Adani Power Q4 EBITDA Jumps 27% to INR6,498 Cr; Secures 1,600 MW Maharashtra PPA
Adani Power's Q4 FY26 results showed a 27% increase in EBITDA to INR6,498 crores and a 64% jump in PAT to INR4,271 crores, supported by a 74% PLF and higher PPA realizations. The company is expanding aggressively, securing a 1,600 MW Maharashtra PPA and targeting 42 GW capacity by 2032, with capex estimated at INR25,000 crores for FY26-27. Jefferies maintains a Buy rating with a target price of INR255.
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Adani Power has reported a robust financial performance for the fourth quarter of fiscal year 2026, with EBITDA rising 27% year-over-year to INR6,498 crores. The company’s profit after tax (PAT) for the quarter increased sharply by 64% to INR4,271 crores, driven by higher PPA tariff contributions, cost discipline, and improved operating efficiency. For the full year FY26, the company recorded an EBITDA of INR23,431 crores and a PAT of INR12,971 crores.
Operational Performance and Demand Outlook
During the quarter, Adani Power achieved a healthy plant load factor (PLF) of 74%, with power sales reaching 27.2 billion units. The full-year sales volume grew 3.4% to 99.1 billion units. The company noted that power demand growth was tepid during the year due to an extended monsoon and cold weather, but a strong revival has been observed since March. Peak demand recently reached 256 gigawatts, and management expects strong growth in overall power demand in FY27.
Strategic Expansion and New PPAs
Adani Power continues to advance its capacity expansion program, targeting the addition of 23.7 gigawatts of thermal capacity by 2032. A key development in Q4 was securing a letter of award for a 1,600-megawatt PPA from Maharashtra DISCOM. This brings the total tied-up expansion capacity to 13.3 gigawatts. The company stated that 95% of its current operating capacity of 18.15 gigawatts is tied up under long-term and medium-term PPAs, providing significant revenue visibility.
Project Updates and Capex Plans
Management provided updates on specific projects, noting that the 1,600-megawatt Mahan Phase-II project is 86% complete, while Raipur Phase-II and Raigarh Phase-II have achieved 54% and 47% progress, respectively. The Korba Phase-II project is expected to be commissioned during the current year. For the upcoming fiscal years, the company estimates capex of approximately INR25,000 crores for FY26-27 and INR33,000 crores for FY27-28 to fund these expansions.
Brokerage Outlook and Valuation
Reflecting the company's strong operational outperformance and long-term growth trajectory, Jefferies has reiterated its Buy rating on Adani Power and raised its target price to INR255. The brokerage highlighted the Q4 EBITDA beat and improved thermal tariffs as key drivers. Adani Power remains focused on executing its expansion roadmap while maintaining financial discipline and strong credit ratings.
| Metric | Details |
|---|---|
| Q4 FY26 EBITDA | INR6,498 crores (up 27% YoY) |
| Q4 FY26 PAT | INR4,271 crores (up 64% YoY) |
| FY26 Total Power Generation | 105 billion units |
| New PPA | 1,600 MW (Maharashtra) |
| Tied-up Expansion Capacity | 13.3 GW |
| Target Capacity (2032) | 42 GW |
| Jefferies Rating | Buy |
| Jefferies Target Price | INR255 |
How might Adani Power's aggressive ₹58,000 crore capex plan over FY27-28 impact its credit ratings and debt servicing capacity if merchant power prices remain subdued?
With 13.8 GW of PPA bids currently active across multiple states, what is the realistic timeline for converting these bids into signed agreements, and how could delays affect the 42 GW by 2032 target?
As Adani Power enters nuclear power through newly incorporated SPVs, how could evolving government regulations and site approval timelines affect its long-term capacity mix and capital allocation strategy?
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