Adani Power Q4 Results: Adani Power Ltd delivered a strong performance in the fourth quarter of FY26, reporting a sharp rise in profitability even as its share price moved lower on the day of the announcement. The company’s consolidated profit after tax surged to Rs 4,271 crore, marking a 64 per cent increase from Rs 2,599 crore recorded in the same quarter last year. This spike was largely attributed to a significant reduction in tax expenses during the period.
The company’s revenue growth remained stable during the quarter. Total revenue climbed 10 per cent year-on-year to Rs 15,989 crore in the January–March period. Meanwhile, continuing revenue, which excludes prior-period adjustments, rose by 3.7 per cent to Rs 15,059 crore. Continuing operating revenue also witnessed a modest increase of 2.9 per cent, reaching Rs 14,560 crore.
Operationally, the company maintained resilience amid fluctuating demand conditions. Reported EBITDA rose 27 per cent year-on-year to Rs 6,498 crore, supported in part by recognition of earlier income. Continuously, EBITDA increased 9.3 per cent to Rs 5,573 crore, reflecting consistent core earnings growth.
Profit before tax followed a similar trend, with reported PBT rising 34 per cent to Rs 4,384 crore, while continuing PBT grew 6.5 per cent to Rs 3,458 crore. The strong profit performance was primarily driven by a steep 83 per cent decline in tax outgo.
The broader power demand environment remained uneven during the quarter. Nationwide electricity demand grew modestly by 1.6 per cent year-on-year to 422 billion units in Q4. While consumption improved towards the latter part of the quarter due to rising temperatures, earlier months saw dampened demand due to unseasonal rainfall and a higher share of renewable energy generation.
This uneven demand, combined with softer merchant market prices, affected realisations. The average clearing price in the day-ahead market on the Indian Energy Exchange declined by over 12 per cent during the quarter. Merchant and short-term sales volumes also fell to 5.2 billion units from 5.6 billion units a year earlier, indicating weaker activity in the spot market.
Higher Volumes And Long-Term Contracts Provide Stability
Even as merchant demand faced pressure, overall power sales volumes increased to 27.2 billion units, up from 26.4 billion units in the previous year. This growth was supported by improved utilisation of tied-up capacities and operational expansion.
The company also strengthened its long-term revenue visibility by securing new power purchase agreements (PPAs). It won a 1,600 MW long-term contract from Maharashtra under the DBFOO model, while a subsidiary signed a 558 MW agreement with a Tamil Nadu distribution company. With these additions, about 95 per cent of its operational capacity is now linked to long- and medium-term PPAs, enhancing earnings predictability and reducing exposure to market volatility.
