Ladies and gentlemen, good day, and welcome to the Adani Power Limited Q4 FY 2026 earnings conference call hosted by ICICI Securities. 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 0 on your touchtone 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.
Thank you, Swapnali. Good morning. On behalf of ICICI Securities, I would like to welcome you all to Q4 FY 2026 earnings call of Adani Power Limited. Today, we have with us from the management, Mr. Shersingh B. Khyalia, CEO, Mr. Dilip Kumar Jha, CFO, and Mr. Nishit Dave, Head of Investor Relations. We'll start with a brief opening remarks, which will be followed by Q&A. Thank you, and over to you, sir.
Good morning, friends. I want to extend a warm welcome to everyone who has joined us today for our fourth quarter and full year 2025-2026 earnings call. I appreciate you taking time out of your busy schedule to connect with us. Before we begin, I encourage you to download and review our quarterly results and the analyst presentation, which are available on the stock exchange and at our website. With me on the call today are our CFO, Mr. Dilip Jha, and our Head of Investor Relations, Nishit Dave. As you all know, the world is trying to endure a major energy price shock which happened due to geopolitical reasons. Most of the people have nothing to do with this event, and therefore, they can't avoid such things. The only way to combat this is to mitigate the fallout, which means we have to become self-sufficient in our energy needs.
It is vital for economic health and growth. Luckily for India, we have alternative resources, namely solar and wind energy or coal. They help us enhance our energy security and lead us to a position where we can enjoy energy sovereignty. Now, the world has also come to realize that fossil fuel-generated power cannot be just wished away. It has a crucial role to play to balance the grid as renewable energy penetration increases. As our power needs become more intense, it is reliable and domestic energy sources like coal that come to our help and provide electricity that runs our ACs, our factories, our data centers. I'm proud to say that Adani Power has consistently delivered a strong performance and supplied power reliably for its customers. In the financial year 2025-2026, we achieved a milestone by generating 405 billion units of power.
This is in the backdrop of tepid growth in power demand, which was only 0.08% for FY 2026 and 1.6% for Q4 FY 2026 over the previous year. As you all know, this slow growth in demand was due to an early and extended monsoon that lasted almost till November and cold weather in some parts of the country following that. However, we have started to see a good revival in power demand from March as warmer weather has arrived. Peak demand has recently touched 256 GW, and it is expected to rise further in the current year. We believe that 2027 will see a strong growth in overall power demand as well as peak demand. Despite a dynamic demand environment influenced by variable weather patterns, we reported a robust EBITDA of Rs.
INR 7,341 crore for the full year. Our performance in the fourth quarter was particularly strong with a EBITDA of INR 6,498 crore, marking a significant 27% increase year-over-year. This demonstrates our operational resilience and financial discipline. We have ended FY 2026 with a solid INR 12,971 crore PAT. Our capacity expansion program is a cornerstone of our strategy. We are making excellent progress towards our goal of adding 23.7 GW of thermal capacity by 2032. During the year, we have successfully tied up 10.4 GW of our expansion capacity under long-term PPAs. A key highlight this quarter was securing a LOA for a 1,600 MW PPA from MSEDCL.
With this, our total tied-up expansion capacity now stands at an impressive 13.3 gigawatts. Furthermore, we have ensured revenue visibility for our current operations with 95% of our operating capacity now tied up under long-term and medium-term PPAs. This strategy provides stability and de-risks our business from short-term market volatility. We expect higher PPA off-take and stronger bilateral demand in 2027. As we look ahead, we are sure of reaching our capacity expansion goals according to our target timelines. The 1,600 megawatt Mahan Phase-II project in Madhya Pradesh is 86% complete. In Chhattisgarh, the Raipur Phase-II has achieved 54% progress, and Raigarh Phase-II is 47% complete. The Korba Phase-II project is close to completion. We expect to commission Korba Phase-II during the course of this current year.
Our upcoming capacity commissioning will drive the next phase of EBITDA and cash flow growth. We expect significant earnings growth in the years to come. These new PPAs are highly earning-assisting, which will generate significant cash flows in the coming years. We will maintain a careful approach to capital allocation to take advantage of new opportunities in India's expanding energy sector. We are expanding our area of focus beyond the Indian territory. We will evaluate international projects in the thermal, hydro, and transmission sectors and invest in attractive opportunities that qualify. We have recently incorporated an SPV in Bhutan for setting up a 500 megawatt hydropower plant with the same. We are also aligning ourselves to the emerging long-term opportunities in the power sector, such as nuclear power. We have incorporated several SPVs in India for investment in nuclear power projects.
We are identifying lands for these projects and seeking necessary approvals. This is a very exciting time for the committed IPP players in India like us. I would now like to hand over the call to our CFO, Mr. Dilip, to elaborate further on the quarter four results and full year results. Thank you, over to you, Mr. Dilip.
Thank you, Khyalia, sir, and good morning, everyone. I will take you through the financial and operational performance for quarter four and FY 2026 and then share a brief update on our balance sheet. On operating environment front, let me start with the operating backdrop. FY 2026 was marked by weather-induced demand volatility, lower peak temperatures, and increased renewable generation. As a result, merchant prices remained subdued through most of the year. However, core demand drivers linked to economy growth remain intact, and demand recovery is already visible as we move into FY 2027. On operational performance, despite this environment, Adani Power achieved excellent operating performance in the recently concluded quarter. Consolidated PLF for quarter four remained healthy and at quarter four, this is 74%. On annual basis, this is 66.5%, reflecting competitive strength in the middle of demand volatility.
Our quarter four power sales reached 27.2 billion units, while full year sales increased 3.4% to 99.1 billion units. The volumes were supported by higher operating capacity, stable plant availability, and new PPAs for the existing capacities. On revenue performance, quarter four FY 2026, continuing revenue grew to INR 15,059 crore, up nearly 4% year-over-year. Reported revenue for quarter four FY 2026 grew 9% to INR 15,989 crore. For FY 2026, continuing revenue was INR 55,583 crore, broadly stable despite lower merchant rates. Tariff for imported coal in PPAs were also lower due to reduction in import coal prices. On EBITDA performance, continuing EBITDA for quarter four FY 2026 increased 9% year-over-year to INR 5,573 crore.
At the same time, reported EBITDA was INR 6,498 crore, up 27% year-on-year versus the EBITDA for Q4 last year. This improvement was driven by higher PPA tariff contribution, cost discipline, better operating efficiency, and contribution from recently acquired assets. For FY 2026, continuing EBITDA was INR 21,285 crore, broadly stable year-on-year basis. On profitability part, at the bottom line, Q4 FY 2026 PAT increased sharply by 64% year-on-year to INR 4,471 crore. This was aided by strong operating performance and lower tax charges. For FY 2026, PAT increased to INR 12,971 crore, broadly in line with last year and demonstrating earning resilience despite market volatility.
On the balance sheet and funding front, as of March 31, 2026, total debt stood at INR 53,556 crore, while net debt was INR 45,022 crore. The increase in leverage primarily reflects planned bridge financing for ongoing CapEx. During the recent quarter, we successfully raised INR 7,500 crore through secured non-convertible debentures. We also have credit entering funds from banks in the form of corporate debt.
We have continuously maintained strong credit rating and liquidity access. We continue to follow a conservative capital management approach, with the majority portion of expenses being funded for internal accruals over time. On contracted portfolio and visibility front, 95% of our operated operating capacity of 18.15 gigawatts is now tied up under long-term and medium-term PPAs. We have also tied up 13.3 gigawatt of long-term PPAs for the ongoing 23.7 gigawatt expansion. These PPAs provide availability-based fixed charges, offering stable firm gigawatt EBITDA. New PPAs carry materially better capacity charges, improving future return metrics. As you may be aware, the fuel cost is pass-through for these PPAs. The fuel availability is also assured, as the states have to first obtain fuel allocation and then operate to the winning bidders. Now, to summarize, our business fundamentals remain strong.
Operations continue to be highly liquid and profitable. Capacity expansion is progressing well. Liquidity and funding access are robust. Earnings visibility has improved materially. Thank you for your continued confidence in Adani Power. We will now be happy to take your questions. Handing it over to moderator. Thank you.
We will take the first question from the line of Abhinav Nilawar from ICICI Securities. Please go ahead.
Yeah, hi. Good morning. Thanks for the opportunity. My first question is, can you help us with the detailed contours of RE-RTC, the 2.5 gigawatt MSEDCL cell contract? If possible, can you also share the tariff?
This capacity which we have signed in Maharashtra is not a capacity only for Adani Power. We are having the group, all type of products. Renewable is with AGEL. The battery installation is also happening with AGEL. Adani Power is having thermal capacity. Whatever will be left out from the PPAs will be obviously offered under the, this, trading platform. This PPA is signed from the point of view of offering these residual capacity again by creating a suitable product as per the requirement of the customer. This PPA will be served through the trading platform, which we are going to create under Agroftic companies. That is the intent of this agreement.
Sorry, sir. I mean, there will be some coal capacity that will be signed. That is the right understanding?
Can you repeat?
There will be certain coal capacity that will be signed, and that will be what Adani Power will be supplying, right? That understanding is correct?
Yeah. Whatever coal capacity is left out, let's say we have been saying is that at the end of all the tie-ups which we will be doing, there is a possibility of 1% to 1.5% capacity left out. Small capacity in different power stations. That capacity will also be used under this PPA. We will also use the renewable, either wind or solar.
Understood.
We will also use the ESP. We will also use the batteries. This would be a product created by the trading platform, and through the trading platform, we will be servicing this PPA.
Understood. My second question is on merchant power. When you say merchant sales, trying to understand how you exactly define it. Given that, you know, 20%, 21% of total units sold was merchant, that will roughly come out to be about 4 gigawatts. How much of this capacity is under medium-term and, I mean, is there anything that will get converted into long term?
As stated in the RFP, that today the merchant capacity is only 5%. The meaning of merchant is it is not tied up under long term and the medium term. If you take 5% of 18,000, it let us say works out only about 1,000 megawatt on RTC basis. In the beginning of the year, we were at 16% merchant capacity. These units are supplied through the average capacity we may have remained throughout the year ranging from 16 to today it is 5. That is the way we have achieved this quantum.
Apart from that, sometimes, when a PP-based power station is out and there is a possibility and there is a, let us say facility which is allowed that you can buy from the market and you can service this, quantum which is to be supplied under the PPA, medium-term or long-term through buying from the market. That type of quantum is also considered under merchant.
Understood. My final question is on capacities that we expect to get commission in FY 2027, 2028, and what will be the CapEx plan for FY 2027, 2028 and the funding for it?
27, 28?
Yeah, FY 2027.
Yeah. Capacity is, we are 100% sure of that. In FY 2026, 2027, we are adding Korba, 1.32 gigawatt. In terms of CapEx for FY 2026, 2027, it will be near about INR 25,000 crore for our expansion. You're asking 2027, 2028. It will be-
28 as well, FY 2028 as well.
For FY 2027, 2028, it will be near about INR 32,000-33,000 crore. Roughly you can say, you know, INR 33,000 crore.
What capacity will be commissioned?
Next year our capacity will be 1.6 gigawatt. Precisely for FY 2026-2027, our capacity addition will be 1.32 gigawatt. For 2027-2028, our capacity addition will be 1.6 gigawatt. In terms of CapEx, FY 2026-2027, it is roughly, you know, INR 25,000 crore. For FY 2027-2028, it will be near about INR 33,000 crore.
Understood. Yeah. Thanks. That's helpful. Thank you.
Thank you. We have the next question from the line of Manish Somaiya from Cantor. Please go ahead.
Good morning, gentlemen. Just to stay on the last topic, on Korba, and maybe if you can also help us with Mahan. First with Korba, what quarter should we expect the commissioning in 2027? Then, with Mahan, if you can just give us some sense of commissioning. I would imagine that's fiscal 2028. If you can also just help us with EBITDA contribution, from Korba and from Mahan, if you please.
Manish, your voice is not very clear, but what I understood is that you are checking the details of when the Korba and the Mahan will get commissioned.
Yes.
Korba will get commissioned something between June to September. So it will be in the second quarter of this year, first unit. The second unit will get commissioned before the year end. As regards to Mahan is concerned, Mahan's first unit is likely to get commissioned in the last quarter of this year. At the most it will get commissioned in the first quarter of the next year, and second unit six months thereafter.
Okay. That's helpful. How should we think about the EBITDA contribution from Korba and from Mahan in 2027 and 2028?
Yeah. In terms of, you know, contribution, this is an estimated number as you are adding this year only. Its EBITDA will be contributed roughly near about INR 1,000 crore. Subsequently it will, you know, add in its contribution. From, you know, next year, 2027, 2028, it will be full year, and it will, you know, contribute roughly INR 2,500 crore plus. At its peak, when it will be, you know, under PPA, we are expecting that the contribution will go to near about, you know, INR 3,000 crore. In terms of Mahan, as we are adding this capacity in FY 2027, 2028, we are expecting that EBITDA will be, you know, near about INR 2,200 crore or INR 2,300 crore.
Okay. That, that's super helpful. Then just to go back to the plant load factor. Obviously we saw nice improvement in the fourth quarter sequentially. If you can just give us an idea how that's faring so far in Q1 of 2027, and how should we think about PLFs in fiscal 2027?
Sorry to interrupt, sir, if you're speaking right now. We're unable to hear you.
Manish, unfortunately, your question is not very clear. We are not getting a clear view of question.
Let me ask it a different way. On the plant load factor in 2027, how should we think about that? Obviously in 2026 it was 66.5. I was just wondering how that's fairing so far in Q1 of this year, and how should we think about PLF for the full year?
Manish, though your voice is breaking, but what we understood, you want to know the, you know, the plant availability and then. To reply to that, our plant availability for the quarter is more than 91%. The same time, you know, quarter last year it was roughly near about 88%. On a year-on-year basis, it is, you know, in the same line. In terms of PLF for this quarter is 74%. If you compare same quarter in the last year, it was almost in the same line. On a year-on-year basis, this time the PLF is, you know, so slightly lower than the last year PLF, you know, so due to all these merchants. Now in terms of 2027, you know, the PLF is better.
We are expecting that the PLF will be far more better than in the last year, you know, the first quarter of last year. In terms of, you know, so the expectation, what K. S. sir also said that the power demand is rapidly increasing. Due to all the geopolitical scenario also, the dependence on power, especially for base load power is increasing. What we hope that this quarter, first year, you know, first quarter this year and also during the year, PLF will be far more better than last year.
Okay. Then just lastly, if I can, just squeeze one more in. On the Bangladesh Power Development Board, receivable collection, and the reconciliation process, can you just give us a quick update on where we stand?
Sorry, very sorry. We are unable to hear. Though we are hearing your voice, but not getting.
Whatever we could interpret what you said because of the issue in about clarity of your voice. As far as the collection is concerned, the outstanding has gone down. Therefore we are getting now regular payments from the Bangladesh. As it acts to the other issue probably which you are asking or seeking details about is the disputed amount and its resolution process. As a part of the resolution process, we have appointed an expert and expert is going to hear the both parties soon. Once the order of the expert is received, if it is acceptable to both parties, it will get implemented. If it is not accepted by any of the party, either of the party, the party can approach Singapore International Arbitration Centre.
That is where we are today. Thank you.
Okay, wonderful. Thank you so much, and congratulations again.
Thank you.
There is a feedback that our audio is not very clear. I would request the moderator to reconnect us. Can you if everybody excuse us for a minute or so, we hope that the line will become clearer after that.
Sure, sir. Over to you, sir.
All right. Let's go ahead with the next question.
Sure. We will take the next question from the line of Uma Menon from Bernstein. Please go ahead.
Hi. Thank you for taking my question. My first question was on the recent, the 1,600 MW PPA with MSEDCL. Since this doesn't increase our pipeline, which project out of the list of projects will this be assigned to? If you could also please share the tariff details for the PPA.
We have yet not assigned the project location so far. The probability is either the Raigarh or Raipur. These are the two probabilities or at the most it can be the Korba. These are three locations where we are developing the power stations and where we have not allocated the capacity to certain PPAs. Either it can be considered as Raigarh or Raipur or Korba. That is the first part. As regards to the tariff is concerned, the tariff has been stated, I think, in the stock exchange filing, which is INR 5.30, which consists of INR 4.11 the capacity charge and INR 1.19 as the energy charge. Thank you.
Thank you for that, sir. My second question is on the Jaiprakash resolution plan. What exactly would Adani Power's role be since in the presentation it is mentioned as an implementing agency? Could you please elaborate on that, sir?
There are, there's one asset within the JAL that is a small generating capacity at Churka. It's, say, 180 MW. That will be taken over by Adani Power as an implementing agency. Apart from that, the JAL is having 44% shareholding of JPVL, Jaiprakash Power Ventures. That 24% shareholding will again be taken over by Adani Power as implementing agency. These are the 2 generating assets. In case of JPVL, the actually generating stations are 3. One is in Nigrie, another is Bina, and third one is Vishnuprayag. These are the 3 generating projects.
Sir, could you please repeat the 3 projects? Your voice broke a little bit.
In case of JPVL, there are three power projects. One is at Nigrie.
Mm-hmm.
Second is at Bina, third is Vishnuprayag, Raigarh. These would be three assets, say, under JPVL. There is a small generating station under JAL itself, is Churka Power Station, which is 180 MW.
Understood.
Overall there will be these four locations and four stations.
Understood, sir. Thank you. Thank you for that, sir. My third question would be on the nuclear plan that we have. I think great to hear that. Are we planning only small modular reactors? Is there a target capacity or timeline that we have planned for? Could you shed some color on that?
So far Government of India has not notified the rules.
Mm-hmm.
We are only, let's say, getting ourself ready as and when the rules will come. That will give us clarity what type of, which size of capacity and how we will proceed ahead. Once we will get the rules from the Government of India, then only we can, I think, elaborate on this. At this stage, we are only preparing ourselves. Therefore we are identifying the sites. Wherever we have already the sites, we are applying for the necessary approvals.
Mm-hmm.
We are preparing ourselves really for the opportunity as and when the rules will come so that we can move fast. Thank you.
We are planning on the existing thermal sites only we have, or are we looking for newer land sites for these?
In our case, these would be all new sites. It will not be at existing thermal sites.
Understood, sir. Thank you for that, sir. I'll join back in the queue for other questions.
Thank you. We will take the next question from the line of Ishan Varma from Antique Stock Broking. Please go ahead.
Good morning, sir. Thank you for taking my question. One continuing question is that on the 1,600 MW Maharashtra PPA, what is the timeline of starting of this PPA?
PPA is yet to sign. Once the PPA is signed, then only we can decide the timelines. We have received a LOA and Maharashtra is yet to file the petition for tariff adoption. We expect that in next 3 months, we should be in a position to get the PPA signed. We will need to 48 months. From now onwards, you can consider 4-5 years in commissioning the project related to this PPA.
Okay. Secondly, sir, what is the CapEx per MW for the Korba expansion? Mahan expansion, initially we were targeting to commission that capacity in December. What has led to the delay in postponing it to FY 2028?
Can you repeat your question?
Firstly, I wanted to understand what is the CapEx per megawatt for Korba. Secondly, what has led to the delays in postponing commissioning of Mahan in FY 2028? Initially, we were targeting it at around October to December this year, right?
As regards to the Korba instance and the overall CapEx, you are asking the CapEx of the project which we are going to commission this year, 2020?
Yes.
In addition to the amount which we spent on acquiring this asset, around INR 4,100 crore, we are going to spend another INR 4,000 crore. It would be roughly INR 8,000-INR 8,500 crore in total, which includes the first 2 units commissioned and these 2 units which we are going to commission. It would be very difficult to specifically say what would be the per megawatt cost of unit 3 and 4, because the acquisition cost includes 1, 2 also. As regards to Mahan is concerned, Mahan, we thought of that we should be in a position to commission both units this year.
We are still hopeful, but because of this ongoing geopolitical situation, which is slightly impacting the availability of labor, the availability of LPG. We are taking a conservative approach and think and of the view that one unit, yes, we are targeting by end of this year. If the geopolitical situation continues for a longer time, then at the most it can go to the first quarter of the next year.
Okay, got it. Lastly, I just wanted to know what is the weighted average cost of borrowing right now post the increase in debt?
Recently, what we are, you know, getting rate from the market, this is near about 8%. The recent, you know, the recent borrowings what is like getting from market, either DCM or from domestic debt.
Okay, got it. Thank you, sir. Those are my questions.
Thank you.
Thank you. We will take the next question from the line of Vishal Periwal from Prabhudas Lilladher. Please go ahead.
Yes, sir. Thanks, sir, for the opportunity. Sir, is my audio clear to you?
Yeah, it's bit better than previous.
Okay, fine. Thank you, sir. Sir, in terms of the merchant share, you mentioned currently only 5% is there. Is it fair to say from quarter one FY 2027 we'll have a 5% as a merchant capacity and generation, or it is staggered over the years?
This year since we have already assumed the 95% tie-up under the medium-term or the long-term PPA, obviously 5% of capacity will be available for merchant during this current quarters.
Okay. Starting quarter one onward.
Yeah.
Is it fair to say, I think you did mention on Korba as giving an example, like how the EBITDA move in PPA, non-PPA? Once we move our capacity to a PPA, then EBITDA trajectory is better vis-à-vis what we are getting in merchant?
It would not be fair to say in advance that whether you will get realization better in merchant or the PPA. Under PPA you have surety that you will get, let us say, five and a half rupees or so. Whereas in case of merchant, nowadays you are getting seven rupees, eight rupees also, and sometimes you are getting three rupees. It all depends on the weather volatility. We will not be in a position to forecast or make a comment exactly on whether the merchant would be better or whether the PPA would be better. Obviously in PPA you get a surety, you get complete sight what we are going to get at the end of the year.
In case of merchant, it can give you upside, but at the same time, sometimes because of weather problems, your realization may go down also.
Okay. Is it fair to say, like, when we have signed those PPAs and moving from merchant to PPA, so the EBITDA trajectory for them it is maybe equal or better or anything on the signed PPA vis-à-vis the merchant with when they were selling power?
See, why we are signing the long-term PPA is that it gives you a stability and long-term stability. In case of merchant, of course, let's say, the last to last year the prices or the rates were very good. 2026, 2027, the rates were not very good. Current quarter the rates are very good, going forward we are not sure. We feel, we are of the view that when more and more renewable will get added, the prices of merchant are bound to go down. That is the risk which we are trying to mitigate by signing the more and more PPAs. Risk is visible. What would be the impact of that risk? How much that risk is? Only future will tell.
One thing is sure that renewable is going to get added every year in a big quantum, and that is going to suppress the merchant prices.
Sure, sir, got it. In the PPT, I think there is one slide of consolidated profile that we have, which talks about like, you know, how exactly has been the net fixed asset movement in FY 2026 over FY 2025, which has seen an increase of almost like 25% odd, 20, 18 to 20, almost like 25% movement year-on-year basis. Our capacities have moved by maybe like 6%, 7%. What exactly could be the reason for this, sir?
Yeah. As I, you know, sir, explained, you know, sir, in one of the question that we have incurred near about, you know, INR 22,000-23,000 crore in the CapEx or expansion plan. Also, we have acquired, you know, some assets Vidarbha from the market. You know, so capacity, operating capacity addition of Vidarbha adding into, you know, fixed asset addition. Also the expansion plan, the work in progress expenditure is also adding. That is why, you know, operating capacity has not increased by that proportionate. It is only added by 600. In terms of expenditure, capacity acquisition for 600 and also part of expansion plan. This WIP is also adding into the total fixed asset.
Okay, okay. Got it. The CWIP is part of it. Okay, okay. Got it.
Yeah, yeah.
And, and, uh-
Sorry to interrupt in between, Vishal. I would really request you to please rejoin the queue again for more questions.
One, two, three.
Thank you. Before we take the next question, ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participants in the conference call, we request you to kindly limit your questions to two per participant. If you have a follow-up question, please rejoin the queue again. We will take the next question from the line of Kartik Sharma from Anand Rathi. Please go ahead.
Thank you. My question was answered by the earlier gentleman. I do have a question on a macro level. Given the coal shortages and the rail situation, could you give us an insight?
Sorry to interrupt.
Sorry, Kartik, we are not really hearing clearly. Can you please speak a bit louder?
Am I audible now?
Yes.
Yeah. My, I had questions on the CapEx and the capacities which were answered earlier. I'd if you could give some insights on the coal shortages that are happening in India and how insulated are we or how are we taking measures to mitigate that?
Coal shortages?
Yeah.
Coal shortages. How coal shortages are happening, how we are mitigating it. So far there is no coal shortage which we are facing.
Okay.
Since the domestic coal is not directly impacted by the geopolitical part issue, and the production of coal in India is sufficient, we are not really having any issue as far as domestic coal availability is concerned. As regards to imported coal is also concerned, there is some impact on the price because of increase in bunker fuel, et cetera, and therefore the shipping cost has gone slightly high. Since it is passed through, we will not get impacted by that. Thank you.
Understood, sir. Thank you so much.
Thank you. We will take the next question from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yeah. Good afternoon, sir. My first question is on the minority interest or non-controlling interest item in P&L. I think the sharp jump QOQ, can you please explain that?
Sorry, sir. We are not getting, sir. Your voice is breaking, actually.
Sir, non-controlling interest, the minority interest, the entry in the P&L, consolidated P&L, has jumped from INR 8.5 crore in Q3 FY 2026 to INR 254 crore in Q4 FY 2026. Can you please help explain that?
If you see, you know, the Moxie last year, the financial year 2025-2026 and financial year 2024-2025. We acquired Moxie, you know, sir, last year it was operational partly. During the year 2025-2026, our 2,000 ton plant, Moxie operational fully. Due to the timing of both the year, this year it is 12 months. You know, vis-à-vis last year it was not 12 months. That is why this percentage, you know, has, you know, sir, increased.
My question was about the QOQ movement, sir. QOQ. QOQ also there is sharp jump. QOQ.
Yeah. Let me see. Let me give me a moment, please.
Should I go ahead with the next question, sir?
Your monitor, sorry, we took a few, you know, settings. This is due to impact in PPA actually. I mean, this impact, a minority controlling interest is the impact of PPA.
Understood.
As you see, the Coastal Energen we have PPA, you know, last to last quarter. In quarter three, there was no PPA in Coastal Energen, Thoothukudi. We entered into an agreement with, you know, Coastal Energen with Tamil Nadu, 558 MW. The impact of PPA, midterm PPA, we executed for 5 years.
Understood. Understood. Understood, sir.
Thanks.
My second question is, sir, can you help us with the outlook on the new PPA from the states? How many active tenders you see currently? Has there been any development in Rajasthan which will help us tie up the 3.2 gigawatt Kawai power plant?
The upcoming PPAs in the market, we have almost 13 gigawatt. You know, precisely it is from Uttar Pradesh, Rajasthan, Uttarakhand, West Bengal, Gujarat. There are PPAs in the market. If we even make total, that is 13.1 gigawatt further, Gujarat has also issued a draft bidding document for bidding process of procurement of another 4,000 gigawatt. PPAs are in the market from various states, including Uttar Pradesh, Rajasthan, Uttarakhand, West Bengal and Gujarat.
Understood, sir. My last question. You mentioned that your merchant capacities is going to decline significantly, right? I understand Vidarbha is going to medium-term, 6.5 MW Karnataka will start operational. Coastal has tied at 600 MW. Still, does it also mean that some of the capacities, our merchant capacities, will also tie up with the group in FY 2027 on the long-term PPAs?
Uh.
No.
Mohit, are you asking about the PPA that we have with group companies, related to that?
No.
Mohit, I go to your question. You are saying, have you signed any long-term PPA within the group?
Yes. Because merchant capacity is declining significantly, I do understand that few of the short-term capacity will move to medium-term and long-term. Is there something which also tied with the group companies?
No, we have not signed during the year 2026, 2027.
Understood, sir.
FY 2026.
Understood, sir. Thank you and all the best, sir. Thank you.
Thank you. We will take the next question from the line of Shriram Kapoor from Jefferies. Please go ahead.
Hi, sir. Thanks for the opportunity. My first question is on your open merchant capacity, which is 5%. Would it be possible for you to give a breakup plant-wise, which plants have the open merchant capacity? You had shared this in 3Q, now could you share the updated number?
Primarily open capacities now are with Mundra. We have some open capacity available in Mundra in the unit number 9 that's partially tied up. Apart from that, we have got merchant capacity spread between different units like Raipur, Mahan.
Mahan.
Spread to Mahan mainly, you can say.
Mainly we have now in three power stations, the merchant capacity, Mahan, the stage one, then Mundra unit nine and small capacity in Raipur. These are the three stations where we have small capacities, which makes it to 5%.
Un-understood, sir. Thank you. Second is, you know, you had last quarter shared an annual addition plan of how you plan to get to the 42 GW number. You had mentioned FY 2027 you would be adding 2.9 GW, FY 2028 would be 2.4 GW, FY 2029 2.4. Now you seem to have revised that downwards, with FY 2027 only being 1.32, FY 2028 only being 1.6, being the Mahan plant. Could you know, give an updated sort of plan till 32 of how you would be adding your capacities to achieve this 42 GW, bearing in mind that 27 and 28 now have been revised down?
I think we can give this trajectory in the presentation, because giving all those five, six years trajectory on a call may be difficult. Yes, earlier we said that even the Mahan and both units will come in this current year. Because of this geopolitical issue, we are taking a conservative approach because certain things as I said earlier, the issue of availability of sorry, workforce, there are issues of availability of certain critical sources like LPG, etc. Therefore, we are moving this 1.6 gigawatt of Mahan to the next year.
We are still trying that it should get the first unit should get commissioned in the current year. Therefore, on conservative side, we have considered this year 1.3 gigawatt, next year 1.6 gigawatt. For the rest of the period, we will give the trajectory separately in the presentation.
Understood, sir. Just directionally, you know, last time you had mentioned by 2030 you would have around 34 gigawatt capacity. Are we still on track for that, or would it be now directionally lower?
Yeah, these are on track.
Okay.
Actually, what's happening, you know, means we are only deferring the sort of commissioning targets by an average of 6 months, and that falls across, you know, that falls over the financial year boundary. In FY 2029, there would be, you know, the capacities that are being shifted, let's say, from FY 2028, those will get commissioned in FY 2029. Then, similarly, there would be around a 6-month sort of deferral. Beyond that, actually it is very much in line with what we have said. It's evenly spread out starting from FY 2029 to FY 2032, we are commissioning 4 gigawatts or more every year.
You know, as Jayesh has said that, you know, our plan is still, we are moving as per our plan. On the conservative approach, you know, we are committing like that. Still, we are confident that we are in line with our plan also.
Understood, sir. Thank you so much, and all the best.
Thank you. We will take the next question from the line of Bharat Shah from BCS Capital Ideas Limited. Please go ahead.
Shersingh B. Khyalia, namaskar. Bharat.
Namaste.
Namaste. So our operational cash flow when we talk about last 2-3 years, the operational cash flow three-year in 2023, 2024 was about INR 14,000 crore. I'm talking of purely operational cash flow. Twenty-five-
Okay.
2026 has been about INR 21,000 crore. If I look at our EBITDA, they are INR 22,000-INR 24,000 in last 3 years, 2024, 2025 and 2026. When do we see our EBITDA kind of touching INR 50,000 crore number? Is that something a matter of 4 years or a matter of 5 years?
I think Dilip should clarify this. Dilip give some broader numbers.
Dilipji.
Sure.
if you look at our EBITDA has been ranging from INR 22,000-24,000 in last 3 years, 2023, 2024, 2025 and 2025, 2026. Given our upcoming capacity, the target of 30 gigawatt capacity which is to come up, and the agreements which are in pipeline and commissioning schedule, this INR 24,000-25,000 crore EBITDA, when do we see it essentially doubling to INR 50,000 odd crore? In 4 years' time, 5 years' time? When do you think this is most likely to be the case?
Bharat Shah, we should be in a position to achieve 50,000 conservatively 2031. What we have planned today, if we could achieve that and let us say no issues arise during this period related to like, the presently we have issue for, et cetera. In that case, we can touch this even in 2030. If we miss this because of any reasons, then at most it would be 2031.
Okay. Fantastic. Secondly, given the fact that, while we are of course incurring a decent amount of CapEx, INR 25,000 crore in 2026, 2027, and INR 33,000 odd in 2027, 2028. Essentially the business is throwing a lot of cash. As we complete our expansion program, I think the level of cash would be rising. What are broad thoughts? I'm sure you will find a way to invest in, given the fact of large upcoming cash flows that the business will generate, any broad thoughts on the deployment plan subsequently?
Yeah. Bharat bhai, now, as you rightly said, you know, that we are expecting that this year we will have CapEx of INR 25,000 crore, and then subsequent year it will be INR 30,000 crore in the overall gamut of INR 200,000 crore expansion plan. On an annual basis, you know, if you will compute annualized and average cash flow, this is INR 20,000 crore we are adding. Now, the interim gap, we are either, you know, arranging from domestic capital market or domestic bank. Now, to second part of your question, sir, the quantum of cash flow we will generate from this business, what is our strategy and what is our plan? As, you know, KLS sir also said that this is the moment for thermal expansion. As peak capacity is growing on every, state is ensuring their resource adequacy.
There are PPAs in the market. We are moving from the 5%, you know.
Sir, due to disruption. Sir, your voice is not audible.
Sorry.
Your voice was not audible, sir.
Okay. entire voice, you know, so lost or some part?
Dilipji, instead of speakerphone, just lift the phone and speak. That will be easier.
Yeah. Is better, sir?
Yeah. Yeah, yeah.
Now, you know, to reiterate again that, you know, sir, our CapEx plan is, you know, to add 24 gigawatt to that count, for this year this is INR 25,000 crore, next year this is INR 33,000 crore. You know, on an annual basis, we are generating, you know, FFO of INR 20,000 crore. We are generating cash flow requirement, which we are arranging from the market for, you know, short-term period. To answer, sir, your next part of question, what is our extension plan for when we will have, you know, huge amount of cash surplus. You know, literally by 2031, 2032, we can pay our entire debt. Thereafter also, you know, from 2032, 2033, we will have huge cash surplus. As KLS Sir also said that this is a moment for, you know, thermal.
Capacity expansion is going on across the country. We have also targeted, you know, 24 gigawatt. This is the moment to invest all this cash flow in thermal. Strategically, if you see, sir, as a country from 9 gigawatt to 100 gigawatt, you know, atomic energy, you know, it is an area. Maybe when we will have huge amount of cash surplus that will be one of the area or the, you know, the global expansion. The things are, you know, in place. It is opportune in the market, but it's time to focus on execution and achieve our, you know, planned capacity of 24 gigawatt. We are confident that by 2031, 2032, our capacity will be 42 gigawatt from, you know, the planned capacity.
The quantum of surplus, multiple avenues we have, we can deploy to leverage far more better value. It will be a debt-free company.
Ji, ji. No, no, I'm sure, given the growth hunger, we'll always find a way to utilize the cash flow that you generate.
Sure.
I just wanted to get a kind of a glimpse into strategy or thought process. Thank you. Thank you, KLS sir.
Thank you, sir.
Thank you, Dilipji.
Thank you.
Thank you very much. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference back to the management for closing comments. Over to you, sir.
Thank you very much for your time and opportunity given to us to present, you know, so our business. We are hopeful that we will have same type of support and, you know, so engagement with you. Thank you. Thanks a lot. Have a great day.
Thank you, members of the management. On behalf of ICICI Securities, that concludes this conference. Thank you all for joining with us today, and you may now disconnect your lines.