Strategy: Aggressive thermal scale-up from 18 GW to 42 GW by FY32, positioning AP as a key baseload power supplier as India’s demand rises.
• Contracting: Strong visibility with >9 GW long-term PPAs won; total bid pipeline expanded to ~22 GW across multiple states.
• Execution: 6.1 GW under construction, largely brownfield; BTG equipment fully ordered, land in place, approvals largely secured—execution risk low.
• Capex & funding: ~₹2 lakh crore planned for ~23 GW; majority funded via operating cash flows, limited bridge debt.
• Operations: Q2 volumes +7% YoY despite weather-hit demand; PLF softened due to extended monsoon, expected to recover.
• Financials: Revenue broadly stable; EBITDA marginally lower; PAT decline driven by higher tax, not core weakness.
• Tariffs: PPA realizations stable (~₹5.7/unit); merchant tariffs dipped in Q2 but expected to normalize near ₹6/unit.
• Risk profile: ~91% capacity tied-up, fuel cost pass-through in new PPAs reduces earnings volatility.
• Leverage: Net debt at ₹36.8k cr, manageable given cash flows and visibility.
ADANI POWER Q2FY26 CON CALL
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