Adani Power Limited reported a 15.5% year-on-year drop in net profit, which stood at ₹3,305 crore for the quarter ending June 30, 2025 (Q1 FY26). This decline was mainly due to lower merchant power tariffs and a noticeable rise in operational expenses, especially after the company’s recent series of acquisitions and capacity expansions. These strategic moves, while aimed at long-term growth, have temporarily impacted short-term profitability.
In addition to the profit dip, revenue from operations also declined by 6% YoY, coming in at ₹14,167 crore. The revenue pressure reflects softer realizations from merchant sales and higher input costs across certain regions. Despite this, Adani Power continues to maintain a strong position in the sector and is expected to benefit from rising energy demand in the coming quarters.
Despite the annual decline, sequential performance was strong:
- Net profit jumped 27% quarter-on-quarter.
- EBITDA rose 12.7% QoQ to ₹5,744 crore.
- EPS climbed 30% over the previous quarter to ₹8.60.
Operational Snapshot
- Installed Capacity grew to 17,550 MW, up from 15,250 MW last year, boosted by acquisitions such as Moxie Power, Korba Power, and Dahanu TPS.
- Plant Load Factor (PLF) dropped to 67% from 78% YoY.
- Electricity Sales: 24.6 BU (Billion Units), marginal YoY increase.
- Bangladesh Payments: Over $500 million remitted in Q1, enhancing international cash flows.
“Our stable performance, despite sectoral volatility, underscores our strategic execution and focus on sustainable growth.”
— S B Khyalia, CEO, Adani Power Ltd
What Weighed on Results
- Lower realization from merchant power sales.
- Higher input and acquisition-related costs.
- Slightly reduced operational efficiency reflected in lower PLF.
Dividend Action & Stock Split
In a move aimed at enhancing stock liquidity, the board approved a 1:5 stock split, signaling confidence in long-term investor participation.
Adani Enterprises Q1 FY26 Results: Profit Down 45% YoY
Adani Group’s flagship incubator company, Adani Enterprises Ltd (AEL), also reported a weak quarter:
- Net Profit: ₹976 crore (–45% YoY)
- Revenue: ₹21,961 crore (–13.7% YoY)
- Profit Before Tax: ₹1,466 crore (–34% YoY)
The earnings dip reflects a broader cooling in core infrastructure and logistics momentum, though the company remains aggressive on expansion across green energy and airport verticals.
Analyst View
Despite short-term headwinds, analysts remain neutral to bullish on Adani Power:
- Sequential improvements show resilience.
- Bangladesh payments and growing installed capacity are positives.
- The stock split is expected to boost retail interest in the coming quarters.
