Adani Power's Q2 Surge: How 4.5 GW Expansion Fuels 42 GW Growth Target

The company reported higher consolidated total revenue for Q2 FY26 at Rs 14,308 crore compared to Rs 14,063 crore in Q2 FY25, despite lower merchant tariffs and import coal prices, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) remained stable at Rs 6,001 crore.

Profit after tax (PAT) stood at Rs 2,906 crore, compared to Rs 3,298 crore a year ago. Power sales volumes grew 7.4 per cent year-on-year to 23.7 billion units (BU), despite a high base effect and demand disruption due to early and prolonged monsoons.

During the quarter, APL secured 4.5 GW of new long-term PPAs. This includes new Long Term Power Purchase Agreement awards of 2,400 MW from Bihar DISCOM, 1,600 MW from Madhya Pradesh DISCOM, and 570 MW from Karnataka DISCOM (by October '25). The company acquired 600 MW Vidarbha Industries Power Limited under the Corporate Insolvency Resolution Process, taking the total capacity to 18,150 MW.

The company's plant load factor for Q2 FY26 was 62.8 per cent, compared to 66.9 per cent in the year-ago period. The Plant Load Factor is a measure of a power plant's operational efficiency, expressed as a percentage.

Commenting on the results, S B Khyalia, CEO, Adani Power Limited, said, "Adani Power has once again demonstrated robust and stable financial performance this quarter, in the face of weather-driven fluctuations in demand, highlighting our operational efficiency and competitive advantages."

"We are steadily expanding our presence in the market by securing another 4.5 GW of new long-term PPAs under the SHAKTI scheme. Our strong profitability and liquidity position us well to achieve our enhanced capacity expansion goal of 42 GW by 2031-32. We have already arranged ordering for equipment and land for the entire 23.7 GW expansion, with project implementation progressing rapidly. We are proud to play a pivotal role in India's power sector growth, and stay strongly committed to supporting the nation's need for dependable, scalable, and sustainable electricity," Khyalia further added.

According to a release, APL has increased its targeted capacity expansion to 41,870 MW by FY 2031-32 by several brownfield and greenfield projects with a combined capacity of 23,720 MW. It has already given advance orders for supply of main plant equipment such as Ultra-supercritical boilers, turbines, and generators to leading equipment manufacturers, thereby ensuring timely capital equipment supplies.

APL already possesses the required land at strategic locations for the expansion, thus removing a critical bottleneck for project execution, the release said. These proactive steps, coupled with the Adani Group's in-house project management expertise, provide APL an unparalleled advantage to achieve capacity expansion in a timely and cost-effective manner, and meet India's growing power demand with reliable and cost-effective supply, it added.

The execution of APL's brownfield expansion projects is progressing rapidly, with cumulative work for Mahan Phase-II 1,600 MW USCTPP at 73 per cent, Raipur Phase-II 1,600 MW USCTPP at 35 per cent, and Raigarh Phase-II 1,600 MW USCTPP at 30 per cent, the company added.

APL's wholly owned subsidiary Korba Power Ltd. has revived the construction of its 1,320 MW Supercritical power project at Korba (Chhattisgarh). These projects are scheduled to be completed in stages between FY 2026-27 and FY 2028-29.

- ANI