Adani Power profit rose 141.5% to ₹7,019.32 crore in the July–September 2026 quarter, supported by stronger electricity sales, higher tariffs and a substantial increase in one-time prior-period revenue. The company announced its second-quarter FY2026–27 results on October 23, with continuing operating revenue rising 29.8% to ₹17,014.06 crore.
Key Takeaways
- Prior-period revenue recognition reached ₹2,422.25 crore, adding materially to reported earnings.
- Continuing EBITDA grew 18.5%, despite a sharp increase in imported-coal costs.
- Adani Power is advancing plans to add 23,720 MW of thermal capacity, with the first Korba Phase-II unit synchronized to the grid.
Table of Contents
- Adani Power profit reflects operating gains and one-time income
- Stronger power prices offset part of the fuel-cost increase
- Korba commissioning is the next expansion milestone
- Conclusion
Adani Power profit reflects operating gains and one-time income
The company’s Q2 FY27 results announcement separates continuing earnings from prior-period adjustments. Continuing EBITDA, which excludes prior-period income and expenses, rose to ₹6,320.97 crore from ₹5,332.71 crore a year earlier. That increase was considerably smaller than the rise in reported net profit.
One-time revenue recognition increased from ₹668.53 crore a year earlier to ₹2,422.25 crore, primarily because of revisions to historic energy charges under certain power purchase agreements. These adjustments relate to earlier periods rather than electricity sold solely in the latest quarter.
Tax also helped explain the gap between operating growth and net profit growth. The quarter included a tax credit of ₹230.60 crore, compared with a tax charge of ₹1,059.74 crore a year earlier. Reported profit before tax rose 71.2% to ₹6,791.76 crore.
For the first half of FY2026–27, profit after tax increased 91.4% to ₹11,885.92 crore from ₹6,211.59 crore.
| Item | Details |
|---|---|
| Quarterly electricity sales | 26.4 billion units, versus 23.7 billion units a year earlier |
| Plant load factor | 70.1%, versus 62.8% in Q2 FY26 |
| Quarterly finance costs | ₹760.23 crore, down 9.7% year over year |
| Net debt | ₹45,845.92 crore at September 30, 2026, versus ₹45,022.02 crore at March 31, 2026 |
Stronger power prices offset part of the fuel-cost increase
Adani Power attributed revenue growth to higher sales volumes, increased tariffs under power purchase agreements following a sharp rise in imported-coal prices, and better realizations in merchant electricity markets. The company said India’s power demand increased 11.5% during the quarter amid economic growth and a weak monsoon.
Realization under power purchase agreements improved 12.7% to ₹6.4 per kilowatt-hour on a continuing basis. Merchant and short-term realization rose 33.1% to ₹7.2 per kilowatt-hour, although volumes sold through those channels fell 43% as more open capacity was tied to medium-term contracts.
Higher selling prices did not translate fully into earnings. Fuel costs rose 41.8% to ₹10,229.38 crore, reflecting higher volumes and a 50% increase in the landed cost of imported coal. That helps explain why continuing EBITDA grew more slowly than operating revenue.
Korba commissioning is the next expansion milestone
Adani Power said it is progressing with a programme to add 23,720 MW of thermal generation capacity. Its first 660 MW unit at Korba Phase-II has been synchronized with the grid, but commissioning remained pending at the time of the announcement.
Management expected that unit to be commissioned shortly and the second Korba unit in the fourth quarter of FY2026–27. The 1,600 MW Mahan Phase-II project was expected to be fully commissioned in the early part of FY2027–28.
A letter of award from Uttarakhand Power Corporation for a 25-year power supply agreement covering 1,320 MW, or 1,234 MW net, would take supply tie-ups for the planned thermal expansion to 62%, the company said.
Conclusion
Adani Power’s earnings improvement combined stronger ongoing operations with significant prior-period income and a tax credit. The next stated operational milestone is commissioning the first Korba Phase-II unit, followed by management’s targeted completion of the second unit in Q4 FY2026–27.
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