Adani Power Ltd Q1 FY27 Earnings Analysis

- Power demand revival expected in FY27 with strong growth in overall and peak demand. - FY26 saw power sales of 99.1 billion units, a 3.4% increase year-on-year. - Capacity expansion underway with a target to add 23.7 GW thermal capacity by 2032. - New PPAs signed for 13.3 GW expansion capacity, ensuring revenue visibility. - 95% of current operating capacity tied under long-term and medium-term PPAs. - EBITDA expected to grow significantly with upcoming capacity commissioning. - FY27 to witness higher PPA offtake and stronger bilateral demand. - Capacity addition planned steadily: around 4 GW annually from FY29 to FY32. - EBITDA targeted to reach INR 50,000 crore by FY31. - By FY31-32, plan to be debt-free with potential surplus cash used for further growth or diversification including nuclear and hydro projects.

- EBITDA is expected to reach INR 50,000 crore by FY 2031, potentially as early as FY 2030 if plans are fully achieved and no major issues arise. - Operating EBIDTA for FY26 was INR 21,285 crore, broadly stable year-on-year, with Q4 FY26 EBITDA up 27% YoY to INR 6,498 crore. - PAT increased to INR 12,971 crore in FY26, maintaining resilience despite market volatility. - Capacity expansion underway aims to add 23.7 GW thermal capacity by 2032, with total capacity expected to reach 42 GW by FY31-32. - Expansion and new PPAs with better capacity charges will drive significant earnings and cash flow growth in coming years. - By FY31-32, company expects to be debt-free with huge cash surplus available for growth opportunities. - Revenue visibility improved with 95% of operating capacity now tied up under long- and medium-term PPAs, offering stable and improved returns.

- FY26-27 capex planned at approx. INR 25,000 crores for capacity expansion, including Korba Phase-II (1.32 GW). - FY27-28 capex expected around INR 33,000 crores with 1.6 GW capacity addition. - Total expansion plan capex around INR 2 lakh crores targeting 23.7 GW addition by 2032. - Recent acquisition of Vidarbha power assets included in capex. - Funding through a mix of internal accruals and interim bridge financing from banks and capital markets. - Ongoing capacity additions spread evenly from FY29 to FY32 at 4 GW or more per year. - Strategic evaluation of internal projects in thermal, hydro, transmission, and emerging nuclear power. - Incorporated SPV in Bhutan for 570 MW hydro power plant. - Preparing for future nuclear power opportunities with multiple SPVs and site approvals, awaiting government rules. - Focus on execution to reach 42 GW capacity by FY31-32 and aim to become debt-free post that period.

- Currently arranging interim funding from domestic capital markets or domestic banks to cover the interim gap in funding. - Recently raised INR 7,500 crores through secured non-convertible debentures. - Also raised interim funds from banks in the form of corporate debt. - Majority of the expansion is planned to be funded through internal accruals over time. - Long-term strategy expects to pay off all debt by FY 31-32, leading to a debt-free company subsequently. - No explicit mention of new equity fundraising in the provided content. - Capital management approach described as conservative, with strong liquidity and credit ratings maintained.

- Adani Power's expansion plan involves a total capex of approximately INR 2 lakh crores. - For FY27, expected capex is around INR 25,000 crores; for FY28, around INR 33,000 crores. - Capacity addition planned includes 1.32 GW in FY27 (Korba Phase-II) and 1.6 GW in FY28. - The company has successfully tied up 10.4 GW of expansion capacity under long-term PPAs during the year, with total tie-up expansion capacity reaching 13.3 GW. - Current operational capacity is expected to grow to 42 GW by FY31-32, up from planned 24 GW thermal capacity. - Approximately 13 GW worth of PPAs are active in the market from several states including Uttar Pradesh, Rajasthan, Uttarakhand, West Bengal, and Gujarat. - Gujarat has additionally issued bidding documents for another 4,000 MW. - The orderbook mainly consists of ongoing expansion projects with staggered commissioning from FY29 to FY32.