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ICICI Securities Report
Adani Power Ltd. has signed Power Purchase Agreements for 12GW at what brokerages describe as attractive tariff levels, marking a major boost for its long-term revenue visibility. With this, the company's under‑construction capacity with PPAs now stands at ~12GW out of a total 25GW, significantly strengthening the outlook for its upcoming projects.
State distribution companies are in the process of floating fresh tenders for nearly 15GW of capacity. According to ICICI Securities, this strong pipeline is likely to improve prospects for Adani Power's untied capacity, positioning the company favourably for incremental PPA awards.
Operational performance for the quarter remained muted at 23.6 billion units (flat QoQ), on the back of lower power demand. Meanwhile, coal prices fell 15% YoY, and merchant power realisations were lower by 5% YoY, adding pressure to earnings. The company reported a plant load factor (PLF) of 63%, marginally lower than 64% a year ago.
This weakness filtered into financials, with revenue at Rs 12,500 crore (down 9% YoY) and Ebitda at Rs 4,200 crore (down 16% YoY)—both falling short of brokerage estimates.
Despite the softer quarter, ICICI Securities has maintained its Buy rating on the stock with a target price of Rs 187 per share, citing the positive impact of newly signed PPAs and a robust pipeline of upcoming opportunities in the sector.
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