Adani Power: 45 GW target, Rs 2 lakh crore capex plan among conference call highlights 

Adani Power has laid out an aggressive long-term expansion roadmap, raising its generation capacity target while reassuring investors that its massive investment programme will largely be funded through internal cash flows. During its latest earnings conference call, the company said it now aims to expand its installed power generation capacity to 45 GW by 2032 up from the earlier target of 42 GW, while also increasing its nuclear power ambition to 10 GW by 2035, subject to government policy approvals.

Bigger capacity expansion in focus

Adani Power has allocated over Rs 2 lakh crore in capital expenditure over the coming years to support its expansion.

Its capex guidance stands at:

FY27: Around Rs 23,000 crore

FY28: More than Rs 30,000 crore

FY29: Rs 33,000–35,000 crore

The Adani Power management also indicated that an additional 3 GW of thermal capacity is under evaluation, although this remains at the planning stage. Part of the expansion could come through increasing its stake in Jaiprakash Power Ventures (JPVL), where it currently holds an effective 24% interest.

Project pipeline remains on track

Several key projects are progressing as scheduled.

Korba Phase II (1,320 MW)is expected to be commissioned by December 2026.

Mahan Phase II (1,600 MW) is targeting its first unit in the first quarter of FY28.

Construction continues at Raipur Phase II and Raigarh Phase II, while work has begun on the greenfield Mirzapur (1,600 MW) project.

Long-term PPAs strengthen earnings visibility

Adani Power said 95% of its installed capacity is now tied to long-term power purchase agreements (PPAs), significantly reducing dependence on the volatile merchant power market.

In Q1: 

PPA sales volumes rose 30% to 25 billion units, helped by converting capacity at Butibori and Tuticorin into long-term contracts.

Merchant sales declined to 4.3 billion units from 5.8 billion units.

Average PPA realization increased 8% to Rs 5.93 per unit.

Merchant realization rose 13% to Rs 7.04 per unit.

Balance sheet remains comfortable

Adani Power reported:

Total debt: Rs 58,381 crore

Net debt: Rs 47,643 crore

Management said its net debt-to-EBITDA ratio is around two times and intends to keep leverage within the 2–3 times range despite the large expansion programme.

Importantly, Adani Power reiterated that its planned Rs 2 lakh crore-plus capex is expected to be financed primarily through internal accruals, reducing the need for significant external fundraising.

QIP approval is only an enabling resolution

The board has approved a proposal to seek shareholder approval for a Qualified Institutional Placement (QIP). However, management clarified that this is only an enabling resolution.

No decision has been taken regarding:

* The size of the fundraise
* The timing
* The use of proceeds

The company said it will consider raising equity only if funding requirements emerge and market conditions are favourable.

Bangladesh dues continue to improve

Adani Power said collections from the Bangladesh Power Development Board (BPDB) remain healthy.

Outstanding receivables stood at around $400 million during the first quarter, while monthly collections of approximately $100 million are expected to remain higher than monthly billing, helping reduce outstanding dues further.

Jaiprakash acquisition to add over time

Adani Power recently acquired:

A 24% stake in Jaiprakash Power Ventures (JPVL) 

An 11.49% stake in Prayagraj Power Generation

It also acquired an additional 180 MW power plant through the insolvency process.

Management said JPVL will be accounted for as an associate, meaning only its share of profits will be reflected in Adani Power's earnings. The newly acquired 180 MW plant is expected to become operational in about six months and is likely to begin contributing meaningfully from next year after securing a power purchase agreement.

Nuclear ambitions depend on policy

Adani Power has doubled its nuclear generation target to 10 GW by 2035, although execution depends on amendments to the Atomic Energy Act.

The company is evaluating both domestic and international technology partners and estimates that projects could take around five years from regulatory approval to become operational.