Adani Power Limited analyst Q&A

Thank you very much. We will now begin the question -and-answer session. The first question is on the line of Abhinav from ICICI Securities. Please go ahead.

Good evening, sir. Thanks for the opportunity. My first question is the company has given an order of about INR 65 billion to BHEL. What does it exactly entail given that all our equipments are already being tied up for the upcoming capacities?

Thank you for the question. As you know, there is huge demand of 80 GW of the thermal base power load and by 2032, this will increase from 80 GW to 95 GW, which is what we expect . We are currently in the evaluation phase, exploring various opportunities for expansion. All the plan s are ramped up and aligned with our strategic goal. We will share all the updates with concrete numbers in due course of time.

Understood, sir. Apart from this, have you given any other order to any other player related to the equipment?

Yes, as I said , we are currently evaluating all the options available and w e are evaluating these numbers, units, growth requirements in the country and how it will work out, and then definitely we will come up with all these numbers.

Understood. The second question is on the recently acquired Coastal, Lanco and Vidarbha assets. How have the operations been? Are you facing any challenges? What is the PLF? And for these three acquired assets, what is the EBITDA we can expect?

First is the technical part . With Lanco Amarkantak, we have very few challenges except a small issue related to ash disposal, which we are taking care of. The second is Coastal Energen. We have already done complete overhauling of one unit and after the complete overhauling, it is now at par with any other power station. We will be taking the other unit for complete overhauling in the current month and once that complete overhauling is done, it will again become at par with any other well maintained assets. It has taken some time because after the took over, we ha d to place the orders for the equipment, spares, etc. , and obviously, these eqipment are not of domestic make. So, it takes some time to get the spares and therefore, we had to take some time. But once this overhauling is done, there will not be any further challenge as regards to the Coastal Energen plant, and thereafter, we expect that it will have a full normal availability. So, Lanco Amarkantak is already addressed. The Coastal Energen plant will get addressed by the end of this month. Vidarbha was a challenge because the station was in shutdown condition from 2018. However, as soon as we took it over, and because we had done advance planning during the NCLT process where we were the highest bidder for a long time , now the machines are already properly overhauled, and they are good to give normal availability. So, there is no challenge as far as Vidarbha is concerned also. Thank you.

Sir, my final question is, what was the merchant realization in the 1st Quarter and merchant outlook for this year?

Our merchant realization for 1st Quarter was Rs.6.51 per kWh as against last year's same quarter, it was Rs.7.60.

So, merchant rates during the Q1 FY26 are obviously much lower than as compared to the same quarter last year because of weather conditions, which we mentioned in our initial remarks. As you are aware , this year monsoon has come in the month of May itself, and there were weather disturbances in the month of April also . So April- May-June entire quarter from the point of view of power demand was very sluggish. And since the monsoon has come early, we are of the view that the monsoon will be over early as well. Therefore, we think that the outlook of even the second quarter will be better than last year because of this reason, that is last year the monsoon was delayed and the impact of monsoon was in the second quarter, while in this year the impact of monsoon is more in the first quarter . So, second quarter onwards the demand shoul d pick up and we feel that there should be a good demand and consequently the merchant rates. Thank you.

Thank you, sir.

The next question is from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead.

Thank you. First question is just to understand with the recent ruling on FGD, does that change our CAPEX estimates outlook for the under-construction project?

After this notification has come , the power stations which are under planning and execution, where we have not started the execution of FGD, do not have a requirement of FGD now. So we will drop the FGD expenditure from those power plants. In two power stations, one at Mahan and another at Raipur, are in advanced stage of execution, and therefore, we will continue to execute the FGDs there. In rest of the power plants, we will not execute them, and to that extent, project cost will go down. However, it would not be appropriate to discuss the project numbers in detail or the bifurcation of the project cost. Thank you.

The other question was to understand on these upcoming tenders that you talked about, Bihar, Rajasthan, MP , Uttarakhand, which of these tenders have the requirement where the plant needs to be set up in the same state? Is that the case for all these tenders or -

In Bihar, the project is to be established in the Bihar itself. In case of Rajasthan also, the present tender condition is to construct the power plant in case of Rajasthan itself. As regards to MP, the power plant is to be constructed in the state of MP. In case of Uttarakhand, the project location is not specified. So, project can be anywhere in India. So, this is broadly the position of the tenders.

Okay, understood. What was the PLF for Godda during this quarter?

During the quarter, the PLF for Godda was 73%.

Those were my questions. Thank you.

The next question is from the line of Jainam Jain from ICICI Securities. Please go ahead.

Good evening, management. Thank you for the opportunity. S ir, my first question is, what is the revenue and EBITDA guidance for FY26?

Jainam, we have not provided any specific guidance for revenue or EBITDA. See, one thing is the revenue is a bit variable because the tariffs are linked to imported coal prices. Secondly, for the EBITDA also, we have not given any guidance , but what we have said is that our current business model and the tie-up structure actually give us very stable revenues and EBITDA mar gin. So, till the time our capacity expansion takes place, you can expect similar EBITDA margins as we have recorded in the last year.

Okay, sir. So, what is the status of pending validation s and final settlement of alternate coal compensation from Haryana discom and by when can we expect the closure for that?

The discussion is still ongoing and for the time being Haryana is making payment of 50% of the difference of bills which we are raising. And therefore, we are also accounting for only 50% of the amounts , which is what we are getting. Discussions are going on and we expect that the issue should get resolved soon.

Okay, sir. Sir, my last question is, what is the current total of regulatory receivables outstanding and what proportion is under dispute and what is in the process of realization?

There is hardly anything substantial pending now, except for small regulatory changes coming frequently, and therefore, we may be raising those issues or claims in regular course. But there is no claim now pending which can change the revenue or profitability substantially. Not very significant. Thank you.

Okay, sir. That addresses my question. Thank you so much and all the best.

Thank you. The next question is from the line of Nirav Shah from G eeCee Holdings. Please go ahead.

Yes. Good evening, sir. Thanks for the opportunity. Most questions have been answered. Just two remaining questions. One is, sir, we have repaid Rs.2 ,580-odd crores of unsecured perpetual securities. This is towards the principal. But any distribution that has been made in the first Quarter over and above this amount?

You rightly said, Nirav bhai, that Rs.2,579 crores we paid in principal. Apart from that, we also paid Rs.1,146 crores as distribution. Now, we have only Rs.478 crores pending as of 30th June, which we have paid in July. So, there is no pending so far as perpetual security is concerned.

Got it. And any further distribution made in July along with this or now it is almost done?

In July, we have paid balance amount of Rs.478 crores along with distribution. So, there is no outstanding including distribution. Nil.

Got it, sir. Great. And, sir, second question is, any target commissioning date for the Dhirauli mine, which is supposed to be in this year?

The production should start by September or October, somewhere. So, we are on time as per the plan which we gave earlier.

Great. Thanks, sir and wish you all the best.

The next question is from the line of Nidhi Shah from ICICI Securities Limited. Please go ahead.

Yes. Thank you so much for taking my question. So, my first question would be on the PPA that we recently signed with the UPPCL. So, could you please elaborate on the tariffs that we have signed with PPA and consequently about 100 megawatts of capacity in that plant which we have signed the PPA remain -- So, are we looking to sign that or are we looking to convert that for merchant purposes? And could you also talk to me a little more about where are we in the process of PPAs for the other upcoming capacities, are we looking to add further PPAs?

I think you can break down your question into smaller questions because we are not getting exactly what is your question.

So, first question was on the recently signed PPA with UPPCL. So, I wanted to know what was the tariff of that PPA. That was the first part of the question.

We have signed the PPA with UPPCL where the capacity charge is 3.73 and the total tariff is 5.39.

Alright. And the remaining 100 megawatts of capacity in that plant since the PPA was for 1 ,500 and the capacity is 1 ,600, are we looking to tie up that capacity as well?

No, that is the net capacity of the plant. When we say 1,500 MW, that is after auxiliary consumption. So, there is nothing left out.

Okay. And are there any other PPAs that could be signed in the near -term in the pipeline for our other upcoming projects?

we have already elaborated that the tenders of Rajasthan, Uttarakhand, Bihar, Madhya Pradesh are under progress. So, as soon as these bids are finalized, we hope that we should be in a better position to win these bids. Consequently, if we win, we will sign the PPAs.

Alright. And lastly, if we see the consolidated debt profile in the PPT, about Rs.6,000 to 7,000 crores of debt has increased this quarter for the existing entities while it has remained the same for the under-construction projects. So, I just wanted to know that this extra debt that we have taken on this quarter, what is the purpose of this debt?

Thank you for your question. On average, on an annual basis, our FFO is more than Rs.21,000 crores and then in the next five years, it will be more than Rs.1 lakh crore. Our CAPEX program is also of that amount in aggregate . So, we will generate sufficient cash flow, which will meet the requirements of our CAPEX plan. Over and above this, we will also generate additional cash flow s from the plan ts that are presently under construction. Recently, we took some interim br idge funding from banks, that is only to meet the requirement for interim requirement capital expenditures.

Alright. So, what can we expect the debt profile to look like going forward for the rest of the year? And are we expecting to take any further debt for the under-construction projects?

As of now, what we are anticipating that our internal accruals will be sufficient to meet our CAPEX requirement for the year.

Alright. Thank you so much.

Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Thank you so very much. If you have any question, you may please connect with Nishit bhai or me. We are always available to respond to you. Thanks a lot for your time and attention.

Thank you. On behalf of Adani Power Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.