Adani Power Q2 Results Updates: Profit Falls 11% to Rs. 2,953 Crore Despite Strong Revenue Growth

Adani Power Q2 FY26 Results: Net Profit Falls 11% as Revenue Remains Flat

Mumbai, 30 October 2025 — In a closely watched earnings release, Adani Power Ltd reported its Q2 results (quarter ended 30 September 2025) showing a marked decline in profitability despite modest revenue growth. The company’s consolidated net profit stood at Rs 2,953 crore, down approximately 11% from Rs 3,332 crore in the same quarter a year ago.

Revenue from operations rose just 0.9% to Rs 13,457 crore, compared with Rs 13,339 crore in Q2 of the previous year. EBITDA (earnings before interest, tax, depreciation and amortisation) declined by around 2%, settling at Rs 5,150 crore versus Rs 5,276 crore in the prior year. Margins contracted to 38.3%, down from 39.6% in the corresponding period.

Highlights and Investor Implications

• The drop in net profit underscores margin pressure at the company, likely driven by either increased costs, subdued tariff realisation, or both—typical headwinds for power-generation companies at this time.

• Revenue growth remaining in the sub-1% band points to stagnant demand or limited tariff escalation for the company’s coal- and gas-based generation assets.

• A 2% decline in EBITDA indicates that cost control has not fully offset the pressures on topline and margin.

• The margin contraction (from 39.6% to 38.3%) signals tighter profitability and may raise investor scrutiny around future earnings trajectory.

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Adani Power Market Reaction and Context

The results come amid a heavy earnings season in India, with more than 80 corporates reporting their Q2 numbers on 30 October.  For Adani Power, the muted revenue and profit drop may temper market enthusiasm for its shares in the near term, especially as investors gauge tariff trends, fuel costs and demand outlook in the power-generation sector.

Adani Power Underlying Dynamics and Outlook

Adani Power, a part of the broader Adani Group energy portfolio, operates predominantly thermal power plants (coal and gas). Challenges for such players in the current environment include:

• Sluggish growth in industrial power demand.

• Competitive pressure on merchant tariffs in energy markets.

• Rising input costs (coal, gas, logistics, environmental compliance).

• Transition risks around renewable energy policy and regulation.

Given these headwinds, the flat revenue growth combined with a profit drop raises questions about how Adani Power will navigate cost pressures and demand constraints going forward. Analysts and investors may now focus on metrics such as volume growth (units sold), tariff realisation per unit, fuel cost trends, plant-load factors (PLF), and the company’s ability to shift or expand into cleaner energy solutions.

What To Watch Ahead

1. Tariff Realisation & Volume Growth: Whether Adani Power can improve unit-sales or secure better tariff contracts will be key to reversing flattening revenue.

2. Cost Management: Further pressure on margins will demand tighter control on fuel, maintenance and logistics costs.

3. Renewables Transition: Any strategic shift or announcement by the company on renewable generation may shape medium-term investor sentiment.

4. Debt & Financing: Power producers often have large fixed-cost structures; monitoring how debt and interest burden evolve will matter.

5. Broader Sectoral Trends: Since Adani Power is part of the wider energy sector, movements in regulatory policy, coal and fuel supply risk, and demand from industry are relevant.

Bottom Line

While Adani Power’s Q2 results do not come as a major surprise—given the challenging backdrop—the 11% year-on-year drop in profit and near flat revenue underline the headwinds facing the company. For investors, the results highlight the need for clearer directional improvements in demand, tariff realisation or cost structure before confidence can be restored.

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