India's Adani Power quarterly profit doubles on strong power demand, one-off gains

India's Adani Power witnessed a more than 100% surge in quarterly profit, propelled by robust power demand due to a weak monsoon season and one-off gains. The company's net profit soared to 69.20 billion rupees ($728.9 million) in the three months leading up to September 30, up from 29.53 billion rupees a year earlier. This profit jump was largely attributed to 24.22 billion rupees in one-time revenue, following revisions to historical energy charges under specific power purchase agreements. Additionally, Adani Power enjoyed a 12.11 billion rupee reversal of earlier tax expenses.

The firm's revenue from operations expanded by 44.5% to 194.39 billion rupees, while power sales increased by 11.5%. However, total expenses rose by 27.2% during the same period. According to Jefferies analysts, power demand has grown by 10% year-over-year in fiscal 2027, likely due to the El Nino phenomenon. This trend may continue into 2027, as state electricity boards discuss the possibility of locking in power rates for the upcoming year, as shortages could resurface with rising temperatures.