Adani Power Limited (APL) is India's largest private sector thermal Independent Power Producer (IPP), playing a critical role in meeting the nation's baseload power requirements. The company operates a substantial and geographically diversified portfolio of 13 assets with a total operating capacity of 18,150 MW. APL has a proven track record of not only developing greenfield projects but also successfully acquiring and turning around stressed assets, which has been a key driver of its expansion. The majority of its operational capacity is based on modern, efficient supercritical and ultra-supercritical technology, which enhances operational performance and environmental standards. The company's business model is anchored in securing long-term Power Purchase Agreements (PPAs) with state-owned distribution companies (DISCOMs), which provides significant revenue stability and mitigates exposure to the volatile short-term merchant power market. With a clear growth trajectory, APL has a locked-in capacity pipeline to expand its portfolio to 23,720 MW and a long-term target to reach 41,870 MW, positioning it to capitalize on India's rapidly growing energy demand.

Official Website: www.adanipower.com

• FY26 & Q4 FY26 Performance:

• Continuing Revenue: For the full fiscal year FY26, continuing revenue stood at ₹55,583 crores, a minor decrease of 1.6% from FY25. For the fourth quarter (Q4 FY26), revenue grew by 3.7% year-over-year to ₹15,059 crores. The stable performance was achieved despite lower merchant power rates and a decrease in import coal prices, supported by a high degree of PPA tie-ups.

• Continuing EBITDA: FY26 continuing EBITDA was ₹21,285 crores, nearly flat with a 1.3% decline from the previous year. Q4 FY26 showed strong growth, with EBITDA increasing by 9.3% to ₹5,573 crores, reflecting core earnings resilience and contributions from newly acquired assets.

• Profit After Tax (PAT): The company reported a PAT of ₹12,971 crores for FY26, a 1.7% increase over FY25. The Q4 FY26 PAT saw a significant jump of 64.3% to ₹4,271 crores, driven by robust operating profitability and a lower incidence of tax expenses due to the recognition of deferred tax assets.

• Historical Performance & Trends:

• APL has demonstrated a strong growth trajectory over the past several years. From FY20 to FY26, reported total revenues grew from ₹27,842 crores to ₹57,865 crores.

• EBITDA has shown consistent improvement, with continuing EBITDA growing at a CAGR of 24% between FY20 and FY26.

• Profitability has transformed significantly, moving from a loss of ₹2,275 crores in FY20 to a profit of ₹12,971 crores in FY26.

• Debt & Capital Structure:

• As of March 31, 2026, the company's Net Debt was ₹45,022 crores.

• The balance sheet has been significantly strengthened over time. The key leverage ratio, Net Debt to Continuing EBITDA, stands at 2.12x for FY26. This is a substantial improvement from 9.75x in FY19, indicating a much healthier and de-risked financial profile.

• The company holds a strong credit rating of 'AA/Stable' from multiple rating agencies. This high rating enabled a successful issuance of ₹7,500 crores in Non-Convertible Debentures (NCDs) in January 2026, demonstrating strong market confidence.

APL's financials reflect a resilient business model with stable revenues, robust profitability, and a significantly deleveraged balance sheet that positions it well to fund future growth.

• Scale and Technological Edge:

• As India's largest private thermal power producer with an 18.15 GW portfolio, APL benefits from significant economies of scale.

• Over 60% of its operating capacity utilizes advanced supercritical or ultra-supercritical technology, ensuring higher efficiency and better environmental performance compared to older sub-critical plants.

• High Degree of Contracted Revenue:

• Approximately 95% of APL's operating capacity is tied up under long-term or medium-term Power Purchase Agreements (PPAs).

• This high level of contracted capacity ensures stable and predictable revenue streams, insulating the company from the price volatility of the short-term merchant power market.

• Fuel Supply Security:

• The company has secured long-term Fuel Supply Agreements (FSAs) for 87% of its domestic coal-based capacity.

• This de-risks a critical operational component by ensuring a reliable supply of fuel at predetermined terms, which is essential for maintaining high plant availability and managing costs.

• Proven inorganic Growth Strategy:

• APL has a successful history of acquiring and turning around stressed power assets, having integrated 7.3 GW of such capacity into its portfolio. This demonstrates strong operational and financial management capabilities.

APL's market leadership is defined by its large-scale, technologically advanced asset base, combined with a de-risked business model centered on long-term contracts and secured fuel supply.

• Robust Power Demand Growth:

• India's energy demand is projected to quadruple over the next two decades, driven by economic expansion, manufacturing growth, infrastructure development, e-mobility, and digitalization.

• Significant disparities in per-capita power consumption across Indian states (e.g., Uttar Pradesh at 617 kWh vs. Gujarat at 1,983 kWh) highlight the immense latent demand and growth potential as development accelerates.

• Critical Role of Thermal Power for Baseload:

• While India has an ambitious renewable energy target of 500 GW by 2030, thermal power remains essential for providing stable, 24/7 baseload power to balance the intermittent nature of renewables.

• Projections indicate a requirement for an additional 97 GW of coal-based capacity by FY35 to meet the country's growing peak and baseload demand, ensuring grid stability and energy security.

• Supportive Policy Environment:

• The government's SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) policy facilitates the allocation of coal to power plants that have secured PPAs, creating a clear and supportive framework for new thermal capacity.

• State DISCOMs are actively bidding out long-term thermal PPAs, with over 20 GW already awarded, of which APL has secured a significant share.

The Indian power sector presents a long-term growth opportunity, where thermal power is indispensable for ensuring energy security and supporting the integration of renewables.

• Clear Expansion Pipeline:

• APL has a well-defined growth plan to expand its current operating capacity of 18,150 MW to a locked-in capacity of 23,720 MW, with a long-term target of 41,870 MW.

• This expansion is backed by a portfolio of both brownfield (expansion at existing sites) and greenfield projects.

• De-risked Execution Strategy:

• Land Availability: 100% of the land required for the 23,720 MW locked-in capacity is already available, eliminating a major potential cause of project delays.

• Equipment Secured: The company has placed advance orders for 100% of the Boilers, Turbines, and Generators (BTG sets) required for its pipeline projects, ensuring supply chain certainty for the most critical equipment.

• Brownfield Advantage: 60% of the upcoming capacity is brownfield, which allows for faster execution, quicker clearances, and cost advantages due to shared infrastructure.

• Project Portfolio Details:

• The growth pipeline includes several large-scale projects such as Mahan Phase-II (1,600 MW), Raipur Phase-II (1,600 MW), Mirzapur (1,600 MW), and Korba Phase-II (1,320 MW), all of which are in advanced stages of development.

APL has established a highly visible and de-risked growth trajectory, with its future capacity expansion secured by land availability and critical equipment orders.

• High Plant Availability:

• The company consistently maintains high plant availability, recording 89% in FY26 and 91% in FY25. This metric is crucial as it ensures the recovery of fixed capacity charges under its PPA structure, regardless of actual power dispatch.

• Plant Load Factor (PLF):

• The PLF for FY26 was 67%, slightly down from 71% in FY25. This was influenced by subdued power demand during the year due to prolonged monsoons and cooler temperatures.

• Despite the lower PLF, total power sales volume increased by 3.4% to 99.1 Billion Units (BU) in FY26, driven by the addition of new capacity.

• Capital Expenditure (Capex):

• The company is in a significant capex cycle, as indicated by the increase in Capital Work in Progress (CWIP) on its balance sheet to ₹35,053 crores in FY26.

• A key strength is that the majority of this capital expenditure is planned to be funded through internal accruals. This self-funded growth model reduces reliance on external debt and minimizes equity dilution.

APL demonstrates strong operational efficiency with high plant availability and is funding its substantial capacity expansion primarily through its own robust cash flows.

• Organic Growth through Project Execution:

• The primary focus is on executing the existing pipeline of 13 projects to reach the locked-in capacity of 23,720 MW and move towards the ultimate target of 41,870 MW by FY32.

• Projects like Mahan, Raipur, and Mirzapur are in advanced stages, and their timely commissioning is a key priority.

• Securing New Long-Term PPAs:

• The company actively participates in ongoing bids for long-term thermal PPAs floated by various state DISCOMs.

• Out of ~20.9 GW of PPAs awarded by states under the SHAKTI policy, APL has already secured ~13.9 GW, positioning it as a dominant player in capturing new long-term contracts.

• Inorganic Growth Opportunities:

• APL continues to evaluate opportunities for inorganic growth through the acquisition of strategic assets.

• The company has been nominated as an "implementation agency" to acquire certain power assets from Jaiprakash Associates Ltd. under the corporate insolvency process, indicating an ongoing focus on this strategy.

The company's future plans are centered on a dual strategy of executing its large organic project pipeline while selectively pursuing inorganic acquisitions to accelerate growth and consolidate its market leadership.

• Sector-Leading EBITDA Margins:

• APL consistently reports some of the highest EBITDA margins in the thermal power sector. For FY26, the reported EBITDA margin was 40%.

• This superior margin performance is a direct result of its operational efficiencies, cost-competitive fuel sourcing, and the stable revenue structure of its PPAs.

• Key Margin Drivers:

• Positive Drivers: Margins are supported by the two-part tariff structure of PPAs, which guarantees recovery of fixed costs at high plant availability. Efficient sourcing of coal for non-contracted capacities also contributes positively.

• Negative Drivers: Margins can be impacted by fluctuations in international coal prices and lower realizations from the merchant market, as observed in FY26.

APL's operational excellence and high-quality asset base enable it to maintain industry-leading profitability margins, providing a strong buffer against market volatility.

• New Power Purchase Agreements (PPAs) Secured:

• APL was awarded a 1,600 MW PPA for 25 years by the Maharashtra DISCOM, to be supplied from a new greenfield project.

• A subsidiary was awarded a 558 MW (net) PPA by the Tamil Nadu DISCOM for a five-year period, further increasing the proportion of contracted capacity for operating plants to 95%.

• Inorganic Acquisition Initiative:

• Adani Infra India Ltd. has nominated APL as the "implementation agency" for the resolution plan to acquire certain power assets from Jaiprakash Associates Ltd., signaling progress in its inorganic growth strategy.

• Successful Debt Capital Market Activity:

• The company raised ₹7,500 crores through the issuance of AA-rated Non-Convertible Debentures (NCDs) with tenures of two to five years. The funds were raised from a diverse group of domestic investors, including mutual funds, banks, and insurance companies.

APL continues to actively secure new long-term contracts and pursue strategic acquisitions, while its strong credit profile allows it to access capital markets effectively to fund its growth.