Adani Power delivered exceptional financial performance in Q2, with consolidated net profit jumping 142% year-on-year to ₹7,019.3 crore for the second quarter of FY27, compared with ₹2,906.5 crore in the same period last year, according to The Economic Times. This remarkable profit surge demonstrates the company's strong operational efficiency and market positioning during the quarter, significantly exceeding analyst expectations. The growth was driven by strong electricity demand amid a weak monsoon season and exceptional prior-period income, with the company benefiting from higher volumes on account of a significant increase in electricity demand and higher tariffs under the power purchase agreement (PPA) due to a sharp increase in imported coal prices and improved merchant realisation. Additionally, there was one-time prior period revenue recognition of ₹2,422.2 crore in Q2 FY27, primarily due to the revision in historic energy charges under certain PPAs, compared to ₹668.5 crore in Q2 FY26. The quarter's profit was supported by a tax reversal of ₹1,211.43 crore relating to earlier years, arising from the amalgamation of certain wholly owned subsidiaries, as reported by Adani Power. The actual net profit surpassed consensus estimates by approximately 122.58%, beating the market expectation of ₹3,100 crore, demonstrating strong operational performance across the company's thermal portfolio.
The company's operating revenue surged nearly 30% to ₹17,014.1 crore from ₹13,106.3 crore in the corresponding quarter last year, as reported by The Economic Times. This substantial revenue increase indicates robust business growth and strong market demand for the company's power generation services during the quarter, with the company maintaining its competitive position in the power generation sector. The growth was driven by higher volumes on account of a significant increase in electricity demand and higher tariffs under the power purchase agreement (PPA) due to a sharp increase in imported coal prices and improved merchant realisation. Additionally, consolidated revenue from continuing operations increased 28.5% year-on-year to ₹17,528 crore from ₹13,639 crore, driven by higher power sales and improved selling rates. For the half-year ending September 30, 2026, total income was ₹39,272.90 crore, marking a 36% increase year-on-year. The results were approved by the Board of Directors at its meeting held on 23 October 2026, with the quarter's performance demonstrating strong operational metrics across all business segments.
EBITDA improved significantly by 46% to ₹8,743 crore from ₹5,150 crore in the same quarter of the previous year, according to CNBC TV18. The company's EBITDA margin improved by 410 basis points to 42.34% as against 38.2% in the year-ago period, reflecting enhanced operational efficiency and improved cost management. Consolidated power sales volume rose 11.5% year-on-year to 26.4 billion units in Q2 FY27, compared with 23.7 billion units in Q2 FY26, driven by strong growth in power demand across the country and higher selling rates. The Plant Load Factor improved to 70.1% during the quarter, while finance costs were lower by 9.7% at ₹760 crore in the latest September quarter, compared to ₹841 crore a year ago, due to strong operating cash flow generation and controlled utilization of operational debt. The significant outperformance in Q2 consolidated net profit demonstrates sustained operational performance across Adani Power's thermal portfolio, with strong operational cash generation reinforcing balance sheet strength for upcoming capital expenditure projects in thermal expansion.
PPAs increased 29.7% year-on-year to 23.4 billion units (BU) in the second quarter of FY27, while average tariff realisation from continuing operations improved 12.7% to ₹6.4 per kilowatt-hour (kWh), compared with the corresponding quarter of the previous financial year, as reported by ANI. The company attributed the strong profit growth to higher power demand under PPAs as well as in the merchant and short-term markets, which drove higher volumes in Q2 FY27 as compared to Q2 FY26. Power sales under power purchase agreements expanded by 29.7%, while continuing EBITDA came at ₹6,321 crore during the quarter, demonstrating the company's strong operational performance amid rising power demand across all market segments. The outperformance could drive positive sentiment across the power utilities sector, reflecting favorable realization dynamics during the period, particularly benefiting from strong electricity demand amid a weak monsoon season.
During the quarter, Adani Power received letter of award from the Uttarakhand Power Corporation Limited for a 25-year power supply agreement of 1,320 MW (1,234 MW net). The company was also selected as successful resolution applicant under the corporate insolvency resolution process of GVK Energy, which owns and operates the 330 MW Alaknanda Hydroelectric power plant in Uttarakhand. Additionally, Adani Power signed a shareholders' agreement with Bhutan's Druk Green Power Corporation Ltd to develop the 770 MW Chamkarchhu hydropower project in Thimphu through a 49:51 jointly incorporated entity. The company is progressing rapidly on its capacity expansion programme to add 23,720 MW of new thermal power capacity, positioning itself for significant growth in the power generation sector. The company's consolidated asset base reached ₹1,65,640.18 crore, with total equity expanding to ₹78,377.47 crore and long-term borrowings standing at ₹47,310.26 crore. The debt-to-equity ratio was 0.79 times, and the interest service coverage ratio was 8.86 times, while credit ratings were upgraded to "AA+; Stable" by CARE Ratings and India Ratings.
