Ladies and gentlemen, good day and welcome to the Adani Power Limited Q4 FY25 earnings conference call hosted by ICICI Securities. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask a question after the presentation concludes. Should you need assistance during the 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 Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you, sir.
Yeah. Thank you, Keshav. Good afternoon. On behalf of ICICI Securities, we are pleased to welcome you all to the Q4 FY25 earnings call of Adani Power Limited. Today, we have with us the management team represented by Mr. S B Khyalia, CEO; Mr. Dilip Jha, CFO; and Mr. Nishit Dave, AVP Investor Relations. We also have with us Mr. Anupam Tiwari, Group Head, Corporate Finance. With us. We'll start with brief opening remarks, which will be followed by Q&A. Over to you, sir.
Good afternoon, everyone. Thank you for joining us today to discuss Adani Power's financial results for the Q4 and fiscal year 2024-2025. It has been a remarkable year for us. We have achieved significant milestones and made strategic advancements. This has strengthened our position as the largest private thermal power producer in India. At Adani Power, our objective is to provide reliable, sustainable, and scalable energy solutions. Our performance for financial year 2025 demonstrates our deep commitment to this mission. I'm happy to note that Adani Power generated 102 billion units of power in financial year 2025 and achieved 91% plant availability. We are proud to support India's economic growth by making reliable and affordable power across all markets. During financial year 2025, our power sale volume increased by 20.7% to 95.9 billion units.
In the Q4 of financial year 2025, we achieved a power sales growth of 19% with sales of 26.4 billion units. This growth is due to strong power demand and higher operating capacity, followed by acquisition of 2,300 MW operating capacity during the year, which takes our operating capacity to 17,550 MWs. The power market has shown robust growth. All-India power demand increased by 4.2% to 1,695 billion units for the financial year 2025. Despite a slowdown due to cold weather, demand picked up in the month of March, growing by 6.6% over March 2024. This had some impact on merchant tariffs in the second half of the year. However, we have been able to achieve higher volumes in the merchant and shorter market due to our competitive advantages like a cost-efficient operating fleet, high plant availability, and low cost of fuel logistics.
Looking ahead, we are excited about the opportunities. We are expanding our capacity to 30,670 MWs by 2030. We are constructing three brownfield projects of 1,600 MWs each at Mahan, Raipur, and Raigarh. The project activities are in full swing. We are also revising the 1,320 MW expansion project of Korba West Power Company Limited at Korba. Altogether, we have given advance orders for 11.2 GW of ultra-supercritical boilers, turbines, and generators to secure our supply chain. This is a strong competitive advantage for us as we will have capacity getting commissioned ahead of the competition. We are taking a number of steps to address execution risk for our expansion plan. The brownfield model of expansion, along with a package-based contract execution model, will allow us to shorten execution times and improve flexibility as well as back-to-back assurances from vendors and suppliers.
As you might know, we have signed PPAs for 2.92 gigawatts of the upcoming capacity. We are participating in various bids of the long-term thermal power PPAs from state-sponsors. There are more than 14 GW bids at various stages currently, and more than 10 GW bids are expected to be launched soon. These bids are being invited with coal-linkage earmarked for states under SHAKTI Policy . As of today, 24 GW of coal allocation has been made to various states for inviting the bids under this policy. This step goes a long way in mitigating the fuel risk for our upcoming power plants, and there is an equitable distribution of risk between the developer and the sponsor under the new PPA model. In addition to this, we are also entering the area of commercial coal mining for our capital use.
We have won four mine auctions with a total of 14 MTPA capacity. Three of these mines are in Madhya Pradesh and one in Maharashtra. One of the mines in MP, which is in the Dhirauli block in Singrauli, will start production of coal during this year. This will help us augmenting our coal supply, sharpen our logistics advantage, and develop a long-term source for our capacities. We are highly confident that thermal power will continue to play a key role in India's energy mix in the foreseeable future, and Adani Power will play a key role in achieving India's energy goals in the coming years. In conclusion, I would like to thank you— dedicated team, our partners, and our stakeholders for their support. Together, we are building a sustainable and prosperous future. Thank you, and over to our CFO, Mr. Dilip.
Thank you, sir. Good afternoon, everyone. I am pleased to present the financial performance of Adani Power for the full fiscal year and Q4 of FY 2024-2025. This year has been one of robust growth and strategic advancements. For the full fiscal year, our total continuing revenue increased by 10.8% to INR 56,473 crore. Our continuing EBITDA grew by 14.8% to INR 21,575 crore, and this was due to higher revenue and lower fuel prices. The depreciation charge for FY 2025 increased to INR 4,309 crore from INR 3,931 crore in FY 2024, and this is due to the addition of new acquired assets. Interest charge for FY 2025 was nearly identical at INR 3,380 crore for FY 2025 as compared to INR 3,388 crore for FY 2024, and this is despite the acquisition of new assets during the year.
Our continuing profit before tax for FY 2025 increased by 21.3% to INR 13,926 crore. During FY 2025, we had much lower one-time prior period income recognition of INR 2,433 crore as compared to INR 9,322 crore in FY 2024. As a result, the reported profit before tax was INR 16,360 crore in FY 2025 as compared to INR 20,792 crore in FY 2024. During FY 2025, we have provided for a higher tax expense of INR 3,610 crore, primarily due to deferred tax liability and as compared to the tax credit of INR 37 crore in FY 2024. As a result, the profit after tax achieved in FY 2025 is INR 12,750 crore as against INR 20,829 crore. With this robust profitability and cash flows, we have ended the fiscal year 2024-2025 with a stronger balance sheet and sound liquidity.
Now, talking about the Q4 of FY 2024-2025, our power sales volume for Q4 FY 2025 increased by 19% to 26.4 billion units. The continuing revenue for quarter is INR 14,522 crore as compared to INR 13,787 crore in Q4 of last year. APL has achieved continuing EBITDA of INR 5,098 crore in Q4 FY 2025 as compared to INR 5,273 crore in Q4 of last year. We recognize the lower one-time prior period income of only INR 13 crore in the quarter as compared to INR 94 crore in Q4 of last year. Continuing profit before tax is INR 3,248 crore in Q4 FY 2025 as compared to INR 3,464 crore in Q4 of last year. Profit after tax for the quarter is INR 2,599 crore as compared to INR 2,757 crore in Q4 of last year.
Now, coming to the business, we have made significant progress in advancing our business strategy. The amalgamation of Adani Power ( Jharkhand) Limited with Adani Power Limited was completed recently on 25 April 2025. Its 1,600 MW capacity now forms part of APL's standalone capacity. Adani Power ( Jharkhand) was rated as BB B level. However, after this amalgamation, the combined facilities of Adani Power and Adani Power ( Jharkhand) within the standalone entity of APL are now rated as AA level. Further, we received the committee of creditors' approval for our resolution plan for the acquisition of Vidarbha Industries Power Limited, which operates a 600 MW power plant at Butibori, near Nagpur. We hope to conclude this acquisition soon, which will take our installed capacity to 18,150 MW. Our strong financial performance and sound capital management over the last few years have increased our financial strength tremendously.
This is further evidenced by our credit ratings. APL is now rated A A, stable by four rating agencies. This reflects our strong financial position and the confidence the market has in us. Looking ahead, we remain focused on executing our expansion projects and maintaining our operational and financial discipline. We are confident in our ability to deliver superior returns to our stakeholders while continuing to invest in sustainable and innovative energy solutions. In conclusion, I would like to thank our investors and analysts for their support and confidence in Adani Power. We look forward to another year of growth and success. Thank you. Now, we would like 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 touch-tone 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 from the line of Abhinav from ICICI Securities. Please go ahead.
Hi, sir. Good afternoon. Thanks for the opportunity. My number one question is, can you please update on the progress of under-construction power plants and what has been the CAPEX incurred in FY 2025 and what will be our guidance for FY 2026?
To address your first question, about the expansion of our project, Adani Power Limited has initiated the development of six 2 x 800 MW, 1,600 MW each, ultra-supercritical thermal power plant expansion projects at its existing plants: Raipur, Raigarh, Kawai, Mahan, Korba, and a new site at Mirzapur. The BTG contract has been awarded to Bharat Heavy Electricals Limited, and it will take approximately four years for construction. Raipur 2 and Raigarh 2 achieved physical progress of 21% and 16% respectively. Mahan has already achieved significant progress. Regarding power supply, we have already signed a Power Purchase Agreement with Maharashtra State Electricity Distribution Company Limited for supply of 1,496 MW power. Maharashtra Electricity Regulatory Commission order dated 26 September 2024 adopted a tariff discovery under the bid capacity.
Now, to summary the project expansion plan, we have already incurred around INR 8,000 crore in financial year 2025 itself, and we have a plan of INR 13,307 crore for next year. This is including all Mahan Phase II, Raigarh Phase II, Raipur Phase II , Mirzapur, Kawai, and then Korba, Mahan Phase III, and Korba Phase III. Thank you.
Thank you, sir. My second question is, is it possible to give us an update on the receivables from Bangladesh? Also, can you help us with the revenue, EBITDA, and PAT for the Godda Power Plant?
Yeah. As of now, the total billing we have done so far is around INR 2,000 million. We have already received out of INR 2,000 million, INR 12,700 million, and we have also the billed LPS of INR 136 million. As of now, on a gross basis, including LPS, our outstanding is around $900 million.
Sir, can you help us with the revenue, PAT, and EBITDA for Godda Power Plant?
Yeah. For Godda and Jharkhand, on annual basis, we have EBITDA of INR 4,820 crore, and for this quarter, this is INR 831 crore. In terms of revenue, we have INR 8,352 crore on annual basis. Yeah. Anything else you want to know?
No, sir. Thank you. Thank you. That was helpful. Thanks a lot.
Thank you.
Thank you.
The next question is from the line of Yash Agrawal from JM Financial. Please go ahead.
Hello. Yes, good afternoon. I wanted to know what was the merchant realization in the Q4 and the volumes, and also the year-on-year number for the last year?
Yeah. The merchant realization in Q4 of FY 2025 is INR 5.03 in Q4. If you will ask, last year, the same quarter, it was INR 6.17 per unit. On a yearly basis, for FY 2024-2025, this realization is INR 5.93. As against last year, FY 2023-2024, it was INR 6.92. To summary, on annual basis, against last year, the realization is INR 5.93 against INR 6.92. On quarterly basis, INR 5.03. As against last year quarter, last year quarter, it was INR 6.17.
Okay. Sir, the outlook for merchant rates for this financial year, how do you see that panning out?
If we see from March 2025 onwards, the outlook of demand is quite encouraging. The rates from March onwards have also gone quite high. We assume that throughout the year, this year, we should be hoping to have good rates and good demand. The economy is growing, and there is very less capacity to get commission during the year, particularly from the thermal side. We hope to have good rates this year.
Sure, sir. Sure. Sir, what is the CAPEX for FY 2026? I didn't get that number. The plan of CAPEX for FY 2026?
It's INR 13,000 crore.
INR 13,000 crores.
Yes.
Got it. All the NCLT plants, they have commissioned, or there is something left to come on stream in FY 2026 that we have bought, the inorganic plants? Are all now commissioned, or there is something more to come in FY 2026?
Whatever plants we have acquired, actually, except in Lanco Amarkantak , two units are under construction, which are likely to be getting commissioned either end of this year or first half of the next year. Other than that, VIPL is a commissioned plant. Once the NCLT order is pronounced, that will get added as a commissioned unit. There are two units of total 600 MW capacity. That capacity will get added straight.
Got it. Got it. Okay, sir. Okay. Thank you so much for answering my question.
Thank you. The next question is from the line of Nikhil Nigania from AllianceBernstein, Inc . Please go ahead.
Hi. Thank you for taking my question. My first question is around the capacity expansion only. Just wanted to clarify, you said Lanco Amarkantak late this year, early next year. After that, the next set of capacity we'll be adding would be Mahan, 1,600 MW. In how much time, if you could clarify that? After that, it would be the Raipur expansion. Am I correct?
Mahan will come on stream. We'll get commissioned in March 2027 or April 2027, something around that period. Thereafter, we have lined up the capacity, which will come up almost every six months, let us say one unit. Broadly, you can take that thereafter, every six months, we will have one unit commissioned of 800 MW.
Understood. That's very helpful. Just in terms of PPA, I mean, if you could share some more color, I mean, the presentation is helpful. Given there is so much capacity we have ordered, for most of these assets, we are already in discussion for a potential PPA through bidding route, or how do we get the comfort given there's such a huge quantum we are adding?
See, as we already said during, I said in my speech also that 24 GW equivalent to coal has been allocated to various states for carrying out the bidding. We expect that in the near future, that type of capacity will be bidded. Already, let us say, 4,100 MW Madhya Pradesh bid is on, Bihar 2,400 MW bid is on, Rajasthan 3,200 MW bid is on, and Uttarakhand 1,320 MW bid is on. A lot of capacity is already there in the market for inviting the bids. On top of that, you must have heard nowadays in the last one or two days that the government of India has increased the target of capacity addition from 80 GW to 100 GW. When we are talking about adding the capacity, obviously, this capacity is not going to be added entirely by the government utilities.
It will be added through the private sector. For which, obviously, bids will come. We are hopeful that this entire capacity will get signed through PPAs. Not only this capacity, probably the states will need much more capacity than ours also. If other bidders would be there in the market, everybody would get the opportunity.
Appreciate that. That's very, very helpful. One clarification on Bangladesh, that we are still supplying to Bangladesh, or due to balance payment, we have stopped supplying for now? Just wanted to clarify that.
We are supplying full power to Bangladesh, and we have never stated that there was an issue to the level that we have to stop the supply. Unfortunately, in the last quarter, the outstanding has gone down by around INR 500 crore. The payment which we are getting now is more than the monthly billing. We are hopeful that not only are we getting and going to get the payment equivalent to the current month billing, but we are going to get the old outstanding also liquidated. The payment which is coming up is also showing that indication.
Got it, sir. The last question I had was on the merchant side. Adani Power has done well to make the most of the merchant market the last three years. Going forward, especially during solar hours, as we see prices fall to INR 0.50 paisa, even 0.10 paisa on a few days, and even renewable curtailment come in, what is the strategy you have given the good sort of merchant exposure the company has to tackle this very low afternoon power prices that we are seeing?
We are not keeping the entire capacity for the day-ahead market. Most of the time, it is tying up through the bilateral contracts four months ahead, two months ahead, three months ahead, sometimes even six months or a year. Though it is merchant, it is not kept completely floating capacity for the day-ahead market. When we do the tie-up for a quarterly basis or six-monthly basis, we get good realizations, and that is what we would be doing.
Understood. It's a mix of bilateral and exchange we are using to balance the profits.
Correct. Yeah.
Understood. Understood. Thank you, sir. Those are my questions. Thank you so much.
Thank you. Before we take the next question, a reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Mahesh Patil from ICICI Securities. Please go ahead.
Yeah. Hi, sir. Thanks for the opportunity. My first question is on the merchant power. When you say merchant sales, how do you exactly define it? Does that mean all the power that is excluding the long-term contract? Does it also include the medium-term contract in the merchant sales? Do you include that?
If the power is sold in medium term, which is more than one year, in that case, it doesn't remain the merchant. When we are talking about merchant, that means it is not sold for more than one year. We are talking about less than one year. For less than one year, we can have bilateral contracts ranging from, let us say, a week to a year. Depending on the expected price curve for the next one year, if we are getting a good rate in the market, which is in line with the expected price curve, then we do tie up in the short-term bilateral contract.
We are keeping only for day-ahead only the residual power, which is sometimes we are keeping as a reserve also because when you have so much of capacity, so many times the station will go to forced outage, and at that time, I should not fail to supply. Only we are keeping some residual power. That power, if all the stations are in operation, that residual power only we sell in day-ahead. We are not taking exposure for the entire capacity for on-day-ahead market.
Okay, sir. Understood. Sir, my second question is on the status of the fuel supply agreement for the new upcoming capacity. Could you throw some light on that and any tenders that are floated by the states regarding this fuel supply agreement?
I have already given the entire details. Let me just, for the sake of repetition, already tenders from Madhya Pradesh, 4,100 MW; Bihar, 2,400 MW; Rajasthan, 3,200 MW; and Uttarakhand, 1,320 MW. All these tenders are with coal supply. The government of India has allotted coal to these states, and states are offering from their side as an input to the bidder. Whatever new tenders are coming for procurement of power, they all are coming with coal availability as the responsibility of the state. There is no concern about availability of coal. Otherwise, also, there is abundant availability of coal now in the system. States are getting the coal allocation from the Ministry of Coal easily, and states are offering that coal to the bidder.
Okay, sir. Got it. Got it. Thank you. Sir, one more question on the Q4 numbers. The other income that we have compared to last Q4, that has come down quite a bit. In the notes, I can see that you have mentioned that LPS payments of around INR 367 crore have been received this year, out of which Q4 had just INR 7 crore of LPS payments. Could you throw some light on that? I mean, why it was higher in the nine months and it is lower in the Q4? If you can share the overall LPS amount that is pending as of date.
To answer your first question of other income, in Q4, actually, on the last year, we had received the income of custom duty refunds of INR 259 crore. This year, we do not have such a refund. That is one of the impacts we have recorded this year. That is why the other income is lower in comparison to last year. Second part to LPS, so LPS, in most of the cases, we are receiving payment on the time from all our Indian discoms. Only one discom there, we have already said that there is the gross overdue from Bangladesh. There, we have recorded we have $1 36 million of LPS.
Out of that, 50% of LPS, they have already admitted and accepted. We are expecting very soon this amount also we will get from Bangladesh. From Indian discoms, there is no delay in payment. We are getting all the payments on the right time.
Okay, sir. Got it. Got it. Sir, my last question is for the CAPEX in the near term, especially in this fiscal. How will be the funding? Is there any debt that you are planning to raise for this CAPEX?
Most of the CAPEX, we will fund from our internal accruals only because we have also reported that on a continuing basis, last year only, we have more than INR 21,000 crore rebated. This year, also, we are expecting more than that. Our internal accruals will be sufficient to meet our CAPEX requirement. Anupam, if you would like to add something on the funding side.
I think if you look at the presentation this time around, we've added a slide on how the cash flow generation of the existing portfolio of assets with Adani Power is very strong. Against an EBITDA of about INR 24,000 crore, and if you multiply that over the next six years, you will see that it more or less covers, it's actually in excess of what we need to spend as CAPEX. In that format, you will see that we actually do not even need to have any additional borrowing also to be able to meet our CAPEX plan. That way, the balance sheet position is expected to be very, very strong from current level. It's already very strong. It's in the range of 1.4 to 1.5x net debt to EBITDA. That number is going to improve further.
Not only will the current rating of APL improve, but at the same time, the flexibility that is available to APL is unmatched. There is no other company in the country which has the ability to contract assets without having financing. Therefore, that is the reason why we have been able to put in the orders for 11.2 GW of coal power projects. That deals with our project execution and our ability to get these projects up and running.
Okay, sir.
Thank you.
Thank you. Thank you.
Thank you. The next question is from the line of Darshan from Jefferies Group. Please go ahead.
Good afternoon, sir. Am I audible?
Yes, sir.
Yeah, yeah. You are very much audible.
Sir, I just had one question. Can you share the average PPA tariff for FY 2025?
Yeah. Yeah. For FY 2025, my PPA tariff is INR 5.60.
All right, sir. Thank you.
For you, indeed.
Thank you. The next question is from the line of Nikhil Abhyankar from UTI Mutual Fund. Please go ahead.
Yeah. Thanks for the opportunity, sir. Sir, you mentioned just a while ago that most of your CAPEX will be done through internal accruals. Can you just elaborate why exactly is this the reason? Because if you are able to, I mean, instead of giving dividends if you're making such humongous cash, I mean, we are hampering our ROEs going forward.
Yes. Sorry, can you repeat your question, please? I know the last part, so this is ROE or ROE?
ROE. ROE. I mean, if we.
I think the.
Sorry.
Yeah, yeah. I understand. [crosstalk]
Sorry to interrupt, sir. The audio is not very clear.
Is it clearer now?
Yes, sir.
Yeah. I think the aspect that you're missing out is that the returns on the asset itself are so attractive that when we build these assets and we're able to derive the EBITDA that we derive from them, that itself means that we are operating in an environment where the ROEs are very attractive. It is not going to be ROE diluted in any form or manner. At the same time, the CAPEX opportunity, we are trying to see if there can be a bigger CAPEX opportunity. We're currently targeting around INR 120,000 crore over the course of the next six years. If that number can be increased, that is where leverage will come into play.
Dividend is a decision that the board will take at the right time when the returns that they are generating from incremental cash flow investment are lower than the marginal rate of return that the investors are looking for. At that point, it would make sense for the company to start paying significant dividends from its cash flow. Yes, you must have seen the government of India has actually revised the target from 80 GW to about 100 GW now. There are talks of further reductions of course as well. There are opportunities here which can come into play. It's an evolving situation, but I think the point I wanted to highlight is the company sits in a very comfortable position based on the free cash flow generation because that means that there is strategic flexibility to whichever direction that the organization wants to go into.
The return on assets are fairly attractive going forward as well. Our cost per megawatt is much lower than what other people are building. That is primarily driven by our speed, swiftness, and our historical advantages that we have in that Dilip and Khyalia have touched upon about how we have been executing projects over the past.
Adani Green, this year had added 3.4 GW. It's the largest greenfield capacity added in India by any renewable company. We are targeting to add about 5 GW next. That's a common thread across the group that is project execution and executing projects within cost and time budgets, which means that our assets generate a higher ROE as compared to competitive assets.
Yeah. Sure. Understood, sir. Sir, I mean, you also mentioned about it in your comments. Can we expect a significantly higher capacity addition announcement in coming times as well? I mean, currently, we have a target of, say, 30 GW. How large can it be, if at all?
I think it will not be fair to say anything on that further at this stage. Once we will finalize, we'll certainly come out in public. At this stage, whatever we have already announced should be taken as officially announced. Thank you.
Sure. Sir, this commercial coal mining, you mentioned the total capacity of 14 million tons. What will be, I mean, how much of our coal requirement will be sourced for this?
The total capacity of all the four coal mines are 14 million metric tons per annum. Out of that, one is in the state of Maharashtra, and three blocks are in the state of Madhya Pradesh. It will cater on the peak capacity. It will provide 14 million metric tons per annum.
Okay.
In terms of megawatt capacity, it can cater to 3,000 MW. Mainly, it will be used for the merchant capacity because all the PPA plants will have linkage from the state side. The PPA plants do not need the captive mine coal. The Maharashtra mine will be used in the nearest plant in Maharashtra. The rest of the three mines are in Madhya Pradesh, Singrauli, where we have this Mahan Power Plant, where Phase III is also coming, which is not yet tied up. Phase 1 is also not tied up under any PPA. We have good capacity at that location. There we can optimize our resources, optimize our EBITDA by using the captive mine coal. Particularly, we save when we use the captive mine very near to the power plant. A good saving is on account of cost of transportation.
Sure. Sir, any ballpark number as to what will be the cost of mining?
Cost of mining is almost the same or near to whatever the coal we get from Coal India. In terms of cost of coal, there will not be much of saving. In most of the power plants, almost 50% to 100% of the coal cost goes to the transportation. That would be almost entirely saving.
Sure. Thank you and all the very best.
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you. Thanks a lot for your time. We are looking forward to the same energy, same spirit in the financial year 2025-2026. Thank you. Thanks a lot.
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your line.