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Adani Power Q4 FY26: Stable earnings, deeper PPA cover, and a heavy capex runway

Adani Power closed Q4 FY26 with steady operating performance and a sharper improvement in reported profitability. Reported revenue rose to INR 15,989 crore in Q4 FY26 (up 10% year on year), while continuing revenue was INR 15,059 crore (up 3.7%). Reported EBITDA increased to INR 6,498 crore (up 27%), and profit after tax rose to INR 4,271 crore (up 64%).

For FY26, the year looked more muted on demand and pricing, but earnings remained resilient. Reported revenue was INR 57,865 crore, continuing revenue was INR 55,583 crore, reported EBITDA was INR 23,431 crore, and PAT was INR 12,971 crore. Management attributed the steadiness to a high share of contracted volumes and cost discipline, even as weather-driven demand softness kept merchant prices subdued for much of the year.

Operating performance: availability held up, PLF softened over the year

Operationally, the company highlighted high plant availability and dispatch growth despite volatile demand patterns. O&M availability improved to 93% in Q4 FY26 from 91% a year earlier. Plant load factor was 74% in Q4 FY26, unchanged year on year, but the full-year PLF declined to 67% from 71% in FY25. Dispatch performance still increased, with sales rising to 27.2 BU in Q4 and 99.1 BU for FY26.

A key management theme was that FY26 demand growth was tepid. On the call, the CEO said all-India power demand grew 0.8% in FY26, influenced by an extended monsoon and cooler weather. Management also said demand recovery became visible from March and expects FY27 to see stronger growth in overall and peak demand.

Contracting strategy: merchant exposure reduced, expansion PPAs build visibility

Adani Power kept pushing its contracting story. The presentation and call both stressed that 95% of operating capacity is tied up under long-term and medium-term PPAs, and management stated merchant capacity has now come down to about 5%. In the Q4 call, management clarified that open merchant capacity is mainly at Mundra (Unit 9), Mahan Stage I, and a small amount at Raipur.

On the growth side, the company reiterated its plan to add 23.7 GW of thermal capacity by FY32, taking the total to 41.87 GW. It reported that 13.3 GW of PPAs are already tied up for the expansion pipeline. In Q4, the company disclosed a letter of award for a 1,600 MW long-term PPA from Maharashtra DISCOM. During the call, management said the tariff is INR 5.30 per unit, comprising INR 4.11 as capacity charge and INR 1.19 as energy charge. Management also said the PPA is yet to be signed, Maharashtra is yet to file for tariff adoption, and commissioning would be about 48 months after signing.

Separately, the company announced it received a letter of award from Maharashtra State Electricity Distribution Company for 2,500 MW of renewable energy round-the-clock supply for 25 years. Management described this as a group-level product to be served through a trading platform using a mix that could include residual coal capacity and other resources.

Expansion execution and capex: commissioning milestones and funding choices

The company’s project pipeline is positioned as execution-ready. The presentation highlights 100% land availability and 100% ordering of BTG sets for 23.72 GW of locked-in projects. A large portion is planned as brownfield, which the company argues reduces land risk and speeds up approvals.

On commissioning, management gave specific near-term timing. Korba Phase-II (1.32 GW) is expected to start commissioning between June and September 2026 for the first unit, with the second unit before FY27 year-end. For Mahan Phase-II, management said the first unit could be commissioned in the last quarter of the current year or, at most, the first quarter of the next year, and the second unit around six months later. The company cited geopolitically driven constraints around labour and certain critical supplies as reasons for taking a more conservative commissioning stance.

Capex guidance on the call was also explicit: about INR 25,000 crore in FY26-27 and about INR 33,000 crore in FY27-28.

Financial summary (as disclosed)

Balance sheet: higher net debt during build-out

Debt moved up in FY26 as the company stepped up expansion spending and made acquisitions. As of March 31, 2026, gross debt was INR 53,556 crore and net debt was INR 45,022 crore, compared with net debt of INR 31,024 crore a year earlier. Net debt to continuing EBITDA (TTM) was 2.12x.

Management linked the higher leverage to bridge financing for ongoing capex. It also highlighted a INR 7,500 crore raise via AA rated non-convertible debentures in January 2026 and said most expansion capex is expected to be funded through internal accruals over time.

Key investor takeaways

Adani Power’s Q4 FY26 numbers reflect a company leaning harder into contracted cash flows while keeping a large thermal expansion pipeline moving. The near-term debate is likely to stay focused on execution timing and the temporary rise in net debt through the heavy capex phase.

Management’s messaging was consistent: merchant exposure is being reduced, the expansion program is intended to be earnings-accretive through availability-based capacity charges, and commissioning of new units is expected to drive the next phase of EBITDA and cash flow growth.