Adani Power Q4: Profit Dip of 4% Masks Revenue Growth

Adani Power, a key player in India's energy sector, reported a decline in consolidated net profit for the fourth quarter of the fiscal year 2024-25, even as revenue saw an uptick. 

Q4 Financial Snapshot

For the quarter ended March 31, 2025, Adani Power posted a consolidated net profit of ₹2,637 crore, a decrease of 4% compared to the ₹2,737 crore recorded in the corresponding period of the previous year. This profit is attributed to the equity holders of the parent company. On a sequential basis, the profit after tax (PAT) saw a decline of 14% from ₹3,057.21 crore in Q3 FY25.

Revenue for the March-ended quarter stood at ₹14,237 crore, marking a 6.5% year-on-year increase from ₹13,364 crore in Q4 FY24. However, revenue experienced a 4% sequential drop from ₹13,671 crore in the October-December quarter of FY25. Operating expenses for the quarter rose by 9% year-on-year to ₹11,274 crore, up from ₹10,324 crore in the prior-year period. Sequentially, expenses also increased by 4.6% from ₹10,775 crore in Q3 FY25.

Full-Year Performance and Contributing Factors

Looking at the full fiscal year 2024-25, Adani Power's consolidated PAT fell by a significant 38% to ₹12,939 crore, compared to ₹20,829 crore in FY24. Despite this profit contraction, full-year revenues saw a 12% year-on-year increase. The company attributed the lower PAT for FY25, despite higher power sale volumes and revenue from operations, to lower one-time revenue recognition and a higher tax charge. 

Consolidated power sale volume increased by 20.7% to 95.9 billion units in FY25. Full-year revenues from operations were ₹56,203 crore, a growth of almost 12% year-on-year.

Segmental Contribution

Adani Power generated ₹14,141 crore from power generation and related activities in Q4 FY25. This was an increase from ₹13,071 crore in Q4 FY24 and ₹13,671 crore in Q3 FY25. Revenue from trading, investment, and other activities saw a decline, standing at ₹96.03 crore in Q4 FY25, down from ₹292.65 crore in the year-ago period.

Market Reaction

Following the earnings announcement, Adani Power shares saw a decline. Minutes before the market closed on April 30, the shares fell by 3.5% to close at ₹529.50 on the NSE. The stock was trading 2.66% lower at ₹534.05 on the NSE earlier in the day as results were anticipated.

Overall, Adani Power's Q4 results indicate a period where rising expenses and specific accounting factors, particularly concerning lower revenue recognition and one-time tax charges in the full fiscal year, impacted the bottom line despite healthy growth in operational revenue and volumes.

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