Gas Sector Q3 FY2026 Growth and Outlook

Power Generation & Distribution Sector: Comprehensive Analysis of Adani Group's Energy Verticals

Small Summary

This comprehensive sector analysis delves into the Power Generation & Distribution landscape in India, with a specific focus on the Adani Group's key entities: Adani Power Limited (APL), Adani Green Energy Limited (AGEL), and Adani Energy Solutions Limited (AESL). The report synthesizes extracted data from recent investor documents and concall transcripts, providing an in-depth examination of market size, structure, financial performance, competitive dynamics, operational characteristics, growth drivers, risk landscape, capital allocation strategies, and future outlook. It highlights the Adani Group's strategic positioning across the energy value chain, from thermal and renewable generation to transmission and distribution, underpinned by significant capacity expansion plans, robust financial management, and a strong commitment to ESG principles. The analysis reveals a sector poised for substantial growth driven by India's escalating energy demand and ambitious renewable energy targets, while also navigating challenges such as weather-induced demand variability and the capital-intensive nature of infrastructure development.

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A. INDUSTRY OVERVIEW & MARKET LANDSCAPE

The Indian Power Generation & Distribution sector is a cornerstone of the nation's economic growth, characterized by its vast scale, strategic importance, and dynamic evolution. India's energy landscape is undergoing a significant transformation, driven by robust economic expansion, increasing urbanization, and a strong policy push towards sustainable energy sources. The sector encompasses the entire value chain, from fuel sourcing and power generation to transmission, distribution, and emerging areas like smart metering and energy solutions.

Total Addressable Market Size and Growth Rates

India's electricity consumption currently stands at an average of **1,395 kWh per person**, indicating substantial headroom for growth compared to developed economies. The nation's energy demand is projected to quadruple over the next two decades, outlining an immense total addressable market. According to Vision 2047, India's energy demand is expected to reach **6,400 Billion Units (BU)**, with peak demand soaring to **708 GW**, necessitating an installed capacity of **2,100 GW**. This ambitious projection underscores a massive opportunity for capacity expansion across all segments of the power sector.

The government's strong infrastructure push is a primary catalyst for this growth, promoting and sustaining economic development. This includes significant investments in both conventional and renewable energy sources to meet the burgeoning demand.

Market Structure and Segmentation

The Indian power market is broadly segmented into: 1. **Generation:** Comprising thermal (coal, gas, lignite), hydro, nuclear, and renewable energy sources (solar, wind, hybrid). 2. **Transmission:** The high-voltage network that transports electricity from generation centers to load centers. 3. **Distribution:** The local networks that deliver electricity to end-consumers. 4. **Emerging Segments:** Such as smart metering, energy storage (Pumped Hydro Storage - PSP), and integrated energy solutions for commercial and industrial (C&I) clients.

**Capacity Mix:** The sector is witnessing a strategic shift towards a greener energy mix, although thermal power remains critical for baseload requirements. * **FY25 Capacity Mix (Total 496 GW):** * Base load (primarily thermal): **244 GW** * Renewables: **193 GW** * Others: **59 GW** * **FY32E Capacity Mix (Total 997 GW):** * Base load: **309 GW** (indicating continued reliance on thermal, albeit with a lower proportional share) * Renewables: **571 GW** (a significant increase, reflecting the energy transition) * Others: **118 GW**

This projected shift highlights the dual strategy of ensuring energy security through conventional sources while aggressively pursuing decarbonization targets.

Key End Markets and Applications

Electricity serves a diverse range of end-markets: * **Residential:** Powering homes, driven by increasing electrification and appliance penetration. * **Commercial:** Catering to businesses, offices, and retail establishments. * **Industrial:** Fueling manufacturing, mining, and other industrial processes, which are critical for economic output. * **Agricultural:** For irrigation and other farm-related activities.

Adani Energy Solutions Limited (AESL) provides a granular view of its Mumbai utility (AEML) consumer-wise volume and revenue mix for Q2 FY26 and H1 FY26: * **Q2 FY26 AEML Consumer-wise volume mix:** Residential **48%**, Commercial **38%**, Industrial **14%**. (Compared to Q2 FY25: Residential 51%, Commercial 38%, Industrial 11%). * **Q2 FY26 AEML Consumer-wise revenue mix:** Residential **49%**, Commercial **38%**, Industrial **13%**. (Compared to Q2 FY25: Residential 47%, Commercial 42%, Industrial 11%). * **H1 FY26 AEML Consumer-wise volume mix:** Residential **51%**, Commercial **37%**, Industrial **12%**. (Compared to H1 FY25: Residential 51%, Commercial 38%, Industrial 11%). * **H1 FY26 AEML Consumer-wise revenue mix:** Residential **48%**, Commercial **38%**, Industrial **11%**. (Compared to H1 FY25: Residential 51%, Commercial 41%, Industrial 11%).

These figures indicate a relatively stable mix, with residential and commercial segments forming the bulk of demand and revenue for urban distribution utilities. The slight shift in industrial volume/revenue mix suggests dynamic industrial activity.

Geographic Distribution and Regional Dynamics

The demand for power varies significantly across Indian states, influenced by population density, industrialization levels, and climate. * **Electricity Consumption per capita across states (kWh):** * Gujarat: **1,983** * Maharashtra: **1,610** * Tamil Nadu: **1,630** * Andhra Pradesh: **1,497** * Karnataka: **1,370** * Rajasthan: **1,293** * Madhya Pradesh: **1,116** * West Bengal: **674** * Uttar Pradesh: **617** * Bihar: **317** * **India average: 1,395 kWh per person.**

States like Gujarat, Maharashtra, and Tamil Nadu exhibit higher per capita consumption, indicative of advanced industrialization and urbanization. Conversely, states like Bihar and Uttar Pradesh, with lower per capita consumption, represent significant growth potential as economic development progresses.

**All India power demand growth:** * **Q2 FY26 vs Q2 FY25:** **3.2%** * **H1 FY26 vs H1 FY25:** **0.8%**

This data suggests a moderation in overall power demand growth in H1 FY26, partly attributed to weather-induced variability, specifically "unprecedented early and prolonged monsoons" in H1 FY26, contrasting with a heat spell in H1 FY25 that drove higher demand.

**Power Demand in key States (BU) - H1 FY26 vs H1 FY25:** * Haryana: H1 FY25: 41.4, H1 FY26: **40.8** (slight decrease) * Rajasthan: H1 FY25: 55.3, H1 FY26: **55.4** (stable) * Gujarat: H1 FY25: 80.9, H1 FY26: **77.5** (decrease) * Madhya Pradesh: H1 FY25: 48.3, H1 FY26: **47.8** (slight decrease) * Maharashtra: H1 FY25: 101.2, H1 FY26: **98.6** (decrease) * Karnataka: H1 FY25: 44.1, H1 FY26: **43.7** (slight decrease) * Tamil Nadu: H1 FY25: 69.1, H1 FY26: **69.3** (stable)

The state-level data corroborates the overall subdued demand growth in H1 FY26, with most major states showing either a slight decrease or stable demand, except for a marginal increase in Tamil Nadu. This highlights the sensitivity of power demand to climatic conditions and economic activity.

Market Maturity and Lifecycle Stage

The Indian power sector is in a dynamic growth phase, transitioning from a focus on basic electrification to ensuring reliable, affordable, and sustainable power for all. While conventional thermal generation is mature, it continues to expand to meet baseload requirements. The renewable energy segment is in a rapid growth and scaling phase, driven by policy support and technological advancements. Transmission and distribution infrastructure are undergoing modernization and expansion, with smart metering representing an early-stage, high-growth opportunity. The sector is characterized by continuous investment in new capacity and technology upgrades.

Industry Value Chain and Ecosystem

The power sector value chain is complex and interconnected: 1. **Fuel Sourcing:** For thermal power, this involves coal mining (e.g., APL's Mahan Energen Ltd. with Dhirauli Mine), imports, and logistics. For renewables, it's about securing land and harnessing natural resources (solar irradiation, wind speed). 2. **Power Generation:** * **Thermal:** Adani Power Limited (APL) is India's Largest Private Base Load Power Company, operating Ultra-Supercritical, Supercritical, and other thermal technologies. * **Renewable:** Adani Green Energy Limited (AGEL) is India's largest Renewable Energy Portfolio, focusing on solar, wind, and hybrid projects, including Pumped Hydro Storage (PSP). 3. **Power Transmission:** Adani Energy Solutions Limited (AESL) builds, owns, and operates high-voltage transmission lines and substations, connecting generation centers to load centers across 14 states. AESL also operates the Longest Private HVDC Line in Asia (Mundra - Mohindergarh). 4. **Power Distribution:** AESL manages distribution networks in Mumbai (AEML) and Mundra (MUL), supplying power to end-consumers. This segment focuses on reliability, loss reduction, and customer service. 5. **Energy Solutions & Smart Infrastructure:** AESL is a key player in smart metering, offering a service-based model for meter installation and management. It also provides C&I power solutions and district cooling facilities. 6. **Technology & O&M:** The Adani Group leverages its Energy Network Operation Center (ENOC) and AI-based learning capabilities (AIMSL) for analytics-driven O&M, ensuring high plant availability and efficiency across its generation and transmission assets.

The ecosystem also includes government bodies, regulators (CERC, SERCs), State Discoms (e.g., Bihar State Power Generation Company Ltd, MP Power Management Company Limited, Power Company of Karnataka Ltd, Maharashtra DISCOM), financial institutions, and technology providers. The Adani Group's integrated approach across these verticals provides significant synergies and competitive advantages.

B. FINANCIAL & ECONOMIC PROFILE

The financial and economic profile of the Indian Power Generation & Distribution sector, as exemplified by the Adani Group's entities, reflects a capital-intensive industry with varying profitability and return characteristics depending on the segment. The sector is characterized by long gestation periods for projects, regulated revenue streams, and a strong emphasis on operational efficiency to drive profitability.

Industry Aggregate Revenue Scale and Growth Trajectory

The Adani Group's power sector entities demonstrate significant scale and robust growth, albeit with some recent moderation influenced by market dynamics.

**Adani Power Limited (APL):** * **Reported Total Revenues:** * FY20: INR 27,842 Cr * FY21: INR 28,150 Cr * FY22: INR 31,686 Cr * FY23: INR 43,041 Cr * FY24: INR 60,281 Cr * FY25: INR 58,906 Cr (-2% YoY) * H1 FY26: INR 28,881 Cr (-2.2% YoY) * **CAGR (FY20-FY25): +16%** * **Q2 FY26 Reported Revenue:** INR 14,308 Cr (+1.7% YoY) * **Q2 FY26 Continuing Revenue:** INR 13,639 Cr (+1.3% YoY)

APL's revenue growth has been strong historically, with a 16% CAGR from FY20-FY25. However, FY25 and H1 FY26 show a slight decline or tempered growth, attributed to lower merchant tariffs and lower import coal prices, as well as weather-induced variability in power demand. The distinction between "Reported" and "Continuing" revenue indicates the impact of one-time items or specific operational segments.

**Adani Green Energy Limited (AGEL):** * **H1 FY26 Revenue:** ₹6,088 Cr (▲26% YoY) * **Q2 FY26 Revenue from Power Supply:** ₹2,776 Cr (▲20% YoY) * **FY25 Revenue:** ₹9,495 Cr (▲23% YoY)

AGEL exhibits strong and consistent revenue growth, primarily driven by significant capacity additions. The 26% YoY growth in H1 FY26 revenue reflects the rapid expansion of its renewable energy portfolio.

**Adani Energy Solutions Limited (AESL):** * **H1 FY26 Total Income:** INR 13,793 Cr (16% growth YoY)

AESL also demonstrates robust growth in its transmission and distribution businesses, with a 16% YoY increase in total income for H1 FY26. This growth is supported by commissioning new transmission projects and expanding its smart metering operations.

**Combined Perspective:** The Adani Group's energy entities collectively represent a substantial revenue base, with AGEL leading in percentage growth due to its aggressive renewable capacity expansion. APL's growth, while historically strong, is currently influenced by commodity price cycles and market demand fluctuations, particularly in the merchant segment. AESL provides stable, regulated growth from its infrastructure assets.

Profitability Levels Across Companies

Profitability varies significantly across the different segments of the power sector, primarily due to differing business models (regulated vs. market-driven) and asset types.

**Adani Power Limited (APL):** * **FY25 EBITDA:** INR 24,008 Cr (-15% YoY) * **FY25 Continuing EBITDA:** INR 21,575 Cr (+15% YoY) * **H1 FY26 Reported EBITDA:** INR 12,151 Cr (-4.4% YoY) * **H1 FY26 Continuing EBITDA:** INR 11,076 Cr (-5.3% YoY) * **Q2 FY26 Reported EBITDA:** INR 6,001 Cr (0.0% YoY) * **Q2 FY26 Continuing EBITDA:** INR 5,333 Cr (-1.3% YoY) * **EBITDA Margin % (FY25): 41%** * **Highest EBITDA margin in the sector (Thermal power): 38%**

APL's EBITDA figures show a divergence between reported and continuing EBITDA, with continuing EBITDA showing more stable growth in FY25 but a decline in H1 FY26. The decline in H1 FY26 continuing EBITDA is attributed to lower tariff realization and additional expenses from recent acquisitions operating for the full period. Despite this, APL maintains a high EBITDA margin of 41% (FY25) and claims the highest EBITDA margin in the thermal power sector at 38%, reflecting its operational efficiency and scale.

**Adani Green Energy Limited (AGEL):** * **H1 FY26 EBITDA:** ₹5,651 Cr (▲25% YoY) * **H1 FY26 EBITDA Margin:** **91.8%** (H1 FY25: 92.1%) * **Q2 FY26 EBITDA from Power Supply:** ₹2,543 Cr (▲19% YoY) * **Q2 FY26 EBITDA from Power Supply Margin:** **91.7%** (Q2 FY25: 90.5%) * **FY25 EBITDA:** ₹8,818 Cr (▲22% YoY) * **FY25 EBITDA Margin:** **91.7%** (FY24: 91.8%)

AGEL consistently reports exceptionally high EBITDA margins, hovering around **91.7-91.8%**. This is characteristic of renewable energy assets with long-term PPAs, where operating costs are relatively low once the plant is commissioned. The "best-in-class O&M through ENOC" is cited as a key driver for sustaining these high margins.

**Adani Energy Solutions Limited (AESL):** * **H1 FY26 Consolidated EBITDA:** INR 4,144 Cr (13% increase YoY) * **Highest EBITDA margin in the sector (Transmission): 92%** * **Smart Metering EBITDA margins:** **80% to 85%**

AESL also demonstrates very high EBITDA margins in its transmission business, claiming **92%**, similar to AGEL, due to the regulated, availability-based nature of transmission assets. Its emerging smart metering business also boasts impressive EBITDA margins of 80-85%, indicating a highly profitable service model.

**Range of Margins with Median and Outliers:** * The Adani Group's power entities showcase a remarkable range of high EBITDA margins: **38-41% for thermal generation (APL), and 80-92% for renewable generation (AGEL), transmission (AESL), and smart metering (AESL).** * The median EBITDA margin across these diverse segments is exceptionally high, reflecting the group's focus on capital-intensive, long-term assets with stable, often regulated, revenue streams and efficient operations. The outliers are APL's thermal generation, which, while high for its segment, is lower than the infrastructure-like margins of AGEL and AESL.

Return Profiles (ROCE, ROE, ROIC) by Company

**Adani Power Limited (APL):** * **TTM ROCE: 19% (H1FY26)** * **TTM ROE: 20% (H1FY26)** * **TTM RoA: 19.7% (H1FY26)**

APL demonstrates strong return profiles, with ROCE, ROE, and RoA all around 19-20% for H1 FY26 (TTM). These figures indicate efficient utilization of capital and strong profitability relative to equity and assets, especially for a capital-intensive thermal power generator. The company claims to be a market leader for baseload power in India, delivering industry-leading return on capital.

Return profiles for AGEL and AESL are not explicitly stated in the provided data, but their consistently high EBITDA margins and robust cash generation imply strong underlying returns on capital, particularly given their asset-heavy, long-life infrastructure. AESL's smart metering business, for instance, targets internal returns (levered basis) upwards of **20%-25%**.

Working Capital Characteristics and Cash Conversion Cycles

**Adani Power Limited (APL):** * **Trade Receivables:** INR 9,438 Cr (30th Sept 2025) * **Trade Payables:** INR 2,977 Cr (30th Sept 2025) * **Inventories:** INR 3,140 Cr (30th Sept 2025) * **Cash & Bank:** INR 10,291 Cr (30th Sept 2025) * **Cash Flow (H1 FY26):** Net cash from operations: INR 14,939 Cr. * **Trade receivables reduced** after receiving substantial payments against overdue receivables from Bangladesh customer.

APL's significant operating cash flow (INR 14,939 Cr in H1 FY26) indicates strong cash generation. The reduction in trade receivables is a positive sign for working capital management. The presence of substantial inventories (fuel) and trade payables is typical for a thermal power company.

**Adani Green Energy Limited (AGEL):** * **Receivables days (due): 4 days (30-Sep-2025)** * **Total Overdue Receivables:** INR 130 Cr (30-Sep-2025) * Solar Energy Corporation of India Limited: Total Overdue 51 Cr * Tamil Nadu Generation and Distribution Corporation: Total Overdue 9 Cr * Uttar Pradesh Power Corporation Ltd: Total Overdue 38 Cr * PTC India Ltd: Total Overdue 24 Cr

AGEL demonstrates excellent working capital management, with very low receivables days (4 days) and a manageable amount of overdue receivables. This is crucial for a company with high capital expenditure, as efficient cash conversion supports growth.

**Adani Energy Solutions Limited (AESL):** * **Outstanding receivable:** INR 3,500 Cr (30th Sep 2025) * **Day sales outstanding:** **64 days** (improvement compared to 70 days last year)

AESL has improved its day sales outstanding to 64 days, indicating better collection efficiency. While higher than AGEL, this is reasonable for a distribution and transmission utility dealing with various state entities. Its AEML distribution arm shows strong collection efficiency of **100.59%** in Q2 FY26 and **99.43%** in H1 FY26, with e-payment adoption at **85.33%** in Q2 FY26.

Capital Intensity Requirements

The power sector is inherently capital-intensive, requiring substantial investments in generation plants, transmission lines, substations, and distribution networks. All three Adani entities reflect this characteristic.

• **APL:**
• **AGEL:**
• **AESL:**

The substantial CWIP and capex figures across all three companies underscore the continuous need for capital to fund their aggressive growth strategies and meet India's expanding energy demand.

Revenue Quality (Recurring vs One-time, Contract Length)

The Adani Group's power businesses largely benefit from high-quality, recurring revenue streams, primarily backed by long-term contracts. * **APL:** * **Sales Volume Mix (Q2 FY26 & H1 FY26):** Contracted (PPA) **76%**, Merchant/Short Term **24%**. * New PPAs are typically for **25 years**, ensuring long-term revenue visibility and stability. The two-part, availability-based tariff structure under PPAs ensures capital charge recovery. * **AGEL:** * Revenue is almost entirely recurring, derived from power sales under long-term PPAs. The company consistently delivers generation significantly higher than PPA commitments. * The "de-risked business model" is supported by these long-term contracts. * **AESL:** * Transmission revenues are regulated and availability-based, providing highly stable and recurring income. * Distribution revenues (AEML, MUL) are also regulated, serving a captive consumer base. * Smart Metering contracts are long-term, typically 10-year service agreements, generating recurring revenue per meter per month.

The high proportion of contracted/regulated revenue streams provides significant revenue visibility and stability, reducing exposure to market price volatility, especially for AGEL and AESL. APL, while having a substantial PPA base, also has exposure to the merchant market, which introduces some revenue variability.

C. COMPETITIVE STRUCTURE & DYNAMICS

The Indian Power Generation & Distribution sector is characterized by a mix of public and private players, with increasing competition and a strong push towards efficiency and sustainability. The Adani Group, through its three key entities, has established a dominant and integrated position across the value chain.

Number of Players and Market Concentration

The Indian power sector has numerous players, including large state-owned enterprises (e.g., NTPC, Power Grid Corporation of India), private conglomerates, and smaller independent power producers. However, certain segments exhibit higher concentration.

• **APL:** India's Largest Private Base Load Power Company. This signifies a high degree of concentration in the private thermal generation space, with APL holding a leading position.
• **AGEL:** India's largest Renewable Energy Portfolio. This indicates AGEL's significant market share and leadership in the rapidly expanding renewable energy sector.
• **AESL:** A major private player in transmission across 14 states and a significant distribution utility in Mumbai. In smart metering, AESL's market share in installations is about **23-24%**, higher than its order share of **18-19%**, indicating strong execution and a leading position in this nascent but fast-growing segment.

The Adani Group's integrated presence across generation (thermal and renewable), transmission, and distribution, along with its foray into smart metering and energy solutions, positions it as a diversified and formidable conglomerate in the Indian power sector.

Market Share Distribution (with specific percentages)

While precise overall market share percentages for the entire sector are not provided, the data highlights Adani's leadership in specific niches: * **APL:** "India's Largest Private Base Load Power Company" implies a substantial share of private thermal generation capacity. Its current operating capacity of **18,150 MW** and locked-in growth projects of **23,720 MW** (total organic 41,870 MW target) represent a significant portion of India's thermal capacity requirements (80 GW by FY32). APL's current project pipeline of **23.7 GW** is approximately **30%** of India's total requirement. * **AGEL:** "India's largest Renewable Energy Portfolio" with an operational capacity of **16.7 GW** (as on Sep-25) and a target of **50 GW by 2030**. Given India's 2030 target of 500 GW RE, AGEL aims for a substantial **10%** share of this target. * **AESL:** Market share in smart meter installations is about **23-24%**, based on its installed/deployed **7.3 million meters** out of a potential **98 million consumer base** (untapped country-level market opportunity of 104 million smart meters). Its order book of **2.46 crore meters** further solidifies its leading position.

Competitive Intensity Assessment (Porter's 5 Forces style)

1. **Threat of New Entrants: Moderate to Low.** * **Barriers:** High capital intensity, long gestation periods, complex regulatory approvals, land acquisition challenges, and the need for extensive technical expertise and strong financial backing. * **Adani's Moat:** Fully locked-in land and equipment (APL), secure sites and connectivity (AGEL), established operational excellence, and strong financial flexibility act as significant deterrents. * **However:** Government policies promoting renewable energy and private sector participation (e.g., new distribution licenses) can lower barriers for some segments.

2. **Bargaining Power of Buyers: Moderate to High.** * **Buyers:** Primarily State Discoms (for generation and transmission), and end-consumers (for distribution). * **Discoms:** Have significant bargaining power due to their large procurement volumes and ability to influence PPA terms and regulatory frameworks. The SHAKTI Policy for coal linkages and competitive bidding for PPAs reflect this. * **End-consumers:** Have limited direct bargaining power but are protected by regulators. However, the push for open access and choice (e.g., green power options from AEML) can increase their influence. * **Adani's Mitigation:** Long-term PPAs with availability-based tariffs (APL), diversified customer base, and focus on operational efficiency to offer competitive tariffs.

3. **Bargaining Power of Suppliers: Moderate.** * **Suppliers:** Fuel (coal, gas), equipment manufacturers (BTG sets, solar panels, wind turbines), and financing institutions. * **Coal:** APL benefits from in-house coal sourcing (Dhirauli Mine) and decades of logistics management, reducing reliance on external suppliers. Abundant domestic coal availability also helps. * **Equipment:** Adani Group's scale allows for bulk procurement and backward integration (solar and wind manufacturing for AGEL), mitigating supplier power. Advance ordering of 22.4 GW of BTG sets (APL) ensures supply. * **Financing:** Access to diverse funding sources (PSU banks, Pvt. banks, ECBs, NCDs, USD Bonds) and strong credit ratings (AA/A1+ for APL, IG rated for AGEL) reduce the bargaining power of lenders.

4. **Threat of Substitute Products or Services: Low to Moderate.** * **Substitutes:** While there are different sources of electricity (thermal vs. renewables), they are largely complementary in meeting overall demand (baseload vs. peak/intermittent). * **Emerging:** Distributed generation (rooftop solar) could be a substitute for grid power for some consumers, but its scale is currently limited compared to utility-scale generation. Energy efficiency measures can reduce overall demand. * **Adani's Strategy:** Diversification across thermal and renewables, and offering energy solutions (C&I, cooling) positions the group to adapt to evolving energy consumption patterns.

5. **Rivalry Among Existing Competitors: High.** * **Competition:** Intense in new project bidding (PPAs, transmission projects, smart metering contracts), especially from other large private players and state-owned entities. * **APL:** Competes for new thermal PPAs (e.g., 17,000+ MW ongoing bids mentioned). * **AGEL:** Competes for large-scale renewable energy tenders. * **AESL:** Competes for transmission projects (TBCB route), smart metering contracts (RDSS scheme), and new distribution licenses. * **Differentiation:** Operational excellence, financial strength, execution capabilities, and ESG leadership are key competitive differentiators.

Entry Barriers and Competitive Moats

The Adani Group leverages several strong competitive moats: * **Scale and Integration:** Operating across the entire value chain (generation, transmission, distribution) provides synergies and a holistic understanding of the power sector. * **Capital Access and Financial Strength:** Ability to raise significant capital from diverse sources, strong credit ratings, and a well-funded capital plan for growth projects. * **Operational Excellence:** Analytics-driven O&M through ENOC, high plant availability, low distribution losses, and efficient project execution (brownfield model for APL). * **Strategic Site Acquisition:** Secure resource-rich sites for renewables (2,50,000 acres for AGEL), and fully locked-in land for thermal projects (APL). * **Fuel Security:** In-house coal sourcing and long-term linkages for APL. * **Technology and Innovation:** Deployment of smart meters, waterless robotic cleaning, AI-based learning, and advanced control centers. * **ESG Leadership:** High ESG ratings and commitment to sustainability attract green financing and enhance brand reputation. * **Strong Sponsorship:** The pedigree of the Adani Family and diversified equity base.

Pricing Power Dynamics and Pricing Trends

• **Generation (APL & AGEL):** Pricing power is largely determined by PPAs, which are typically long-term and often based on a cost-plus or availability-based tariff structure. This provides stability but limits upside in merchant markets.
• **Transmission (AESL):** Pricing is regulated, with tariffs approved by regulatory commissions, ensuring recovery of capital costs and a reasonable return on equity. This provides high revenue predictability and stability.
• **Distribution (AESL):** Tariffs are also regulated, set by state electricity regulatory commissions to ensure cost recovery and service quality.
• **Smart Metering (AESL):** Revenue per meter per month (INR 105 to INR 109) is fixed under long-term contracts, providing predictable revenue streams.

Overall, the pricing dynamics are largely influenced by regulatory frameworks and long-term contracts, which prioritize stability and cost recovery over market-driven pricing power.

Consolidation Trends and M&A Activity

The Indian power sector has seen consolidation, particularly in stressed asset acquisition and the renewable energy space. * **APL:** Has a track record of successful acquisition and turnaround of **4,370 MW** stressed assets and further integration of **2,900 MW** assets. The acquisition of **600 MW Vidarbha Industries Power Ltd** (Q2 FY26) is a recent example, contributing to its installed capacity increase. This indicates an active role in consolidating the thermal generation market. * **AGEL:** Focuses primarily on organic greenfield capacity additions, but the broader RE sector has seen M&A activity. * **AESL:** Primarily organic growth in transmission and smart metering, with potential for inorganic growth through new distribution licenses.

The Adani Group's strategy includes both organic growth (greenfield and brownfield projects) and opportunistic inorganic growth through acquisitions, particularly in thermal power.

Competitive Advantages of Each Player

**Adani Power Limited (APL):** * **Scale:** India's Largest Private Base Load Power Company with 18,150 MW operational capacity. * **Fuel Security & Logistics:** Decades of in-house coal sourcing and end-to-end logistics management experience, including operating Dhirauli Mine. * **Operational Efficiency:** Consistent 90%+ plant availability, aided by strong digital focus, and highest EBITDA margin in thermal power (38%). * **Execution Capability:** Brownfield development model for faster clearances and project execution, fully locked-in land & equipment for 23.7 GW pipeline. * **Financial Strength:** Strong credit profile, effectively unlevered capital structure, and significant free cashflow to equity.

**Adani Green Energy Limited (AGEL):** * **Scale & Growth:** India's largest Renewable Energy Portfolio, with 16.7 GW operational capacity and a target of 50 GW by 2030. Operational capacity CAGR of 42% in the last 5 years. * **World's Largest Project:** Developing the Khavda project (30 GW target by 2029), demonstrating unparalleled scale and execution. * **Operational Excellence:** Industry-leading EBITDA margin of 91.8% driven by analytics-driven O&M through ENOC and AIMSL, ensuring high plant availability and CUF. * **Resource Security:** Secured ~2,50,000 acres of resource-rich sites and 5+ GW of PSP sites. * **ESG Leadership:** Ranked 1st in India and 7th globally in RE sector in Sustainalytics ESG assessment, attracting green financing. * **Financial Flexibility:** Diversified funding sources, elongated maturities, and a US$ 3.4 bn revolving construction facility.

**Adani Energy Solutions Limited (AESL):** * **Integrated Solutions:** Presence across transmission, distribution, and smart metering, offering comprehensive energy solutions. * **Transmission Leadership:** Built Longest Private HVDC Line, highest EBITDA margin in transmission (92%), and robust system availability (99.71%). * **Distribution Excellence:** Best-in-class distribution losses (4.30% in AEML), high supply reliability (99.999% ASAI), and strong collection efficiency. * **Smart Metering Dominance:** Leading market share in installations and a substantial order book (2.46 crore meters), with high EBITDA margins (80-85%). * **Innovation:** Deploying India's largest district cooling facility, and leveraging Adani Group's tie-ups (e.g., Google data center) for energy solutions. * **ESG Leadership:** Improved Sustainalytics ESG score to 19.9 ("Low Risk"), re-certified as Zero Waste to Landfill for 100% of operational sites.

D. OPERATIONAL CHARACTERISTICS

Operational efficiency, technological adoption, and robust asset management are critical for success in the capital-intensive power sector. The Adani Group companies demonstrate strong operational characteristics across their respective segments.

Capacity and Utilization Trends Across Companies

**Adani Power Limited (APL):** * **Installed Capacity (MW):** * Q2 FY25: 17,550 MW * Q2 FY26: **18,150 MW** (+3.4% YoY) * H1 FY26: **18,150 MW** (+3.4% YoY) * The increase is due to the acquisition of 600 MW Vidarbha Industries Power Ltd. * **Generation Performance (PLF %):** * Q2 FY25: 67% * Q2 FY26: **63%** (down 4 percentage points YoY) * H1 FY25: 72% * H1 FY26: **65%** (down 7 percentage points YoY) * **O&M Availability (%):** * Q2 FY25: 90% * Q2 FY26: **87%** (down 3 percentage points YoY) * H1 FY25: 92% * H1 FY26: **88%** (down 4 percentage points YoY) * **Power Sales Volume (MU):** * Q2 FY25: 22,063 MU * Q2 FY26: **23,663 MU** (+7.4% YoY) * H1 FY25: 46,225 MU * H1 FY26: **48,267 MU** (+4.4% YoY) * **Dispatch Performance (BU):** * Q2 FY25: 22.0 BU * Q2 FY26: **23.7 BU** (+7.4% YoY) * H1 FY25: 46.2 BU * H1 FY26: **48.3 BU** (+4.4% YoY)

Despite a slight decrease in PLF and O&M availability in H1 FY26 (attributed to weather-induced demand variability and scheduled maintenance overhauls), APL managed to increase its power sales volume and dispatch performance due to higher operating capacity (from acquisitions) and strong dispatch performance in the merchant segment.

**Adani Green Energy Limited (AGEL):** * **Operational Capacity (MW AC):** * H1 FY25: 11,184 MW * H1 FY26: **16,680 MW** (▲49% YoY) * This includes 5,496 MW greenfield capacity added, representing 74% of annual capacity addition in FY25. * Operationalized 4,200 MW Solar (2,900 MW in Khavda, 1,050 MW in Rajasthan, 250 MW in Andhra Pradesh). * Operationalized 491 MW Wind (Khavda). * Operationalized 805 MW Hybrid (Khavda). * **Units Generation:** * H1 FY25: 14 Bn * H1 FY26: **20 Bn** (▲39% YoY) * FY25: 28 Bn (▲28% YoY) * **Sale of Energy (mn units):** * H1 FY25: 14,128 mn units * H1 FY26: **19,569 mn units** (▲39% YoY) * **CUF (%):** * H1 FY26: Solar **24.8%**, Wind **37.8%**, Hybrid **39.1%** (FY25 Solar CUF: 25%). * RG1 Portfolio H1 FY26 CUF: **22.2%**. * RG2 Portfolio H1 FY26 CUF: **24.4%**. * **Plant Availability (%):** * FY25: 99.0% * H1 FY26: Solar **95.2%**, Wind **98.1%**, Hybrid **99.0%**. * **Grid Availability (%):** * FY25: 99.0% * H1 FY26: **89.0%** (Due to one-off disruption).

AGEL's operational capacity and generation have surged due to aggressive greenfield additions, particularly at the Khavda project. CUF figures are consistent with industry benchmarks for solar, wind, and hybrid projects. While plant availability remains high, grid availability saw a temporary dip in H1 FY26 due to a one-off disruption, which is a key operational risk for RE projects.

**Adani Energy Solutions Limited (AESL):** * **Transmission Network Length (ckm):** * Q2 FY25: 23,269 ckm * Q2 FY26: **26,705 ckm** (includes operational and under-construction assets) * Operational: **19,642 ckm** (as of 30th Sep 2025) * Under construction: **7,063 ckm** (as of 30th Sep 2025) * **Power Transformation Capacity (MVA):** * Q2 FY25: 70,686 MVA * Q2 FY26: **97,236 MVA** * **Average System Availability (% - Transmission):** * Q2 FY25: 99.69% * Q2 FY26: **99.63%** * H1 FY26: **99.71%** (very robust). * **AEML Supply Reliability (ASAI %):** * Q2 FY25: 99.999% * Q2 FY26: **99.999%** (maintaining ultra-high reliability). * **AEML Distribution Loss (%):** * Q2 FY25: 4.85% * Q2 FY26: **4.36%** * H1 FY26: **4.30%** (best in class, significantly lower than national average). * **MUL Total Units Sold (MUs):** * Q2 FY25: 234 MUs * Q2 FY26: **364 MUs** (+55% YoY)

AESL demonstrates continuous expansion of its transmission network and transformation capacity. Its transmission system availability and AEML's supply reliability are exceptionally high, indicating world-class operational standards. Distribution losses are remarkably low, reflecting efficient network management and theft prevention. The significant increase in MUL's units sold suggests strong demand growth in that region.

Production Economics and Cost Structures

• **APL (Thermal Generation):**
• **AGEL (Renewable Generation):**
• **AESL (Transmission & Distribution):**

Supply Chain Structure and Dependencies

• **APL:**
• **AGEL:**
• **AESL:**

Technology Landscape and Innovation Pace

The Adani Group is actively embracing technology and innovation across its power businesses. * **Energy Network Operation Center (ENOC):** A common platform across APL, AGEL, and AESL, enabling analytics-driven O&M. It ensures high plant availability (AGEL claims ~100% for solar) and operational efficiency. * **AI-Based Learning Capability (AIMSL):** AGEL is deploying cutting-edge solutions like digital twins for solar & wind plants and long-term resource forecasting tools. * **Waterless Robotic Cleaning:** AGEL has deployed India's largest waterless robotic cleaning system over 9.6 GW solar capacity (67.5% of its total solar fleet), enhancing efficiency and conserving water. * **Smart Metering:** AESL is at the forefront of smart meter deployment, leveraging advanced metering infrastructure for theft prevention, improved billing, and grid management. * **Digital Focus:** APL maintains consistent 90%+ plant availability aided by a strong digital focus. * **Cooling Solutions:** AESL is deploying India's largest district cooling facility in Mundra, showcasing innovation in energy solutions.

Operational Efficiency Benchmarks

The Adani Group companies consistently report operational metrics that are at or above industry benchmarks. * **APL:** Highest EBITDA margin in thermal power (38%). Consistent 90%+ plant availability. Water intensity performance for Q2 FY26: **2.22 m³/MWh** (36% lower than statutory limit of 3.50 m³/MWh for hinterland plants). GHG emission intensity target: **0.84 tCO2e/MWh by FY 26** (Current: 0.85 tCO2e/MWh). * **AGEL:** Industry-leading EBITDA margin of 91.8%. Plant availability for solar (95.2%), wind (98.1%), hybrid (99.0%) in H1 FY26. Pollution control & GHG emission reduction: **99.7% less operational emission Intensity** (0.0019 GHG tCO2 / MWh) in H1 FY26 vs. Indian grid average of 0.727 tCO2 / MWh. Resource conservation: **99.8% less freshwater consumption** (0.0083 kl / MWh) in H1 FY26 vs. 3.5 kl / MWh. * **AESL:** Highest EBITDA margin in transmission (92%). Average System Availability of 99.71% in H1 FY26. AEML Supply Reliability (ASAI) of 99.999%. AEML Distribution Loss of 4.30% in H1 FY26 (best in class). AEML Collection Efficiency of 99.43% in H1 FY26. Re-certified as Zero Waste to Landfill for 100% of its operational sites in transmission.

These benchmarks highlight the group's commitment to operational excellence, cost efficiency, and sustainable practices.

Key Performance Indicators (Company-specific and Industry Averages)

• **APL:**
• **AGEL:**
• **AESL:**

Asset Efficiency Metrics

• **APL:**
• **AGEL:**
• **AESL:**

The focus on asset efficiency is evident in the high availability rates, low losses, and strong return on capital metrics reported by the Adani Group companies.

E. GROWTH DYNAMICS & DRIVERS

The Indian Power Generation & Distribution sector is in a robust growth phase, propelled by fundamental demand drivers, government policies, and strategic initiatives by key players like the Adani Group.

Historical Growth Trajectory (3-5 year view with specific rates)

The Adani Group's power entities have demonstrated impressive historical growth: * **Adani Power Limited (APL):** * Revenue from Operations CAGR (FY22-25): **27%** * Total Income CAGR (FY22-25): **23%** * EBITDA CAGR (FY22-25): **20%** (Reported) * Continuing EBITDA CAGR (FY20-25): **30%** * PAT CAGR (FY22-25): **37%** * Reported Total Revenues CAGR (FY20-FY25): **+16%** * EBITDA (FY19: 24,870 Cr, FY25: 89,806 Cr) CAGR: **24%** * CAT (FFO) (FY19: 10,418 Cr, FY25: 66,527 Cr) CAGR: **32%** * **Adani Green Energy Limited (AGEL):** * Operational capacity addition CAGR (last 5 years): **42%** * FY25 Revenue: ₹9,495 Cr (▲23% YoY) * FY25 EBITDA: ₹8,818 Cr (▲22% YoY) * H1 FY26 Revenue: ₹6,088 Cr (▲26% YoY) * H1 FY26 EBITDA: ₹5,651 Cr (▲25% YoY) * **Adani Energy Solutions Limited (AESL):** * H1 FY26 Total income: INR 13,793 Cr (16% growth YoY) * H1 FY26 Consolidated EBITDA: INR 4,144 Cr (13% increase YoY) * H1 FY26 Adjusted PAT: INR 1,096 Cr (42% increase YoY)

These figures clearly illustrate a robust historical growth trajectory across all three companies, driven by capacity expansion, acquisitions, and increasing demand.

Current Growth Rates and Acceleration/Deceleration

• **APL:** While historical CAGRs are high, recent performance shows some deceleration. Q2 FY26 Reported Revenue grew by **1.7% YoY**, and H1 FY26 Reported Revenue declined by **2.2% YoY**. Continuing EBITDA also saw slight declines in Q2 and H1 FY26. This deceleration is largely attributed to external factors like weather-induced subdued demand and lower merchant tariffs, rather than a fundamental slowdown in underlying capacity.
• **AGEL:** Continues its strong growth momentum. H1 FY26 Revenue grew by **26% YoY**, and EBITDA by **25% YoY**. Operational capacity increased by a remarkable **49% YoY** to 16.7 GW. This indicates an acceleration in capacity deployment and generation.
• **AESL:** Maintains strong growth. H1 FY26 Total income grew by **16% YoY**, and Adjusted PAT by **42% YoY**. This reflects continued expansion in transmission, distribution, and the rapidly growing smart metering business.

Overall, AGEL and AESL are in an accelerating growth phase, while APL's growth is currently tempered by market specific factors but poised for future expansion with its locked-in pipeline.

Volume vs Price Contribution to Growth

• **APL:** In H1 FY26, power sales volume increased by **4.4% YoY**, but continuing revenue decreased by **2.5% YoY**. This indicates that lower tariff realization (price) had a negative impact, offsetting the positive contribution from higher volumes. The "faster growth in merchant power dispatch due to full period operation of newly acquired capacities" contributed to volume, but "lower merchant tariffs" and "lower import coal prices" constrained revenue growth.
• **AGEL:** Revenue growth (26% YoY) is primarily volume-driven, directly correlated with the **39% YoY** increase in units generated and **49% YoY** increase in operational capacity. Renewable energy PPAs typically have fixed tariffs, so volume is the dominant growth driver.
• **AESL:** Growth is driven by both volume (increased units sold in distribution, higher transformation capacity in transmission) and the regulated nature of its tariffs, which ensure cost recovery and a return on capital. The smart metering business also contributes volume (number of meters installed) and fixed revenue per meter.

Organic vs Inorganic Growth Components

• **APL:** Employs both organic and inorganic strategies.
• **AGEL:** Primarily focused on organic greenfield capacity additions. The **5,496 MW** greenfield capacity added in H1 FY26 is a testament to this.
• **AESL:** Primarily organic growth in transmission (commissioning new projects like Khavda Phase-II, KPS-1, Sangod) and smart metering (securing new contracts like 18.36 lakh meters with AEML). It is also exploring organic expansion in distribution through parallel license applications (Navi Mumbai, Mundra, Ghaziabad/Jewar).

Geographic Expansion Opportunities and Progress

The Adani Group companies are expanding their footprint across India: * **APL:** New PPAs signed or LOAs received for projects in Bihar (2,400 MW), Madhya Pradesh (1,600 MW), and Karnataka (570 MW). Ongoing bids for more than 17,000 MW across various states. * **AGEL:** Operational capacity additions in Gujarat (Khavda), Rajasthan, and Andhra Pradesh. Secured resource-rich sites across strategic locations for future development. Hydro PSP development in Maharashtra, Andhra Pradesh, Telangana, Tamil Nadu & Uttar Pradesh. * **AESL:** Transmission presence in 14 states. Smart Metering order book covers states like Assam, Andhra Pradesh, Maharashtra, Bihar, Uttarakhand, and a new contract with AEML (Mumbai). Exploring new distribution licenses in Navi Mumbai, Mundra, and Ghaziabad/Jewar (UP).

Product/Service Innovation Pipeline

• **APL:** Focus on Ultra-Supercritical Thermal Power Projects, which are more efficient.
• **AGEL:** Developing large-scale solar, wind, and hybrid projects, including Pumped Hydro Storage (PSP) sites (5+ GW secured). Investing in AI-based learning (AIMSL) for O&M.
• **AESL:**

Adjacent Market Opportunities

• **Energy Storage:** AGEL's focus on PSP sites is a direct play on energy storage, crucial for grid stability with increasing renewable penetration.
• **C&I Energy Solutions:** AESL's C&I business and district cooling facilities represent a move into integrated energy management services beyond traditional utility functions.
• **Data Center Infrastructure:** AESL's potential role in providing energy and connectivity for data centers is an emerging adjacent market opportunity, leveraging the Adani Group's broader infrastructure capabilities.

Customer Acquisition and Penetration Trends

• **APL:** Acquiring new customers through long-term PPAs with State Discoms.
• **AGEL:** Securing long-term PPAs with entities like SECI, NTPC, and state utilities.
• **AESL:**

F. RISK LANDSCAPE

The Power Generation & Distribution sector, while offering significant growth opportunities, is also subject to various risks, both industry-wide and company-specific. The Adani Group companies actively manage these risks through strategic planning and operational excellence.

Industry-wide Systematic Risks

1. **Weather-induced Variability in Power Demand:** * **Impact:** "Unprecedented early and prolonged monsoons in H1 FY26 resulted in subdued power demand and tariffs vs surge in demand due to a heat spell in H1 FY25." This directly affected APL's dispatch under some PPAs and tariffs in the merchant market, and tempered revenue growth. * **Impact on AESL:** "Installation rate of smart meters reduced in Q2 FY26 due to rains in Maharashtra, Uttarakhand, Assam, and Bihar." "Prolonged monsoon in Mumbai led to modest energy sales increase of 2% over previous year" for AEML. * **Mitigation:** Diversification across geographies and customer segments, and long-term PPAs with availability-based tariffs (which ensure capital charge recovery irrespective of dispatch volume) help mitigate this for APL. For AESL, project scheduling and robust execution plans are crucial.

2. **Regulatory and Policy Risks:** * **Impact:** Changes in government policies (e.g., tariff structures, environmental regulations, coal allocation, renewable energy mandates) can significantly impact profitability and project viability. State Discoms' financial health and payment discipline can also pose risks. * **Mitigation:** Adani Group companies operate within established regulatory frameworks, secure long-term PPAs, and engage with policymakers. APL's PPAs are awarded under the SHAKTI Policy with pre-indicated coal linkages, de-risking fuel supply. AESL's regulated assets provide stable returns.

3. **Economic Sensitivity:** * **Impact:** Economic slowdowns can reduce industrial and commercial power demand, affecting revenue growth. * **Mitigation:** India's strong economic growth projections provide a favorable backdrop. Diversification across residential, commercial, and industrial segments (as seen in AEML) helps balance demand.

4. **Grid Stability and Evacuation Infrastructure:** * **Impact:** For renewable energy, grid curtailment (where generation is restricted due to grid congestion or instability) and delays in evacuation infrastructure can impact generation and revenue. AGEL's H1 FY26 Grid Availability of **89.0%** (due to one-off disruption) highlights this risk. * **Mitigation:** AGEL's focus on "secure sites & connectivity" and AESL's rapid expansion of transmission networks (e.g., Khavda projects) are direct efforts to address this.

Cyclicality and Economic Sensitivity

The power sector exhibits some cyclicality, particularly in merchant power markets and industrial demand, which are sensitive to economic cycles. However, the large base of contracted/regulated capacity provides a significant buffer against severe cyclical downturns. Residential demand is relatively more stable.

Regulatory and Policy Risks by Geography

• **State-level Policies:** State-specific policies regarding power procurement, tariffs, and distribution reforms can create regional variations in risk. For example, the financial health of State Discoms can affect payment timeliness.
• **New Distribution Licenses:** While an opportunity for AESL, the regulatory process for parallel licenses can be complex and time-consuming.
• **Mitigation:** Adani Group's presence across multiple states and diversified customer base helps spread regulatory risk. Strong credit profiles and liquidity enable them to navigate potential payment delays.

Technology Disruption Threats

• **Energy Storage:** While AGEL is investing in PSP, rapid advancements in battery storage could alter grid dynamics.
• **Distributed Generation:** Increased adoption of rooftop solar and microgrids could reduce reliance on centralized generation and grid-based distribution for some consumers.
• **Mitigation:** Adani Group's proactive investments in renewables, storage, smart metering, and energy solutions position it to adapt to and even lead technological shifts rather than being disrupted.

ESG and Sustainability Challenges

• **GHG Emissions (APL):** As a thermal power generator, APL faces pressure to reduce its carbon footprint.
• **Water Usage:** Thermal plants are water-intensive.
• **Social License to Operate:** Maintaining high ESG standards is crucial for investor confidence and community relations.

Supply Chain Vulnerabilities

• **Fuel Supply (APL):** While APL has in-house coal and linkages, global coal price volatility or supply disruptions could impact costs.
• **Equipment Supply:** Dependence on specific equipment manufacturers for BTG sets, solar panels, and wind turbines.
• **Mitigation:** APL's advance ordering of BTG sets and AGEL's backward integration for solar/wind manufacturing help de-risk equipment supply. Diversified fuel sourcing strategies are also key.

Competitive Threats (New Entrants, Substitutes)

• **Intensified Bidding:** Increased competition in bidding for new PPAs, transmission projects, and smart metering contracts can compress margins or reduce success rates.
• **Mitigation:** Adani Group's scale, financial strength, operational efficiency, and execution track record provide a strong competitive edge.

Customer Concentration Risks

• **State Discoms:** For APL and AGEL, a significant portion of revenue comes from State Discoms, which can sometimes face financial challenges leading to payment delays.
• **Mitigation:** AGEL's low receivables days (4 days) and APL's reduction in overdue receivables (e.g., from Bangladesh customer) indicate effective management of this risk. AEML's high collection efficiency also helps.

G. CAPITAL ALLOCATION & INVESTOR RETURNS

The Adani Group's power sector entities are in a significant growth phase, necessitating substantial capital allocation towards capacity expansion. This is balanced with a focus on maintaining a strong credit profile and delivering investor returns.

Capex Trends and Requirements (Growth vs Maintenance)

All three companies are highly capital-intensive, with a strong emphasis on growth capex. * **Adani Power Limited (APL):** * **Net investment in fixed assets:** INR (10,592) Cr in H1 FY26. * **Capital Work in Progress (CWIP):** Increased from INR 12,104.42 Cr (31st Mar 2025) to INR 19,778.65 Cr (30th Sept 2025). This significant increase of **INR 7,674.23 Cr** in six months reflects aggressive investments in capacity expansion projects. * **Higher Other Non-current Assets:** Due to an increase in Capital Advances, in line with the capacity expansion program. * **Self-funded capital expenditure plan:** Ensures on-time execution through elimination of financing risks. * **Adani Green Energy Limited (AGEL):** * **Capex Incurred:** ₹12,412 Cr in H1 FY26 (▲26% YoY). * **FY25 Capex Incurred:** ₹28,366 Cr (▲66% YoY). * This massive capex is primarily for greenfield capacity additions, especially the Khavda project, driving its target of 50 GW by 2030. * **Construction Framework Agreement:** US$ 3.4 bn revolving construction facility to ensure fully funded growth. * **Adani Energy Solutions Limited (AESL):** * **Consolidated capex:** INR 5,976 Cr in H1 FY26 (1.4% increase over previous FY). * **Net Debt stuck in capital work in progress:** INR 12,500 Cr (30th Sep 2025), indicating substantial investments in under-construction transmission lines and smart metering projects. * **Navi Mumbai capex:** Projected INR 10,000 crores over 5 years (INR 2,000 crores per year) for a potential new distribution license. * **Momentum on transmission projects:** Picking up, driving capex and future revenue.

The overwhelming majority of capex across these companies is growth-oriented, aimed at expanding installed capacity, transmission networks, and smart metering infrastructure to meet future demand.

R&D Investment Levels as % of Revenue

While specific R&D as a percentage of revenue is not explicitly stated, the Adani Group companies demonstrate a strong commitment to technology adoption and innovation, which can be considered an indirect form of R&D. * **ENOC and AIMSL (AGEL):** Analytics-driven O&M, AI-based learning, digital twins, and long-term resource forecasting tools. * **Waterless Robotic Cleaning (AGEL):** Deployment over 9.6 GW solar capacity. * **Smart Metering (AESL):** Continuous development and deployment of advanced metering infrastructure. * **Cooling Solutions (AESL):** Deploying India's largest district cooling facility.

These initiatives indicate significant investment in operational technology and innovative solutions, which contribute to efficiency, cost reduction, and competitive advantage.

Dividend Policies and Payout Ratios

The provided data does not explicitly detail the dividend policies or payout ratios for APL, AGEL, or AESL. Given their high capital intensity and aggressive growth plans, it is common for such companies to prioritize reinvestment of earnings back into the business to fund expansion, potentially leading to lower payout ratios in the growth phase.

Share Buyback Programs

The provided data does not mention any share buyback programs for APL, AGEL, or AESL.

M&A Activity and Strategy

• **APL:** Actively pursues M&A, particularly for stressed thermal assets. Successful acquisition and turnaround of 4,370 MW stressed assets and further integration of 2,900 MW assets. Recent acquisition of **600 MW Vidarbha Industries Power Ltd**. This strategy allows for faster capacity addition and market consolidation.
• **AGEL & AESL:** Primarily focused on organic growth, but open to strategic acquisitions that align with their expansion goals (e.g., new distribution licenses for AESL).

Cash Generation and Free Cash Flow Profiles

• **APL:**
• **AGEL:**
• **AESL:**

All three companies demonstrate strong cash generation capabilities, which are crucial for funding their substantial capex requirements and managing debt. APL explicitly highlights its significant free cash flow to equity, indicating its ability to fund growth internally.

Capital Efficiency Improvements

• **APL:**
• **AGEL:**
• **AESL:**

The Adani Group companies are actively working to improve capital efficiency through deleveraging, optimizing operational performance, and securing favorable financing terms, which is vital for sustaining long-term growth in a capital-intensive sector.

H. FUTURE OUTLOOK & PROJECTIONS

The future outlook for the Indian Power Generation & Distribution sector, as articulated by the Adani Group, is overwhelmingly positive, driven by robust demand growth, ambitious government targets, and strategic investments in both conventional and renewable energy infrastructure.

Industry Growth Projections (with timeframes)

• **Overall Power Demand:** India's energy demand is projected to increase **4x in the next 2 decades**, reaching **6,400 BU** with peak demand of **708 GW** and installed capacity of **2,100 GW by Vision 2047**. This represents a massive and sustained growth opportunity.
• **Renewable Energy Target:** India aims for **500 GW of Renewable Energy by 2030**. This is a monumental target that will drive significant investment and capacity additions in the RE sector.
• **Thermal Capacity Requirement:** Despite the push for renewables, **80 GW of additional Coal based capacity is required by FY32** to meet India's growing baseload and peak demand. This underscores the continued importance of thermal power for energy security and grid stability.
• **New Long Term Thermal PPAs:** State Discoms are awarding new 25-year thermal PPAs to meet projected demand, with significant capacities being sought: Madhya Pradesh (5,230 MW), Bihar (2,400 MW), Uttar Pradesh (1,600 MW), Maharashtra (1,600 MW), Karnataka (2,000 MW), West Bengal (1,600 MW). More than **17,000 MW** of bids are ongoing. This indicates a strong pipeline for thermal generation companies.

Management Guidance Across Companies

**Adani Power Limited (APL):** * **Market Opportunity:** Identifies a market opportunity of **40+ GW**. * **Project Pipeline:** APL's current project pipeline is **23.7 GW** (c. 30% of India's requirement for additional thermal capacity). * **Investment Case:** Unique long-term growth access, well-funded capital plan, and core earnings stability demonstrated even in periods of slower power demand growth. * **Operational Focus:** Scheduled overhauls undertaken to sustain high plant availability across the fleet over the longer term. Consistent control on Finance Costs.

**Adani Green Energy Limited (AGEL):** * **Capacity Target:** Targeting **50 GW by 2030**, continuing to be the largest RE portfolio in India. * **Growth Path:** Secured growth path with a focus on higher returns while maintaining stable cashflows. * **Operational Performance:** Consistently delivering generation significantly higher than PPA commitment through tech-driven O&M. * **Financial Strategy:** Deploying long-term capital for future growth, strong de-risked business model.

**Adani Energy Solutions Limited (AESL):** * **Smart Metering Target:** Target of **1 crore cumulative meters by end of FY26**. * **Transmission Pipeline:** Transmission ordering construction pipeline of **INR 60,000 odd crores**. * **HVDC Project:** Mumbai HVDC project commissioning expected in December or January. * **Distribution Expansion:** Pursuing parallel license applications in Navi Mumbai, Mundra, and Ghaziabad/Jewar. * **New Opportunities:** Envisages opportunities in providing energy solutions and timely connectivity for data centers (e.g., Google tie-up).

Emerging Opportunities and Whitespace

• **Energy Storage (PSP):** AGEL's focus on Pumped Hydro Storage (PSP) sites (5+ GW secured) represents a significant whitespace opportunity for grid balancing and firming up renewable power.
• **C&I Energy Solutions:** AESL's C&I business (717 MW load demand) and district cooling facilities (88,000 tons of refrigeration) tap into the growing demand for customized, efficient energy solutions for commercial and industrial clients.
• **Green Hydrogen/Ammonia:** While not explicitly mentioned in the provided data, the Adani Group's broader strategy includes green hydrogen, which would leverage AGEL's renewable energy generation.
• **Data Center Power & Connectivity:** AESL's potential role in providing energy infrastructure for data centers is a high-growth emerging market.
• **New Distribution Licenses:** The new draft electricity regulatory changes proposing enabling provisions for second licenses create significant organic growth opportunities for AESL in new geographies.

Transformation Themes and Inflection Points

• **Energy Transition:** The shift from fossil fuels to renewables is a major transformation, with India's 500 GW RE target by 2030 being a key inflection point. AGEL is at the forefront of this.
• **Decarbonization of the Grid:** All companies are contributing, with AGEL leading in reducing GHG emissions, and APL working on improving its intensity.
• **Digitalization and Smart Grid:** The widespread deployment of smart meters by AESL and the use of ENOC/AI across the group are transforming grid management, efficiency, and consumer engagement.
• **Integrated Energy Management:** The move towards offering comprehensive energy solutions (generation, transmission, distribution, storage, C&I solutions) rather than just commodity power.

Long-term Structural Trends (5-10 year view)

• **Electrification and Per Capita Consumption Growth:** India's per capita electricity consumption will continue to rise, driving sustained demand.
• **Dominance of Renewables:** Renewables will form an increasingly larger share of the installed capacity mix (571 GW by FY32E).
• **Grid Modernization and Expansion:** Significant investment will continue in transmission and distribution infrastructure to support renewable integration and reduce losses.
• **Decentralization and Digitization:** Smart grids, distributed generation, and smart metering will become standard.
• **Energy Security:** Thermal power will remain a crucial component for baseload stability, necessitating continued investment.
• **ESG Integration:** Sustainability will be central to investment decisions, financing, and operational practices.

Potential Disruptions on the Horizon

• **Breakthroughs in Energy Storage:** Highly cost-effective, long-duration energy storage could fundamentally alter grid dynamics and the role of baseload power.
• **Advanced Nuclear/Small Modular Reactors (SMRs):** If deployed at scale, could offer a carbon-free baseload alternative.
• **Cybersecurity Threats:** Increased digitalization of the grid introduces new vulnerabilities.
• **Policy Instability:** Sudden shifts in energy policy or regulatory frameworks could disrupt investment cycles.

Expected Margin Evolution

• **AGEL & AESL (Regulated/Contracted Assets):** High EBITDA margins (90%+) are expected to be largely sustained due to the nature of their long-term contracts and regulated asset base. Operational efficiencies and technology adoption will help maintain these.
• **APL (Thermal Generation):** EBITDA margins (38-41%) are expected to remain strong, supported by operational efficiency, fuel security, and long-term PPAs. However, the merchant segment's profitability will remain subject to market dynamics and fuel prices. The increase in other operating expenses due to new acquisitions and maintenance could put some pressure, but efficient management aims to control finance costs.
• **Smart Metering (AESL):** High EBITDA margins (80-85%) are projected to be maintained, given the service-based, recurring revenue model.

Overall, the Adani Group is strategically positioned to capitalize on India's energy growth story, with a clear vision for expansion, a strong focus on operational excellence, and a commitment to sustainability.

I. COMPANY-BY-COMPANY PROFILES

Adani Power Limited (APL)

**Brief Description:** Adani Power Limited (APL) is India's Largest Private Base Load Power Company, primarily engaged in the generation and sale of thermal power. It operates a diversified portfolio of power plants across various states, utilizing Ultra-Supercritical, Supercritical, and other technologies. APL plays a critical role in India's energy security by providing reliable baseload power.

**Scale Metrics:** * **Installed Capacity (Q2 FY26):** 18,150 MW (+3.4% YoY), including 600 MW from Vidarbha Industries Power Ltd acquisition. * **Operating Capacity:** 18,150 MW across 13 assets (60% Organic, 40% Inorganic). * **Technology Mix:** 9% Ultra-supercritical, 51% Supercritical, 40% Others. * **PPA Tie-ups:** 88% PPA, 12% Open. * **Locked-in Capacity:** 23,720 MW (13 projects by FY32, 100% Organic, 94% Ultra-supercritical, 6% Supercritical). * **Target Capacity:** 41,870 MW (83% Organic, 17% Inorganic). * **Revenue (FY25):** INR 58,906 Cr (-2% YoY). * **Revenue (H1 FY26):** INR 28,881 Cr (-2.2% YoY). * **Gross Assets (H1FY26):** INR 125,551 Cr.

**Financial Performance Summary:** * **Revenue CAGR (FY20-FY25):** +16%. * **Continuing EBITDA CAGR (FY20-FY25):** 30%. * **FY25 EBITDA:** INR 24,008 Cr (-15% YoY); Continuing EBITDA: INR 21,575 Cr (+15% YoY). * **H1 FY26 Continuing Revenue:** INR 27,807 Cr (-2.5% YoY). * **H1 FY26 Continuing EBITDA:** INR 11,076 Cr (-5.3% YoY). * **H1 FY26 PAT:** INR 6,212 Cr (-13.9% YoY). * **EBITDA Margin (FY25):** 41%. Claims highest EBITDA margin in thermal power (38%). * **TTM ROCE (H1FY26):** 19%. * **TTM ROE (H1FY26):** 20%. * **TTM RoA (H1FY26):** 19.7%. * **Net Debt (30th Sept 2025):** INR 36,776 Cr. * **Net Debt to Continuing TTM EBITDA (Sept'25):** 1.75x (improved from 9.75x in FY19). * **Senior Term Debt / Equity Ratio (H1FY26):** 0.63 (improved from 5.32 in Mar-20). * **Credit Rating:** AA (Stable) / A1+ by India Ratings & Research.

**Strategic Priorities and Focus Areas:** * **Capacity Expansion:** Aggressive organic and inorganic growth to meet India's baseload power needs, with a 23.7 GW pipeline. * **Long-term PPAs:** Securing new 25-year PPAs with state discoms (e.g., Bihar, MP, Karnataka) to ensure revenue stability. * **Fuel Security:** Leveraging in-house coal sourcing (Dhirauli Mine) and domestic coal linkages under SHAKTI Policy. * **Operational Excellence:** Maintaining high plant availability (90%+) through digital focus and scheduled overhauls. * **Deleveraging:** Sustaining a strong credit profile with tight control on leverage and consistent finance cost management. * **ESG Leadership:** Ranked 1st globally in alternative electricity segment (FTSE Russel), improved Sustainalytics ESG Risk Rating to 'Medium Risk'.

**Competitive Advantages and Positioning:** * Market leader in baseload power with industry-leading return on capital. * Integrated approach to fuel sourcing and logistics. * Proven track record of acquiring and turning around stressed assets. * Brownfield development model for faster project execution. * Strong credit profile and financial flexibility. * High operational efficiency and digital adoption.

**Key Metrics and KPIs Specific to the Company:** * **PLF (Q2 FY26):** 63% (Q2 FY25: 67%). * **O&M Availability (Q2 FY26):** 87% (Q2 FY25: 90%). * **Power Sales Volume (Q2 FY26):** 23,663 MU (+7.4% YoY). * **Sales Volume Mix (Q2 FY26):** Merchant/Short Term 24%, Contracted (PPA) 76%. * **Water intensity (Q2 FY26):** 2.22 m³/MWh (36% lower than statutory limit). * **GHG emission intensity (Current):** 0.85 tCO2e/MWh (Target: 0.84 tCO2e/MWh by FY26).

**Management Outlook and Guidance:** * Core earnings stability demonstrated despite slower power demand growth and subdued tariffs. * Strong liquidity provides financial flexibility for growth. * Project pipeline of 23.7 GW represents c. 30% of India's thermal capacity requirement. * Well-funded capital plan ensures on-time execution.

**Recent Developments and Initiatives:** * Signed PSA for 2,400 MW with BSPGCL (Bihar) and received LOA for 1,600 MW from MPPMCL and 570 MW from PCKL (Karnataka). * Mahan Energen Ltd. received approval to commence operations at Dhirauli Mine. * Equity Shares Split (10 each to 2 each on 22 Sep 25). * Acquisition of 600 MW Vidarbha Industries Power Ltd.

Adani Green Energy Limited (AGEL)

**Brief Description:** Adani Green Energy Limited (AGEL) is India's largest Renewable Energy Portfolio, focused on developing, owning, and operating utility-scale solar, wind, and hybrid power projects. AGEL is at the forefront of India's energy transition, aiming for massive capacity expansion and decarbonization.

**Scale Metrics:** * **Operational Capacity (as on Sep-25):** 16.7 GW (▲49% YoY), making it India's largest RE portfolio. * **Capacity Mix (Operational):** Solar 70%, Wind 18%, Hybrid 13%. * **FY30E Capacity Target:** 50 GW. * **World's largest single-location RE project:** Khavda (7.1 GW operational, 30 GW by 2029 target). * **Revenue (FY25):** ₹9,495 Cr (▲23% YoY). * **Revenue (H1 FY26):** ₹6,088 Cr (▲26% YoY).

**Financial Performance Summary:** * **H1 FY26 EBITDA:** ₹5,651 Cr (▲25% YoY). * **H1 FY26 Cash Profit:** ₹3,094 Cr (▲17% YoY). * **EBITDA Margin (H1 FY26):** 91.8% (consistent industry-leading margin). * **Net Debt (Sep-25):** ₹76,071 Cr (Operational: ₹62,042 Cr, Under const.: ₹14,029 Cr). * **Capex Incurred (H1 FY26):** ₹12,412 Cr (▲26% YoY). * **Capex Incurred (FY25):** ₹28,366 Cr (▲66% YoY). * **Debt Repayment Schedule:** Staggered, with significant credit facilities to be refinanced (e.g., H2 FY26 – Rs. 2,200 cr already done). * **IG Rated Issuance:** RG1 & RG2 portfolios.

**Strategic Priorities and Focus Areas:** * **Aggressive Capacity Expansion:** Secured growth path to 50 GW by 2030, with a focus on greenfield projects like Khavda. * **Operational Excellence:** Leveraging ENOC and AIMSL for analytics-driven O&M, ensuring high plant availability and CUF. * **Resource Security:** Securing ~2,50,000 acres of resource-rich sites for solar/wind and 5+ GW of PSP sites. * **Efficient Capital Management:** Diversified funding sources, elongated maturities, and a US$ 3.4 bn revolving construction facility. * **ESG Leadership:** Setting new benchmarks in ESG practices (ranked 1st in India, 7th globally in RE sector by Sustainalytics), aiming for water positivity, SUP Free, Zero Waste to Landfill.

**Competitive Advantages and Positioning:** * Largest renewable energy portfolio in India, well-positioned for industry-leading de-risked growth. * Unparalleled scale and speed in project development (Khavda). * Industry-leading EBITDA margins (91.8%) due to best-in-class O&M. * Strong ESG credentials attracting green financing. * Robust project management and execution capabilities through AIIL. * Strong sponsorship from Adani Family and backward integration in manufacturing.

**Key Metrics and KPIs Specific to the Company:** * **Units Generation (H1 FY26):** 20 Bn (▲39% YoY). * **Solar CUF (H1 FY26):** 24.8%. * **Wind CUF (H1 FY26):** 37.8%. * **Hybrid CUF (H1 FY26):** 39.1%. * **Plant Availability (H1 FY26):** Solar 95.2%, Wind 98.1%, Hybrid 99.0%. * **Grid Availability (H1 FY26):** 89.0% (due to one-off disruption). * **CO2 Emissions avoided (H1 FY26):** 14.2 mn ton. * **Pollution control & GHG emission reduction:** 99.7% less operational emission Intensity (0.0019 GHG tCO2 / MWh). * **Freshwater consumption:** 99.8% less (0.0083 kl / MWh). * **Receivables days (30-Sep-2025):** 4 days.

**Management Outlook and Guidance:** * Operational RE capacity grows 49% YoY to 16.7 GW, continuing to be the largest in India. * Secured growth path to 50 GW by 2030 with focus on higher returns. * EBITDA grows 25% YoY to Rs. 5,651 crore, exceeding annual EBITDA for FY23.

**Recent Developments and Initiatives:** * Operationalized 5,496 MW greenfield capacity in H1 FY26, including significant portions of the Khavda project. * Honored at ET Energy Leadership Awards 2025 as 'Energy Transition Company' and 'Energy Company of the year - Renewables'. * Refinanced H2 FY26 credit facilities of Rs. 2,200 cr through ECB lenders.

Adani Energy Solutions Limited (AESL)

**Brief Description:** Adani Energy Solutions Limited (AESL) is a diversified energy solutions provider, with a strong presence in power transmission, distribution, and smart metering. It aims to be a comprehensive energy solutions partner, leveraging its robust infrastructure and technological capabilities.

**Scale Metrics:** * **Transmission Network (30th Sep 2025):** 26,705 ckm (Operational: 19,642 ckm, Under construction: 7,063 ckm). * **Power Transformation Capacity (Q2 FY26):** 97,236 MVA. * **Distribution Presence:** Mumbai (AEML) and Mundra (MUL), serving 3.25 million consumers in AEML. * **Smart Metering Order Book:** 2.46 crore meters, with a revenue potential of INR 29,000 crores. * **Smart Meters Installed/Deployed:** 7.3 million meters. * **Revenue (H1 FY26 Total Income):** INR 13,793 Cr (16% growth YoY).

**Financial Performance Summary:** * **H1 FY26 Consolidated EBITDA:** INR 4,144 Cr (13% increase YoY). * **H1 FY26 Adjusted PAT:** INR 1,096 Cr (42% increase YoY). * **Highest EBITDA margin in Transmission:** 92%. * **Smart Metering EBITDA margins:** 80% to 85%. * **Net Debt (30th Sep 2025):** INR 62,000 Cr. * **Net Debt stuck in CWIP:** INR 12,500 Cr. * **Total debt to total EBITDA (TTM, operational assets):** Just under 5x. * **Weighted average cost of debt:** Marginally came down. * **Consolidated capex (H1 FY26):** INR 5,976 Cr (1.4% increase YoY). * **Credit Rating:** BBB-/Baa3 (Fitch/Moody's).

**Strategic Priorities and Focus Areas:** * **Transmission Network Expansion:** Commissioning new projects (Khavda Phase-II, KPS-1, Sangod) and securing additional projects (4,000 MVA, Rs 700 Cr project value in Q2 FY26). * **Smart Metering Rollout:** Aggressive deployment to achieve 1 crore cumulative meters by end of FY26, leveraging a large order book. * **Distribution Growth:** Exploring new distribution licenses (Navi Mumbai, Mundra, Ghaziabad/Jewar) and enhancing existing operations (AEML, MUL). * **Integrated Energy Solutions:** Expanding C&I business and deploying innovative cooling solutions. * **Deleveraging:** Mumbai utility (AEML) continues to generate surplus and deleverage its balance sheet. * **ESG Leadership:** Improved Sustainalytics ESG score to 19.9 ("Low Risk"), re-certified as Zero Waste to Landfill for 100% of operational sites.

**Competitive Advantages and Positioning:** * Integrated player across transmission, distribution, and smart metering. * Leading position in transmission with high operational availability and efficiency. * Best-in-class distribution utility operations (AEML) with low losses and high reliability. * Dominant market share and strong order book in the rapidly growing smart metering segment. * Innovation in energy solutions (district cooling, data center connectivity). * Strong ESG performance, surpassing global industry averages.

**Key Metrics and KPIs Specific to the Company:** * **Average System Availability (H1 FY26):** 99.71%. * **AEML Supply Reliability (Q2 FY26):** 99.999% ASAI. * **AEML Distribution Loss (H1 FY26):** 4.30%. * **AEML Collection Efficiency (H1 FY26):** 99.43%. * **AEML Consumer Base (Q2 FY26):** 3.25 million. * **Smart Metering Revenue per meter per month:** INR 105 to INR 109. * **Day sales outstanding (30th Sep 2025):** 64 days (improved from 70 days).

**Management Outlook and Guidance:** * Strong growth potential in transmission and distribution, backed by stable regulatory regimes. * Increasing contribution from the smart meter business. * Momentum on transmission projects is picking up, driving capex and future revenue. * New draft electricity regulatory changes propose enabling provisions for second license, creating opportunities.

**Recent Developments and Initiatives:** * Commissioned three transmission projects in H1 FY26 (Khavda Phase-II, KPS-1, Sangod). * Secured four additional transmission projects under line and substation augmentation. * New smart metering contract for 18.36 lakh meters with AEML. * QIP fundraise of Rs 8,373 crore, largest in Indian power sector. * $44 million bond buyback of GMTN bond in Q2 FY26 for AEML.

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J. TABLES

**Table 1: Adani Power Limited (APL) - Key Financials (Q2 FY26 vs Q2 FY25)**

| Metric | Q2 FY26 (INR Cr) | Q2 FY25 (INR Cr) | YoY Change (%) | | :------------------------ | :--------------- | :--------------- | :------------- | | Continuing Revenue | 13,639 | 13,465 | +1.3% | | Continuing EBITDA | 5,333 | 5,402 | -1.3% | | Profit After Tax | 2,906 | 3,298 | -11.9% | | Reported Revenue | 14,308 | 14,063 | +1.7% | | Fuel cost | 7,216 | 7,114 | +1.4% | | Other Operating expenses | 1,090 | 950 | +14.8% | | Reported EBITDA | 6,001 | 6,001 | 0.0% | | Depreciation | 1,193 | 1,059 | +12.7% | | Finance cost | 842 | 807 | +4.3% | | Continuing Profit Before Tax | 3,298 | 3,537 | -6.8% | | Profit Before Tax | 3,966 | 4,134 | -4.1% |

**Table 2: Adani Power Limited (APL) - Key Financials (H1 FY26 vs H1 FY25)**

| Metric | H1 FY26 (INR Cr) | H1 FY25 (INR Cr) | YoY Change (%) | | :------------------------ | :--------------- | :--------------- | :------------- | | Continuing Revenue | 27,807 | 28,517 | -2.5% | | Continuing EBITDA | 11,076 | 11,692 | -5.3% | | Profit After Tax | 6,212 | 7,210 | -13.9% | | Reported Revenue | 28,881 | 29,537 | -2.2% | | Fuel cost | 14,535 | 15,023 | -3.2% | | Other Operating expenses | 2,195 | 1,802 | +21.8% | | Reported EBITDA | 12,151 | 12,712 | -4.4% | | Depreciation | 2,282 | 2,054 | +11.1% | | Finance cost | 1,699 | 1,618 | +5.0% | | Continuing Profit Before Tax | 7,096 | 8,020 | -11.5% | | Profit Before Tax | 8,171 | 9,040 | -9.6% |

**Table 3: Adani Power Limited (APL) - Reported Total Revenues (FY20-H1FY26)**

| Fiscal Year | Reported Total Revenues (INR Cr) | | :---------- | :------------------------------- | | FY20 | 27,842 | | FY21 | 28,150 | | FY22 | 31,686 | | FY23 | 43,041 | | FY24 | 60,281 | | FY25 | 58,906 | | H1FY26 | 28,881 | | CAGR (FY20-FY25) | +16% |

**Table 4: Adani Power Limited (APL) - Reported PAT (FY20-H1FY26)**

| Fiscal Year | Reported PAT (INR Cr) | | :---------- | :-------------------- | | FY20 | -2,275 | | FY21 | 1,270 | | FY22 | 4,912 | | FY23 | 10,727 | | FY24 | 20,829 | | FY25 | 12,750 | | H1FY26 | 6,212 |

**Table 5: Adani Power Limited (APL) - Reported EBITDA (FY20-H1FY26)**

| Fiscal Year | Reported EBITDA (INR Cr) | Continuing EBITDA (INR Cr) | One-time EBITDA (INR Cr) | | :---------- | :----------------------- | :------------------------- | :----------------------- | | FY20 | 7,059 | 5,774 | 1,285 | | FY21 | 10,597 | 6,852 | 3,745 | | FY22 | 13,789 | 7,989 | 5,800 | | FY23 | 14,312 | 8,540 | 5,772 | | FY24 | 28,111 | 18,789 | 9,322 | | FY25 | 24,008 | 21,575 | 2,433 | | H1FY26 | 12,151 | 11,076 | 1,075 | | Continuing EBITDA CAGR | 30% | | |

**Table 6: Adani Power Limited (APL) - Senior Term Debt / Equity Ratio (Mar-20 to H1FY26)**

| Period | Ratio (x) | | :------ | :-------- | | Mar-20 | 5.32 | | Mar-21 | 2.57 | | Mar-22 | 1.86 | | Mar-23 | 0.99 | | Mar-24 | 0.65 | | Mar-25 | 0.50 | | H1FY26 | 0.63 |

**Table 7: Adani Power Limited (APL) - Operational Metrics (Q2 FY26 vs Q2 FY25)**

| Metric | Q2 FY26 | Q2 FY25 | YoY Change | | :--------------------- | :--------- | :--------- | :--------- | | Installed Capacity (MW) | 18,150 | 17,550 | +3.4% | | Power Sales Volume (MU) | 23,663 | 22,063 | +7.4% | | O&M Availability (%) | 87% | 90% | -3 ppts | | Generation PLF (%) | 63% | 67% | -4 ppts | | Dispatch Performance (BU) | 23.7 | 22.0 | +7.4% | | Sales Volume Mix (%) | | | | | - Merchant/Short Term | 24% | 23% | +1 ppts | | - Contracted (PPA) | 76% | 77% | -1 ppts |

**Table 8: Adani Power Limited (APL) - Operational Metrics (H1 FY26 vs H1 FY25)**

| Metric | H1 FY26 | H1 FY25 | YoY Change | | :--------------------- | :--------- | :--------- | :--------- | | Installed Capacity (MW) | 18,150 | 17,550 | +3.4% | | Power Sales Volume (MU) | 48,267 | 46,225 | +4.4% | | O&M Availability (%) | 88% | 92% | -4 ppts | | Generation PLF (%) | 65% | 72% | -7 ppts | | Dispatch Performance (BU) | 48.3 | 46.2 | +4.4% | | Sales Volume Mix (%) | | | | | - Merchant/Short Term | 24% | 22% | +2 ppts | | - Contracted (PPA) | 76% | 78% | -2 ppts |

**Table 9: Adani Power Limited (APL) - Balance Sheet Snapshot (30th Sept 2025)**

| Item | Amount (INR Cr) | | :--------------------------------------- | :-------------- | | **Sources of Funds** | | | Equity & Reserves (incl. UPS) | 59,647 | | Long Term Borrowings incl. Current Maturities | 37,721 | | Other Non-current Liabilities | 12,916 | | Short Term Borrowings | 9,533 | | Trade Payables | 2,977 | | Other Current Liabilities | 2,757 | | **Total Sources of Funds** | **125,551** | | **Application of Funds** | | | Fixed Assets | 90,880 | | Bank Balance held as margin money & FD (Non-current) | 137 | | Other Non-current Assets | 7,882 | | Inventories | 3,140 | | Trade Receivables | 9,438 | | Cash & Bank | 10,291 | | Current Investments | 50 | | Other Current Assets | 3,732 | | **Total Application of Funds** | **125,551** | | **Key Ratios** | | | Net Debt | 36,776 | | Net Debt / MW | 2.03 Cr | | Net Fixed Assets / Net Total Debt | 2.47x | | Continuing EBITDA (TTM) | 20,959 | | Net Total Debt / Continuing EBITDA (TTM) | 1.75x |

**Table 10: Adani Green Energy Limited (AGEL) - Key Financials (H1 FY26 vs H1 FY25)**

| Metric | H1 FY26 (₹ Cr) | H1 FY25 (₹ Cr) | YoY Change (%) | | :----------------------- | :------------- | :------------- | :------------- | | Revenue | 6,088 | 4,836 | ▲26% | | EBITDA | 5,651 | 4,518 | ▲25% | | Cash Profit | 3,094 | 2,646 | ▲17% | | EBITDA Margin | 91.8% | 92.1% | -0.3 ppts | | Capex Incurred | 12,412 | 9,851 | ▲26% |

**Table 11: Adani Green Energy Limited (AGEL) - Key Financials (Q2 FY26 vs Q2 FY25)**

| Metric | Q2 FY26 (₹ Cr) | Q2 FY25 (₹ Cr) | YoY Change (%) | | :--------------------------- | :------------- | :------------- | :------------- | | Revenue from Power Supply | 2,776 | 2,308 | ▲20% | | EBITDA from Power Supply | 2,543 | 2,143 | ▲19% | | Cash Profit | 1,349 | 1,252 | ▲8% | | EBITDA from Power Supply Margin | 91.7% | 90.5% | +1.2 ppts |

**Table 12: Adani Green Energy Limited (AGEL) - Net Debt Evolution (Mar-25 to Sep-25)**

| Item | Amount (₹ Cr) | | :-------------------------------------- | :------------ | | Mar-25 Gross Debt | 64,462 | | Additional Debt for Projects | 12,450 | | Debt upsizing net of unscheduled repayments | 318 | | Regular Repayment of Debt | (955) | | Change in Working Capital Loan | (83) | | Change in Trade Credit | 82 | | MTM changes in Foreign currency loans | (1,049) | | Change in Cash & Bank | 845 | | **Sep-25 Gross Debt** | **76,071** | | Cash & Bank (Sep-25) | 9,926 | | **Sep-25 Net Debt** | **66,145** | | *Note: Discrepancy in Net Debt calculation from source data (76,071 Cr vs 66,145 Cr). Using 76,071 Cr as per explicit mention.* | |

**Table 13: Adani Green Energy Limited (AGEL) - Gross Debt Mix (Sep-25)**

| Debt Type | Percentage (%) | | :------------------ | :------------- | | Rupee Term Loan | 65 | | ECB | 19 | | Cash Credit/WC Loans | 7 | | Trade Credit | 1 | | Rupee NCDs | 7 | | USD Bonds | 1 |

**Table 14: Adani Green Energy Limited (AGEL) - Operational Capacity (MW AC) (H1 FY26 vs H1 FY25)**

| Asset Type | H1 FY26 (MW) | H1 FY25 (MW) | YoY Change (%) | | :--------- | :----------- | :----------- | :------------- | | Solar | 11,593 | 7,393 | ▲57% | | Wind | 2,142 | 1,651 | ▲30% | | Hybrid | 2,945 | 2,140 | ▲38% | | **Total** | **16,680** | **11,184** | **▲49%** |

**Table 15: Adani Green Energy Limited (AGEL) - Sale of Energy (mn units) (H1 FY26 vs H1 FY25)**

| Asset Type | H1 FY26 (mn units) | H1 FY25 (mn units) | YoY Change (%) | | :--------- | :----------------- | :----------------- | :------------- | | Solar | 11,813 | 7,751 | ▲52% | | Wind | 3,304 | 2,348 | ▲41% | | Hybrid | 4,452 | 4,029 | ▲10% | | **Total** | **19,569** | **14,128** | **▲39%** |

**Table 16: Adani Green Energy Limited (AGEL) - CUF (%) (H1 FY26)**

| Asset Type | CUF (%) | | :--------- | :------ | | Solar | 24.8% | | Wind | 37.8% | | Hybrid | 39.1% |

**Table 17: Adani Energy Solutions Limited (AESL) - Key Financials (H1 FY26)**

| Metric | H1 FY26 (INR Cr) | YoY Change (%) | | :------------------ | :--------------- | :------------- | | Total income | 13,793 | 16% | | Consolidated EBITDA | 4,144 | 13% | | Consolidated PBT | 1,404 | 34% | | Adjusted PAT | 1,096 | 42% | | Consolidated capex | 5,976 | 1.4% |

**Table 18: Adani Energy Solutions Limited (AESL) - Operational Metrics (H1 FY26 vs H1 FY25)**

| Metric | H1 FY26 | H1 FY25 | | :------------------------------ | :----------- | :----------- | | Transmission Network Length (ckm) | 26,705 | 23,269 | | Power Transformation Capacity (MVA) | 97,236 | 70,686 | | Average System Availability (%) | 99.71% | 99.70% | | AEML Supply Reliability (ASAI %) | 99.998% | 99.995% | | AEML Distribution Loss (%) | 4.30% | 5.02% | | AEML Consumer Base (million) | 3.25 | 3.17 | | AEML Total Units Sold (MUs) | 5,589 | 5,571 | | MUL Total Units Sold (MUs) | 635 | 460 |

**Table 19: Adani Energy Solutions Limited (AESL) - Smart Metering Under-construction Assets (24.6 Mn Qty, Rs 29,519 Cr Revenue Potential)**

| Discom (State) | Qty (Mn) | Revenue Potential (Rs Cr) | Award Date | | :---------------------- | :------- | :------------------------ | :---------------- | | BEST (Mumbai) | 1.1 | 1,304 | Sept & Oct'22 | | APDCL (Assam) | 0.8 | 845 | Feb'23 | | APEPDCL (Andhra Pradesh) | 1.1 | 1,289 | Jun & Dec'23 | | APCPDCL (Andhra Pradesh) | 1.7 | 2,084 | Jun & Nov'23 | | APSPDCL (Andhra Pradesh) | 1.3 | 1,795 | Jun & Sept'23 | | MSEDCL (NSC-05) (Maharashtra) | 8.1 | 9,667 | Aug'23 & Mar'24 | | MSEDCL (NSC-06) (Maharashtra) | 5.2 | 6,294 | Aug'23 | | NBPDCL (North Bihar) | 2.8 | 3,102 | Aug'23 | | UPCL (Uttarakhand) | 0.7 | 816 | Dec'23 | | AEML (Mumbai) | 1.8 | 2,323 | Jun'25 | | **Total** | **24.6** | **29,519** | |

**Table 20: All India Power Demand Growth (Q2 FY26 & H1 FY26)**

| Period | Growth vs Previous Year | | :---------- | :---------------------- | | Q2 FY26 | 3.2% | | H1 FY26 | 0.8% |

**Table 21: Power Demand in Key States (BU) (H1 FY26 vs H1 FY25)**

| State | H1 FY26 (BU) | H1 FY25 (BU) | | :------------ | :----------- | :----------- | | Haryana | 40.8 | 41.4 | | Rajasthan | 55.4 | 55.3 | | Gujarat | 77.5 | 80.9 | | Madhya Pradesh | 47.8 | 48.3 | | Maharashtra | 98.6 | 101.2 | | Karnataka | 43.7 | 44.1 | | Tamil Nadu | 69.3 | 69.1 |

**Table 22: Capacity Mix (GW) - FY25 vs FY32E**

| Category | FY25 (GW) | FY32E (GW) | | :---------- | :-------- | :--------- | | Base load | 244 | 309 | | Renewables | 193 | 571 | | Others | 59 | 118 | | **Total** | **496** | **997** |

**Table 23: Electricity Consumption per capita across states (kWh)**

| State | kWh per person | | :-------------- | :------------- | | Uttar Pradesh | 617 | | Bihar | 317 | | Maharashtra | 1,610 | | West Bengal | 674 | | Madhya Pradesh | 1,116 | | Rajasthan | 1,293 | | Tamil Nadu | 1,630 | | Gujarat | 1,983 | | Karnataka | 1,370 | | Andhra Pradesh | 1,497 | | **India average** | **1,395** |