Adani Power Q3 FY26 Results Prove Stability Amid Power Slump
Adani Power Q3 FY26 Results underline profits despite weak demand
The latest financial update from Adani Power Limited comes at a time when India’s power sector is going through a short but noticeable pause in demand growth. The company’s Q3 FY26 results show how large power producers are managing stability even when weather patterns and market prices do not fully support higher revenues.
During the third quarter, power demand across India remained almost flat. This was mainly because the monsoon stayed longer than usual, and temperatures were cooler in many regions. In the previous year, a strong heat wave had pushed electricity use sharply higher, so this year’s numbers also faced a high comparison base. Despite this, Adani Power managed to keep its overall power sales steady. The company sold 23.6 billion units of electricity in Q3 FY26, slightly higher than the same quarter last year. This reflects the advantage of having a larger operating capacity, even when plant load factors were under pressure.
Market prices in the short-term power market also stayed weak. Rates on the Indian Energy Exchange fell by more than 13 percent during the quarter. This drop is linked to lower demand and rising renewable energy generation, which often supplies power at lower costs. For thermal power companies, this usually affects merchant sales. Adani Power’s merchant and short-term volumes dipped slightly in the quarter, but the impact was limited because most of its capacity is now backed by long-term power purchase agreements.
One of the most important developments in the quarter was the new long-term power purchase agreement for 3,200 MW from Assam. Long-term PPAs are critical for thermal power producers because they offer steady income and reduce exposure to market swings. With this addition, nearly 90 percent of Adani Power’s existing capacity is now tied up under long- and medium-term contracts. In a sector where payment delays and price volatility are common risks, this level of coverage provides strong revenue visibility.
Financially, the company showed resilience. Continuing revenue for the quarter stood at Rs. 12,717 crore, slightly lower than last year but stable given the fall in power prices. EBITDA remained strong at Rs. 4,636 crore, showing that operating costs were well controlled. Lower international coal prices and better fuel management helped cushion the impact of lower tariffs. Profit before tax rose year on year, mainly due to lower finance costs. Profit after tax came in at Rs. 2,488 crore, lower than last year because the earlier period had higher one-time income.
Over the first nine months of FY26, the picture is similar. Power sales rose by over 3 percent, supported by higher available capacity. Revenues were marginally lower, again due to softer power prices, but EBITDA and profits stayed healthy. This suggests that the company’s business model can absorb short-term demand shocks without major damage to profitability.
Another key highlight is funding. Adani Power raised Rs. 7,500 crore through AA-rated non-convertible debentures. Access to funds at this rating level indicates confidence among lenders and investors. The money will support capacity expansion and working capital needs. While total debt has increased, this is mainly due to bridge financing for ongoing projects. The company continues to highlight its strong liquidity position and controlled leverage.
Operationally, the 600 MW Butibori plant’s fast turnaround stands out. Bringing the plant fully online within four months of acquisition reflects strong in-house project management. This speed matters because delays often lead to cost overruns in the power sector. The company’s wider expansion plan of 23.7 GW, including several ultra-supercritical projects, places it among the most aggressive capacity builders in the country.
From an environmental and social perspective, the update shows a push to balance thermal expansion with responsible practices. Improvements in ESG ratings, high ash utilisation levels, and water use well below statutory limits indicate better compliance and efficiency. The scale of CSR activity, covering education, healthcare, livelihoods, and local infrastructure, highlights the company’s focus on community engagement around its plants.
Overall, the Q3 FY26 results show a power producer navigating a temporary slowdown with discipline. Stable sales, strong PPAs, careful cost control, and steady project execution have helped Adani Power maintain profitability in a challenging quarter. While demand growth may remain uneven in the short term, the company’s long-term contracts and expanding capacity position it to benefit when electricity consumption rises again with economic growth.