Adani Power Reports 13.5% Decline in Net Profit Amid Lower Tariffs

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Adani Power, India’s largest private thermal power producer, announced a 13.5% decrease in its consolidated net profit for the quarter ending June 30, 2025. The company’s net profit dropped to $405.3 million (₹3,385 crore) from $470 million (₹3,913 crore) in the same period last year. This decline occurred despite a 1.6% rise in power sales and a 15% increase in installed capacity, a factor attributed by the company to a combination of reduced merchant tariffs and increased operating expenses following recent acquisitions.

The dip in profitability was accompanied by a 5.7% year-over-year decline in consolidated revenue, which fell to $1.7 billion (₹14,109 crore) from $1.8 billion (₹14,956 crore). The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also decreased by 8.4% to $690 million (₹5,744 crore) for the quarter. This financial pressure was partly offset by a moderation in fuel costs, which helped stabilize performance.

According to Adani Power’s CEO, S.B. Khyalia, the company’s performance remains stable despite market fluctuations. “Adani Power’s stable financial performance this quarter is a testament to its resilience and core strengths, even in the face of variability in power demand and unpredictable weather,” he said in a statement. He also noted that the company is “well-prepared for future growth on our path to 30 Giga Watts (GW) by 2030.” This outlook remains in place as the company’s installed capacity rose to 17,550 MW during the quarter.

The company’s board also announced a significant corporate action: a 1:5 stock split, its first-ever such move. The stock split, which will divide each existing share of ₹10 face value into five shares of ₹2 each, is intended to increase liquidity and encourage broader participation from retail investors. This strategic maneuver, along with the recent financial results, provides a key insight into the company’s efforts to balance short-term market pressures with long-term growth and investor relations strategies.