Adani Power Ltd Q2 FY26 Earnings Analysis

- Adani Power supplied 24.6 billion units in Q1 FY26, 1.6% higher than Q1 FY25 despite a 1.6% overall demand shrink due to early monsoon. - Revenues were stable at Rs.14,167 crores in Q1 FY26, slightly lower YoY due to softer merchant tariffs and imported coal prices. - EBITDA showed resilience at Rs.5,744 crores, with operational efficiencies offsetting lower tariffs. - There is no specific revenue or EBITDA guidance for FY26; however, the company expects stable EBITDA margins based on the current business model and capacity tie-ups. - Upcoming commissioned capacity expansions (adding 12,520 MW by 2030) will increase volumes. - New long-term PPAs (e.g., 1,600 MW with UPPCL) and bids in various states will support future revenue growth. - Merchant sales outlook is positive from Q2 due to expected improved demand after early monsoon impact.

- Adani Power has not provided specific revenue or EBITDA guidance for FY26 due to variability in tariffs linked to imported coal prices. - The current business model and tie-up structure provide stable revenues and EBITDA margins, expected to continue until capacity expansion. - Profit after tax for Q1 FY26 was Rs.3,305 crores, showing robust performance despite lower merchant tariffs and elevated operating expenses after acquisitions. - The company anticipates stable EBITDA margins similar to the previous year during ongoing capacity expansion. - Growth is supported by capacity additions — 4,800 MW executed out of targeted 12,520 MW by 2030. - Long-term growth potential is strong due to India's rising power demand and planned increase in thermal capacity from 80 GW to 95 GW. - Expansion projects are funded mostly from internal cash flows, minimizing debt reliance and supporting earnings stability.

- Adani Power is executing a major capacity expansion of 12,520 MW by 2030, with rapid progress on 4,800 MW already underway. - Ongoing Phase-II projects: Mahan (66% executed), Raipur (25%), Raigarh (20%). - Received environmental clearance for Korba Phase-II adding 1,320 MW capacity. - Holding all required land for expansion; projects mostly funded internally, minimizing reliance on external lenders. - Orders placed for boilers, turbines, and generators covering entire 11.2 GW new capacity addition. - Evaluating opportunities aligned with an anticipated increase in India’s thermal base power demand from 80 GW to 95 GW by 2032. - Interim bridge funding taken from banks for capital expenditures during project execution. - FGD (Flue Gas Desulfurization) CAPEX reduced for certain plants due to regulatory changes, continuing only for Mahan and Raipur stations.

- No specific new fundraising through debt or equity was indicated for the under-construction projects in FY26. - The company took interim bridge funding from banks recently to meet interim capital expenditure needs but anticipates internal accruals will be sufficient to meet CAPEX requirements for the year (Dilip Jha). - Total consolidated debt as of June 30, 2025, was Rs.44,372 crores, up from Rs.38,775 crores in March 2025, mainly due to ongoing capital expenditure and bridge financing. - The company emphasizes a self-funded, debt-light growth strategy with strong cash flows and low leverage. - No explicit mention of plans for equity fundraising during this period. - Adani Power's management indicated sufficient liquidity and stable financial position to fund expansions mostly from cash flows without reliance on project lenders.

- Adani Power has given an order of approximately INR 65 billion to BHEL. - This order is related to boilers, turbines, and generators for upcoming capacities, with all equipment supplies locked for 11.2 GW new capacity addition. - Contracts for erection, commissioning, and Balance of Plant are being tied up in a phased manner for upcoming projects. - The company is exploring various opportunities for expansion aligned with strategic goals and is currently in the evaluation phase for additional equipment and growth requirements. - No specific mention of other confirmed pending orders beyond the BHEL order; however, various tenders in states like Bihar, Rajasthan, MP, and Uttarakhand are ongoing, indicating potential future orderbook additions.