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What is the story about?
Adani Power Ltd reported its highest-ever quarterly operating and financial performance for the June quarter on Wednesday, driven by record electricity demand, higher power sales and improved tariff realisations.
The company posted a 42% year-on-year rise in consolidated net profit to ₹4,806 crore, comfortably ahead of last year's ₹3,385 crore.
Revenue increased 34% to ₹18,902 crore from ₹14,109 crore, while EBITDA climbed nearly 40% to a record ₹7,948 crore from ₹5,685 crore a year ago. EBITDA margin expanded to 42% from 40.3%.
Following the earnings announcement, Adani Power shares jumped to an intraday high of ₹221.70, nearly 4.6% above the day's low of ₹211.90 on the NSE, before paring gains. As of 2:31 pm, the stock was trading at ₹217.17.
The performance came against the backdrop of one of India's hottest summers in recent years. Peak power demand touched a record 270.8 GW during May, while electricity consumption rose 8.4% year-on-year to 485.4 billion units during the quarter. The stronger demand environment translated into record operational performance for the company.
Adani Power generated its highest-ever quarterly electricity output of 31 billion units, while power sales rose 16.9% year-on-year to 28.8 billion units. Sales under long-term power purchase agreements (PPAs) increased over 30% to 24.5 billion units, while tariff realisation under PPAs improved 8.5% to ₹5.95 per kWh. Merchant and short-term tariff realisation also strengthened 13.1% to ₹7.04 per kWh, aided by firm market prices.
The company said higher operating capacity and fresh PPAs for previously untied plants, including the Butibori and Mutiara (Tuticorin) facilities, contributed to the rise in power sales. The Indian Energy Exchange's day-ahead market clearing price also increased nearly 16% during the quarter, supporting merchant realisations.
Fuel costs rose 30% year-on-year to ₹9,513 crore owing to higher imported coal prices and larger generation volumes. However, tight control over finance costs and stronger operating leverage helped offset the increase. The quarter also included a one-time recognition of prior-period revenue amounting to ₹1,386 crore, while the company recognised tariff compensation claims of ₹898 crore relating to additional coal costs.
Expansion plans gather pace
Alongside the results, the board approved raising up to ₹15,000 crore through a qualified institutional placement (QIP) or other permissible routes. It also proposed increasing the company's borrowing limit to ₹1 lakh crore from ₹75,000 crore, subject to shareholder approval, to fund future growth and capital expenditure.
The company further strengthened its expansion plans by acquiring Jaiprakash Associates' power assets through the corporate insolvency process, including the 180 MW Churk thermal power plant, a 24% stake in Jaiprakash Power Ventures and an 11.49% stake in Prayagraj Power Generation Company.
Commenting on the performance, CEO S.B. Khyalia said the record EBITDA reflected the strength of Adani Power's efficient and cost-competitive portfolio. He added that the company remains on track to expand its generation capacity to 45 GW, while also diversifying into hydroelectric projects in India and overseas, and preparing to participate in future opportunities in the nuclear power sector.
The company posted a 42% year-on-year rise in consolidated net profit to ₹4,806 crore, comfortably ahead of last year's ₹3,385 crore.
Revenue increased 34% to ₹18,902 crore from ₹14,109 crore, while EBITDA climbed nearly 40% to a record ₹7,948 crore from ₹5,685 crore a year ago. EBITDA margin expanded to 42% from 40.3%.
Following the earnings announcement, Adani Power shares jumped to an intraday high of ₹221.70, nearly 4.6% above the day's low of ₹211.90 on the NSE, before paring gains. As of 2:31 pm, the stock was trading at ₹217.17.
The performance came against the backdrop of one of India's hottest summers in recent years. Peak power demand touched a record 270.8 GW during May, while electricity consumption rose 8.4% year-on-year to 485.4 billion units during the quarter. The stronger demand environment translated into record operational performance for the company.
Adani Power generated its highest-ever quarterly electricity output of 31 billion units, while power sales rose 16.9% year-on-year to 28.8 billion units. Sales under long-term power purchase agreements (PPAs) increased over 30% to 24.5 billion units, while tariff realisation under PPAs improved 8.5% to ₹5.95 per kWh. Merchant and short-term tariff realisation also strengthened 13.1% to ₹7.04 per kWh, aided by firm market prices.
The company said higher operating capacity and fresh PPAs for previously untied plants, including the Butibori and Mutiara (Tuticorin) facilities, contributed to the rise in power sales. The Indian Energy Exchange's day-ahead market clearing price also increased nearly 16% during the quarter, supporting merchant realisations.
Fuel costs rose 30% year-on-year to ₹9,513 crore owing to higher imported coal prices and larger generation volumes. However, tight control over finance costs and stronger operating leverage helped offset the increase. The quarter also included a one-time recognition of prior-period revenue amounting to ₹1,386 crore, while the company recognised tariff compensation claims of ₹898 crore relating to additional coal costs.
Expansion plans gather pace
Alongside the results, the board approved raising up to ₹15,000 crore through a qualified institutional placement (QIP) or other permissible routes. It also proposed increasing the company's borrowing limit to ₹1 lakh crore from ₹75,000 crore, subject to shareholder approval, to fund future growth and capital expenditure.
The company further strengthened its expansion plans by acquiring Jaiprakash Associates' power assets through the corporate insolvency process, including the 180 MW Churk thermal power plant, a 24% stake in Jaiprakash Power Ventures and an 11.49% stake in Prayagraj Power Generation Company.
Commenting on the performance, CEO S.B. Khyalia said the record EBITDA reflected the strength of Adani Power's efficient and cost-competitive portfolio. He added that the company remains on track to expand its generation capacity to 45 GW, while also diversifying into hydroelectric projects in India and overseas, and preparing to participate in future opportunities in the nuclear power sector.
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