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.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here