Adani Power Navigates Q3 FY26 with Resilience and Strategic Expansion

Adani Power Limited, a prominent player in India's energy sector, recently announced its financial and operational performance for the third quarter and nine-month period ended December 31, 2025 (Q3 & 9M FY26). The company demonstrated robust operational resilience and strategic foresight, navigating a challenging operating environment marked by weaker power demand and lower merchant prices. Despite these headwinds, Adani Power maintained core earnings stability and continued its aggressive capacity expansion, reinforcing its position as India's largest private sector thermal Independent Power Producer (IPP).

For Q3 FY26, Adani Power reported a continuing revenue of INR 12,717 crore, a slight decrease from INR 13,434 crore in the corresponding period last year. The nine-month continuing revenue stood at INR 40,524 crore, down from INR 41,951 crore in 9M FY25. This decline was primarily attributed to lower power selling rates, a reduction in import coal prices affecting energy charges, and subdued merchant demand. However, the company's continuing EBITDA for Q3 FY26 remained strong at INR 4,636 crore, only marginally lower than INR 4,786 crore in Q3 FY25, reflecting effective cost control and operating efficiency. Profit After Tax (PAT) for Q3 FY26 was INR 2,488 crore, compared to INR 2,940 crore in Q3 FY25, largely due to lower one-time prior period income recognized in the previous year.

Operational Highlights and Strategic Expansion

Adani Power's operational performance in Q3 FY26 showcased its inherent strengths. The installed capacity increased to 18.15 GW as of December 31, 2025, partly due to the acquisition of the Vidarbha plant, which is now fully operational and tied up with a 5-year PPA with Maharashtra DISCOM. Power sales volume for Q3 FY26 was 23.6 billion units, a slight increase from 23.3 billion units in Q3 FY25, despite a lower Plant Load Factor (PLF) of 62.6% (down from 63.9% in Q3 FY25) influenced by weaker demand due to extended monsoons and cooler temperatures.

Strategically, the company has made significant strides in securing long-term Power Purchase Agreements (PPAs) to de-risk its revenue profile. Adani Power was awarded a 3,200 MW PPA for 25 years with Assam Power Distribution Company Limited (APDCL) for a new 4x800 MW greenfield Ultra-Supercritical Thermal Power Project at Chapar in Dubri district, Assam. Additionally, a Medium Term PPA for 4 years was signed with Uttarakhand DISCOM for 370 MW, to be supplied from the existing 600 MW Sub-critical Thermal Power Project at Raigarh, Chhattisgarh, with supplies commencing in February 2026. These initiatives underscore the company's commitment to reducing exposure to short-term market volatility, with over 90% of its operating capacity now tied up under PPAs.

Financial Strength and Funding Growth

Adani Power's balance sheet remains robust, characterized by strong liquidity and a comfortable leverage position. The company successfully raised INR 7,500 crore through AA-rated Non-Convertible Debentures (NCDs) via private placement on January 27, 2026. These NCDs, with tenures ranging from 2 to 5 years and coupon rates between 8% and 8.4%, will fund capacity expansion, loan repayment/prepayment, working capital, and other corporate purposes. The continued AA credit rating, even with new debt additions, reflects the company's strong business and financial standing. Furthermore, the company fully redeemed its unsecured perpetual securities, demonstrating disciplined debt management.

The company is actively pursuing a 23.7 GW thermal expansion program, with projects like Mahan Phase-II (80% complete), Raipur Phase-II (44% complete), and Raigarh Phase-II (38% complete) progressing well. Construction at Korba Phase 2 has also resumed. The management outlined a phased commissioning schedule, with approximately 2.9 GW expected in FY27, followed by further additions to reach a target capacity of 42 GW by FY31-32. This expansion is largely funded through internal accruals, with any interim gaps covered by domestic capital markets and banks, showcasing a prudent approach to financing growth.

ESG Commitment and Outlook

Adani Power continues to demonstrate strong commitment to Environmental, Social, and Governance (ESG) practices. The company achieved an ESG score of 65 for FY25, placing it in the 'Aspiring' category by NSE Sustainability Ratings & Analytics. Notably, its specific water consumption in Q3 FY26 was 2.20 m³/MWh, which is 37% lower than the statutory limit for hinterland plants. The company also reported zero health and safety related injuries, reflecting a strong safety culture.

Looking ahead, management anticipates a return to strong power demand in the coming year, expecting better merchant prices and higher demand in Q4 FY26. The long-term outlook remains positive, with India's peak capacity requirement projected to reach 380-400 GW by fiscal '32. Adani Power aims to leverage its state-of-the-art technology and strategic positioning to act as balancing power plants, supporting the integration of renewables into the grid. The company remains confident in its ability to fund its growth plans and deliver industry-leading returns on assets.