Adani Power Ltd Q2 FY26 – ₹2,906 Cr Profit, 37% OPM, 30 GW Ambition & 10 Subsidiaries Merged: The Thermal Titan That Refuses to Cool Down
1. At a Glance
There’s hot, and then there’s Adani Power hot. The ₹3.13 lakh crore market cap behemoth just reported a Q2 FY26 profit of ₹2,906 crore on revenue of ₹14,308 crore, with an operating margin of 37% — hotter than a boiler at full load. While most utilities sweat for single-digit ROCE, Adani Power clocked a 22.5% ROCE and 26.1% ROE, proving that even in coal-fired capitalism, efficiency can be electrifying.
The current price stands at ₹162 (up 43% in the last three months and 55% in six months). That’s not a stock — that’s a power surge. But before you call it overcharged, note this: the P/E is a modest 25.3, despite the fact that Adani Power now commands 6% of India’s total thermal generation.
And just to keep the news cycle alive, the board approved the amalgamation of ten wholly-owned subsidiaries, a 49:51 JV in Bhutan for a 570 MW hydro project, and announced expansion plans worth ₹21,000 crore across new sites in Bihar and Madhya Pradesh.
If you think the Adani saga dimmed after the Hindenburg short circuit — surprise! The lights are very much on.
2. Introduction
Welcome to the power plant where balance sheets are as charged as the turbines. Adani Power Ltd (APL) — the largest private thermal power producer in India — is not just selling megawatts; it’s selling dominance.
What started as a 330 MW unit in Mundra is now a 17,550 MW juggernaut spanning seven states, exporting power to Bangladesh, and adding more capacity than most state utilities could dream of. And unlike the “load shedding” of government-run peers, APL’s financials shed only unnecessary inefficiencies.
Over the past five years, the company has grown its profits at a 66% CAGR, expanded operating margins from 21% to 37%, and cut borrowings by over ₹15,000 crore. Yet, somehow, it still gets accused of being “overleveraged.” That’s like calling Virat Kohli inconsistent because he didn’t score a century this match.
The best part? While peers pay token dividends to appear generous, Adani Power prefers to funnel every rupee into expansion, acquisitions, and legal victories. Because when you’re building a 30 GW empire, dividends are just small change.
3. Business Model – WTF Do They Even Do?
Adani Power’s business model is deceptively simple: burn coal, make electricity, sell it profitably — but with an engineering, logistics, and regulatory finesse that makes it look easy.
The company sells power through a mix of:
Long-term PPAs (85%) — mostly with state discoms like MSEDCL, GUVNL, RUVNL.
Merchant and short-term sales (15%) — the “freestyle” megawatts traded at market rates.
What makes Adani Power special isn’t just scale; it’s integration. From coal mines (like Dhirauli, approved for 6.5 MTPA) to ports, rail logistics, and transmission, it controls every link in the electricity food chain. Even Godda, its 1,600 MW ultra-supercritical plant in Jharkhand, exports electricity directly to Bangladesh — India’s first transnational thermal project.
And now, diversification is on the horizon:
Hydropower JV in Bhutan (570 MW) with DGPC.
Upcoming 2,400 MW Pirpainti Thermal Power Project (Bihar) with a 25-year PPA.
800 MW Anuppur and 1,600 MW Raigarh expansions.
Mahan Phase II (1,600 MW) ultra-supercritical addition.
By FY32, APL aims to cross 30,670 MW, roughly equal to the entire installed capacity of Pakistan.
4. Financials Overview
Metric (₹ Cr)
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
13,457
13,339
14,109
+0.9%
-4.6%
EBITDA
5,150
5,276
5,685
-2.4%
-9.4%
PAT
2,906
3,298
3,305
-11.9%
-12.1%
EPS (₹)
1.53
1.73
1.76
-11.6%
-13.1%
Witty Audit Note: The quarter looks slightly cooler than the last, but margins still hold above 37%. When you can print ₹3,000 crore in quarterly profits while commissioning 4 GW more, that’s not a slowdown — that’s an equipment maintenance break.
5. Valuation Discussion – Fair Value Range
Let’s plug into the grid of valuation.
Method 1: P/E Approach EPS (TTM): ₹6.24 Industry Average P/E: 24.6x APL trades around 25.3x, fair for its scale.
Method 3: Simplified DCF (Educational) Assume FCF = ₹15,000 Cr, growth 5% for 10 years, terminal 3%, discount rate 10%. Fair Value ≈ ₹140–₹180
🎯 Fair Value Range: ₹140–₹180 per share (For educational purposes only, not investment advice.)
6. What’s Cooking – News, Triggers, Drama
Ten Subsidiaries Merged: On Oct 30, 2025, APL approved the amalgamation of 10 wholly-owned subsidiaries effective Apr 1, 2025 — a consolidation that will simplify reporting and improve leverage ratios.
Hydro Foray: 49:51 JV in Bhutan’s Wangchhu project (570 MW). Adani’s first step into hydropower. Expect EPC synergies, international goodwill, and a few diplomatic selfies.
Mega Capex Marathon: ₹14,170 Cr spent in FY24; new LoAs for 2,400 MW Pirpainti and 800 MW Anuppur plants totalling ₹31,500 Cr capex pipeline.
Legal Victories: APTEL extinguished ₹2,632 Cr claim by CTUIL against its Mahan unit. Supreme Court cases (Lohara, Udupi) already resolved in its favor — collecting thousands of crores in late payments.
