Adani Group stock in focus after company’s net profit decreases by 12% YoY

Synopsis:
Adani group stock is in focus today after the announcement of its Q2 results with net profit decline by 12 percent.

A Large-cap company that is the largest private thermal power producer in India, is in the spotlight today after posting Q2FY26 results. Read the article below for detailed insights into its performance.

With a market capitalization of Rs. 3,12,836.32 crore, the shares of Adani Power Limited closed at Rs. 162.22, almost flat to its previous closing price of Rs. 162.10. The stock has touched an intraday high of Rs. 164.70 in today’s trading session, implying an upside of 1.6 percent from its previous day’s close price. 

Q2FY26 Results

Adani Power Limited reported Rs. 13,456.84 crore in revenue for the second quarter of FY26, a 0.88 percent increase over the Rs. 13,338.88 crore for the same period in FY25. It decreased by 4.62 percent as compared to Rs. 14,109.15 crore in Q1 FY26.

The company’s EBITDA for Q2 FY26 stood at Rs. 5,150 crore, down by 9.41 percent from Rs. 5,685 crore in Q1 FY26, and inclined by 2.39 percent from Rs. 5,276 crore in Q2 FY25.

The consolidated net profit for the second quarter of FY26 was Rs. 2,906 crore, which was 12.07 percent lower than the Rs. 3,305 crore reported in the previous quarter and decreased by 11.89 percent from Rs. 3,298 crore in Q2 FY25. Profit decline was also reflected in earnings per share (EPS), which decreased to approximately Rs. 1.53 in Q2 FY26 from Rs. 1.76 in Q1 FY26 and Rs. 1.73 in Q2 FY25. 

Operational Highlights

During the quarter, APL achieved a 7.4 percent year-on-year growth in consolidated power sales at 23.7 billion units (BU) versus 22 BU in Q2 FY25, despite a slowdown in overall national energy demand caused by prolonged monsoons. The company’s operating capacity increased to 18,150 MW from 17,550 MW last year following the acquisition of the 600 MW Vidarbha Industries Power Ltd. Plant Load Factor (PLF) stood at 62.8 percent compared to 66.9 percent a year ago. Merchant and short-term sales volume rose 12.9 percent YoY to 5.7 BU.

Power Market Conditions

The early and extended monsoon period affected power demand across India, with energy demand rising only 3.2 percent YoY to 449.2 BU in Q2 FY26. Tariffs in the merchant market remained subdued due to these weather-related disruptions and a high base effect from last year’s heat wave–driven demand.

Business Updates

In Q2 FY26, APL secured multiple long-term power purchase agreements (PPAs), including 2,400 MW from Bihar, 1,600 MW from Madhya Pradesh, and 570 MW from Karnataka DISCOMs. Additionally, its subsidiary Vidarbha Industries Power Ltd. signed a 500 MW medium-term PPA with Maharashtra DISCOM effective November 2025.

Financial Position

APL maintained a strong balance sheet with total debt at Rs. 47,254 crore as of September 30, 2025, compared to Rs. 38,335 crore in March 2025, reflecting bridge financing for capex and working capital needs. The company fully redeemed Rs. 478 crore of Unsecured Perpetual Securities during the quarter, with none outstanding by September-end.

Management View

According to CEO S. B. Khyalia, Adani Power has delivered robust financial performance this quarter despite weather-driven demand fluctuations, reflecting strong operational efficiency. He highlighted the addition of 4.5 GW of new PPAs under the SHAKTI scheme and reaffirmed the company’s goal to expand capacity to 42 GW by FY32, supported by strong profitability, liquidity, and rapid progress on its 23.7 GW expansion plan.

About the company

Adani Power, India’s largest private thermal power producer and part of the Adani portfolio, has an installed capacity of 18,110 MW across twelve plants in eight states, plus a 40 MW solar unit in Gujarat. Backed by expert teams, it leverages technology and innovation to drive affordable, reliable power and national energy growth.

A return on equity (ROE) of about 26.1 percent, a return on capital employed (ROCE) of about 22.5 percent and debt to equity ratio of 0.70 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 25.3x higher as compared to its industry P/E 24.6x.  

Written By Akshay Sanghavi

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Adani Group stock in focus after company’s net profit decreases by 12% YoY appeared first on Trade Brains.