Adani Power LtdQ1 FY26Power

Adani Power Ltd

Q1 FY26 Earnings Call Analysis

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Revenue guidance

Category 2

→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.

Category 3

→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.

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Yes

→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.

Yes

→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.

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