Adani Power Profits Skyrocket 142% to Rs 7,019 Crore in Q2 FY27
Adani Power reports a massive 142% jump in Q2 FY27 profit to Rs 7,019 crore, driven by soaring power demand and higher tariffs.
Adani Power has reported a massive leap in its financial performance for the second quarter of FY27. The company's consolidated profit after tax (PAT) surged by a staggering 142 per cent year-on-year, reaching Rs 7,019 crore, while its revenue saw a significant jump of 39 per cent during the same period.
The Numbers Behind the Growth
The power giant's financial statements reveal a strong operational trajectory. Reported revenue grew by 39 per cent to hit Rs 19,951 crore. Meanwhile, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 46 per cent year-on-year, climbing to Rs 8,743 crore.
Looking at continuing operations, the company recorded an EBITDA of Rs 6,321 crore and revenue of Rs 17,528 crore for the quarter.
What Fueled the Surge?
According to a company statement, the explosive profit growth was primarily driven by three key factors:
- Rising Power Demand: A significant increase in overall power demand led to higher sales volumes.
- Higher PPA Tariffs: Tariffs under Power Purchase Agreements (PPAs) increased following a sharp rise in the prices of imported coal.
- Merchant Power Realisation: The company saw improved returns from its merchant power sales.
The data shows that PPAs increased by 29.7 per cent year-on-year, totaling 23.4 billion units (BU). The average tariff realisation from continuing operations improved by 12.7 per cent, reaching Rs 6.4 per kilowatt-hour (kWh).
Merchant and Short-Term Market Dynamics
The company experienced a 33.1 per cent year-on-year rise in tariff realisation from merchant and short-term power sales, which hit Rs 7.2 per kWh. However, the volume supplied in these specific segments actually declined by 43 per cent. Adani Power explained that this was because they committed more of their available capacity to medium-term contracts.
The Cost of Energy
While profits soared, the cost of production also climbed. Fuel costs rose by 41.8 per cent to Rs 10,229.38 crore, compared to Rs 7,216.23 crore in Q1 FY26. This spike was attributed to the higher volumes of power generated and a 50 per cent increase in the landed cost of imported coal.
Leadership Perspective
S B Khyalia, CEO of Adani Power Limited, highlighted the company's trajectory and the strategic importance of thermal power. He stated:
“Adani Power continues to grow from strength to strength, achieving newer milestones in profitability and project execution. As India’s leading private thermal power producer, our vision is focused on ensuring the timely availability of high quality and reliable power supply to meet the country’s growing baseload requirements.”
Khyalia further noted that geopolitical events and climate unpredictability have made the primacy of domestic coal-based power even more evident for meeting India's long-term energy needs.
Market Reaction
Despite the stellar financial results, the stock market showed a different trend. Shares of Adani Power declined by 1.60 per cent on Friday, dropping by Rs 2.95 to close at Rs 182 per share.