Adani Power Ltd Management Discussions

The global economy exhibited stability throughout 2025. It successfully navigated evolving trade policies alongside varied regional performances. Investments in technology helped offset the impact of new tariffs and policy shifts. Global inflation stabilised at 4.1%. Several countries achieved rates below initial market projections. This outcome created a more reliable cost base for international activities and forward planning.

World GDP grew by 3.4% over the year. Results differed across regions. Advanced economies expanded by 1.9%. The United States recorded 2.1% growth. This stemmed from technology investments and fiscal measures. The euro area advanced by 1.4%. Japan grew by 1.2%. Emerging markets achieved stronger results at 4.4%.

Real GDP Growth

Trade tensions eased following a US-China agreement. This pact reduced tariffs and removed export restrictions on electronic components and minerals. The United States also eliminated certain agricultural tariffs. Overall tariff rates remained comparable to previous levels. Policy uncertainties, while lower than their late-2025 peaks, stayed elevated compared to the prior year. Financial conditions proved supportive despite some market fluctuations. High-growth technology stocks outperformed the broader market. Global trade volumes remained stable. Strong technology exports from Asia contributed to this steadiness. Central banks addressed inflation through measured policy adjustments. These included interest rate reductions in the United States and the United Kingdom. Such actions helped sustain financial stability amid trade frictions and geopolitical challenges.

(Source: World Economic Outlook (IMF)

Impact of Ongoing Geopolitical Conflicts

The global economic environment remained under pressure during 2026 due to escalating geopolitical tensions and the continuation of major international conflicts. The outbreak of war in the Middle East during the year added fresh uncertainty to an already fragile global economy that was still adjusting to the long-term effects of the Russia-Ukraine conflict. These developments disrupted global trade flows, intensified volatility across commodity and energy markets, and increased concerns around inflation, supply chain stability, and economic growth.

The conflict in the Middle East significantly impacted global energy markets, particularly following disruptions and security concerns around the Strait of Hormuz, one of the worlds most critical energy transit corridors. The resulting uncertainty across key shipping and energy routes led to increased crude oil and natural gas prices, elevating input costs across multiple sectors including power generation, transportation, manufacturing, fertilizers, and logistics. Higher energy prices also contributed to increased costs of essential commodities and industrial raw materials, thereby exerting inflationary pressure across both developed and emerging economies.

The global economy also witnessed increased financial market volatility during the year as investors adopted a cautious approach amid heightened geopolitical risks. Financial conditions tightened across several markets, risk premiums increased, and currency fluctuations added pressure on import-dependent economies. Commodity-importing nations, particularly emerging and developing economies, remained vulnerable to elevated fuel and food prices alongside currency depreciation pressures.

At the same time, the prolonged impact of the Russia-Ukraine conflict continued to weigh on global manufacturing activity and energy-intensive industries, particularly across Europe. Persistently elevated energy prices and supply-side disruptions continued to affect industrial competitiveness, trade flows, and production economics across several regions. The cumulative impact of repeated geopolitical shocks has also heightened inflation sensitivity across economies, making policymakers increasingly cautious in balancing growth and price stability.

These developments collectively contributed to a moderation in global growth expectations and reinforced concerns around economic resilience, energy security, and supply chain diversification. For energy-intensive sectors such as power generation, the evolving geopolitical landscape has further highlighted the strategic importance of fuel security, operational flexibility, and resilient supply arrangements in managing long-term business sustainability.

Outlook

The global economy is projected to witness moderate growth in 2026 and 2027 amid heightened geopolitical uncertainty and evolving trade dynamics. According to the IMFs April 2026 World Economic Outlook, global growth is projected at 3.1% in 2026 and 3.2% in 2027 under the reference scenario, reflecting a downward revision from the pre-conflict outlook following the escalation of tensions in West Asia. The outlook remains shaped by elevated energy prices, supply chain disruptions, inflationary pressures, and tighter financial conditions arising from the ongoing geopolitical environment. Advanced economies are expected to grow by 1.8% in 2026, supported by resilient labour markets, technology investments, and selective fiscal support measures. The United States is projected to expand by 2.3%, aided by policy incentives and continued private sector activity, while the Eurozone is expected to record relatively moderate growth of 1.1% amid persistent energy and industrial challenges. Japans growth is projected at 0.7% following recent policy recalibrations and softer domestic demand conditions.

Emerging markets are expected to continue outperforming advanced economies despite external headwinds. China is projected to grow by 4.4% in 2026, supported by domestic stimulus measures and easing trade pressures, while India is expected to remain among the fastest-growing major economies, driven by resilient domestic demand, infrastructure investments, and manufacturing expansion. Headline inflation rises to 4.4% in 2026 and then dips to 3.7% in 2027. Advanced economies approach targets gradually. The United States lags slightly in this regard. Policy rates trend downward in the United States and the United Kingdom. They hold steady in the euro area and inch up in Japan. World trade growth moderates to 2.6% in 2026 due to tariff realignments. Technology exports continue to lend vital support.

(Source: World Economic Outlook (IMF)

The Indian economy exhibited resilience in FY 2025-26 amid global trade uncertainties and market fluctuations. The Second Advance Estimates indicate real GDP growth of 7.6% alongside Gross Value Added at 7.7%. These figures underscore the strength of a domestic demand-led growth trajectory. Robust agricultural performance bolstered rural earnings. Urban consumption gained momentum from stable jobs and easing inflation.

FRE = First Revised Estimates;

SAE = Second Advance Estimates; P = Projections (Source: PIB (SAE), PIB (FAE), MoSPI)

India remains among the fastest-growing major economies globally, backed by resilient domestic demand, active investment, and ongoing structural reforms. It is important to note that the latest estimates place India as the sixth-largest economy in the world with a nominal GDP of approximately USD 4.15 trillion in 2026, rather than the fourth-largest as previously stated. Despite this, the nation is expected to sustain its growth momentum and could improve its global ranking over the medium term as expansion continues.

Private consumption continues as the key engine. Lower inflation and rising real wages fuel this momentum. Public capital expenditure reached Rs. 12.2 lakh crore. Such outlays advanced infrastructure and stimulated sectors like manufacturing, construction, and energy. Initiatives such as Viksit Bharat 2047 advance self-reliance and capacity enhancement despite external headwinds. Average headline Consumer Price Index (CPI) inflation recorded a historic low of 1.7% during the first nine months of FY 2025-26, supporting domestic purchasing power through sustained price stability. Due to the global distress, the Ministry of Statistics and Program

Implementation (MoSPI) finalised the inflation rate at

3.4% (as of March 2026), anchored by prudent government spending and steady bank credit expansion. The banking system shows fortitude with ample capital buffers and

POWER GENERATION CAPACITY ADDED
FY26	52,537 MW
FY25	34,054 MW

minimal non-performing assets. Foreign exchange reserves surpass USD 700 billion. These reserves equip India to navigate international turbulence.

The Union Budget 2026-27 reinforces commitment to balanced growth and fiscalprudence. Emphasis persists on infrastructure and manufacturing investments. This aligns with aspirations for a developed India. Priorities include energy transition, digital progress, and aid for small and medium enterprises. Steps to streamline regulations and expand credit access promise to lift industrial output and lay the groundwork for enduring expansion.

(Source: PIB, MoSPI)

Outlook

The outlook for the Indian economy remains positive and stable, with real GDP growth for FY 2026-27 projected between 6.8% and 7.2%. These estimates reflect Indias ability to sustain strong growth momentum despite prevailing global uncertainties. However, geopolitical tensions in West Asia and fluctuations in global crude oil prices may continue to exert pressure on the Indian Rupee and external balances in the near term. Nevertheless, supported by resilient foreign exchange reserves, stable domestic demand, and prudent policy measures, India remains well-positioned to manage external volatility while maintaining macroeconomic stability.

Government spending on infrastructure will continue to provide solid support. Private sector investments keep rising steadily. Policy measures and capacity building further reinforce the manufacturing base. The services sector holds its reliable growth path. Digital progress and resilient exports lend additional strength.

India continued to strengthen its position as the worlds third-largest power sector during FY 2025-26, supported by large-scale infrastructure development and rising energy demand across the country. The sector is witnessing a steady transition towards a more diversified and sustainable power mix, with renewable energy contributing nearly 40% of the total installed capacity. While coal continues to remain the primary source for baseload power generation, strong growth in solar and wind energy capacity has further improved Indias standing among the leading renewable energy markets globally. Indias power sector supports economic growth with total electricity generation exceeding 1,846 TWh in FY 2025-26, driven by rising demand from urbanisation, industry, and electrification. Installed capacity reached 5,05,023

MW as of October 31, 2025, with non-fossil sources at 2,59,423 MW, including 2,50,643 MW from renewables. The sector is set to attract investments worth Rs. 40 lakh crore over the next decade. These funds will support capacity addition and grid upgrades across the industry.

(Source: PIB, Enerdata)

Power Generation Capacity

Indias total installed power generation capacity reached 532.74 GW as of March 2026, supported by the addition of 57.5 GW MW during FY 2025-26 up to March 31, 2026. Renewable energy (excluding Large Hydro) continued to account for a major share of enw capacity additions, contributing 50.9 GW of new capacity during the year. Total power generation stood at 1,846 TWh during FY 2025-26 up to March 31, 2026, of which non-fossil fuel sources contributed 539 TWh, representing 29.2% of total generation. During the year, the sector successfully managed a peak power demand of 242.49 GW. A key milestone was achieved on July 29, 2025, when renewable energy sources met 51.5% of electricity demand on a peak demand day of 203 GW.

Supported by investments amounting to Rs. 1.85 lakh crore, the sector significantly reduced the national energy shortage to 0.03% compared with 4.2% in FY 2013-14. Continued infrastructure development also supported electrification initiatives across the country, including the electrificationof 18,374 villages and the provision of power connections to 2.86 crore households.

Reduction in Power Shortage
FY14	4.2%
FY26	0.03%

Source - Ministry of Power

India continues to focus on long-term energy transition and decarbonisation initiatives, with a target of achieving 500 GW of renewable energy capacity by 2030. The ongoing expansion in renewable energy infrastructure is expected to strengthen domestic energy security and support the countrys clean energy objectives.

(Source: PIB, EnerData)

Transmission and Distribution

Indias transmission and distribution sector continues to play a critical role in connecting power generation sources with end consumers across the countrys diverse geographical regions and population centres. The sector has emerged as a key pillar supporting the expansion of Indias power capacity, which reached 520.51 GW in 2026. The national transmission network comprises nearly 5 lakh circuit kilometres ("ckm") of transmission lines at 220 kV and above, along with interstate transmission capacity of

1,407 gigavolt amperes ("GVA"), enabling efficient transfer and grid connectivity across regions.

Transmission

During FY 2025-26, the Central Electricity Authority ("CEA") recorded the addition of 8,830 ckm of transmission lines across multiple voltage levels. This included 2,158 ckm at 765 kV and 4,500 ckm at 400 kV, with the remaining additions undertaken at the 220 kV level. However, the overall addition remained below the planned target of 15,253 ckm, indicating delays in execution under the national grid expansion programme.

The year also witnessed continued progress under the Green Energy Corridors ("GEC") initiative, which focuses on facilitating the evacuation and integration of renewable energy into the national grid. Approximately, 14,500 ckm of dedicated transmission lines have been commissioned under the initiative to support large-scale solar and wind energy integration across regions.

Under the National Electricity Plan, investments amounting to Rs. 9.15 lakh crore are proposed through 2032 for the development of nearly 1,05,000 ckm of transmission lines and 5,95,000 MVA of transformation capacity. The planned infrastructure expansion aims to support the peak power demand of 458 GW and facilitate the evacuation of 500 GW of non-fossil fuel capacity by 2030. Increased adoption of tariff-based competitive bidding and High Voltage Direct Current ("HVDC") technology is also expected to support execution efficiency and strengthen transmission infrastructure to meet the countrys growing power demand.

(Source: T&D India, PIB)

Distribution

Indias power distribution sector witnessed a significant financial turnaround during FY 2024-25, with distribution companies ("DISCOMs") reporting an aggregate profit after tax of Rs. 2,701 crore. This marked a notable recovery from the substantial losses recorded by the sector over the past decade. Financial improvement was further supported by a reduction in outstanding government dues, which declined to Rs. 4,109 crore by January 2026, reflecting improved liquidity and financial discipline across the sector.

The Revamped Distribution Sector Scheme ("RDSS") continued to support operational modernisation through the deployment of prepaid smart meters and distribution transformer ("DT") meters across the network. The programme contributed to a reduction in Aggregate Technical and Commercial ("AT&C") losses to 16.16% and narrowed the Average Cost of Supply and Aggregate Revenuepower Realised ("ACS ARR") gap to Rs. 0.11 per kWh. Increased adoption of smart metering infrastructure has also strengthened billing efficiency and monitoring capabilities across distribution networks.

The RDSS, with an overall allocation of Rs. 3.03 lakh crore, continues to focus on improving last-mile connectivity, strengthening rural electrification infrastructure, and reducing AT&C losses further towards the targeted range of 12% to 15%. The programme remains important for improving power accessibility and service reliability across underserved regions.

In addition, the Electricity Amendment Bill 2026 and the RDSS framework are expected to support operational efficiency, greater competition, and wider consumer choice within the distribution segment. Supported by continued infrastructure improvements, the sector successfully met a peak power demand of 242.49 GW during FY 2025-26, while the national energy shortage declined to 0.03%.

(Source: PIB, Solar Quarter)

Coal Demand and Supply

Indias installed power generation capacity expanded reliably through FY 2025-26, with coal remaining the bedrock of the countrys base load power architecture. Highlighting a landmark shift toward domestic energy self-reliance, captive and commercial coal mining reached an unprecedented milestone by collectively crossing the

200 Million Tonnes (MT) threshold for the first time.

As of March 31, 2026, annual coal production from these specific blocks surged to 210.46 MT, registering a notable YoY growth of 10.22% over the 190.95 MT achieved in the previous fiscal year. Simultaneously, coal despatches scaled up by 7.35% to reach 204.61 MT, driven by optimised logistics, accelerated mine operationalisation, and streamlined evacuation infrastructure. This record-breaking domestic supply momentum significantly bolsters resource security for thermal power plants, mitigating import dependency and stabilising the fuel supply chain required to satisfy Indias escalating peak power demands.

(Source: PIB)

Outlook

The Indian power sector is entering a transformative phase characterised by heavy demand and a rapid structural shift towards a cleaner, technology-driven energy mix. Between FY 2024-25 and FY 2029-30, power demand is projected to grow at a CAGR of 4-6%, reaching a base demand of 2,473 BUs by 2032. This growth is intensified by a sharper rise in peak demand, forecasted at a CAGR of 6-8%, which is expected to hit 388 GW by 2032. Key drivers include rapid urbanisation, increasing appliance usage and growing air conditioner penetration (set to reach 17-19% by 2030), growth in the manufacturing sector, etc. Furthermore, emerging sectors such as Electric Vehicles (30% adoption target by 2030), AI-focussed Data Centers etc., are creating significant new load requirements.

To meet this surging demand, Indias total installed capacity is poised to reach 900 GW by 2032, with a decisive tilt toward non-fossil sources. Renewable energy (excluding hydro) is expected to account for over 50% of the capacity mix by 2030. A landmark shift is underway in the nuclear sector following the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, which opened the industry to private participation and Small Modular Reactors (SMRs). With these reforms, the government now targets 100 GW of nuclear capacity by 2047. Despite the aggressive renewable push, coal remains the backbone of Indias baseload power. The strategy involves adding 97 GW of coal-based capacity by 2032, utilising high-efficiency Ultra-Supercritical technologies.

Thermal plants are increasingly transitioning to flexible operations to manage peak demand, with coal expected to maintain a 48–53% share of total generation by 2030. Domestic coal production remains a priority, with improved availability through SHAKTI policy linkages significantly reducing the reliance on blending imports.

This expansion is backed by a massive capital expenditure of Rs. 33-37 lakh crore between FY 2025-26 and FY 2029-30. Investment is split heavily between generation and a modern Transmission and Distribution (T&D) framework. Approximately, Rs. 4-5 lakh crore is earmarked for grid integration of large-scale renewables, while an equal amount will be spent on distribution upgrades and smart meters. These efficiency gains, supported by the Revamped Distribution Sector Scheme, aim to bring AT&C losses down to 12–15%, further optimising the national power balance.

(Source: Crisil Intelligence Report)

Indias largest private thermal power producer, Adani Power Limited (referred to as ‘APL or ‘the Company), forms an essential element of the Adani Groups wide-ranging business interests. The Company generates power through thermal plants totalling 18,110 MW spread across eight states. These include Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu. A 40 MW solar facility in Gujarat provides additional capacity.

APL is expanding its generation capacity by 23,720 MW to achieve a total generation capacity of 41,870 MW by FY 2031-32.

Holding structure and geographic spread		Operating Capacity	Locked in Capacity	Target Capacity
Adani Power Limited	Mundra (GJ)	4,620 MW		4,620 MW
	Bitta (GJ)	40 MWp		40 MW
	Tiroda (MH)	3,300 MW		3,300 MW
	Dahanu (MH)	500 MW		500 MW
	Kawai (RJ)	1,320 MW	3,200 MW	4,520 MW
	Udupi (KA)	1,200 MW		1,200 MW
	Raipur (CG)	1,370 MW	1,600 MW	2,970 MW
	Raigarh (CG)	600 MW	3,200 MW	3,800 MW
	Godda (JH)	1,600 MW		1,600 MW
	Pirpainti (BH)		2,400 MW	2,400 MW
	Chapar (AS)		3,200 MW	3,200 MW
Mahan Energen Limited*	Mahan (MP)	1,200 MW	3,200 MW	4,400 MW
Korba Power Limited*	Korba (CG)	600 MW	2,920 MW	3,520 MW
Moxie Power Generation Limited*	Mutiara (TN)	1,200 MW		1,200 MW
Anuppur Thermal Energy (MP) Private Limited*	Anuppur (MP)		2,400 MW	2,400 MW

 

Holding structure and geographic spread		Operating Capacity	Locked in Capacity	Target Capacity
Vidarbha Industries Power Limited*	Butibori (MH)	600 MW		600 MW
Mirzapur Thermal Energy (UP) Private Limited*	Mirzapur (UP)		1,600 MW	1,600 MW
	Total Capacity	18,150 MW	23,720 MW	41,870 MW

* subsidiaries of APL

APLs rapid growth has occurred through a balanced mix of organic development and targeted acquisitions. The Company has built 10,840 MW organically and secured 7,310 MW externally.

The Companys operations have weathered recent power sector difficulties through measured decision-making, consistent execution, and strict financial oversight. Advanced technological solutions and practices have consistently raised industry benchmarks.

Sustainability remains central to APLs expansion plans alongside capacity growth. External validation includes a 68-percentile ranking in the S&P Global DJSI Corporate Sustainability Assessment. ESG disclosures reached 95%, exceeding the utility sector average of 42%. These results earned shortlisting for the WDI Award and "Most Improved" recognition.

A completed Double Materiality assessment further strengthens the Companys ability to address both impact-related and financial ESG factors. Such progress highlights APLs focus on elevating environmental, social, and governance standards.

Significant highlights in FY 2025-26

Strategic Acquisitions/Divestments

The Company acquired Vidarbha Industries Power Limited ("VIPL"), a company undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, following the approval of its Resolution Plan by the Honble National Company Law Tribunal ("NCLT"), Mumbai Bench. VIPL owns and operates a 2x300 MW (600 MW) thermal power plant located in the MIDC Industrial Area, Butibori, Nagpur, Maharashtra. The cost of acquisition was Rs. 4,000 crore in the form of an upfront cash payment to the lenders of VIPL. The acquisition of VIPL advances APLs position as Indias leading private sector power producer, with a combined operating power generation capacity of 18,150 MW. The Company has expressed interest in acting as an "Implementing Entity" for acquiring certain power assets and investments of Jaiprakash Associates Limited ("JAL"), subject to necessary approvals, as part of a Resolution Plan submitted by its associate concern Adani Enterprises

Limited under the ongoing CIRP of JAL under the IBC and which has been approved by the Honble NCLT, Allahabad Bench, Prayagraj.

This proposed acquisition will help the Company further strengthen and advance its leadership position in the Indian power sector.

Expansion (Brownfield and Greenfield) Projects:

The Company is undertaking a major expansion of the thermal power generation capacity of itself and its subsidiaries by developing projects with a combined capacity of 23,720 MW. This capacity expansion, which is planned to be completed by FY 2031-32, will take its combined power generation capacity to 41,870 MW. As a part of this expansion programme, the Company is developing 13 projects utilising the latest available technology, comprising 28 Units of 800 MW capacity employing Ultra-supercritical technology and two Units of 660 MW capacity employing Supercritical technology. Of this, projects comprising 14,120 MW capacity are coming up at brownfield sites, while the remaining 9,600 MW projects are coming up at greenfield sites.

The Company possess 100% of the land required for setting up these projects. It has also given advance orders to key equipment suppliers for the supply of the Ultra-supercritical Boilers, Turbines, and Generators for its entire expansion programme. Further, it has also tied up 13,320 MW of the upcoming capacity under long-term Power Supply Agreements ("PSAs") with various State DISCOMs.

Of these, the following long-term PSAs were signed during the current year:

PSA with Assam Power Distribution Company Limited ("APDCL") for supply of power on a long-term basis, comprising the entire capacity of a 3,200

MW (4X800 MW) greenfield Ultra-Supercritical

Thermal Power Plant ("USCTPP") to be developed in Assam on Design, Build, Finance, Own and Operate ("DBFOO") model by sourcing fuel from the allocated coal linkage arranged by the Utility under the SHAKTI Policy

PSA with Bihar State Power Generation Company Limited ("BSPGCL") for long-term procurement of electricityonbehalfofNorthBiharPowerDistribution Company Ltd. ("NBPDCL") and South Bihar Power Distribution Company Ltd. ("SBPDCL"), from a

2,400 MW (3X800 MW) greenfield USCTPP to be set up at Village Pirpainti, Dist. Bhagalpur, Bihar, on the DBFOO model by sourcing fuel from the allocated coal linkage arranged by the Utility under the SHAKTI Policy

PSA with Uttar Pradesh Power Corporation Limited ("UPPCL") for supply of 1,500 MW (Net) power on Design, Build, Finance, Own, and Operate (DBFOO) basis from a new USCTPP of 1,600 MW installed capacity situated in the State of Uttar Pradesh for a period of 25 years, which will be supplied from the upcoming greenfield 2x800 MW (1,600 MW)

USCTPP at Mirzapur, Uttar Pradesh

PSA with MP Power Management Company Limited ("MPPMCL") for supply of 1,600 MW (Gross) power from a new 2x800 MW (1,600 MW) USCTPP to be set up in Anuppur District of Madhya Pradesh on DBFOO model by sourcing fuel from the allocated coal linkage arranged by the Utility under the SHAKTI Policy

In addition to the above, the Company has also received a Letter of Allocation ("LOA") from the Maharashtra State Electricity Distribution Company Ltd. ("MSEDCL") for supply of 1,600 MW Thermal Power under a long-term PSA, upon APL being declared as the successful bidder in terms of the tender invited and issued from MSEDCL

Similarly, the Company has received a LOA MSEDCL for supply of 2,500 MW RE RTC ("Renewable Energy Round-The-Clock") power for a period of 25 years As of March 31, 2026, the Company has four projects under execution comprising the 2x800 MW (1,600 MW) Mahan Phase-II USCTPP of Mahan Energen Limited, 2x800 MW (1,600 MW) Phase-II expansion USCTPPs each at the Raipur and Raigarh plant, and the 2x660 MW (1,320 MW) Supercritical power project of Korba Power Limited. All these projects are progressing in line with the execution schedule.

Subsidiaries, Joint Ventures, and Associate Companies

During the year under review, three entities were formed or acquired by the Company, or its subsidiaries:

Vidarbha Industries Power Limited (acquired)

Wangchhu Hydroelectric Power Limited (Incorporated in Bhutan as JV)

Adani Atomic Energy Limited (incorporated as a subsidiary) During the year under review, the following entity ceased to be a subsidiary of your Company due to amalgamation with Adani Power Limited:

Adani Power (Jharkhand) Limited (w.e.f. April 4, 2025).

Equity Share Split

The Company undertook Sub-division / split of the existing equity shares of the Company in a 1:5 ratio such that equity shares with face value of Rs. 10/- each were sub-divided / split into 5 (five) equity shares having face value of Rs. 2/- each, with record date of September 22, 2025.

APL maintains significant prioritising sustainable practices. This analysis illuminates the Companys internal strengths and areas for improvement. It also examines external opportunities and challenges within Indias evolving power sector.

Strengths

Leading private thermal power capacity: APL maintains its position as Indias largest private thermal power producer. The Company operates over 18 GW of capacity located strategically across multiple states. This scale creates competitive advantages in the energy sector.

Advanced supercritical technology portfolio: The Companys current fleet of power plants includes 60% ultra-supercritical and supercritical units by capacity. These technologies require less fuel per unit of electricity and emit lower levels of carbon. All planned new plants will adopt ultra-supercritical design to maintain environmental efficiency.

Optimal plant site selection: Power plants benefit from locations near coal sources and port facilities. This arrangement lowers transportation expenses and supports smooth operations. Mundra plant operations gain direct advantage from proximity to Adani Port infrastructure.

Vertical integration within Adani Group:

The Company accesses integrated operations across coal mining, port handling, and electricity generation. Group coordination reduces exposure to external supply chain disruptions.

Cleaner fuel transition initiatives: APL advances carbon reduction through practical projects.

Mundra plant have run a pilot test for co-firing of 20% green ammonia with coal for a 330 MW unit. Kawai facility utilises biomass pellets. These measures support national energy transition objectives.

Weaknesses

Heavy reliance on thermal generation:

The Companys capacity depends almost entirely on thermal power plants. This creates exposure to stricter environmental rules, uncertain coal supply, and fluctuating imported fuel prices.

Regulatory and tariff pressures: APL encounters tariff disagreements and approval delays. Issues include coal linkage approvals and recovery of alternative coal costs. These factors affect profitability and cash generation.

Opportunities generation capacity while

New thermal capacity requirement in India:

Government plans target 500 GW of non-fossil fuel capacity by 2030. At the same time, peak demand growth means renewable sources alone are unlikely to meet requirements. Revised estimates now indicate a need for about 97 GW of additional thermal capacity to meet 388 GW of projected peak demand, with a large share expected from private players. The Company has already lined up a 23.7 GW project pipeline to address this opportunity.

Rising electricity demand: Urban growth and industrial expansion in India are expected to drive electricity consumption at about 6% CAGR up to 2032. This creates room for further capacity addition and higher asset utilisation.

Cross-border power sales: A recent power supply arrangement with Bangladesh shows the Companys intent to serve demand in neighbouring markets. Such tie-ups help diversify revenue and reduce dependence on a single geography.

Technology-led efficiency gains: Ongoing and planned investments in supercritical and ultra-supercritical units help lower emissions and improve fuel efficiency. This supports compliance with global ESG expectations and strengthens the Companys positioning with stakeholders.

Threats

Tighter environmental rules: Indias Paris Agreement obligations increase regulatory focus on carbon emissions. Thermal power plants face growing compliance costs that could raise APLs operating expenses.

Renewable energy competition: Other players rapidly expand solar and wind capacity. This challenges APLs position in both long-term and short-term power supply contracts.

Group-level reputation concerns: Scrutiny over Adani Group governance matters may impact investor sentiment. This could complicate capital raising for new projects.

(Rs. in crore)

Particulars	FY 2025-26	FY 2024-25	Change +/-
Continuing Revenue from Operations (1)	53,781	54,503	(1.32%)
Continuing Other Income (2)	1,801	1,970	(8.57%)
Total Continuing Revenue	55,583	56,473	(1.58%)
Total Reported Revenue	57,865	58,906	(1.77%)
Continuing EBITDA (3)	21,285	21,575	(1.34%)
Reported EBITDA	23,431	24,008	(2.40%)
Continuing Profit Before Tax	13,354	13,926	(4.11%)
Reported Profit Before Tax	15,500	16,360	(5.26%)
Tax Charge / (Credit)	2,528	3,610	(29.96%)
Profit After Tax	12,971	12,750	1.74%

(1), (2), (3): Continuing Operating Revenues and Continuing Other Income exclude prior period income recognition. Continuing EBITDA excludes prior period income and expenses EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortisation

In FY 2025-26, the Companys consolidated total income stood at Rs. 57,865 crore as against Rs. 58,906 crore recorded in FY 2024-25. Consolidated continuing revenues from operations decline by 1.32% at Rs. 53,781 crore compared to Rs. 54,503 crore in the previous year. This marginal decline is primarily on account of lower merchant rates, lower tariff realisation and lower volumes partly offset by capacity expansion.

Total income for the year included Rs. 2,283 crore of prior period revenue recognition, against Rs. 2,433 crore in FY 2024-25. These items pertain to income recognition following resolution of various regulatory matters pertaining to Change-in-law and changes in taxes and duties, along with carrying costs on such regulatory receivables, as well as late payment surcharges payable by the customers on account of delay in payment of such receivables.

Consolidated continuing EBITDA declined by 1.34% to Rs. 21,285 crore in FY 2025-26 from Rs. 21,575 crore in FY 2024-25 on account of lower merchant and PPA contribution partly offset by EBITDA on account of acquisitions. Reported EBITDA declined by 2.4% to

23,431 crore against Rs. 24,008 crore in the prior year. The Company has been able to keep fuel costs under control, which has helped keep EBITDA stable despite higher operating expenses due to growth in operating capacity and increased expenditure on Corporate Social Responsibility.

Depreciation increased to Rs. 4,565 crore in FY 2025-26 from Rs. 4,309 crore in FY 2024-25. The rise mainly reflected newly acquired power plants.

Finance costs for FY 2025-26 totalled Rs. 3,367 crore against Rs. 3,340 crore in FY 2024-25.

Continuing Profit Before Tax stood at Rs. 13,354 crore in FY 2025-26, compared to Rs. 13,926 crore in the previous year. Profit After Tax was 12,971 crore, up from Rs. 12,750 crore in FY 2024-25.

Total Comprehensive Income reached Rs. 12,991 crore for FY 2025-26 against Rs. 12,747 crore in FY 2024-25

Performance of Subsidiaries

Mahan Energen Limited (MEL)

Operational Performance of MEL

MEL achieved a Plant Load Factor (PLF) of 77% in FY 2025-26 as compared to 79% in FY 2024-25, while total power sales volume for the two years was 7,864 million units (MU) as compared to 7,911 MU, respectively. Power sales under Power Purchase Agreements (PPAs) increased to 2,943 MU in FY 2025-26 as compared to 2,280 MU in FY 2024-25, while the merchant sales volumes in the two periods were 4,921 MU and 5,631 MU, respectively.

Financial Performance of MEL

Total Income for FY 2025-26 was Rs. 3,614 crore, compared to Rs. 4,220 crore in FY 2024-25. The reduction was due to lower realisation of merchant tariffs in FY 2025-26 as compared to the previous year.

EBITDA for FY 2025-26 was lower at Rs. 1,599 crore, compared to Rs. 1,893 crore in the corresponding period of the previous year, on account of lower merchant realisation and lower other income.

Finance Costs decreased to Rs. 340 crore in FY 2025-26 from Rs. 441 crore in FY 2024-25.

Profit Before Tax for FY 2025-26 was Rs. 983 crore as compared to Rs. 1,182 crore for FY 2024-25 in line with the EBITDA trend. Profit After Tax for FY 2025-26 was significantly higher at Rs. 784 crore, compared to Rs. 374 crore in FY 2024-25 on account of lower deferred tax charge in FY 2025-26.

Korba Power Limited (KPL)

Operational Performance of KPL

The acquisition of KPL (erstwhile Lanco Amarkantak Power Limited) was completed by APL on September 6, 2024. During FY 2025-26, KPL achieved a PLF of 79%, as compared to 88% PLF achieved for the seven months ended March 31, 2025. Power sales during the two periods were 3,766 MU and 2,423 MU, respectively.

Financial Performance of KPL

Total Income for FY 2025-26 was Rs. 1,552 crore, compared to Rs. 742 crore in the seven-month period ended March 31, 2025. EBITDA for FY 2025-26 was Rs. 602 crore, compared to

187 crore in the seven months ended March 31, 2025.

Finance Costs for FY 2025-26 were Rs. 132 crore as compared to Rs. 94 crore in the seven months ended March 31, 2025.

ProfitBefore Tax and after Exceptional Items for FY

2025-26 was Rs. 405 crore as compared to Rs. 81 crore for the seven months ended March 31, 2025. The Profit After

Tax for FY 2025-26 was Rs. 354 crore, compared to a loss of Rs. 64 crore in FY 2024-25.

Moxie Power Generation Limited (MPGL)

Operational Performance of MPGL

The acquisition of Coastal Energen Private Limited and the amalgamation with MPGL were completed on

August 31 2024. During FY 2025-26, MPGL achieved a PLF of 48% as compared to 43% PLF achieved for the seven-month period ended March 31, 2025. Power sales during the two periods were 5,255 MU and 2,765 MU, respectively, out of which, power sales under PPA were 3,525 MU in FY 2025-26 as compared to 1,952 MU in the seven months ended March 31, 2025, while the merchant sales volumes in the two periods were 1,730 MU and 813 MU, respectively.

Financial Performance of MPGL

Total Income for FY 2025-26 was Rs. 2,985 crore as compared to Rs. 1,587 crore for the seven-month ended March 31, 2025. EBITDA for FY 2025-26 was Rs. 426 crore as compared to an operating loss of Rs. 127 crore for the seven-month ended March 31, 2025. Finance cost for FY 2025-26 was Rs. 271 crore as compared to Rs. 149 crore for the seven-month ended March 31, 2025.

Profit after tax for FY 2025-26 was 268 crore as compared to a loss of Rs. 371 crore for the seven-month ended March 31, 2025.

Vidarbha Industries Power Limited (VIPL)

Operational Performance of VIPL

The acquisition of VIPL was completed by APL on July 7, 2025. VIPL achieved a PLF of 59% for the nine-month period ended March 31, 2026, and registered a power sales volume of 2,349 MU, which comprised 1,669 MU sold under PPAs and 682 MU sold in the merchant market.

Financial Performance of VIPL

Total Income for the nine-month period ended March 31, 2026 was Rs. 1,243 crore. EBITDA for this period was Rs. 470 crore.

Profit after tax for the nine-month period ended March 31,

2026 was Rs. 552 crore.

Adani Power Consolidated Ratios	FY 2025-26	FY 2024-25
Debtor Turnover Ratio (in Times)	4.41	4.56
(Revenue from Operations + Carrying Cost) / (Average Trade Receivables)
Inventory Turnover Ratio (in Times)	11.51	10.29
Fuel Cost / Average Fuel Inventory
Interest Service Coverage Ratio (in Times)	6.85	8.61
EBITDA / Interest Expense
Current Ratio (in Times)	1.41	1.60
Current Assets to Current Liabilities
Debt Equity Ratio (in Times)	0.81	0.66
Total Borrowings / Total Equity
Operating Margin (%)	37.06%	38.06%
(EBITDA excluding Other Income + Carrying Cost)/ (Revenue from
Operations + Carrying Cost)
PAT Margin (%)	22.42%	21.64%
PAT to Total Revenue
Return on Net Worth	19.53%	22.10%
PAT / Net Worth

Explanation for change in Return on Net Worth (RONW):

The RONW of the Company changed from 22.1% for FY 2024-25 to 19.53% for FY 2025-26 due to increase in Total Equity from Rs. 57,674 Crores as of March 31, 2025 to Rs. 66,402 Crores as of March 31, 2026, as more particularly explained in Note 22 to the Consolidated Financial Results for FY 2025-26.

APL is positioned as a leading baseload power provider with long-term visibility on demand and growth. The Company benefits from structural advantages across fuel security, asset quality, execution and capital structure, which together support its future roadmap.

Coal-backedbaseloadadvantage:Indiasdomesticcoal endowment and supportive policy framework provide a stable foundation for baseload thermal generation. This helps shield the Companys portfolio from global fuel price swings and geopolitical disruptions, while supporting energy security for the grid.

Scale and diversified asset base: APL operates Indias largest private thermal portfolio with sizeable capacity spread across multiple states, supplemented by acquired and turnaround assets. This scale creates operating leverage, procurement benefits and meaningful efficiencies across maintenance, staffing and logistics.

High operational reliability: Consistently high plant availability has been sustained over many years, supported by a strong digital focus and deep in-house operating experience. The Companys coal sourcing and end-to-end logistics capabilities further reinforce reliable generation and sector-leading profitability in thermal power.

Secured growth pipeline: Land and equipment for a substantial capacity build-out are already tied up, enabling the timely execution of committed projects. A brownfield-weighted expansion mix, driven by an experienced execution engine and project assurance framework, supports faster roll-out and disciplined capital deployment.

Large addressable market with policy support:

Indias growing baseload and peak demand, along with an estimated requirement for sizeable new thermal capacity by 2032, create a long runway for growth. APL is well placed to participate in this expansion, aided by long-term contracts that offer availability-based, two-part tariff structures and assured fuel linkages.

Strong and flexible capital position: An effectively unlevered capital structure at the standalone level and healthy liquidity give the Company meaningful financial flexibility. A large part of the expansion programme is expected to be supported by internal accruals, underpinning a well-funded growth plan without over-stretching the balance sheet.

The Board has approved a Risk Management Policy in line with the SEBI Listing Regulations, which guides how risks are monitored and addressed. To implement this policy, we have put in place a structured Enterprise Risk Management framework to identify, assess and manage key operational and strategic risks. The framework is based on international standards and supports the Companys focus on sustainable value creation and provides an integrated way of dealing with risks across the organisation.

Regular risk assessments form part of the risk management activities and are carried out across key functions.

Risk identification, evaluation and mitigation are treated as ongoing activities rather than one-time exercises.

The outcomes are reviewed at defined intervals by the

Risk Management Committee of the Board, enabling continuous oversight and timely action where required. The Risk Management Committee receives periodic updates on material risks and on mitigation steps taken, with the objective of reducing or, where possible, removing the impact of such risks.

Additional information on the risk governance structure and processes is presented in the Risk Governance section under the Strategic Review section of this Integrated Report.

APL places people at the core of its business model, recognising employees as a critical form of capital and a key source of long-term competitive advantage. The organisation is focussed on building a capable, engaged and future-ready workforce through structured development, robust safety practices and a strong leadership pipeline.

People as strategic capital

Employees are regarded as the foundation of the Companys success, with clear emphasis on enhancing skills, knowledge and productivity

A relatively young workforce, with an average age of 38 years, combines energy and enthusiasm with relevant industry experience to support execution excellence

Safety and well-being focus

Employee safety and well-being remain paramount, reflected in initiatives such as the ‘Chetna programme that equips employees with the awareness and skills needed to maintain a safe work environment

Safety continues to act as a core organisational value, guiding behaviour and reinforcing a culture of care across sites and offices

Digitally-enabled people practices

APL has deployed the Oracle Fusion Digital HR platform to streamline the entire employee lifecycle, from onboarding and learning to performance management

Integrated learning modules and real-time performance appraisals on this platform enable more efficient, transparent and standardised HR processes

Capability building and engagement

Skill assessment and development are embedded across functions, with insights from employee surveys and studies driving focussed engagement and capability initiatives

The Company actively nurtures young talent through Graduate Engineer Trainee and Management Trainee programmes, preferring to build capabilities internally rather than rely heavily on lateral hiring

Leadership pipeline and succession

A structured approach to succession planning ensures high-potential professionals and young managers are identified and prepared for critical roles

Flagship programmes such as Fulcrum, the Adani Leadership Acceleration Program, Takshashila and North Star, run in collaboration with leading management institutes, are developing a robust leadership bench equipped to navigate future challenges

The Company has established comprehensive internal control procedures tailored to its scale and operations. These controls are overseen by the Board of Directors, who are responsible for setting guidelines and ensuring their adequacy, effectiveness, and consistent application. The internal control framework is designed to promote operational efficiency, ensure the accuracy and reliability of accounting and management information, and comply with all applicable laws and regulations. It also safeguards the Companys assets by facilitating the timely identification and management of risks, including operational, compliance-related, economic, and financial risks.

Additional information on the risk governance structure and processes is presented in the Risk Governance section under the Strategic Review section of this Integrated Report.

This section may contain forward-looking statements relating to the Companys objectives, projections, expectations and estimates, which are based on certain assumptions about future events. Actual results could differ, as these statements are subject to various external factors beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or developments.