Adani Power Q1 FY27 Results (NSE: ADANIPOWER)
Signal: Margin expansion
The read
Q1FY27 marked by strong revenue growth of 34% YoY driven by recognition of regulatory compensation claims (₹898 Cr) and base rate approval for Mundra plant, with operating margin expanding to 42.1%. PAT grew 47% YoY to ₹4,867 Cr. However, revenue growth is partly from one-off regulatory adjustments; core generation volumes not disclosed. Board approved up to ₹15,000 Cr QIP for expansion and debt reduction.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹18,901.89 Cr | +34.0% | +32.9% |
| EBIT | ₹7,201.86 Cr | +42.3% | |
| Net profit | ₹4,866.6 Cr | +47.2% | |
| EPS | ₹2.49 | +44.8% | |
| EBIT margin | 42.12% |
P&L walk
Revenue growth driven by regulatory compensation and base rate approval for Mundra; fuel cost ratio improved; operating margin expanded to 42.1%; PAT growth outpaced revenue on lower effective tax rate vs prior year.
Key positives
- Revenue increased 34.0% YoY to ₹18,902 Cr, highest in recent quarters.
- Operating margin (reported) expanded 182bps YoY to 42.12% despite higher fuel costs.
- Net profit grew 47.2% YoY to ₹4,867 Cr on operational leverage and regulatory income.
- Regulatory compensation claims of ₹898 Cr recognised during the quarter.
- Debt equity ratio stable at 0.82x; interest coverage at healthy 8.61x.
- Board approved fundraise up to ₹15,000 Cr via QIP to support growth and balance sheet.
Key concerns
- Revenue growth partly dependent on regulatory claims (₹898 Cr) with uncertain timing of cash conversion.
- Other income dropped 76.2% QoQ, normalising from Q4's exceptional claims settlement.
- Finance costs rose 5.2% YoY to ₹901 Cr, ahead of debt additions.
- Proposed QIP of ₹15,000 Cr may dilute equity by ~8-10% at current market price.
- Core generation volumes and PLF not disclosed, making it hard to assess underlying operational efficiency.
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