequentially. If you can just give us an idea how that’s faring so far in Q1 of 2027 and how should we think about PLFs in fiscal 2027?
Operator
Sorry to interrupt, sir, if you’re speaking right now. We’re unable to hear you.
Shersingh B. Khyalia
Manish, unfortunately, your question is not very clear. We are not getting a clear view of question.
Manish Somaiya
So let me ask it a different way. On the plant load factor in ’27, how should we think about that? Obviously in ’26 it was 66.5. I was just wondering how that’s fairing so far in Q1 of this year and how should we think about PLF for the full year?
Dilip Kumar Jha
Manish, though your voice is breaking, but what we understood, you want to know the plant availability and then. To reply to that, our plant availability for the quarter is more than 91%. The same time quarter last year it was roughly near about 88%. On a year-on-year basis, it is in the same line. In terms of PLF, PLF for this quarter is 74%. If you compare same quarter in the last year, it was almost in the same line. But on a year-on-year basis, this time the PLF is so slightly lower than the last year PLF due to all these merchants. Now in terms of ’27, the PLF is better. We are expecting that the PLF will be far more better than last year — the first quarter of last year. And in terms of so the expectation, what S.K. sir also said that the power demand is rapidly increasing. And due to all the geopolitical scenario also, the dependence on power especially for base load power is increasing. What we hope that this quarter first year — first quarter this year and also during the year, PLF will be far more better than last year.
Manish Somaiya
Okay. Then just lastly, if I can, just squeeze one more in. On the Bangladesh Power Development Board, receivable collection and the reconciliation process, can you just give us a quick update on where this stands?
Shersingh B. Khyalia
Sorry, very sorry. We are unable to hear. Though we are hearing your voice, but not getting. So whatever we could interpret what you said because of the issue about clarity of your voice. As far as the collection is concerned, the outstanding has gone down and therefore we are getting now regular payments from the Bangladesh. As regards to the other issue probably which you are asking or seeking details about is the disputed amount and its resolution process. So as a part of the resolution process, we have appointed an expert and expert is going to hear the both parties soon. And once the order of the expert is received, if it is acceptable to both parties, it will get implemented. If it is not accepted by any of the party, either of the party, the party can approach Singapore International Arbitration Centre. So that is where we are today. Thank you.
Manish Somaiya
Okay, wonderful. Thank you so much and congratulations again.
Dilip Kumar Jha
There is a feedback that our audio is not very clear. So I would request the moderator to reconnect us. Can you if everybody excuse us for a minute or so, we hope that the line will become clearer after that.
Operator
Sure, sir. Ladies and gentlemen, please stay connected. We will join the management back. Ladies and gentlemen, the line for the management has been connected. Over to you, sir.
Dilip Kumar Jha
All right. So let’s. Let’s go ahead to the next question.
Operator
We will take the next question from the line of Uma Menon from Bernstein. Please go ahead.
Uma Menon
Hi. Thank you for taking my question. My first question was on the recent, the 1,600 megawatt PPA with MSEDCL. Since this doesn’t increase our pipeline, which project out of the list of projects will this be assigned to? And if you could also please share the tariff details for the PPA.
Shersingh B. Khyalia
We have yet not assigned the project location so far. So the probability is either Raigarh or Raipur. So these are the two probabilities or at the most it can be the Korba. These are three locations where we are developing the power stations and where we have not allocated the capacity to certain PPAs. So either it can be considered as Raigarh or Raipur or Korba. That is the first part. As regards to the tariff is concerned, the tariff has been stated I think in the stock exchange filing which is INR5.30, which consists of INR4.11 the capacity charge and INR1.19 as the energy charge. Thank you.
Uma Menon
Thank you for that, sir. My second question is on the Jaiprakash resolution plan. What exactly would Adani Power’s role be since in the presentation it is mentioned as an implementing agency? Could you please elaborate on that, sir?
Shersingh B. Khyalia
There are — there’s one asset within the JAL that is a small generating capacity at Churka. It’s say 180 megawatts. So that will be taken over by Adani Power as an implementing agency. Apart from that, the JAL is having 44% shareholding of JPVL, Jaiprakash Power Ventures. So that 24% shareholding will again be taken over by Adani Power as implementing agency. So these are the two generating assets. In case of JPVL, the actually generating stations are three. One is in Nigrie, another is Bina, and third one is Vishnuprayag. These are the three generating projects.
Uma Menon
Sir, could you please repeat the three projects? Your voice broke a little bit.
Shersingh B. Khyalia
In case of JPVL, there are three power projects. One is at Nigrie, second is at Bina, and third is Vishnuprayag, Raigarh. So these would be three assets under JPVL. There is a small generating station under JAL itself, is Churka Power Station, which is 180 megawatt. So overall there will be these four locations and four stations.
Uma Menon
Understood, sir. Thank you. Thank you for that, sir. My third question would be on the nuclear plan that we have. I think great to hear that. Are we planning only small modular reactors? Is there a target capacity or timeline that we have planned for? Could you shed some color on that?
Shersingh B. Khyalia
So far Government of India has not notified the rules. So we are only, let’s say, getting ourself ready as and when the rules will come. That will give us clarity what type of, which size of capacity and how we will proceed ahead. So once we will get the rules from the Government of India, then only we can I think elaborate on this. At this stage, we are only preparing ourselves. So therefore we are identifying the sites. Wherever we have already the sites, we are applying for the necessary approvals. So we are preparing ourselves really for the opportunity as and when the rules will come so that we can move fast. Thank you.
Uma Menon
We are planning on the existing thermal sites only we have or are we looking for newer land sites for these?
Shersingh B. Khyalia
In our case, these would be all new sites. It will not be at existing thermal sites.
Uma Menon
Understood, sir. Thank you for that, sir. I’ll join back in the queue for other questions.
Operator
Thank you. We will take the next question from the line of Ishan Varma from Antique Stock Broking. Please go ahead.
Ishan Verma
Good morning, sir. Thank you for taking my question. One continuing question is that on the 1,600 megawatt Maharashtra PPA, what is the timeline of starting of this PPA?
Shersingh B. Khyalia
PPA is yet to sign. Once the PPA is signed, then only we can decide the timelines. We have received a LoA and Maharashtra is yet to file the petition for tariff adoption. So we expect that in next three months, we should be in a position to get the PPA signed and then we will need to 48 months. So from now onwards, you can consider four to five years in commissioning the project related to this PPA.
Ishan Verma
Okay. Secondly, sir, what is the capex per megawatt for the Korba expansion? And Mahan expansion, initially we were targeting to commission that capacity in December. What has led to the delay in postponing it to FY ’28?
Shersingh B. Khyalia
Can you repeat your question?
Ishan Verma
Firstly, I wanted to understand what is the capex per megawatt for Korba. Secondly, what has led to the delays in postponing commissioning of Mahan in FY 2028? Initially, we were targeting it at around October to December this year, right?
Shersingh B. Khyalia
As regards to the Korba instance and the overall capex in addition to the — you are asking the capex of the project which we are going to commission this year, 2020?
Ishan Verma
Yes.
Shersingh B. Khyalia
So in addition to the amount which we spent on acquiring this asset around INR4,100 crore, we are going to spend another INR4,000 crore. It would be roughly INR8,000 crore, INR8,500 crore in total, which includes the first two units commissioned and these two units which we are going to commission. So it would be very difficult to specifically say what would be the per megawatt cost of unit 3 and 4 because the acquisition cost includes one, two also. As regards to Mahan is concerned, Mahan, we thought of that we should be in a position to commission both units this year. We are still hopeful, but because of this ongoing geopolitical situation, which is slightly impacting the availability of labor, the availability of LPG. So therefore, we are taking a conservative approach and are of the view that one unit, yes, we are targeting by end of this year. If the geopolitical situation continues for a longer time, then at the most it can go to the first quarter of the next year.
Ishan Verma
Okay, got it. Lastly, I just wanted to know what is the weighted average cost of borrowing right now post the increase in debt?
Dilip Kumar Jha
Recently what we are getting rate from the market, this is near about 8%. The recent borrowings what is like getting from market, either DCM or from domestic debt.
Ishan Verma
Okay, got it. Thank you, sir. Those are my questions.
Operator
Thank you. We will take the next question from the line of Vishal Periwal from Prabhudas Lilladher. Please go ahead.
Vishal Periwal
Yes, sir. Thanks, sir, for the opportunity. Sir, is my audio clear to you?
Dilip Kumar Jha
Yes, it’s better than previous.
Vishal Periwal
Okay, fine. Thank you, sir. Sir, in terms of the merchant share, you mentioned currently only 5% is there. So is it fair to say from quarter one FY ’27, we’ll have a 5% as a merchant capacity and generation or it is staggered over the years?
Shersingh B. Khyalia
This year since we have already assumed the 95% tie-up under the medium-term or the long-term PPA, obviously 5% of capacity will be available for merchant during this current quarters.
Vishal Periwal
Okay. Starting quarter one onwards. Is it fair to say — I think you did mention on Korba as giving an example like how the EBITDA move in PPA, non-PPA? So once we move our capacity to a PPA, then EBITDA trajectory is better vis-a-vis what we are getting in merchant?
Shersingh B. Khyalia
It would not be fair to say in advance that whether you will get realization better in merchant or the PPA. Under PPA you have surety that you will get, let us say, INR5.50 or so. Whereas in case of merchant nowadays you are getting INR7, INR8 also and sometimes you are getting INR3. So it all depends on the weather volatility. So we will not be in a position to forecast or make a comment exactly on whether the merchant would be better or whether the PPA would be better. Obviously in PPA you get surety, you get complete sight what we are going to get at the end of the year. But in case of merchant, it can give you upside, but at the same time sometimes because of weather problems, your realization may go down also.
Vishal Periwal
Okay. Is it fair to say, like, when we have signed those PPAs and moving from merchant to PPA so the EBITDA trajectory for them it is maybe equal or better or anything on the signed PPA vis-a-vis the merchant with when they were selling power?
Shersingh B. Khyalia
See, why we are signing the long-term PPA is that it gives you a stability and long-term stability. In case of merchant of course, let’s say, the last to last year the prices or the rates were very good. 2026-’27, the rates were not very good. Current quarter the rates are very good, going forward we are not sure. We feel, we are of the view that when more and more renewable will get added, the prices of merchant are bound to go down. So that is the risk which we are trying to mitigate by signing the more and more PPAs. So risk is visible. What would be the impact of that risk? How much that risk is? Only future will tell. But one thing is sure that renewable is going to get added every year in a big quantum and that is going to suppress the merchant prices.
Vishal Periwal
Sure, sir, got it. And then in the PPT, I think there is one slide of consolidated profile that we have, which talks about like how exactly has been the net fixed asset movement in FY ’26 over FY ’25, which has seen an increase of almost like 25% odd, — almost like 25% movement year-on-year basis, but our capacities have moved by maybe like 6%, 7%. So what exactly could be the reason for this, sir?
Dilip Kumar Jha
Yes. As I explained, sir, in one of the question that we have incurred near about INR22,000 crores to INR23,000 crore in the capex or expansion plan. Also, we have acquired some assets Vidarbha from the market. So operating capacity addition of Vidarbha adding into fixed asset addition. There also the expansion plan, the work in progress expenditure is also adding. That is why operating capacity has not increased by that proportionate. It is only added by 600. But in terms of expenditure, capacity expansion for 600 and also part of expansion plan. This CWIP is also adding into the total fixed asset.
Vishal Periwal
Okay, okay. Got it. The CWIP is part of it. Okay, okay. Got it. And…
Operator
Orry to interrupt in between, Vishal. I would really request you to please rejoin the queue again for more questions. Thank you. [Operator Instructions] We will take the next question from the line of Kartik Sharma from Anand Rathi. Please go ahead.
Kartik Sharma
Thank you. My question was answered by the earlier gentleman. But I do have a question on a macro level. Given the coal shortages and the war situation, could you give us an insight?
Operator
Sorry to interrupt.
Dilip Kumar Jha
Sorry, Kartik, we are not really hearing clearly. Can you please speak a bit louder?
Kartik Sharma
Am I audible now?
Dilip Kumar Jha
Yes.
Kartik Sharma
Yes. I had questions on the capex and the capacities which were answered earlier. I’d if you could give some insights on the coal shortages that are happening in India and how insulated are we or how are we taking measures to mitigate that?
Shersingh B. Khyalia
Coal shortages? So far there is no coal shortage which we are facing. Since the domestic coal is not directly impacted by the geopolitical part issue and the production of coal in India is sufficient, so we are not really having any issue as far as domestic coal availability is concerned. As regards to imported coal is also concerned, there is some impact on the price because of increase in bunker fuel, etc. and therefore the shipping cost has gone slightly high. But since it is passed through, we will not get impacted by that. Thank you.
Kartik Sharma
Understood, sir. Thank you so much.
Operator
Thank you. We will take the next question from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Good afternoon, sir. My first question is on the minority interest or non-controlling interest item in P&L. I think the sharp jump QoQ, can you please explain that?
Dilip Kumar Jha
Sorry, sir. We are not getting, sir. Your voice is breaking, actually.
Mohit Kumar
Sir, non-controlling interest, the minority interest, the entry in the consolidated P&L, has jumped from INR8.5 crore in Q3 FY ’26 to INR254 crore in Q4 FY ’26. Can you please help explain that?
Dilip Kumar Jha
If you see the Moxie last year, the financial year ’25-’26 and financial year ’24-’25., we acquired Moxie. So last year it was operational partly. But during the year ’25-’26, our Tuticorin plant, Moxie operational fully. Due to the timing of both the year, this year it is 12 months vis-a-vis last year it was not 12 months. So that why this percentage increased.
Mohit Kumar
My question was about the QoQ movement, sir. QoQ. QoQ also there is sharp jump. QoQ.
Dilip Kumar Jha
Yes, let me see. Let me give a moment please.
Mohit Kumar
Should I go ahead with the next question, sir?
Dilip Kumar Jha
Mohit, sorry, we took a few seconds. This is due to impact in PPA actually. I mean this impact, a minority controlling interest is the impact of PPA. As you see, the Moxie we have PPA last to last quarter. So in quarter three, there was no PPA in Moxie, Thoothukudi. We entered into an agreement with Moxie with Tamil Nadu 558 megawatt. The impact of PPA, midterm PPA, we executed for five years.
Mohit Kumar
Understood, sir. My second question is, sir, can you help us with the outlook on the new PPA from the states? How many active tenders you see currently? Has there been any development in Rajasthan which will help us tie up the 3.2 gigawatt Kawai power plant?
Dilip Kumar Jha
So the upcoming PPAs in the market, we have almost 13 gigawatt precisely it is from Uttar Pradesh, Rajasthan, Uttarakhand, West Bengal, Gujarat. So there are PPAs in the market. If we even make total, that is 13.1 gigawatt further, Gujarat has also issued a draft bidding document for bidding process of procurement of another 4,000 gigawatt. So PPAs are in the market from various states, including Uttar Pradesh, Rajasthan, Uttarakhand, West Bengal, and Gujarat.
Mohit Kumar
Understood, sir. My last question. You mentioned that your merchant capacities is going to decline significantly, right? I understand Vidarbha is going to medium term, 625 megawatt Karnataka will start operational. Coastal has tied at 600 megawatt. Still, does it also mean that some of the capacities, our merchant capacities, will also tie up with the group in FY ’27 on the long-term PPAs?
Dilip Kumar Jha
Mohit, are you asking about the PPA that we have with group companies, related to that?
Shersingh B. Khyalia
Mohit, I go to your question. You are saying, have you signed any long-term PPA within the group?
Mohit Kumar
Yes. Because merchant capacity is declining significantly, I do understand that few of the short-term capacity will move to medium-term and long-term. But is there something which also tied with the group companies?
Dilip Kumar Jha
No, we have not signed during the year ’26-’27.
Mohit Kumar
Understood, sir. Thank you and all the best, sir. Thank you.
Operator
Thank you. We will take the next question from the line of Shirom Kapur from Jefferies. Please go ahead.
Shirom Kapur
Hi, sir. Thanks for the opportunity. My first question is on your open merchant capacity, which is 5%. Would it be possible for you to give a breakup plant-wise, which plants have the open merchant capacity? You had shared this in 3Q, now could you share the updated number?
Dilip Kumar Jha
Yes. So primarily open capacities now are with Mundra. We have some open capacity available in Mundra in the unit number 9 that’s partially tied up. Apart from that, we have got merchant capacity spread between different units like Raipur, Mahan.
Shersingh B. Khyalia
Mainly we have now in three power stations, the merchant capacity, Mahan, the stage one; then Mundra unit nine; and small capacity in Raipur. So these are the three stations where we have small capacities, which makes it to 5%.
Shirom Kapur
Understood, sir. Thank you. Second is, you know, you had last quarter shared an annual addition plan of how you plan to get to the 42 gigawatt number. So you had mentioned FY ’27 you would be adding 2.9 gigawatts, FY ’28 would be 2.4 gigawatts, FY ’29 2.4 gigawatts. Now you seem to have revised that downwards, with FY ’27 only being 1.32 gigawatts, FY ’28 only being 1.6 gigawatts being the Mahan plant. So could you give an updated sort of plan till ’32 of how you would be adding your capacities to achieve this 42 gigawatts bearing in mind that ’27 and ’28 now have been revised down?
Shersingh B. Khyalia
I think we can give this trajectory in the presentation because giving all those five, six years trajectory on a call may be difficult. Yes, earlier we said that even the Mahan and both units will come in this current year. But because of this geopolitical issue, we are taking a conservative approach because certain things as I said earlier, the issue of availability of workforce, there are issues of availability of certain critical sources like LPG, etc. Therefore, we are moving this 1.6 gigawatt of Mahan to the next year. But we are still trying that it should get — the first unit should get commissioned in the current year. Therefore, on conservative side, we have considered this year 1.3 gigawatt, next year 1.6 gigawatt. And for the rest of the period, we will give the trajectory separately in the presentation.
Shirom Kapur
Understood, sir. Just directionally, last time you had mentioned by ’30 you would have around 34 gigawatt capacity. Are we still on track for that or would it be now directionally lower?
Shersingh B. Khyalia
Yes, these are on track.
Dilip Kumar Jha
Actually what’s happening, Shirom, we are only deferring the sort of commissioning targets by an average of six months and that falls across — that falls over the financial year boundary. In FY ’29, there would be the capacities that are being shifted, let’s say, from FY ’28, those will get commissioned in FY ’29. And then similarly, there would be around a six-month sort of deferral. But beyond that, actually it is very much in line with what we have said. It’s evenly spread out starting from FY ’29 to FY ’32, we are commissioning 4 gigawatts or more every year.
Shersingh B. Khyalia
As Jha has said that, our plan is still, we are moving as per our plan. But on the conservative approach, we are committing like that. Still, we are confident that we are in line with our plan also.
Shirom Kapur
Understood, sir. Thank you so much, and all the best.
Operator
Thank you. We will take the next question from the line of Bharat Shah from BCS Capital Ideas Limited. Please go ahead.
Bharat Shah
[Foreign Speech] So our operational cash flow when we talk about last two to three years, the operational cash flow three-year in ’23-’24 was about INR14,000 crore. I’m talking of purely operational cash flow and ’25-’26 has been about INR21,000 crore. If I look at our EBITDA, they are INR22,000 crore to INR24,000 crores in last three years; ’24, ’25, and ’26. So when do we see our EBITDA kind of touching INR50,000 crore number? Is that something a matter of four years or a matter of five years?
Shersingh B. Khyalia
I think Dilip should clarify this. Dilip give some broader numbers.
Bharat Shah
If you look at our EBITDA has been ranging from INR22,000-INR24,000 in last three years, ”23-’24, ’24-’25, and ’25-’26. Given our upcoming capacity, the target of 30 gigawatt capacity which is to come up and the agreements which are in pipeline and commissioning schedule, this INR24,000 crore, INR25,000 crore EBITDA, when do we see it essentially doubling to INR50,000 odd crore? In four years’ time, five years’ time? When do you think this is most likely to be the case?
Dilip Kumar Jha
So Bharat bhai, we should be in a position to achieve INR50,000 crores conservatively in 2031. What we have planned today if we could achieve that and let us say no issues arise during this period related to like the presently we have issue for, etc. In that case, we can touch this even in 2030. If we miss this because of any reasons, then at most it would be 2031.
Bharat Shah
Okay. Fantastic. Secondly, given the fact that while we are of course incurring a decent amount of capex, INR25,000 crore in ’26-’27 and INR33,000 odd in ’27-’28. But essentially the business is throwing lot of cash. And as we complete our expansion program, I think the level of cash would be rising. So what are broad thoughts? I’m sure you will find a way to invest in, but given the fact of large upcoming cash flows that the business will generate, any broad thoughts on the deployment plan subsequently?
Dilip Kumar Jha
Yes. So Bharat bhai, now as you rightly said that we are expecting that this year we will have capex of INR25,000 crore and then subsequent year it will be INR30,000 crore in the overall gamut of INR200,000 crore expansion plan. On an annual basis so if you will compute annualized and average cash flow, this is INR20,000 crore we are adding. Now the interim gap, we are either arranging from domestic capital market or domestic bank. Now to second part of your question, sir, the quantum of cash flow we will generate from this business, what is our strategy and what is our plan? As Khyalia sir also said that this is the moment for thermal expansion. As peak capacity is growing on every state is ensuring their resource adequacy. There are PPAs in the market. We are moving from the 5%…
Operator
Sorry to interrupt in between, sir, your voice is not audible.
Dilip Kumar Jha
Okay. So entire voice lost or some part?
Bharat Shah
Dilipji, instead of speakerphone, just lift the phone and speak. That will be easier.
Dilip Kumar Jha
Yes. Is better, sir? So now to reiterate again that, our capex plan is to add 24 gigawatt to that count and for this year this is INR25,000 crore, next year this is INR33,000 crore. So on an annual basis, we are generating an FFO of INR20,000 crore. So we are generating cash flow requirement, which we are arranging from the market for short-term period. But to answer, sir, your next part of question, what is our extension plan for when we will have huge amount of cash surplus. Literally by ’31-’32, we can pay our entire debt and thereafter also, from ’32-’33, we will have huge cash surplus. So as Khyalia sir also said that this is a moment for thermal. Capacity expansion is going on across the country. We have also targeted 24 gigawatt. So this is the moment to invest all this cash flow in thermal. Strategically if you see, sir, as a country from 9 gigawatt to 100 gigawatt atomic energy addition is there. Maybe when we will have huge amount of cash surplus, that will be one of the area or the global expansion. The things are in place. There is opportunity in the market, but it’s time to focus on execution and achieve our planned capacity of 24 gigawatt. So we are confident that by ’31-’32, our capacity will be 42 gigawatt from the planned capacity. And the quantum of surplus, multiple avenues we have we can deploy to leverage far more better value. It will be a debt-free company.
Bharat Shah
No, no, I’m sure given the growth hunger, we’ll always find a way to utilize the cash flow that you generate. I just wanted to get a kind of a glimpse into strategy or thought process. Thank you. Thank you, Khyalia sir. Thank you, Dilip-ji.
Operator
Thank you very much. [Operator Instructions] Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference back to the management for closing comments. Over to you, sir.
Shersingh B. Khyalia
Thank you very much for your time and opportunity given to us to present our business. We are hopeful that we will have same type of support and also engagement with you. Thank you. Thanks a lot. Have a great day.
Operator
[Operator Closing Remarks]