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Adani Power Targets Rs13,000 Cr Capex in FY26 to Boost Thermal Capacity
May 05, 2025
Adani Power is set to significantly ramp up its capital expenditure to Rs13,000 crore in FY26, a 60% increase over the Rs8,000 crore invested in FY25. The move is aimed at expanding its generation capacity from the current 17.5 GW to 30.67 GW by 2029–30. The funding will primarily come from internal accruals, backed by strong EBITDA performance, according to CEO SB Khyalia.
The expansion strategy includes the development of six 2x800 MW ultra-supercritical thermal units at locations including Raipur, Raigarh, Kawai, Mahan, and Mirzapur. The BTG (boiler, turbine, generator) orders for these units have already been placed. Additionally, the company expects to complete the acquisition of the 600 MW Vidarbha Industries Power plant in Butibori, Maharashtra soon, as it nears the end of the NCLT resolution process.
A major 2,920 MW expansion at Korba (formerly Lanco Amarkantak) is also underway, with completion expected by the end of FY26 or early FY27. Adani Power projects strong merchant power demand in FY26, citing lower capacity additions and higher demand, especially as 90% of its capacity is secured under long-term PPAs.
Despite a slight dip in Q4FY25 net profit to Rs2,649 crore (down 3% YoY), revenue rose 6.5% YoY to Rs14,237 crore. Merchant power realizations fell to Rs5.93/unit in FY25 from Rs6.92/unit the previous year, while average PPA tariff stood at Rs5.60/unit. The company generated and sold 10,200 crore units of electricity during the year.
Addressing international operations, Khyalia noted that Bangladesh currently owes Adani Power around Rs7,500 crore. However, repayments have improved, with the company confident of full recovery. Electricity supply to Bangladesh has been fully restored since March 2025.
Group companies Adani Energy Solutions and Adani Green Energy also plan significant capex of Rs18,000 crore and Rs31,000 crore, respectively, in FY26.