Adani Power Q4FY26 Results: Profit Jumps 64% To ₹4,271 Crore

Adani Power reported a strong set of Q4 FY26 results, with consolidated net profit surging 64% year-on-year to ₹4,271 crore. However, the stock reacted negatively, closing 2.48% lower at ₹217.80 on Wednesday, reflecting concerns around underlying demand trends and realisations.

The earnings growth was largely driven by a sharp reduction in tax expenses, even as operational performance remained steady in a mixed demand environment.

Profit Surge Driven By Lower Tax Outgo

Adani Power’s reported profit before tax rose 34% YoY to ₹4,384 crore, while net profit growth was significantly boosted by an 83% decline in tax outgo during the quarter.

On the operational front, reported EBITDA increased 27% YoY to ₹6,498 crore. However, adjusting for one-offs, continuing EBITDA grew 9.3% to ₹5,573 crore, indicating stable underlying performance.

Revenue growth remained moderate. Total reported revenue rose 10% to ₹15,989 crore, while continuing revenue grew 3.7% to ₹15,059 crore, reflecting steady but not exceptional expansion.

Demand Pressure Weighs On Realisations

The quarter saw uneven power demand trends. All-India electricity demand rose just 1.6% YoY to 422 billion units, impacted by unseasonal rains and a higher share of renewable energy earlier in the quarter.

This softness affected merchant market dynamics. The average market clearing price on the Indian Energy Exchange (IEX) declined over 12%, while merchant and short-term sales volumes dropped to 5.2 billion units from 5.6 billion units a year ago.

Despite this, total power sales volumes increased to 27.2 billion units, supported by higher contribution from long-term contracted capacities and operational ramp-up.

Strong PPA Pipelince Boosts Visibility

Adani Power continued to strengthen its long-term revenue visibility by securing new power purchase agreements (PPAs). During the quarter, it won a 1,600 MW PPA from Maharashtra and a 558 MW PPA in Tamil Nadu through a subsidiary.

With these additions, nearly 95% of the company’s operating capacity is now tied to long- and medium-term PPAs, providing greater earnings stability and reducing dependence on volatile merchant markets.

Read more: Vedanta Share Price Gains 4.5% After Q4FY26 Earnings Results; PAT Jumps 89% YoY, Net Debt to EBITDA At 0.95x.

Conclusion

Adani Power’s Q4 performance highlights a combination of strong headline growth and stable core operations, but also underscores challenges in the merchant power segment. While long-term contracts improve visibility, near-term stock movement suggests investors remain cautious about demand trends and pricing pressures.

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