Ladies and gentlemen, good day and welcome to Adani Power Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Nidhi Shah from ICICI Securities. Thank you. Over to you, ma'am.
Yes, thank you. Good afternoon. On behalf of ICICI Securities, we are pleased to welcome you all to the Q1FY26 earnings call of Adani Power Limited. Today we have with us from the management team represented by Mr. S B. Khyalia, the CEO, Mr. Dilip Jha, CFO, and Mr. Nishit Dave, AVP Investor Relations. We'll start with brief opening remarks, which will be followed by a quick Q and A session. Over to you, Mr. Khyalia.
Good afternoon everyone. Thank you for joining us today to discuss Adani Power's financial results for first quarter 2025-26. In the recently concluded quarter, Adani Power has again demonstrated its competitive strength and the resilience of its business model. In spite of weather-induced demand softness and a high base, we have delivered a quarter with great power dispatch and robust profitability. We have also expanded our capacity further by acquiring Vidarbha Industries Power Limited, which has 600 MW capacity that has been acquired by us. This acquisition will expand our presence in the state of Maharashtra and provide further opportunities for growth. Apart from this, we have also received more than $ 500 million in payments from the Bangladesh Power Development Board for their outstanding dues at the end of June and July. The customer has been paying us now regularly.
As a result, the outstanding receivables position has now been brought to near normal levels, which was so far an issue of concern. Now to talk about the operational financial performance during the first quarter of financial year 2025-26. While the all-India demand has shrunk by 1.6% due to early monsoon, Adani Power supplied 1.6% more power with 24.6 billion units as compared to quarter 1 of 202 5. You may recall that the first quarter of the previous year was marked by an intense heat wave which led to a surge in power demand, while offtake under PPA is reduced due to weaker power demand in quarter first of 2026, sales volume was supported by the additional 2,300 MW capacity acquired by us last year and higher short-term sales under bilateral and exchange models.
Our strategically located merchant capacity continues to enjoy significant competitive advantage in the short-term market, thus providing a market-linked upside to our earnings. Consequently, APL registered a stable continuing total revenue of INR 14,167 crore, healthy EBITDA of INR 5,744 crore, and a strong profit after tax of INR 3,305 crore in quarter one of the financial year 2026. Tariff realization was lower during quarter one of 2026 due to lower import coal prices in addition to lower short-term tariffs. In the short term, operating expenses are elevated due to the recent acquisitions. We are undertaking various initiatives to turn the units around quickly and improve their profitability. Now to talk about the long-term outlook. We are firm believers in the chronic of the power sector which is closely aligned with India's economic prospectus.
We are confident that the path to a secure and sustainable energy future passes through the power landscape and that coal will continue to be an important energy source for many decades. Given India's economic growth prospects, we anticipate power deficits to arise once again as demand improves across the nation. Government has already given a target of 80 GW of additional thermal power capsules to meet this demand, and now this target is being raised again to 95 GW. In view of emerging trends, this gives rise to a very attractive opportunity, and financially strong and experienced biosecuro players are ideally positioned to capitalize on it. With this region, we have locked in the supplies of boilers, turbines, and generators for the entire 11.2 GW new capacity addition. We are also tying up contracts for erection and commissioning, balance of plant , etc.
in a phased manner for the upcoming projects. As you would be aware, we already purchased all the land required for the expansion, which is a result of the foresight employed in identifying this opportunity in advance and acquiring the right resources at the right locations. We are funding these projects mostly from our own cash flows, which removes the reliance on project lenders. We also have a proven in-house project management capability and experienced team which will help us monitor and execute these projects efficiently. We have achieved progress in project execution of 4,800 MW of capacity expansion out of our targeted addition of 12,520 MW by 2030. The ongoing phase two project at Mahan in Madhya Pradesh has already crossed 66% of execution, while the Raipur phase two project in Chhattisgarh has crossed 25%, and Raigad phase two has crossed 20% within a short period.
We have also received environmental clearance for the Korba phase 2 expansion revival, which will add 1,320 MW capacity upon completion. On the PPA type of front, we have recently signed a long-term PPA with Uttar Pradesh Power Corporation Limited for 1,600 MW gross capacity, which brings our phrase capacity tie up to 4,520 MW. We are also bidding for various large PPAs in states such as Bihar, Madhya Pradesh, Rajasthan, Uttarakhand, etc. We are highly confident that our unparalleled competitive advantages, coupled with the early mover advantage that we also possess, will help us to succeed in these bids. As we have mentioned earlier also, when the discoms invite these bids they indicate the mines from which coal will be supplied to the project. These coal linkages will be provided from mines earmarked for the state under Shakti policy based on their requirement.
The new risk mitigated model of the PPA will generate attractive returns for the developers that are able to set up projects on time with a control on capital cost. In conclusion, we are highly enthused by the thermal power investment opportunity. We are sure that it will continue to play a key role for supporting India's economy for the foreseeable future and that Adani Power will play a key role in attaining the targeted capacity addition of 80 GW or more by the country. In conclusion, I would like to thank you, our dedicated team, our partners, and our stakeholders for their support. Together we are building a sustainable and prosperous future. Thank you and over to you Dilip.
Thank you and good afternoon. Ladies and gentlemen, it is my privilege to present Adani Power's financial performance.
For.
The first quarter of FY26. I am pleased to report that despite a challenging operating environment, Adani Power has delivered another quarter of robust and resilient performance. The recent slackness in power demand affected offtake of power under EPS by discom. It also affected tariffs in the merchant market. However, Adani Power was able to withstand its higher operating capacity and short term ties for the merchant capacity to deliver results in line with expectation. These results underscore our financial discipline and strategic foresight in navigating market volatility while maintaining profitability. Talking about the financial performance for quarter one FY26, let me begin with the headline number that already been said by.
Telia Sub in his quote.
Now the total continuing revenue for quarter one FY26 was INR 14,167.67 crore, slightly lower year on year compared to INR 15,052 crore in quarter one FY25 due to softer merchant tariffs and imported coal prices but stable. Consequently, compared to INR 14,522 crore in quarter four FY25, we were able to exert control over the cost of fuel at INR 7,319 crore in quarter one FY26 as compared to INR 8,074 crore in quarter one FY25. This compares favorably with the trend in continuing operating revenues between the two periods. Operating expenses have gone up from INR 852 crore in quarter one FY25 to INR 1,105 crore in quarter one FY26 and this is primarily due to the acquisition of 2,300 MW capacity under the inorganic route, but it also includes the impact of higher CSR expenses.
Continuing EBITDA came in at INR 5,744 crore, reflecting our ability to manage fuel cost and optimize operation even as we expanded our footprint. It was higher in comparison to INR 5,098 crore for quarter four FY25 but lower in comparison to INR 6,290 crore in quarter one FY25. Depreciation for the quarter increased to INR 1,105 crore in quarter one FY26 due to the recent acquisitions. We maintain tight control over the finance cost, which was reported at INR 857 crore in quarter one FY26. Despite new positions and increased scale of operations, our profit after tax for quarter one FY26 stood at INR 3,305 crore, a strong result despite lower merchant tariffs and elevated operating expenses following recent acquisitions. In comparison, the profit after tax for quarter four FY25 was INR 2,599 crore and for quarter one FY25 was INR 3,913 crore.
Our judicious use of cash flows and emphasis on maintaining low leverage has kept the debt levels low even after considering the ongoing capital expenditure and some bridge financing. Total debt as on 30th June 2025 is INR 44,372 crore as compared to INR 38,775 crore as of 31st March 2025. The liquidity of our operations remains high with robust cash accruals. As a result of this, net debt position is INR 37,437 crore as compared to INR 31,023 crore for the two quarters end. We have also mostly retired the cash flow accommodation received from promoters in the form of unsecured provisional securities. During quarter one FY26, we have repaid INR 2,575.79 crore of UPS against principal amount and outstanding balance now is only INR 478 crore.
All in all, we have ended the first quarter of 2025 and the first quarter of 2026 with a strong financial position and ample liquidity. We have been able to demonstrate the stability and resilience of our revenues and EBITDA conclusively during the quarter and followed through on our strategy on self-funded debt, light growth. As Khyalia Sahib has already said, we have already received more than $500 million payment from Bangladesh Power Development Board towards outstanding dues in June and July. The customer has been paying us regularly. Another key development during the quarter was the amalgamation of Adani Power (Jharkhand) Limited. This brings the 1,600 MW Godda plant into APL standalone entity. This has led to an implicit credit rating upgrade of Godda to AA stable, reducing finance cost. As we know, India's power demand is growing strongly even after taking weather-induced variability into account.
There is a clear-cut requirement of more thermal power capacity to meet anticipated deficits. We expect that the additional capacity required will go from 80 to 95 GW. As Khyalia Sahib said in his speech, in closing, I want to emphasize that Adani Power Limited is strongly positioned for the future. Our strong balance sheet, strategic acquisitions, and disciplined executions are driving sustainable growth. We remain committed to delivering reliable, affordable, and clean energy to power India's progress. I would like to request the moderator to open the floor for question and answers.
Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press STAR and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Abhinav from ICICI Securities.
Please go ahead.
Good evening, sir. Thanks for the opportunity. My first question is the company has . What does it exactly entail, given that you know all our equipment is already being tied up for the upcoming capacities?
Yeah, sure. Thank you for the question.
As you know, there is huge demand of 18 GW of the thermal based power load by 2022, and this will increase from 80 to 95, what we are expecting. We are currently in the evaluation phase, exploring various opportunities for expansion. Once the plan is ramped up and aligned with our strategic goal, we will share all the updates with concrete numbers in due course of time.
Apart from this, have we given.
Any other order to any other player regarding, related to the equipment?
Yeah, that's what I said. Now we are currently evaluating all the options available and we are evaluating these numbers, you know, the growth requirement in the country. It will work out and then definitely will come.
With all these numbers.
Understood.
Yeah. On the second question, on the recently acquired coastal Lanco and Vidarbha assets, how have the operations been? Are you facing any challenges? What is the PLS, and for these three acquired assets, what is the EBITDA?
We can expect?
First, the technical part. Lanco, w e have very large challenge except a small issue related to ash disposal, which we are taking care of. Second is the coastal. Coastal one unit we have already done complete overhauling, and after the complete overhauling, I think machine is now at par with any other power station. Another machine we will be taking for complete overhauling in the current month. Once that complete overhauling is done, this machine will again become at par with any other good maintained assets. It has taken some time because after we took over, we have to place the orders for the equipment, spares, etc. Obviously, these are the machines not of domestic make. It takes some time to get these spares and therefore we have to take some time.
Once this overhauling is done, there will not be any further challenge as regards to the coastal is also concerned. Thereafter, we expect that it will have a full availability. The normal availability. So Lanco is already addressed. The coastal will get addressed by end of this month.
What was the third one?
Vidarbha, again, obviously there was a challenge because the station was in shutdown condition from 2018. As soon as we have taken over, we have done the advanced planning because this was undergoing the NCLT process and we were the highest bidder for a long time, and therefore we had done good planning in advance. Now the machines are already properly overhauled and they are good to give a normal availability. There is no challenge as far as weather wire is concerned also. Thank you.
My final question is what was.
The merchant realization in the first quarter and outlook for this year?
Merchant outlook?
Our merchant realization for the first quarter was INR 6.51 per kW as against last year same quarter it was INR 7.60.
Merchant rates during the first quarter are obviously much lower than as compared to the last year same quarter because of weather conditions, which we mentioned in our initial remarks. As you are aware, this year monsoon has come in the month of May itself, and there were weather disturbances in the month of April also. April, May, June, the entire quarter was, from the point of view of power demand, very slackish. Since the monsoon has come early, we are of the view that the monsoon will go also early. Therefore, we think that the outlook.
Of even the second quarter will be.
Better than the last year. Because of this reason that last year the monsoon was delayed and the impact of monsoon was in the second quarter. This year the impact of monsoon is more in the first quarter. Second quarter onwards the demand should pick up and we feel that there should be a good demand and consequently the merchant rates.
Thank you. Thank you, sir.
Thank you. The next question is from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead.
Thank you. First question was just to understand, given the latest vision for SGD, does that change our CapEx?
Sorry to interrupt, sir, but there is some kind of disturbance in your background. Could you move to a quieter area?
Am I audible now?
Yes, sir.
The latest volume on SGD, how does that change our outlook on CapEx for the under construction plans?
Your question is not very clear.
Can you repeat it?
Yes.
Like I said, with the recent cooling on SGD, does that change our, you know, CapEx estimates or outlook on the under construction?
I think there is a lot of noise in the background. Okay now.
Yes, go ahead.
After this notification has come, obviously the power stations which are under planning and execution where we have not started the execution of SGD, there is no requirement of SGD now. Therefore, we will drop the SGD expenditure from those power plants and two power stations. In case of one at Mahan and another at Raipur, we are in advanced stage and therefore we will continue to execute there. In rest of the power plants we will not execute. To that extent, cost of capital will go down. Project cost will go down. Exit numbers. It would not be appropriate to discuss the project numbers in detail or the bifurcation of the project cost. Thank you.
The other question was to understand on these upcoming tenders that you talked about, you know, Bihar, Rajasthan, Madhya Pradesh, Uttarakhand, you know, which of these tenders have the requirement where the plant needs to be set up in the same state. Is that the case for all these tenders or does it mean.
So your.
Voice is breaking in and getting lots of disturbance.
Anyhow, the Bihar, the tender is the project is to be established in Bihar itself. In case of Rajasthan also, the present tender condition is to construct the power plant in Rajasthan itself. As regards to MP is also concerned, MP is also the power plant is to be constructed in state of MP. These are broadly the tenders in market. In case of Uttarakhand, the location is not specified, so project can be anywhere in India. This is broadly the position of the tenders.
Okay, just one last question. What was the PLS for Godda during this quarter?
It was during the quarter the PLF for, you know, the Godda was 73% posted.
Those are my questions. Thank you.
Thank you.
Before we take our next question, we.
Would like to remind the participants to press star and one to ask a question. The next question is from the line of Jainam Jain from ICICI Securities.
Please go ahead.
Good evening, management. Thank you for the opportunity.
My first question is what is the revenue and EBITDA guidance for?
Sorry, can you please repeat the question?
What is the revenue and EBITDA guidance for FY26?
Jainam we have not provided any specific guidance for revenue or EBITDA. One thing is the revenue is a bit variable because a part of the PPAs are linked to the direct are linked to imported coal prices. Secondly, the EBITDA also we have not given any guidance, but what we have said is that our EBITDA, the current business model and the tie up structure actually gives us very stable revenues and EBITDA margin. Till the time our capacity expansion takes place, you can expect similar EBITDA margins as we have recorded in the last year.
Okay sir, what is the status of.
Pending validation and final settlements of alternate.
Coal compensation from Haryana Discom
By when can we expect the closure?
Your voice is not very clear. Can you speak a little bit further from the mic, please.
Hello, am I audible right now?
Yeah
So, what is the status of pending validations and final settlement of alternate full compensation from Haryana Discom, and when can we expect the close date for that?
The discussion is still ongoing. For the time being, Haryana is making payment of 50% of the difference of deals which we are raising, and therefore we are also accounting for only 50% of the amounts which we are getting. Discussions are going on, and we expect that the issue should get resolved soon.
Okay sir, my last question is what is the total current total of.
Regulatory receivables outstanding and what proportion is.
under dispute and what is in the process of realization?
The second part of your question is what
What proportion is under dispute and what is under the process of realization?
There is hardly anything pending now which is, let us say, substantial, except that small regulatory changes are coming frequently and therefore we may be raising those issues or claims in regular course. There is no substantial claim now pending. It can change the, let us say, revenue or profitability substantially. Not very significant. Thank you.
Okay. Okay.
[audio distortion]. Thank you so much and all the best.
Thank you. Participants may press star and one to ask a question. The next question is from the line of Nirav Shah from GeeCee Holdings.
Please go ahead.
Good evening, sir. Thanks for the opportunity.
Most questions have been answered.
Just two remaining questions. One is sir, we have repaid INR 20,058.0 crore of unsecured perpetual securities. This is towards the principal.
Has any distribution that has been made?
In the first quarter, over and above this amount.
Yeah, you rightly said. Nearby that INR 2,579 crore we paid address in principal. Apart from that, we also paid INR 1,146 crore. As you know, it's as a distribution. Now we have only INR 478 crore pending that we paid in July. There is nothing, you know, no pending so far. Perfect equity is concerned.
Any further distribution made in July.
Along with this, now it's almost done.
In July, we have paid the balance amount of INR 478 crore, including distribution. There is no understanding, including its distribution.
Got it, sir.
It's now.
Sure. Great.
Sir, second question is.
Any target commissioning day for the Deroli mine which is supposed to be in this year?
The production should start by September or October somewhere. We are on time as per the plan which we gave earlier.
Great. Thanks sir and wish you all the best. Thank you.
Thank you. Ladies and gentlemen, in order to ask a question, press star and one at this time. The next question is on the line of Nidhi Shah from ICICI Securities Ltd. Please go ahead.
Yes, thank you so much for taking my question. My first question would be on the PPA that we recently signed with the UPPCL . Could you please elaborate on the tariffs that we have signed with the PPA? Consequently, about 100 MW of capacity in that plant which we assigned the PPA for remains unset. Are we looking to sign that or are we looking to convert that for merchant purposes? Could you also talk to me a little more about where we are in the process of PPAs for other upcoming capacities? Are we looking to add further PPAs?
I think you can break down your question into smaller questions because not getting exactly what is your question.
The first question was on the recently signed PPA with UPPCL. I wanted to know what was the tariff of that PPA. That was the first part of the question.
signed the PPA with UPPCL where the capacity charge is INR 3.73 and the total tariff is INR 5.39.
All right. The remaining 100 MW of capacity in that plant, since the PPA was for 1,500 and the capacity is 1,600, are we looking to tie up that capacity as well?
Now that is the net capacity of the plant. When we say 1500, 1,500, it is after or building, so there's nothing left out.
Okay. Are we looking, are there any other details that could be signed in the near term in the pipeline for our other upcoming projects?
We have already elaborated that the tenders of Rajasthan and Uttarakhand are under process and going on. As soon as these grids are finalized, we hope that we should be in a better position to win this bid. Obviously, consequently, if we win, we will sign the PPAs.
All right. Lastly, if we see the consolidated debts of barring the PPA, about INR 6,000, INR 7,000 crore of debt has increased this quarter for the existing entities, while it has remained the same for the under construction projects. I just wanted to know that this extra debt that we have taken on this quarter, what is the purpose of this debt?
Thank you for your question. On an average, on annual basis, our FFO is more than INR 21,000 crore and in the next five years it will be more than INR 1 lakh crore. Our CapEx program is that amount only. We are going to generate sufficient amount of cash flow which will meet the requirement of our.
CAPEX plan over and above.
We will also generate additional cash flow from the projects, you know, and the.
Plant which are you know under suspicion.
Now recently, you know, we took some interim bridge fund from the bank. That is only to meet the requirement of power on the capital. This is for interim requirement of you.
Know, expense and capital expenditure.
That is for interim requirement purpose only.
What can we expect the debt profile to look like going forward for the rest of the year? Are we expecting to take any further debt for the under construction project?
Yeah, as of now, we are anticipating that our internal accruals will be sufficient to meet our CapEx requirement for the year.
All right, thank you so much.
Thank you.
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Yeah, as there is no question.
Thank you so very much.
If you have any question, you may please connect visit by or me. We are always available to respond.
Thank you.
Thanks a lot for your time and attention.
Thank you.
Thank you. On behalf of Adani Power Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.