Adani Power Ltd announced on Friday a significant surge in its net profit for the second quarter of fiscal year 2027 (Q2 FY27), climbing 142% year-on-year to ₹7,019 crore. This strong financial performance was attributed to heightened power demand across India and improved operational efficiency.
Revenue Growth and Operational Drivers
The energy giant's revenue also saw a substantial increase, growing 39% year-on-year to ₹19,951 crore. Continuing revenue, specifically, rose 28.5% to ₹17,528 crore. Key factors contributing to this growth included higher power sales volumes, driven by a notable increase in demand, and elevated Power Purchase Agreement (PPA) tariffs, influenced by a sharp rise in imported coal prices. The company also benefited from improved merchant realisations.
Consolidated power sales volume expanded by 11.5% to 26.4 billion units (BU) in Q2 FY27, up from 23.7 BU in the corresponding quarter of the previous fiscal year. Consolidated continuing EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw an 18.5% rise, reaching ₹6,321 crore, reflecting core profitability strength despite increased fuel costs.
Debt Landscape
While profits soared, Adani Power's total outstanding debt increased. As of September 30, the company's debt stood at ₹61,860.37 crore, compared to ₹53,555.54 crore recorded on March 31. Net debt also rose slightly to ₹45,845.92 crore from ₹45,022.02 crore at the close of March.
CEO's Outlook and Market Context
S B Khyalia, CEO of Adani Power, commented on the results, stating, “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 emphasized the critical role of domestic coal-based power in meeting India's long-term energy needs, especially in light of geopolitical events and climate challenges. He reiterated the company's commitment to adding capacity, aligning with the country's goal of 100 GW new thermal power capacities by 2032.
The broader Indian power sector experienced significant growth during Q2, with national power demand increasing 11.5% to 502 BU. Peak power demand reached 270 GW, an 18% increase from the previous year. This surge was primarily fueled by rapid economic expansion and a weaker monsoon, which boosted the contribution of coal- and lignite-fired power to 66% of the total supply.