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Adani Power Q2 FY26: Revenue Edges Up, EBITDA Steady and Profit Down ~11% on Higher Costs & Taxes
Equities, Markets, Result Updates - December 2, 2025

Adani Power Q2 FY26: Revenue Edges Up, EBITDA Steady and Profit Down ~11% on Higher Costs & Taxes

Adani Power Q2 FY26: Revenue Edges Up, EBITDA Steady and Profit Down ~11% on Higher Costs & Taxes

Adani Power delivered a modestly better quarter in terms of topline and stable operations, but bottom-line profit declined owing to higher expenses and tax burden. Electric-power sales volume increased, revenue rose slightly, and EBITDA remained steady, showing core business resilience. However, net profit at ₹ 2,906-2,953 crore declined by about 11% YoY, underlining pressure from cost inflation and depreciation on recent capacity additions.

*Key Highlights*
* Total Revenue: ₹ 14,308 crore in Q2 FY26, up +1.7% YoY (vs ₹ 14,063 crore in Q2 FY25)
* Electric-power sales volume (consumption by customers): 23.7 BU (billion units), up +7.4% YoY (vs 22 BU in Q2 FY25)
* EBITDA: ₹ 6,001 crore in Q2 FY26 (vs ₹ 6,000 crore in Q2 FY25)
* Net Profit (PAT): ₹ 2,906 – 2,953 crore for Q2 FY26, down ~11% YoY (from ~₹ 3,332–3,331.8 crore in Q2 FY25)
* Earnings Per Share (EPS): ₹ 1.53 in Q2 FY26 (from ₹ 1.66 in Q2 FY25)
* New Power Purchase Agreements (PPA) added: 4.5 GW of long-term PPAs under SHAKTI scheme (2,400 MW, Bihar; 1,600 MW, Madhya Pradesh; 570 MW, Karnataka) by Oct 2025
* Total capacity (post-acquisition of Vidarbha Industries Power Ltd under Corporate Insolvency Resolution): 18,150 MW as on Q2 FY26

*Revenue & Profit Analysis*
Revenue grew only marginally (+1.7% YoY), reflecting slightly improved power sales volume. The increase in volume (electricity sold) helped counter the impact of softened merchant tariffs and softer demand under seasonal and weather pressures. EBITDA remained stable at ~₹ 6,001 crore, indicating that operational costs and efficiencies held up despite volatility in fuel and input costs.
However, the bottom line took a hit: net profit fell by ~11%, primarily because of higher depreciation (on new plants and capacity additions) and increased tax expense. This suggests that while operations are stable, the returns on newer capacity are yet to fully overcome cost and depreciation drag.

*Business & Operational Performance*
* Power Sales & Volume: The company reported 23.7 BU of power sales in Q2, a healthy +7.4% YoY growth despite monsoon-related demand softness and a high base quarter. This underscores steady demand from DISCOMs and industrial customers under long-term PPAs.
* PPA Book & Capacity Expansion: Securing 4.5 GW of fresh long-term PPAs under the SHAKTI scheme is a key positive. It improves visibility on future demand and revenue flows. Post the resolution-process acquisition, total generation capacity stands at ~18,150 MW, giving Adani Power a sizeable base for long-term generation and supply.
* Cost & Tariff Environment: Despite lower merchant-tariff realisation and import-coal cost volatility, the company maintained stable EBITDA, implying moderate fuel and input cost control.
* Balance-sheet moves & Consolidation: The quarter saw consolidation: several wholly-owned subsidiaries (e.g. power generation/ fuel management entities) were merged under Adani Power (appointed date April 1, 2025), which may improve administrative efficiency and reduce inter-company overhead.

*Risk Factors to Monitor*
* Tariff and Demand Volatility: Merchant-tariff volatility and demand fluctuations (especially due to monsoon, fuel cost or DISCOM payment delays) can affect realisation.
* High Depreciation & Interest Costs: Recent capacity additions increase depreciation and interest burden, so sustained utilisation and long-term PPAs are key for return on capital.
* Fuel & Coal Price Risk: As a thermal-power generator dependent on coal/imported fuel, global coal price swings or supply disruptions could impact margins.
* Capex & Debt Risk: Further expansions to reach 42 GW target by 2031–32 means more capex and possible debt.

*Management Commentary & Strategic Outlook*
According to the company, the quarter demonstrates Adani Power’s “robust and stable performance” even amid weather-driven demand fluctuations and lower merchant tariffs. The management highlights the securing of fresh long-term PPAs (4.5 GW) under the SHAKTI scheme as a strong signal of future demand stability.
The company is also working on its long-term growth goal: expanding capacity toward ~42 GW by FY 2031–32, backed by acquisition of stressed assets and future project pipelines. The consolidation of subsidiaries under the parent company is meant to simplify operations and reduce overhead.

*Conclusion*
Adani Power’s Q2 FY26 is a steady yet muted quarter. On one hand, power sales volume increased, revenue rose modestly and core operations held up, reflecting resilience in demand and execution. On the other hand, profitability dipped by ~11% because of higher depreciation, taxes and cost pressures, highlighting that scaling up capacity brings fixed-cost burden. In short, Adani Power remains a high-potential but cyclical power play, suitable if you’re comfortable with sectoral & commodity fluctuations, but needs careful monitoring of demand, costs and regulatory/ fuel risks.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Adani Power Q2 FY26: Revenue Edges Up, EBITDA Steady and Profit Down ~11% on Higher Costs & Taxes
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Adani Power to Build 2,400-MW Thermal Plant in Bihar

Adani Power to Build 2,400-MW Thermal Plant in Bihar

Adani Power signs a 25-year supply deal with Bihar State Power Generation Company. The $3 billion investment aims to boost energy security, create jobs, and stabilize tariffs.

A Game-Changing Power Project for Bihar
Adani Power Ltd., one of India’s largest private sector power producers, has announced plans to build a 2,400-megawatt (MW) thermal power plant in Bihar’s Pirpainti, Bhagalpur district. The company has signed a 25-year Power Supply Agreement (PSA) with the Bihar State Power Generation Company Ltd. (BSPGCL), securing long-term electricity supply for the state.
This project is set to become one of the largest private sector power investments in Bihar, with an estimated cost of $3 billion (₹26,500 crore). It is expected to accelerate industrial growth, improve household power availability, and support the state’s expanding urban infrastructure.

Project Details and Execution Timeline
• Capacity: 2,400 MW (three units of 800 MW each)
• Technology: Ultra-supercritical, offering higher efficiency and lower emissions compared to conventional coal plants
• Coal Linkage: Allocated under the Government of India’s SHAKTI policy, ensuring stable fuel supply
• Execution Timeframe: Fully operational within 60 months (5 years)
• Employment Impact: 10,000–12,000 jobs during construction and ~3,000 permanent roles post-commissioning
The project will be developed under the Design, Build, Finance, Own, and Operate (DBFOO) model, providing Adani Power complete ownership and operational responsibility throughout the plant’s lifecycle.

Competitive Tariff Advantage
A crucial highlight of this deal is the tariff of ₹6.075 per kWh, the lowest bid under a competitive tender. For Bihar, this translates into affordable electricity supply over the long term, reducing power purchase costs for the state government.
The fixed tariff structure also gives Adani Power predictable revenues and cushions it against volatility in market electricity prices.

Economic and Employment Boost for Bihar
The scale of this project will have significant spillover benefits for Bihar’s economy.
• Direct Impact: Thousands of new jobs during the construction phase and stable long-term employment once operational.
• Indirect Benefits: Boost to local suppliers, contractors, and infrastructure services in Bhagalpur and surrounding areas.
• Industrial Push: Reliable power will attract industries in sectors such as textiles, agro-processing, and manufacturing, helping Bihar reduce its dependence on imports of electricity from other states.
This investment also signals renewed confidence of private investors in Bihar’s power sector reforms.

What It Means for Investors
Revenue Visibility
The 25-year PSA ensures steady and predictable cash flows for Adani Power, strengthening its balance sheet. The tariff security lowers risks from fluctuating energy prices.
Capacity Expansion
With this 2,400-MW addition, Adani Power’s total capacity will expand by nearly 13%, cementing its position as a dominant player in India’s fast-growing energy market.
Government Backing
The coal linkage under the SHAKTI policy guarantees uninterrupted fuel supply, reducing operational risk. Rising electricity demand in Bihar, fueled by urbanization and industrialization, ensures a robust customer base.
Capital-Intensive Risk
The ₹26,500 crore capital outlay comes with significant funding needs. Investors should monitor financing costs, debt load, and execution risks such as construction delays or cost overruns.
ESG Considerations
While the plant will use cleaner ultra-supercritical technology, it remains coal-based. This may pose challenges for ESG-focused investors, as global markets increasingly favor renewable energy projects.

Strategic Importance in India’s Power Landscape
Bihar has historically faced energy shortages and relied on imports from neighboring states. This project will reduce dependence, enhance power security, and improve reliability for millions of households.
At the national level, it underscores India’s balanced energy strategy — where renewable energy continues to expand rapidly, but coal-based ultra-supercritical projects still play a key role in ensuring base-load stability.

Conclusion: Balancing Growth and Responsibility
Adani Power’s decision to build a 2,400-MW ultra-supercritical thermal plant in Bihar marks a major milestone for the state’s energy future. With a $3 billion investment, 25-year supply agreement, and lowest tariff in competitive bidding, the project promises affordability, job creation, and energy stability.
However, it also raises questions about the long-term environmental footprint, given the global shift toward renewable energy. For investors, the project offers revenue visibility and growth prospects but requires careful monitoring of execution and ESG factors. If executed efficiently, this project could redefine Bihar’s power landscape and strengthen India’s energy security for decades to come.

 

 

 

 

 

 

 

 

 

 

 

 

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Adani Power Eyes Butibori Thermal Plant in Rs 3,000 Crore Acquisition Deal

Adani Power Eyes Butibori Thermal Plant in Rs 3,000 Crore Acquisition Deal

Adani Power accelerates growth plans by acquiring Reliance Power’s Butibori plant, aiming to capitalize on India’s rising electricity consumption.

Acquisition talks intensify as Adani Power eyes takeover of Butibori plant

Adani Power, India’s largest private sector thermal power producer, has entered advanced negotiations to acquire the 600 MW Butibori thermal power project, once operated by Reliance Power. The transaction’s valuation is projected between ₹2,400 crore and ₹3,000 crore, translating to roughly ₹4–₹5 crore for each megawatt of capacity. This strategic acquisition reflects Adani’s intent to tap into the rising demand for dependable electricity across India.

Reliance Power’s Insolvent Asset Up for Sale

Butibori Thermal Power Plant, based in Nagpur, is currently controlled by Vidarbha Industries Power Limited, a Reliance Power subsidiary. Financial distress forced the plant into non-operational status, making it a candidate for acquisition. CFM Asset Reconstruction Company (CFM ARC) is presently the sole creditor of the project, having purchased outstanding loans worth ₹1,265 crore. Adani Group plans to fully finance the acquisition using its own generated funds, reflecting the conglomerate’s robust financial position.

Originally, the Butibori facility, with two operational units, carried an estimated valuation of ₹6,000 crore. However, production has been halted due to operational and financial hurdles, reducing its current valuation substantially. For Adani Power, this offers a strategic bargain, aligning perfectly with its broader vision of strengthening its thermal power portfolio.

Previous Suitors and Changing Dynamics

Interestingly, JSW Energy had earlier expressed interest in acquiring the Butibori facility but eventually backed out, citing valuation and operational complexities. Reliance Power had previously utilized Butibori’s generation capacity for power distribution in Mumbai before that business was taken over by Adani Electricity Mumbai Ltd. The lapse of the power purchase agreement between Vidarbha and Adani in December 2019 plunged the facility deeper into financial troubles, leading to insolvency proceedings.

Why the Acquisition Makes Strategic Sense

This acquisition attempt comes at a time when India is witnessing a surge in peak power consumption. In recent presentations, the Adani Group emphasized that an increase in thermal power capacity is necessary to meet this burgeoning demand.

The strategic advantage for Adani Power lies in its proximity. Adani’s 3.3 GW supercritical coal-fired facility at Tiroda sits approximately 125 kilometers away from Nagpur. By integrating Butibori with its Tiroda facility, Adani could significantly enhance operational efficiencies and reduce logistics costs. The proximity allows potential synergy between the plants, streamlining coal supplies and grid connectivity.

Moreover, with Maharashtra holding a long-term Power Purchase Agreement (PPA) for 3,085 MW, this acquisition positions Adani to potentially capitalize on untapped capacity and future expansions.

Sector-Wide Implications of the Deal

Adani’s interest in acquiring the Butibori project marks a significant step toward consolidating its position in India’s thermal power sector. While much of the industry is currently pivoting towards renewable energy, thermal power remains indispensable for stabilizing base load requirements. Given recurring coal shortages in India and seasonal fluctuations in renewable generation, this acquisition could provide a critical advantage.

The Butibori project’s revival would not only improve Adani’s generation capacity but also enhance its bargaining position in Maharashtra’s competitive electricity market. This might create ripple effects for competing players like Tata Power and the Maharashtra State Electricity Distribution Company (MSEDCL).

Financing the Acquisition

Adani Group plans to finance the Butibori acquisition solely through its internal reserves, highlighting both its financial resilience and strategic focus on energy expansion.

Additionally, securing this asset at a relatively discounted price — due to halted production and bankruptcy distress — fits well into Adani’s larger strategy of acquiring stressed assets and turning them around profitably.

Final Thoughts

Adani Power’s ongoing negotiations for the Butibori thermal plant acquisition reflect a calculated expansion plan designed to capitalize on India’s escalating electricity demand. By potentially acquiring this distressed but strategically located facility, Adani not only boosts its overall generation capacity but also prepares for long-term competitive advantage in Maharashtra’s power sector.

While regulatory clearances and final shareholder approvals will shape the pace of execution, this move signifies Adani’s intent to dominate both regional and national power markets. If successful, the integration of Butibori with Adani’s existing infrastructure could turn a distressed asset into a revenue-generating powerhouse in the coming years.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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