Adani Power Posts 64% Increase in Q4 Net Profit, Earnings Reach Rs 4,271 Crore

Adani Power Reports Strong Q4 FY26 Financial Performance

Adani Power Ltd has reported a robust Q4 FY26 financial performance, with net profit rising sharply despite a decline in the stock price. The company posted a consolidated profit after tax of Rs 4,271 crore for Q4 FY26, a 64 percent year-on-year increase from Rs 2,599 crore.

The net profit growth was primarily driven by lower tax expenses. The company's revenue performance remained steady, with total reported revenue rising 10 percent year-on-year to Rs 15,989 crore in the January-March quarter. Continuing revenue, which excludes prior-period adjustments, increased 3.7 percent to Rs 15,059 crore. Continuing operating revenue stood at Rs 14,560 crore, up 2.9 percent.

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Operating performance was resilient despite a volatile demand environment. Reported EBITDA grew 27 percent year-on-year to Rs 6,498 crore, supported by prior-period income recognition. However, continuing EBITDA rose 9.3 percent to Rs 5,573 crore, indicating steady underlying earnings growth.

Profit before tax (reported) surged 34 percent to Rs 4,384 crore, while continuing PBT rose 6.5 percent to Rs 3,458 crore. The sharp jump in net profit was largely driven by a steep decline in tax outgo, which fell 83 percent year-on-year in the quarter.

The quarter saw mixed demand trends. All-India power demand rose 1.6 percent year-on-year to 422 billion units in Q4, with growth picking up towards the end of the quarter as temperatures increased. However, unseasonal rains and a higher share of renewable energy curtailed demand earlier in the quarter.

This, along with lower merchant market prices, weighed on realisations. The average market clearing price on the IEX day-ahead market declined over 12 percent during the quarter. Merchant and short-term sales volumes fell to 5.2 billion units from 5.6 billion units a year ago, reflecting subdued demand in the spot market.

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Despite pressure on merchant demand, overall power sales volumes increased to 27.2 billion units from 26.4 billion units a year earlier, supported by higher contribution from tied-up capacities and operational ramp-up, Adani Power said.

The company continued to strengthen its long-term visibility. During the quarter, it secured a 1,600 MW long-term power purchase agreement (PPA) from Maharashtra under the DBFOO model. Additionally, a subsidiary signed a 558 MW PPA with Tamil Nadu discom. With these additions, around 95 percent of Adani Power's operating capacity is now tied up under long- and medium-term PPAs, improving earnings stability, the company said.