Adani Power Limited Q2 FY27 profit rises 141.5% to ₹7,019 crore

Adani Power Limited reported Q2 FY27 net profit of ₹7,019 crore, up 141.5% year on year, as revenue from operations rose 44.5% to ₹19,439 crore. Strong thermal power demand, higher plant availability and ₹2,422 crore of prior-period revenue linked to revised Gujarat tariff terms supported the reported result.

What did Adani Power Limited report for Q2 FY27?

Adani Power Limited reported total revenue of ₹19,950.60 crore for Q2 FY27, compared with ₹14,307.79 crore in Q2 FY26, an increase of 39.4%. Revenue from operations was ₹19,439 crore, rising 44.5% year on year, while total continuing revenue stood at ₹17,528 crore, up 28.5%.

Reported profit after tax was ₹7,019 crore, a 141.5% increase from the year-earlier quarter. Continuing profit before tax increased 32% to ₹4,370 crore from ₹3,298 crore, while reported profit before tax rose 71% to ₹6,792 crore. Management said the reported profit included one-time prior-period income from revised Gujarat distribution company tariff terms.

Why did Adani Power Limited's profit increase?

Adani Power Limited said strong electricity demand and high plant availability lifted generation and sales during the quarter. Consolidated sales volume rose 11.5% year on year to 26.4 billion units from 23.7 billion units, while plant load factor improved to 70.1% from 62.8%.

The company also benefited from a retrospective revision to the base rate used for indexation under revised Gujarat DISCOM terms. Chief Executive Officer Shersingh Khyalia said the related prior-period income of ₹2,422 crore was received in three instalments over the past two quarters. He said recovery for earlier periods is complete and the revised rate is now reflected in regular tariff revenue.

Power-market conditions added support to thermal generation. Management said India's power demand rose 11.5% year on year to 502 billion units in the quarter. Lower hydropower output amid a weak monsoon resulted in coal and lignite contributing 73% of the incremental generation required to meet demand.

How did operating performance support Adani Power Limited's results?

Adani Power Limited supplied 26.4 billion units in Q2 FY27 as its plant load factor reached 70.1%. For the first half of FY27, plant load factor was 74.1%, compared with 64.8% in the corresponding period of the prior year, and sales volume increased 14.3% to 55.1 billion units.

Sales under long-term and medium-term power purchase agreements rose 29.7% to 23.4 billion units. The increase reflected higher offtake by distribution companies, according to management. The company linked the operating performance to high availability across its portfolio and stronger power-selling rates during the period.

Management said peak power demand reached 270 GW during the quarter and exchange tariffs increased substantially. These conditions provided a supportive backdrop for thermal generators, although the company also noted that imported coal costs increased sequentially.

What did Adani Power Limited say about fuel costs and tariffs?

Adani Power Limited said most of its imported coal-based capacity operates under power purchase agreements that allow fuel-cost pass-through. For the Gujarat-linked arrangement, management said the prevailing per-unit realisation continued to cover actual fuel costs despite the increase in coal prices.

However, the applicable indexation mechanism creates a lag of more than six months before current-quarter fuel price increases are reflected in tariffs. Management said this timing effect slightly compressed margins and indicated that the impact was likely to be reflected in Q3. The Bangladesh power purchase agreement has no such time lag because its tariff is linked to international prices and adjusts immediately.

This distinction is important for investors assessing quarterly profitability. While fuel cost pass-through limits longer-term exposure under the relevant contracts, the timing of indexation can affect margins in individual quarters when imported coal prices move sharply.

What are Adani Power Limited's expansion and debt updates?

Adani Power Limited said the first 660 MW unit at Korba has been grid-synchronised and is expected to be commissioned and operational in Q3 FY27. Management expects the second Korba unit around December. The company did not disclose a power purchase agreement for Korba during the call.

On hydro power, management said Adani Power Limited will pursue international projects, while Adani Green handles domestic hydro assets. The company has signed a memorandum of understanding with Bhutan for 5,000 MW of hydro capacity and a shareholders' agreement with its Bhutanese partner for 1,340 MW. Management said the objective is to reach the full 5,000 MW under the Bhutan plan.

Gross debt was ₹61,860 crore, compared with ₹53,556 crore as of March 2026. Chief Financial Officer Dilip Jha said net debt remained broadly flat at about ₹45,846 crore because of liquidity management and approximately ₹6,000 crore received from GBNL. He added that the credit-rating upgrade from AA to AA+ supported the expectation that finance costs would remain broadly stable despite market-linked interest-rate movements.

Conclusion

Adani Power Limited's Q2 FY27 performance combined stronger demand-led volumes, improved plant utilisation and a substantial one-time Gujarat tariff-related recovery. The 141.5% increase in reported profit therefore reflects both operating improvement and income that management said will not recur as prior-period recovery.

Investors will watch the commissioning of the Korba units, the pace of tariff reflection for higher imported coal costs and progress on the Bhutan hydro plan. Management also indicated that no change has occurred in its minority stake position in Jaiprakash Power assets, with any development to be communicated to the market.