Adani Power quarterly profit jumps to 69.20 billion rupees; first-half profit grows 91.4%
Key Facts
Adani Power's net profit for the three months ended September 30 rose to 69.20 billion rupees from 29.53 billion rupees in the year-earlier period, according to Reuters. The company thus posted a sharp increase in second-quarter profit for fiscal 2027, alongside higher revenue and electricity sales. Net profit growth also included the impact of exceptional items, including a one-time prior-period revenue item and reversal of tax expenses. For the first half, from April to September, net profit rose 91.4% to 11,885.92 crore rupees, compared with 6,211.59 crore in the same period a year earlier, according to a company statement cited by PTI. The figures put operating growth alongside the contribution of non-recurring items to the profit jump.
Quarterly revenue from operations rose 44.5% to 194.39 billion rupees, while electricity sales increased 11.5% year on year, according to Reuters. The company said quarterly growth came with a significant increase in electricity demand and higher volumes, along with higher tariffs under power purchase agreements and improved merchant realisations. This means revenue expansion was linked to higher sales volumes and pricing terms and realisations, not demand alone. The available information did not include a first-half revenue figure, so the quantitative revenue comparison here is limited to the quarter. The 91.4% increase in first-half net profit refers to profit after tax and does not in itself provide a comparable measure of revenue growth for that period.
One factor lifting quarterly profit was Adani Power's recognition of a one-time prior-period revenue item of 24.22 billion rupees, following a review of historical energy charges under certain power purchase agreements, according to Reuters. Results also benefited from the reversal of earlier tax expenses worth 12.11 billion rupees. The nature of these two items differs from growth in electricity sales and operating revenue: the first was revenue linked to an adjustment of historical charges, while the second was a reversal of earlier tax expenses. The quarter's reported net profit therefore reflects current activity as well as the impact of these two items. Total expenses, meanwhile, rose 27.2% year on year during the quarter, according to the same source.
Reuters noted that a weak monsoon season supported electricity demand in India, while Jefferies analysts said demand had risen 10% year on year so far in fiscal 2027. The analysts linked some of that increase to the El Niño phenomenon, which they said could extend into 2027. These factors provide context for the increase in Adani Power's sales, while the company statement also attributed quarterly growth to higher volumes and tariffs and improved merchant realisations. In earlier results, the company said peak demand reached a record 270.8 gigawatts in May 2026 and power consumption rose 8.4% annually to 485.4 billion units in the first quarter of fiscal 2027. Second-quarter fiscal 2026 data also showed sales of 23.7 billion units, compared with 22.0 billion units a year earlier, while plant load factor fell to 62.8% from 66.9%.
Looking ahead to supply, Jefferies analysts said state electricity boards were discussing locking in power supplies for 2027 in anticipation of a possible return of shortages as temperatures rise. This places expected demand over the coming year in the context of local authorities preparing to secure supplies, without the source specifying the scale of any potential shortage. On expansion, Chief Executive S.B. Kalyan said in the company's earlier results that Adani Power was continuing to expand its portfolio to 45 gigawatts, with ongoing projects progressing and strong liquidity from current operations. The company said the 1,320-megawatt second phase of the Korba project is expected to be commissioned during the current fiscal year. The 1,600-megawatt second phase of the Mahan project is scheduled to begin commercial operations in the first quarter of fiscal 2028.