HIGHLIGHTS
- The company has been performing remarkably, witnessing consistent annual growth in continuing revenue since 2019, with a CAGR of 23% over 3 years and 16.2% over 5 years.
- Adani Power Limited (APL) reported a robust performance in Q4 FY25, recording consolidated revenue of Rs. 14,522 Crores, marking a year-onyear increase of 5.3%.
- In FY25, APL sold 95.9 billion units of power, up from 79.4 billion units in the previous year, driven by two key factors: an increase in installed capacity from 15,250 MW to 17,550 MW, and an improvement in Plant Load Factor (PLF) from 64.7% to 70.5%.
- As a result of cold weather and an increase in electricity supply, the average market clearing price on IEX declined by 15% in FY25 to Rs. 4.47/kWh. Despite this sharp fall in price, APL has posted stellar results, and with merchant prices gaining strength due to the early onset of summer, results are likely to improve in the coming quarters.
INDUSTRY OUTLOOK
Power is among the most critical components of a nation’s infrastructure, economic growth, and welfare. According to the IEA, global energy demand grew by 2.2% in 2024, a notably faster rate than the average 1.3% between 2013 and 2023. Underneath the increased demand for power lie structural trends, such as growing access to electricity-intensive appliances like air conditioning, increased power demand from digitization, data centers, and AI, and a shift towards electricity-intensive manufacturing. The global power generation market size is expected to hit $2,462.37 billion by 2026. With a robust CAGR of 10.1 from then on, the request size is projected to surge to $3,982.36 billion by 2031.
India’s power sector is a significant player in the global energy geography. As per IBEF, as of January 31, 2025, India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 466.24 GW. The total electricity generation, including that from renewable sources in the country during the current year 2024-25 (up to December 2024), was 1378.418 BU, as against the generation of 1308.969 BU during the corresponding period last year, showing a growth of 5.31%. Assuming the same pace, we can safely estimate an increase to 5.5% in FY 2024, showcasing the continued trend of development. The Indian power sector is evolving with positive changes, shaping a promising future. Ongoing economic growth, growing population with increasing electrification, and per capita usage provide further impetus to the demand for electricity. In recent decades, India has transformed its power sector—ensuring widespread access to grid electricity, reducing power shortages, and witnessing a remarkable surge in renewable energy capacity.
The Indian power demand is expected to reach 2,474 billion units by FY 2031-32, which is 46% higher compared to current demand. Adani Power Ltd., India’s most prominent private-sector thermal power company, is poised to capture this demand. In FY24, Adani Power held a 6.3% share of India’s coal and lignite-based generation capacity. NTPC is the largest company in India, with a thermal power generating capacity of 62.2 GW in FY23-24. Based solely on capacity, it is approximately three times the size of Adani Power, but the performance metrics of APL are superior. In the private space are reputed companies like Tata Power and JSW Energy, which are also in the same segment but comparatively smaller than APL.
BUSINESS DESCRIPTION
Having entered the power generation sector in 2006, Adani Power Limited established its first power plant at Mundra, Gujarat. Headquartered in Ahmedabad, Gujarat, the company is a vital part of the Adani group and is the largest private thermal power producer in India. It now boasts a staggering 17,510 MW power generation capacity with thermal power plants spread throughout India in the states of Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand and Tamil Nadu.
APL was the first company in the world to set up a coal-based Supercritical thermal power project. The company currently has 12 operational plants, with 9 more upcoming plants in the pipeline. Out of the upcoming plants, 85% will fall under the category of Ultra-supercritical. The Mudra plant is the biggest among all, having 4620 MW power-producing prowess. The company, through its Energy Network Operation Centre (ENOC), is able to provide operational excellence, which ensures high plant availability and high dispatch capability. The company focuses on advanced technologies, effective fuel management and logistics capabilities, excellence in plant operations and maintenance, and environmental consciousness. The company had also commissioned a 40 MW solar power plant in Bitta, Kutch, in 2011, which at that time was the largest solar power plant in India.
FINANCIAL PERFORMANCE
Adani Power has delivered a strong performance this year. Revenue from continuing operations grew by 10.8% to ₹56,473 crores, thanks to higher sales and lower fuel prices. This also led to a 14.8% increase in EBITDA, which came in at ₹21,575 crores—a clear sign that the company is managing its operations more efficiently. PBT rose impressively by 21.3% to ₹13,926 crores. But profit after tax (PAT) fell by 38% to ₹12,750 crores. The main reason was last year’s tax credit, but this year, it had to account for a higher deferred tax expense. Operationally, things have been strong. The operating margin has improved over the last two years, showing better cost control and efficiency.
The company has been steadily expanding its plants by acquiring new assets, which led to higher depreciation costs. However, what stands out is that interest expenses stayed at similar levels, around ₹ 3380 crores, suggesting that the company didn’t take on a lot of new debt to fund this growth and has been expanding organically. On the financial side, Adani Power continues to reduce debt through both prepayments and regular repayments, even while expanding. As a result, its debt ratios have improved significantly, with its Debtto-Equity ratio coming down. The company’s credit rating has been upgraded from BB- in 2018 to AA in 2024, which reflects growing confidence in the market.
Cash flow also tells a positive story. Cash generated from operations jumped 51.7% to ₹21,501 crores, helped by lower liabilities and better collection from customers, as seen in stronger debtor turnover ratios. The company is investing heavily to meet its goal of reaching 30,670 MW capacity by 2030. This is reflected in the ₹17,142 crores spent on investments during the year. Capital Work-in-Progress (CWIP) rose sharply from ₹925 crores to ₹12,104 crores, which is a healthy sign of future revenue growth. The company’s healthy interest coverage ratio and the unchanged high Promoter holding of 74.96% should provide an additional margin of safety to investors.
APL has been putting in great efforts to avoid any supply chain delay by placing orders in advance for ultra-supercritical (USC) boilers, turbines, and generators— the core equipment needed for thermal power plants. This will give them a competitive advantage once their plants are ready for operation.
CURRENT DEVELOPMENTS AND FUTURE EXPECTATIONS
Financials
Adani Power posted a stable financial performance in Q4FY25, with revenue rising 5.3% YoY to ₹14,522 crores, compared to ₹13,787 crores in Q4FY24. This was supported by a substantial 19% growth in power sales, reaching 26.4 billion units for the quarter. EBITDA stood at ₹5,098 crores, slightly lower than last year’s ₹5,273 crores, primarily due to the absence of one-time income recorded in the previous year. PBT came in at ₹3,248 crores, and PAT was ₹2,599 crores, showing a marginal dip from the prior year.
Despite a seasonal slowdown in demand due to colder weather earlier in the quarter, power demand increased in March, rising 6.6% over March 2024, which supported a recovery in volumes. While this had some impact on merchant tariffs in the second half of the year, Adani Power successfully capitalized on market opportunities.
Adani Power has billed $ 2,000 million so far from its Bangladesh operations and received $ 1,207 million. Including late payment charges of $ 136 million, the total amount due is around $ 900 million. The situation is improving because, in Q4 FY25, the company recovered ₹500 crore, and current payments are now higher than monthly bills, indicating good progress in clearing past dues and improving cash flow.
Business and Future Expectations
Adani Power is pursuing aggressive capacity expansion, aiming to scale up its total capacity to 30,670 MW by 2030. The company is currently developing 3 major 1,600 MW brownfield projects at Mahan, Raipur, and Raigarh while also reviving the 1,320 MW Korba expansion. These brownfield projects enable the company to expand more quickly by leveraging existing sites and infrastructure, thereby saving both time and costs.
Adani Power has placed advance orders for 11.2 GW of ultra-supercritical boilers, turbines, and generators (BTG). This move helps secure its supply chain and gives it a first-mover advantage.
In terms of project progress, Mahan-II is already 54% complete, while Raipur-2 and Raigarh-2 have reached 21% and 16% completion, respectively. Adani Power spent ₹8,000 crore on capital expenditure (capex) during FY25 and has lined up a larger capex of ₹13,307 crore for FY26, which will be allocated towards ongoing projects at Mahan, Raigarh, Raipur, Mirzapur, Kawai, and Korba.
The resolution plan for Vidarbha Industries Power Ltd. (VIPL, 600 MW) has been approved and will soon be incorporated into the company’s portfolio, increasing its installed capacity to 18,150 MW. Additionally, the underconstruction units of Lanco Amarkantak are expected to be commissioned by the end of FY26 or the first half of FY27.
Together, these developments reflect a clear growth roadmap for Adani Power, combining organic expansion with strategic acquisitions to build scale, improve efficiency, and enhancing long-term profitability.
Adani Power is pursuing aggressive capacity expansion, aiming to scale up its total capacity to 30,670 MW by 2030. The company is currently developing 3 major 1,600 MW brownfield projects at Mahan, Raipur, and Raigarh while also reviving the 1,320 MW Korba expansion. These brownfield projects enable the company to expand more quickly by leveraging existing sites and infrastructure, thereby saving both time and costs.
Recent events –
- Adani Power Jharkhand Ltd (APJL) was amalgamated with APL, its holding company, on April 1, 2024. This plant supplies power to the Bangladesh Power Development Board under the cross-border Power Purchase Agreement (PPA).
- The Committee of Creditors of Vidarbha Industries Power Ltd. approved APL’s resolution plan under the IBC, following which APL received a Letter of Intent on February 24, 2025.
- APL has been recognized for its Exemplary Commitment to Sustainability at the Times Now Sustainable Organisation 2024 Summit.
- APL scored 67/100 in the Corporate Sustainability Assessment by S&P Global in November 2024, marking a strong improvement from its earlier score of 48/100 and much better than World Electric Utilities’ average score of 42/100.
- The company secured a Letter of Award in May 2025 from the Uttar Pradesh Government to supply 1,500 MW of Thermal Power under a long-term Power Supply Agreement. For this purpose, it will set up a greenfield 2×800 MW Ultra-supercritical power plant in UP at an estimated cost of $2 billion.
Strengths –
- The company already possesses land for expanding its capabilities by 12,520 MW, which mitigates one of the major execution risks for projects of this kind.
- Total assets have consistently grown over the past six years, indicating a steady increase in the entity’s financial strength and stability.
- 80% of its 17.55 GW capacity is tied up under long-term PPAs, which provides visibility and consistency of Revenue to investors and also allows the company to take calculated risks.
- With over two decades in the industry, promoters have demonstrated their ability to deliver in-depth project expertise, as well as their experience in driving company growth by leaps and bounds.
- APL is the only independent power producer in India with in-house, mineto-plant logistics capability, which, along with other fuel management and logistics factors, gives it a key competitive advantage.
- FII/FPI holdings increased slightly from 12.34% to 12.36% in Q4FY25, reflecting
continued institutional confidence in the company’s long-term growth
prospects. Mutual Fund holdings rose from 1.60% to 1.64% in Q4FY25 too.
CONCLUSION
Adani Power Ltd. has established itself as a key contributor to India’s electricity generation, leveraging its large-scale thermal power assets and long-term contracts to ensure revenue stability. Its strategy of acquiring underperforming assets and optimizing them has supported capacity growth at lower capital costs. While the business remains exposed to fuel price fluctuations and regulatory scrutiny due to its coal dependence, the company’s operational scale and strong offtake agreements provide a solid foundation. In the future, its performance will hinge on managing input costs efficiently and aligning with India’s evolving energy transition landscape.
