Adani Power Limited has improved its Environmental, Social, and Governance (ESG) score to 66 under the NSE Sustainability framework, up from 65 in FY26. The company retains its position in the "Aspiring" category.

Adani Power , India's largest private sector thermal power generator, announced the update on September 7, 2026. The firm continues to rank higher than all other major Indian thermal, mixed fuel, and integrated energy companies in this assessment.

ESG Assessment Details

NSE Sustainability, a SEBI-registered ESG Rating Provider and subsidiary of NSE Indices, evaluates 500 listed companies in India annually. The assessment provides an independent view of a company's ESG credentials and long-term value creation potential.

The company attributed its score improvement to operational excellence and adherence to best industry standards. Key initiatives include:

• Implementation of advanced low-emission technologies, such as Ultra-Supercritical Units, to reduce carbon footprint.
• Investment in continuous monitoring and corrective systems for energy efficiency.
• Prioritization of water conservation and responsible waste disposal during operations.

Social and Governance Initiatives

On the social front, Adani Power expanded community development programs focusing on education, healthcare, and skill-building. Specific efforts included scholarship programs for underprivileged students, health camps, and livelihood enhancement projects.

Regarding governance, the company stated it surpasses regulatory requirements. The percentage of independent directors in the Nomination and Remuneration Committee, Audit Committee, and Risk Management Committee exceeds statutory guidelines. Additionally, the company adopted stringent supplier and contractor ESG standards.

Other Ratings

Adani Power disclosed strong performance in other independent ESG assessments:

Care Edge noted that Adani Power outperformed the industry median by 35% in FY26.

What the Numbers Show

The company’s ESG score increased by just one point (from 65 to 66), yet it maintained a significant lead over peers in the thermal power sector. This suggests that while absolute scoring margins may be tight within the NSE framework, Adani Power’s relative standing remains robust compared to competitors who likely faced similar or greater challenges in meeting evolving ESG benchmarks.

Adani Power reported a 33% year-on-year increase in net profit after tax (PAT) to $514 million for the first quarter of FY27. The power producer’s revenue from operations rose 20% to $2,000 million, supported by strong operational performance and high plant availability.

Financial Performance

The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) grew 23% to $884 million. Continuing EBITDA expanded by 10% to $737 million, reflecting consistent operational execution across its thermal portfolio.

For the full fiscal year FY26, Adani Power recorded revenue of $6,553 million and net profit of $1,469 million. The company maintained a net debt position of $5,030 million as of June 2026.

What the Numbers Show

A key divergence in the results is the outperformance of PAT growth relative to revenue growth. While revenue increased by 20%, net profit surged by 33%. This expansion was underpinned by an improvement in the EBITDA margin to 43% in Q1FY27, up from approximately 43% in the prior year but significantly higher than the FY26 average of 40%. The ability to maintain high margins despite rising fuel costs highlights the effectiveness of its two-part tariff structure and operational efficiencies.

Capacity and Growth Outlook

Adani Power currently operates 18,330 MW of capacity across 13 assets. The company has locked in 23,720 MW of additional capacity through brownfield and greenfield projects, with a target total capacity of 42,050 MW by FY32. Of the locked-in capacity, 13,320 MW is already tied up under long-term power purchase agreements (PPAs).

The investor presentation outlined a massive capital expenditure plan of over $18 billion for renewable energy and $20 billion for baseload power generation by FY32. The company aims to fund the majority of this expansion through internal accruals, citing strong free cash flow generation.

Operational Metrics

Plant availability remained robust at 96% in Q1FY27, compared to 89% in FY26. The company highlighted its strategic advantage of having 60% of its upcoming capacity as brownfield projects, which reduces execution timelines and costs. Additionally, Adani Power secured new PPAs totaling 13.9 GW recently, reinforcing its revenue visibility for the coming years.