Adani Power debt: ₹7,500 cr NCDs, Q3 FY26 update

Why Adani Power’s debt numbers are in focus

Adani Power’s latest disclosures have put its leverage and funding strategy back at the centre of investor attention. The company has raised ₹7,500 crore through AA-rated non-convertible debentures (NCDs) and is simultaneously pursuing a large capacity expansion plan. Alongside the fundraise, the company has also reported higher total debt and net debt compared with March 2025 levels, which it linked to bridge financing for capital expenditure and working capital borrowings.

A separate debt snapshot in the provided data also lists Adani Power’s total debt at ₹37,971.69 crore and a debt-to-equity ratio of 0.8751. The same material notes that “total debt” includes long-term borrowing, short-term borrowing, plus current maturities of long-term borrowing.

Q3 FY26 result headline: steady revenue, strong EBITDA

On 29 January 2026, Adani Power Ltd. (APL) announced financial results for the third quarter and nine months ended 31 December 2025. The company reported continuing revenue of ₹12,717 crore for Q3 FY26, noting this was “stable” despite lower rates and temporary demand disruption. It also reported continuing EBITDA of ₹4,636 crore for Q3 FY26.

Management commentary attributed performance resilience to operational efficiency despite weather-driven fluctuations in demand. The CEO, S B Khyalia, also highlighted ongoing progress in signing long-term power purchase agreements (PPAs) for upcoming capacity.

The ₹7,500 crore NCD issuance: structure and use of proceeds

Adani Power raised ₹7,500 crore through the issuance of AA-rated NCDs in four tranches with two- to five-year tenures, via private placement on 27 January 2026. The company said the proceeds will be used to finance capacity expansion, working capital requirements, and related corporate needs.

Reuters also reported that the 75 billion rupee debt sale was bought largely by Indian banks and mutual funds, which together purchased over 90% of the issue, citing three sources familiar with the matter. The same report said the bonds were arranged by Trust Investment Advisors along with ICICI Bank and Axis Bank.

Bond tranches, coupons, and key buyers (as reported)

The Reuters report detailed the maturity-wise split and coupons for the issuance. It also said SBI Mutual Fund led buying and invested 25 billion rupees, while Kotak Mutual Fund bought 6 billion rupees of debt. It further reported that ICICI Bank bought 11 billion rupees of bonds and Axis Bank opted for 10 billion rupees of notes.

The same report said the bonds are rated ‘AA’ by Crisil and India Ratings, and that coupons are set to step up by 25 basis points for every notch of rating downgrade.

Total debt, net debt, and what the company said drove the increase

Adani Power disclosed multiple reference points for debt in the provided material. In its January 2026 results communication, it stated total debt outstanding as of 31 December 2025 was ₹45,330.79 crore, compared with ₹38,334.88 crore as of 31 March 2025. It reported net debt of ₹38,679.28 crore as of 31 December 2025 versus ₹31,023.43 crore as of 31 March 2025. The company attributed the rise to bridge financing for capital expenditure.

Elsewhere in the supplied data, the company also stated total debt outstanding as of 30 September 2025 was ₹47,253.69 crore compared with ₹38,334.88 crore as of 31 March 2025, with net debt at ₹36,775.72 crore as of 30 September 2025 versus ₹31,023.43 crore as of 31 March 2025. It linked that increase to bridge financing for capital expenditure and working capital borrowings aligned with increased scale of operations.

The provided text also says that during Q2 FY26, APL fully redeemed unsecured perpetual securities (UPS) of ₹478.33 crore principal amount along with the remaining cumulative distribution, and that UPS principal outstanding as of 30 September 2025 is NIL.

Credit ratings and bank loan facilities

On the ratings side, the material states India Ratings has affirmed AA (Stable) / A1+ credit rating to APL’s bank loan facilities amounting to ₹58,000 crore. It also states CareEdge Ratings has assigned and reaffirmed AA (Stable) / A1+ credit rating to APL’s bank loan facilities of ₹58,000 crore and NCD facilities of ₹11,000 crore.

These ratings references were presented alongside the company’s statements that it continues to benefit from strong liquidity and healthy profitability, helping keep leverage low despite capacity expansion.

PPAs and the push for more contracted capacity

The Q3 FY26 update emphasised a shift toward greater revenue stability through contracted offtake. The company said it has received a Letter of Award from Assam Power Distribution Company Limited (APDCL) for long-term supply comprising the entire 3,200 MW (4x800 MW) capacity of a greenfield ultra-supercritical thermal power plant to be developed in Assam under a Design, Build, Finance, Own and Operate (DBFOO) model. It said fuel would be sourced from an allocated coal linkage arranged by the utility under the SHAKTI Policy.

The same set of disclosures stated that 90% of APL’s operating capacity is now tied up in long-term and medium-term PPAs. It also said it is securing long-term PPAs for upcoming capacity, with nearly half of its 23.7 GW expansion already tied up with state DISCOMs, and that a new PPA of 3.2 GW takes expansion capacity tie-ups to 11.7 GW.

Capacity expansion plan and execution updates

Adani Power stated it has increased its targeted capacity expansion to 41,870 MW by FY 2031-32 through brownfield and greenfield projects with a combined capacity of 23,720 MW. It also said it has already given advance orders for key equipment such as ultra-supercritical boilers, turbines, and generators, and that it already possesses the required land at strategic locations.

Progress updates cited include cumulative work for Mahan Phase-II 1,600 MW at 73%, Raipur Phase-II 1,600 MW at 35%, and Raigarh Phase-II 1,600 MW at 30%. It also stated that its wholly owned subsidiary Korba Power Ltd. has revived construction of a 1,320 MW supercritical project at Korba (Chhattisgarh), with these projects scheduled to be completed in stages between FY 2026-27 and FY 2028-29.

Business profile: what Adani Power does

Established in 1996 and headquartered in Ahmedabad, Gujarat, Adani Power is primarily engaged in thermal power generation across multiple Indian states. The supplied description says the company operates ultra-supercritical and supercritical power plants for higher efficiency and lower emissions compared to traditional thermal plants. It supplies electricity to state utilities and industrial consumers, including through long-term PPAs.

The provided business model summary describes the company’s approach as centred on large-scale generation, fuel sourcing integration, and long-term contracts, with operations structured across verticals including power generation using coal-based technology.

Debt ratios cited in the provided data

A separate metric snapshot in the supplied material states Adani Power has a debt-to-equity ratio of 0.8751, described there as indicating a low proportion of debt in its capital structure. The same dataset lists “DEBT” at ₹37,971.69 crore and repeats the figure in an FAQ-style line: “Adani Power has a total debt of Rs 37971.69 Cr.”

The provided text also states that as of March 2025, Adani Power maintained net debt to EBITDA in the range of 1.4 to 1.5 times.

Market context around domestic borrowing

The Reuters report said the group has focused its borrowings mainly in the domestic market after Hindenburg Research made allegations around corporate governance practices in 2023. The same material also noted broader group commentary that local debt market funding rose to the equivalent of $1 billion in 2025, with an intention to push that amount higher over the next three years.

Conclusion

Adani Power’s January 2026 updates bring together three connected threads: stable Q3 FY26 operating performance, a large ₹7,500 crore AA-rated NCD issuance, and higher reported total debt and net debt compared with March 2025. The company has linked the increase in borrowings to bridge financing for capital expenditure and working capital, while emphasising that a growing share of capacity is tied up under longer-tenor PPAs.

Near-term attention is likely to remain on the pace of PPA tie-ups for the 23.7 GW expansion pipeline and execution milestones for projects scheduled between FY 2026-27 and FY 2028-29, as outlined in the company’s disclosures.