Adani Power Share Price Falls Over 1% Post Q1 Results; Net Profit Declines by 15.5%

Market Reaction

Adani Power share price witnessed a dip of over 1%, trading at ₹581.50 following the announcement of its Q1FY26 financial results on August 1.

• Over the past year, the stock has declined by 20%
• In 2025 year-to-date (YTD), it has shown a recovery of 10%

Key Financial Highlights

Revenue

• Consolidated revenue dropped 5.6%
• Q1FY26 revenue stood at ₹14,109.15 crore, compared to ₹14,955.63 crore in Q1FY25

EBITDA

• EBITDA decreased to ₹5,744 crore, down from ₹6,290 crore in the same quarter last year
• The decline is linked to reduced merchant tariff realization and increased costs due to recent acquisitions
• On a quarterly basis, EBITDA grew by 12.7%, indicating a sequential recovery

EBITDA Margins

• EBITDA margin contracted year-on-year due to elevated operational expenses and lower revenue base

Net Profit

• Net profit declined 15.5% YoY, falling to ₹3,305.13 crore from ₹3,912.79 crore in Q1FY25
• Sequentially, net profit rose 27% from ₹2,599.23 crore in the March 2025 quarter

Operational Performance

Despite financial pressure, Adani Power reported expansion in installed capacity and unit sales:

• Installed Capacity: Increased 15% YoY, reaching 17,550 MW, up from 15,250 MW
• Plant Load Factor (PLF): Declined to 67% from 78%, pointing to operational challenges
• Units Sold: Slight growth to 24.6 billion units from 24.2 billion units in Q1FY25

Corporate Action: Stock Split Announced

In a significant development, Adani Power’s board approved its first-ever stock split:

• Each equity share of ₹10 to be split into five equity shares of ₹2 each
• Split Ratio: 1:5
• The company is yet to announce the record date for the stock split.
• This move aims to enhance liquidity and improve retail participation

Company Overview

Adani Power, one of India’s largest private thermal power producers, operates in the power generation sector with a growing presence across various states. The company’s diversified portfolio and ongoing capacity expansion projects contribute significantly to India’s energy supply chain.

Summary

Adani Power's Q1FY26 results reflected a dip in profitability and moderate operational growth, with:

• Revenue and net profit down 5.6% and 15.5% respectively
• A sequential profit improvement and EBITDA growth of 12.7%
• Announced a 1:5 stock split, the first such corporate action in its history
• Share price saw a minor decline post-results, though it remains positive YTD in 2025

Despite facing cost pressures and reduced PLF, the company’s ongoing capacity growth and stock split announcement could influence investor sentiment in the near term.