Adani Power Q2 FY27 profit jumps 142% to Rs 7,019 crore on higher revenue

what happened

According to Moody's, which cited the company's release, Adani Power's consolidated profit after tax rose 142% year on year to Rs 7,019 crore in the second quarter of FY27. Revenue climbed 39% to Rs 19,951 crore and EBITDA 46% to Rs 8,743 crore. The company credited higher power demand, higher tariffs under power purchase agreements and better realisation in merchant sales.

PPA volumes grew 29.7% to 23.4 billion units, and average PPA tariffs rose 12.7% to Rs 6.4 per kWh. Fuel costs increased 41.8% to Rs 10,229.38 crore, while the landed cost of imported coal climbed 50%. Part of the revenue gain came from Rs 2,422 crore of prior-period income. Shares of the company fell 1.6% on Friday to Rs 182.

why it matters

For markets, the key point is that the company is passing higher imported coal costs through to tariffs under long-term contracts, which supports margins. However, a large share of the quarterly profit rests on prior-period income recognition, which is worth watching in future quarters.

market impact

Power sector in India: higher PPA tariffs offset costlier coal, supporting Adani Power's margins

tags

instruments