> ## Content Index > Fetch the complete content index at: https://www.moatmarginresearch.com/llms.txt > Use this file to discover other available public pages before exploring further. # Adani Power Q2: ₹2,422 Cr One-Time Income, Margin Slips - URL: https://www.moatmarginresearch.com/adani-power-q2-one-time-income/ - Published: 2026-10-26T03:13:06.000Z - Updated: 2026-10-26T03:13:06.000Z - Description: Adani Power's Q2 profit hit ₹7,019 crore, including ₹2,422 crore of one-time income; continuing EBITDA margin was 36.1% against 39.1%. - Author: A K Karthikeyan - Tags: Moat Insights **Adani Power's profit after tax for the September quarter was ₹7,019 crore against ₹2,906 crore a year earlier. The presentation shows that ₹2,422 crore of the quarter's total income was one-time prior-period income, which it describes as "realisation of past dues from customer". The results also carry a net tax credit of ₹230.60 crore, including a ₹1,211.43 crore reversal of earlier-years current tax, so profit after tax is above profit before tax. On the company's own "continuing" basis, revenue rose 28.51% to ₹17,528 crore and EBITDA rose 18.53% to ₹6,321 crore, so the EBITDA margin on continuing revenue fell to 36.1% from 39.1% (our arithmetic). Fuel cost rose 41.76% while power sold rose 11.50%.** ## The quarter in numbers | Consolidated, ₹ crore | Q2 FY27 | Q2 FY26 | Change (company) | | --------------------------------------------------------------- | ------- | ------- | ---------------- | | Continuing operating revenue | 17,014 | 13,106 | +29.82% | | Total continuing revenue | 17,528 | 13,639 | +28.51% | | One-time prior-period income | 2,422 | 669 | — | | Reported revenue (total income) | 19,951 | 14,308 | +39.44% | | Fuel cost | 10,229 | 7,216 | +41.76% | | Continuing EBITDA | 6,321 | 5,333 | +18.53% | | Reported EBITDA | 8,743 | 6,001 | +45.69% | | Continuing profit before tax | 4,370 | 3,298 | +32.50% | | Profit before tax (company's figure, before share of associate) | 6,792 | 3,966 | +71.24% | | Share of associate (loss) | (3) | — | — | | Tax (credit) / expense | (231) | 1,060 | — | | Profit after tax | 7,019 | 2,906 | +141.51% | | Power sold (million units) | 26,385 | 23,663 | +11.50% | All from \[P\] except the associate and tax lines, which are from the results statement \[R\]. The gap between reported and continuing profit before tax is exactly the one-time income: 6,792 less 4,370 is 2,422 (our arithmetic). Profit after tax is higher than the company's profit before tax because tax was a net credit of ₹230.60 crore: current tax of ₹1,439.98 crore, a reversal of ₹1,211.43 crore relating to earlier years, and a deferred tax credit of ₹459.15 crore (\[R\]). Note 17 to the results says the reversal follows the amalgamation of ten wholly owned subsidiaries into Adani Power (effective 25 September 2026, applied from 1 April 2025), after which the current and deferred tax expense for the year to 31 March 2026 and for the June quarter was recomputed (\[R\]). Statutory profit before tax, after a ₹3.04 crore share of loss in the Jaiprakash Power Ventures associate, was ₹6,788.72 crore (\[R\]). For the half year, profit after tax was ₹11,886 crore against ₹6,212 crore, and one-time prior-period income was ₹3,809 crore against ₹1,075 crore (\[P\]). ## What the one-time income is The presentation's note reads "Net One-time prior period revenue recognition of Rs. 2,422 Crore in Q2 FY27 on account of realisation of past dues from customer" (\[P\]). The results filing is more specific: note 8 says revenue and other income include amounts, net of reversals, "pertaining to earlier years", based on regulatory orders and reconciliation or settlement with Discoms on change-in-law claims, carrying cost and delayed payment interest. It puts the quarter's amount at ₹2,424.62 crore in revenue from operations and minus ₹2.37 crore in other income, a total of ₹2,422.25 crore (\[R\]). The press release says it is "primarily due to revision in historic energy charges under certain PPAs" (\[R\]). Note 5 separately records that Gujarat Urja Vikas Nigam is to be billed retrospectively from 15 October 2018 after the state government approved base rates, and that it had paid ₹4,147.00 crore by 30 September 2026 and ₹2,073.79 crore afterwards; the notes do not say how much of that is in the ₹2,422 crore (\[R\]). No filing names a customer for the ₹2,422 crore. Because the company strips it out of the "continuing" columns, the continuing figures are the better guide to the business, and they are what the margin discussion below uses. ## Moat and margin **Focus moat: contracted capacity and a cost advantage.** The company's strength shows in who it sells to. Contracted power under long-term agreements was 88% of sales volume in the quarter against 76% a year earlier, with the rest sold short-term or on the merchant market (\[P\]). Dispatch under agreements rose to 23.2 billion units from 18, while merchant volumes fell to 3.2 billion from 5.6, at higher prices: Rs. 6.4 a unit under agreements (up 12.7%) and Rs. 7.2 a unit merchant (up 33.1%) (\[P\]). Plant load factor was 70% against 63%, which the company attributes to "leveraging cost-efficient fleet and logistics cost advantage to gain" dispatch priority (\[P\]). Locked-in capacity is 23,720 MW on top of 18,330 MW of capacity (the presentation's operating figure; the press release gives 18,150 MW operating, excluding the 180 MW Churk plant under revival), with "Ongoing capacity expansion of 23.7 GW thermal power plants with estimated capex of ₹ 2 Trillion" (\[P\]). **Margin.** The per-unit picture (our arithmetic, from continuing operating revenue and total fuel cost, which the presentation says includes purchases of traded goods and alternate power): | Per unit sold | Q2 FY27 | Q2 FY26 | | ---------------------------- | ------- | ------- | | Continuing operating revenue | ₹6.45 | ₹5.54 | | Fuel cost | ₹3.88 | ₹3.05 | | Difference | ₹2.57 | ₹2.49 | Revenue per unit rose 16.4% and fuel cost per unit 27.1%, so the gap between them barely moved, and because fuel took 60.1% of continuing operating revenue against 55.1%, the EBITDA margin fell (our arithmetic). The company's explanation is "efficient fuel cost recovery under PPAs and higher merchant" realisations, and it calls the result "Strong EBITDA performance despite higher fuel prices on back of improved realizations." (\[P\]). Other operating expenses fell 10.3% to ₹978 crore and finance cost fell 9.67% to ₹760 crore (\[P\]). **MoatSCORE: 5.24 (AMBER+, first-pass)** on the Moat Screener (\[MS\]). ## The balance sheet Net debt was ₹45,846 crore at 30 September against ₹45,022 crore at 31 March; gross debt rose to ₹61,860 crore from ₹53,556 crore as working-capital loans grew to ₹12,703 crore from ₹9,066 crore and cash rose to ₹16,014 crore from ₹8,534 crore (\[P\]). Net debt to trailing-twelve-month continuing EBITDA was 1.91 times against 2.12 times at March (\[P\]). CARE Ratings and India Ratings upgraded long-term bank facilities to AA+ with a stable outlook (\[P\]). The presentation heads the debt page "Exceptional credit parameters maintained through profitable operations and disciplined capital management despite major capex growth" (\[P\]). ## The bear case - **The headline profit includes ₹2,422 crore of one-time income** relating to earlier years, and no filing names the customer or splits it by year. It also includes a ₹1,211.43 crore reversal of earlier-years current tax (\[R\]). - **Fuel cost is outrunning volume**: up 41.76% against 11.50% more power sold, and fuel took 60.1% of continuing operating revenue against 55.1% (our arithmetic), so the continuing EBITDA margin fell by about three percentage points. - **Debt is rising ahead of capex**: gross debt is ₹8,304 crore higher than in March (our arithmetic), before the planned ₹2 trillion of spending, which is about 8 times trailing-twelve-month continuing EBITDA of ₹24,029 crore (our arithmetic). - **Merchant exposure is smaller but pays more**: merchant volume fell by 2.4 billion units, so some of the realisation gain is on a thinner base (\[P\]). - **Revenue was also written back elsewhere**: note 6 says that, pending resolution with Haryana Discoms, the company derecognised ₹1,971.96 crore of revenue in the quarter on a prudent basis, and that the Discoms have again raised concern about its alternate-coal compensation claim (\[R\]). The notes do not say whether this sits inside the ₹2,422 crore net figure. ## The case for - **Continuing profit before tax rose 32.50%** to ₹4,370 crore, with depreciation flat and finance costs lower (\[P\]). - **More of the sales are contracted**: 88% against 76% (\[P\]). - **Leverage is lower than in March** on the company's measure, at 1.91 times continuing EBITDA, and two agencies upgraded the bank facilities to AA+ (\[P\]). ## What to watch 1. The continuing EBITDA margin in the December quarter, and whether fuel cost per unit keeps rising faster than revenue per unit. 2. Whether the company names the source of the past dues, and whether more of them are still to be recognised. 3. Gross debt and working-capital loans as the capex programme builds. ## Sources - **\[P\]** [Adani Power, earnings presentation for Q2 FY27](https://nsearchives.nseindia.com/corporate/ADANIPOWER%5F25102026170549%5FAPLEarningsCallInvestorPresentation25102026.pdf) (NSE) - **\[R\]** [Adani Power, outcome of board meeting, results and limited review reports, 23 Oct 2026](https://nsearchives.nseindia.com/corporate/ADANIPOWER%5F23102026143517%5FAPLoutcomeBM23102026final.pdf) (NSE) - **\[MS\]** [Moat & Margin, Moat Screener](https://www.moatmarginresearch.com/moat-screener/) and [How MoatSCORE works](https://www.moatmarginresearch.com/moatscore/) --- > Educational research, not investment advice. Every figure above is drawn from Adani Power's own results filing and earnings presentation, read from the primary documents on 26 October 2026; derived figures are our arithmetic, labelled as such. MoatSCORE read live from the Moat Screener on 26 October 2026\. No buy/sell recommendations, no price targets, no share prices. Moat & Margin is not a SEBI-registered Research Analyst or Investment Adviser.