Adani Power Q2 FY27 Results Analysis: PAT Jumps 141%, Margin Compresses 304 bps (ADANIPOWER)
Adani Power Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 19,438.68 Cr (+44.45% YoY) and PAT growth of +141.48% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 23, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 19,438.68 Cr (+44.45% YoY) |
| PAT (Q2) | Rs. 7,019.32 Cr (+141.48% YoY) |
| EBITDA margin | 43.82% (+188 bps YoY) |
| EPS (Q2) | Rs. 3.59 (+134.64% YoY) |
| Market cap | Rs. 351,058.58 Cr |
| CMP | Rs. 182.04 |
Quarter Snapshot
Q2 FY27 revenue grew 44.45% YoY to Rs.19,438.68 crore and PAT grew 141.48% to Rs.7,019.32 crore, but roughly half of PAT came from one-time prior-period income (Rs.2,422.25 crore) and a tax reversal (Rs.1,211.43 crore); normalized PAT grew 51.28%. The clean picture shows continuing revenue +29.8%, continuing EBITDA +18.5% with ~304 bps margin compression from ~50% higher imported-coal costs, offset by PLF of 70.1%, merchant realization of Rs.7.2/kWh, positive FCF of Rs.3,779.59 crore, and Korba's first 660 MW unit synchronized on schedule.
Key Investment Insights
Key Positives
- Revenue from operations grew 44.45% YoY to Rs.19,438.68 crore; continuing operating revenue grew 29.8% YoY to Rs.17,014.06 crore
- PAT grew 141.48% YoY to Rs.7,019.32 crore; normalized PAT grew 51.28% YoY to Rs.3,385.64 crore
- PLF improved to 70.1% from 62.8% YoY; volumes up 11.5% to 26.4 BU; overall realization Rs.6.4/kWh (+12.7% YoY)
- Merchant realization rose 33.1% YoY to Rs.7.2/kWh while merchant volumes were cut 43% deliberately
- Korba Phase-II first 660 MW unit grid-synchronized in Q2 FY27, keeping the 1,320 MW FY27 commissioning target on track
- H1 FY27 CFO of Rs.16,139.12 crore (1.36x PAT); FCF positive at Rs.3,779.59 crore despite Rs.12,359.53 crore capex
- Ratings upgraded to AA+ (Stable); net debt/TTM EBITDA at 1.61x with DSCR of 6.18x
- UPCL LOA for 1,320 MW 25-year PSA and Bhutan Chamkharchhu 770 MW SHA signed; pipeline tie-ups at 62%
Risk Factors
- Continuing EBITDA margin compressed ~304 bps YoY to 36.06% as fuel cost rose 41.9% vs continuing revenue growth of 29.8%
- Reported PAT of Rs.7,019.32 crore includes Rs.2,422.25 crore one-time prior-period income and a Rs.1,211.43 crore tax reversal; normalized PAT is Rs.3,385.64 crore
- Rs.1,971.96 crore of Haryana Discom revenue derecognized on a prudent basis pending resolution of the alternate-coal claim
- Merchant volumes declined 43% YoY, reducing exposure to the high Rs.7.2/kWh merchant realization
- CWIP rose from Rs.35,053.46 crore to Rs.45,539.42 crore, with depreciation set to step up as Korba/Mahan units commission
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.