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Informist, Tuesday, Aug. 25, 2026

--India Ratings upgrades Adani Power NCDs, bank loans to AA+ from AA 

MUMBAI – India Ratings and Research has upgraded the ratings on Adani Power Ltd.'s non-convertible debentures and bank loan facilities to 'AA+' from 'AA', with a stable outlook. The agency cited the company's strong and improving business profile, sizeable contracted portfolio and healthy operating cash flows. It further affirmed Adani Power's short-term debt rating at 'A1+'.

India Ratings expects Adani Power's earnings before interest, taxes, depreciation, and amortisation to remain strong around INR 280 billion in the financial year 2026-27 (Apr-Mar). EBITDA will be supported by a one-time income from the base tariff revision for the Gujarat Urja Vikas Nigam Ltd. power purchase agreement for the Mundra plant, full-year operations of recently acquired plants, healthy thermal plant load factors and stable merchant power realisations, the rating agency said.

The rating agency expects annual cash flow from operations to remain above INR 210 billion in FY27 and FY28, against projected capex of around INR 272 billion and INR 389 billion, respectively. The agency expects the company to fund the majority of its capex through internal accruals, with future debt-equity funding kept below the 70:30 mix.

The company's proposed equity fund raise of up to INR 150 billion through a qualified institutional placement, approved by shareholders, is also expected to support capex and reduce reliance on external debt, India Ratings said. The agency identified timely tie-up of the remaining power purchase agreements and fuel-supply arrangements, project execution and adherence to leverage expectations as key. It said delays in receivables, significant project cost or time overruns, or sustained net leverage above 2.75 times could put pressure on the ratings.

The agency also said recent developments concerning certain Adani Group board members do not pertain to Adani Power and have had no impact on its operations or credit profile. However, it will continue to monitor the group's corporate governance practices and related disclosures.

For the June quarter, Adani Power had reported a consolidated net profit of INR 48.06 billion on revenues of INR 189.02 billion. At 1445 IST, its shares were nearly 3% higher at INR 203.37 apiece on the National Stock Exchange.  End

Reported by Kabir Sharma

Edited by Himanshi Gupta

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