Adani Power Q4 profit jumps 52% to ₹4,017 crore on lower tax; revenue flat, margins soften

Adani Power Ltd reported a mixed set of consolidated numbers for the March quarter, with profit rising sharply on the back of a lower tax outgo, even as revenue and operating performance remained largely subdued.

Profit attributable to owners of the company rose 52.34% to ₹4,017 crore, compared with ₹2,637 crore in the year-ago period.

Revenue from operations remained flat at ₹14,223 crore, versus ₹14,237 crore a year earlier, while EBITDA declined 1.7% to ₹4,732 crore. Margins also softened slightly, with EBITDA margin at 33.27% compared to 33.80% in the year-ago quarter.

Lower tax outgo drives profit surge

Despite muted operating performance, profit growth was supported by a sharp drop in tax expenses during the quarter.

Tax outgo fell to just ₹112.58 crore in Q4 FY26, compared to ₹662.05 crore in Q4 FY25, marking an over 80% decline YoY.

This led to a substantial expansion in net profit even though pre-tax earnings saw only moderate growth. In fact, profit before tax rose to ₹4,383.98 crore from ₹3,261.28 crore, a far more modest increase compared to the jump in net profit.

The lower tax charge — including deferred tax adjustments — played a key role in boosting the bottom line for the quarter. The company itself noted that the rise in profit was “following provision of lower tax expenses.”

Demand volatility, weak merchant pricing weigh

The topline remained under pressure amid a challenging operating environment.

Power demand during the quarter was impacted by unseasonal weather conditions, while increased renewable penetration and lower merchant tariffs weighed on realisations.

Even as power sale volumes inched up to 27.2 billion units from 26.4 billion units, lower pricing limited revenue growth.

Operational factors provide partial cushion

The company said higher operating efficiency, favourable forex movement and improved plant availability helped offset some of the pricing pressure.

However, the overall impact was visible in flat revenue growth and a marginal decline in EBITDA and margins.

Management flags long-term growth outlook

Commenting on the results, CEO S B Khyalia said the company remains focused on long-term expansion and energy security.

“As the world goes through another energy price shock, the security and sovereignty of India’s energy supply assume critical importance… We are well set to achieve our capacity expansion targets and register multi-fold earnings growth over the coming years,” he said.

Shares of Adani Power Ltd ended 2.48% lower at ₹217.80 apiece on the NSE on Wednesday. The stock has surged over 98% in the past year, outperforming the broader Nifty 100, which has risen about 1% during the same period.