4.1 Property, Plant and Equipment and Capital Work-In-Progress (Refer Note 50) (Contd...)
Notes :
i) For charge created on aforesaid assets, Refer note 22 and 28.
ii) In case of Mundra thermal power plant ("Mundra TPP") and Godda thermal power plant ("Godda TPP"), the Company has availed tax and duty benefit in the nature of exemptions from Custom Duty, Excise Duty, Service Tax, VAT, CST and GST, as applicable on its project procurements. The said benefits were availed by virtue of SEZ approval granted to the Power Plant of Mundra in December 2006 and Jharkhand in September 2019, in terms of the provisions of the Special Economic Zones Act, 2005 (hereinafter referred to as the 'SEZ Act') and the Special Economic Zone Rules, 2006 which entitled the Power Plant to procure goods and services without payment of taxes and duties as referred above.
The Company in respect of Tiroda thermal power plants ("Tiroda TPP") and Kawai thermal power plants ("Kawai TPP") have availed tax and duty benefit in the nature of exemptions from Custom Duty and Excise Duty on its project procurements. The said benefits were availed by virtue of power plants being designated as Mega Power Project in accordance with the policy guidelines issued in this regard by the Ministry of Power, Government of India which entitled Tiroda TPP and Kawai TPP to procure goods and services without payment of taxes and duties as referred above.
Since, the procurement of goods and services during the project period were done by availing the exemption from payment of aforesaid taxes and duties, the amount capitalised for these power plants as on the capitalisation date, is cost of property, plant and equipment (PPE) net off tax and duty benefit availed. However, on transition to IND AS w.e.f. April 1, 2015, in compliance with Ind AS 20 - "Government Grant”, the value of PPE of Mundra TPP, Kawai TPP and Tiroda TPP have been grossed up by the amount of tax and duty benefit availed after considering such benefits as government grant. The amount of said government grant (net off accumulated depreciation) as on the transition date has been added to the value of PPE with corresponding credit made to the deferred government grant. The amount of deferred liability is amortised over the useful life of the PPE with credit to statement of profit and loss classified under the head "Other Income”.
The Company has Government grant balance (net of amortisation) of ' 5,698.61 crore till March 31, 2026 (Previous year ' 6,098.91 crore).
i) The capital assets in the nature of Railway Siding for Raigarh TPP forming part of Capital Work-InProgress have become overdue compared to the original completion plan. The Company has acquired substantial land parcels and remaining land parcels are in the process of acquisition for completing the asset under development. The Management expects to acquire additional land from the government authorities and has already obtained in principle approval from railway authorities for the said project. The Company has paid advance of ' 37.60 crore for allotment of land. Further, the Company has obtained final approval of South East Central Railways to carry out development activities for the siding project.
ii) As at March 31, 2025 the capital assets in the nature of Mining Project forms part of Capital Work-InProgress had become overdue compared to the original completion plan and the Company was in the process of obtaining mandatory clearances from various regulatory authorities for completing the asset under development. During the year the assets have been transferred by the Company to the mine developer and operator.
iii) Such project is overdue compared to original plan of management.
ii) Impairment testing of Goodwill :
The goodwill is tested for impairment annually and as at March 31, 2026, the goodwill was not impaired.
The Company prepares its forecasts considering the period of 5 years based on the most recent financial budgets approved by management with projected revenue growth rates ranging from from 3% to 8% p.a. (Previous Year 3% to 8% p.a.).
The pre-tax discount rates ranges from 9% to 11%.p.a. (Previous Year 9% to 11% p.a.)
Management believes that any reasonable possible change in any of these assumptions would not cause the carrying amount to exceed its recoverable amount.
i) During the previous year, the Company had invested ' 46.00 crore in equity shares of Mahan Energen Limited (MEL). Of the above shares 45,74,70,000 Equity shares (Previous year - 45,74,70,000 Equity shares) have been pledged by the Company as additional security for secured term loans availed by MEL.
ii) During the previous year, the Company had acquired shares of Mirzapur Thermal Energy (UP) Limited (MTEUPL) from Adani Infra (India) Limited in tranches for a consideration of ' 345.82 crore and MTEUPL became wholly owned subsidiary of the Company w.e.f July 23, 2024.
iii) During the previous year, the Company had invested ' 246.00 crore into OCDs of its subsidiary MEL. These OCDs shall be optionally converted into equity share capital at fair value at the discretion of issuer or will be redeemed in full on completion of 10 years and 20 years respectively from the date of allotment. The fair value as at March 31, 2026 is ' 270.55 crore (Previous year ' 246.39 crore). Of the total OCDs issued,
23.69.97.000 OCDs (Previous year - 23,69,97,000 OCDs) have been pledged by the Company as additional security for secured term loans availed by MEL.
iv) The OCDs of its wholly owned subsidiaries Chandenvalle Infra Park Limited and Alcedo Infra Park Limited shall be optionally converted into equity shares in the ratio of 1 : 1 or will be redeemed at the discretion of issuer at any time within 10 years from the date of issue.
v) The investment in Compulsory Convertible Debentures of various subsidiaries shall be mandatorily converted into equity shares at par in the ratio of 10:1 at any time after the expiry of 5 years but before 20 years from the date of issue.
vi) Adani Power Global Pte Ltd and Adani Power Middle East Limited have been incorporated as Wholly Owned Subsidiaries of the Company on June 14, 2024 and August 16, 2024 respectively. The Company had invested
27.000 Shares of USD 1 each and 1,000 Shares of SGD 1 each respectively.
vii) Investments at FVTOCI reflect investment in unquoted equity instruments. These equity shares are designated as FVTOCI as they are not held for trading purpose, thus disclosing their fair value change in profit and loss will not reflect the purpose of holding.
viii) Investment in Unsecured Perpetual Securities ("Securities”), are perpetual in nature with no maturity or redemption and are callable only at the option of the issuer. The distribution on these Securities are cumulative at 9% p.a. and at the discretion of the issuer. As these securities are perpetual in nature, ranked senior only to the Equity Share Capital of the issuer and the issuer does not have any redemption obligation, these are considered to be in the nature of equity instruments.
ix) During the previous year, the Company had invested ' 1 crore in equity shares of Korba Power Limited (KPL). Of the above shares 5,10,000 Equity shares have been pledged by the Company as additional security for secured term loans availed by KPL.
x) During the previous year, the Company had been allotted shares of Anuppur Thermal Energy (MP) Private Limited ("ATEMPL'). Further, the Company acquired additional shares of ATEMPL from Adani Infra (India) Limited. Consequently, ATEMPL became wholly owned subsidiary of the Company with effect from October 3, 2024.
xi) During the previous year, the Company had acquired 100% equity shares of Orissa Thermal Energy Limited ("OTEL') (formerly known as Padmaprabhu Commodity Trading Private Limited) for a consideration of ' 0.01 crore on September 27, 2024. OTEL holds land parcel at Cuttack, Orissa which Company proposes to develop for Infrastructure facilities / capacity augmentation.
xii) The Company has acquired 100% equity shares of Vidarbha Industries Power Limited (''VIPL') for a consideration of ' 0.10 crore on July 7, 2025. Also Refer note 64(c).
xiii) The Company has incorporated Adani Atomic Energy Limited ("AAEL') on January 7, 2026, its wholly owned subsidiary with paid up equity share capital of ' 0.05 crore (50,000 equity share of ' 10 each).
xiv) The Company and Druk Green Power Corp. Ltd. ("DGPC”), Bhutan's state-owned utility have jointly incorporated a new entity (with 49:51 shareholding respectively) titled "Wangchhu Hydroelectric Power Limited” ("WHPL”) in Bhutan on September 5, 2025 to undertake the hydroelectric project. The Company has invested ' 24.50 crore in equity shares of said Joint venture.
i) For charges created on Trade Receivables, Refer note 22 and 28.
ii) Credit concentration
As at March 31, 2026, out of the total trade receivables 91.06% (Previous year - 95.52%) pertains to dues from State Electricity Distribution Companies and Bangladesh Power Development Board ("BPDB")) under contractual agreement through Power Purchase Agreements ("PPAs”) / Supplemental Power Purchase Agreement (SPPAs), claims under Force Majeure / Change in Law matters / Contractual Right, Carrying Cost thereof etc (including significant amount pertaining to dues from BPDB), 7.74% (Previous year - 4.28%) from related parties (refer note 69) and remaining receivables from others. Also refer note 3(vii) and 3(viii) relating to significant accounting judgements / estimates.
iii) Expected Credit Loss (ECL)
The average credit period ranges upto 75 days. The Company is having majority of receivables against power supply from State Electricity Distribution Companies ("Discoms") which are Government undertakings and also includes dues from Bangladesh Power Development Board (BPDB) under contractual agreement through Power Purchase Agreements ("PPAs”).
The Company is regularly receiving its normal power sale dues from Discom and BPDB. In case of regulatory revenue claims, the same is recognised on conservative basis based on best management estimates following principles of prudence, as per the binding regulatory orders. In case of delayed payments apart from carrying cost on settlement of claims, the Company is entitled to receive interest as per the terms of PPAs / SPPAs. Hence they are secured from credit losses due to efflux of time.
Receivables are secured by letter of credit amounting to ' 2,505.89 crore (Previous year ' 3,777.84 crore). The Company holds sovereign guarantee of Bangladesh Government, for the entire receivables under Power purchase agreement with BPDB.
iv) Also refer note 35 for disclosures related to revenue and note 53 for ageing of receivables.
v) The fair value of Trade receivables are approximately the carrying value presented (Refer note 55).
* For transaction with related parties, Refer note 69
i) The Company had issued Unsecured Perpetual Securities ("Securities”), which were perpetual in nature with no maturity or redemption and were callable only at the option of the issuer. The distribution on these Securities were cumulative at 8.85% to 10.67% p.a. and at the discretion of the issuer. As these securities were perpetual in nature and ranked senior only to the Equity Share Capital of the Company and the issuer did not have any redemption obligation, these were considered to be in the nature of equity instruments.
ii) During the current year, the Company has fully redeemed Unsecured Perpetual Securities of ' 3,056.92 crore (Previous year ' 4,258.08 crore) and also made distribution of ' 1,385.12 crore (Previous year ' 840.07 crore) to the holders of Securities.
Nature and purpose of reserves :
i) Capital Reserve is not a free reserve, unless otherwise stated, and can not be utilised for distribution of dividend.
Capital Reserve includes :
(a) Amount of ' 359.80 crore created due to amalgamation of Growmore Trade and Investment Private Limited with the Company in the financial year 2012-13. As per the order of the Hon'ble High Court of Gujarat, the capital reserve created on amalgamation shall be treated as free reserve of the Company.
(b) Amount of ' 1,029.60 crore created on account of acquisition of Raipur TPP and Raigarh TPP during the financial year 2019-20 (including ' 344.49 crore pertaining to equity component of 0.01% CRPS).
ii) Securities premium represents the premium received on issue of shares over and above the face value of equity shares. The reserve is available for utilisation in accordance with the provisions of the Companies Act, 2013.
iii) General reserve of ' 9.04 crore was created in the FY 2015-16 due to merger of solar power undertaking acquired from Adani Enterprises Limited, as per the scheme of arrangement approved by order of the Hon'ble High Court of Gujarat.
iv) Deemed equity contribution represents the difference between the fair value of financial instruments and consideration paid / payable as promoters' contribution.
1. The security details for the borrowing balances:
v) During the previous financial year, the Company had called up the uncalled amount of NCRPS and subsequently redeemed the same in full. The difference between the equity component and consideration thereof was recognised in deemed equity.
vi) The cash flow hedge reserve represents the cumulative gains or losses arising on changes in fair value of designated effective portion of hedging instruments entered into for cash flow hedges. The same will be reclassified to profit or loss only when the hedge transactions affects the profit or loss.
vii) Retained earnings represent the amount that can be distributed as dividend considering the requirements of the Companies Act, 2013. During the current financial year, no dividends are distributed to the owners by the Company.
i) Rupee Term Loans from Banks aggregating to ' 18,880.00 crore and Rupee Term Loans from Financial Institutions aggregating to ' 10,850.00 crore are secured / to be secured by first mortgage, deed of hypothecation and charge on the identified leasehold and freehold project land (as applicable) at Mundra TPP, Tiroda TPP, Kawai TPP, Udupi TPP, Raipur TPP, Raigarh TPP, Dahanu TPP and Solar Bitta plant, immovable and movable assets, both present and future assets of the Company, operating cash flows including book debts, receivables, permitted investments, advances, intangible assets etc. except "investments in equity share capital, unsecured loans, quasi equity etc., Godda TPP and certain non-project land", on paripassu basis with the lenders of the Company.
Term loans from lenders carried annual weighted average interest rate of 8.74% p.a. and are repayable over a period of next 12 years in structured quarterly and yearly installments from Financial Year 2026-27 to Financial Year 2037-38.
ii) In case of Godda TPP, Borrowings from Financial Institutions aggregating to ' 4,467.96 crore are secured by first charge on all present and future immovable, movable assets of the Godda TPP carried annual weighted average interest rate of 10.20% p.a. and are repayable over a period of next 9 years in monthly installments from Financial Year 2026-27 to Financial Year 2034-35.
iii) During the year, the Company has allotted 7,50,000 secured, listed, rated, taxable, non-cumulative, redeemable non-convertible debentures of face value of ' 100,000/- each via private placement aggregating to ' 7,500.00 crores. It is secured / to be secured by (i) first mortgage over identified freehold project land of Tiroda TPP, Udupi TPP, Raipur TPP, Raigarh TPP and Solar Bitta Plant, leasehold project land of Mundra TPP, (ii) first charge by deed of hypothecation over movable fixed assets, all current assets (except DSRA) both present and future, excluding investments in equity share capital, unsecured loans, quasi equity and Godda TPP; on a pari-passu basis with the lenders of the Company. These debentures have been assigned rating of "CRISIL AA" by CRISIL Ratings Limited and "IND AA" by India Ratings. The Non-convertible debentures are repayable from Financial Year 2027-28 to Financial Year 2030-31.
i) Rupee Term Loans from Banks aggregating to ' 12,540.00 crore and Rupee Term Loans from Financial Institutions aggregating to ' 6,175.00 crore are secured by first mortgage, deed of hypothecation and charge on the identified leasehold and freehold project land (as applicable) at Mundra TPP, Tiroda TPP, Kawai TPP, Udupi TPP, Raipur TPP, Raigarh TPP, Dahanu TPP and Solar Bitta plant, immovable and movable assets, both present and future assets of the Company, operating cash flows including book debts, receivables, permitted investments, advances, intangible assets etc. except "investments in equity share capital, unsecured loans, quasi equity etc., Godda TPP and certain non-project land", on paripassu basis with the lenders of the Company.
Term loans from lenders carried annual weighted average interest rate of 8.85% p.a. and are repayable over a period of next 13 years in quarterly installments from Financial Year 2025-26 to Financial Year 2037-38.
Security creation as per master facility agreement dated March 22, 2024 was completed during the Financial Year 2024-25.
During the previous financial year balance amount of ' 40 per share amounting to ' 200 crore was called and aggregate called up amount of ' 100 per share amounting to ' 500 crore was fully redeemed during financial year 2024-25.
ii) In case of Godda TPP, Borrowings from Financial Institutions aggregating to ' 7,374.56 crore are secured by first charge on all present and future immovable, movable assets of the Godda TPP. Further, these borrowings are secured by DSRA bank guarantees issued on the limits of the subsidiary. It carried annual weighted average interest rate of 11.50% p.a. and are repayable over a period of next 14 years in monthly installments from Financial Year 2025-26 to Financial Year 2038-39.
b. During the financial year 2019-20, the erstwhile wholly owned subsidiary of the Company, Raipur Energen Limited (now amalgamated with the Company), had issued 4,15,86,207 nos. of 0.01% Compulsory Redeemable Preference shares (CRPS) of ' 100 each amounting to ' 415.86 crore which are redeemable in three equal annual instalments from FY 2036-37 to FY 2038-39. On account of amalgamation, the Company cancelled such CRPS and issued fresh CRPS during financial year 2022-23 which are redeemable in three equal annual instalments from FY 2036-37 to FY 2038-39.
Considering CRPS as compound financial instrument, these are accounted for as liability at fair value of ' 71.37 crore and other equity (under capital reserve) of ' 344.49 crore on initial recognition. Interest on liability component is accounted for as interest expense, using the effective interest method. The discounted value at March 31, 2026 is ' 142.31 crore (Previous year ' 129.37 crore).
3. The amount disclosed in security details in note 1 above and repayment schedule in note 2 above are gross amount excluding adjustments towards upfront fees.
4. Company's Rupee Term Loan and Non-Convertible Debentures at the end of each annual and interim reporting period as may be applicable, are subject to the following covenants (as may be applicable):
i) Debt Service Coverage Ratio (DSCR)
ii) Interest Coverage Ratio
iii) Fixed Asset Coverage Ratio
iv) Net Debt / EBITDA
v) Total Net External Debt / EBITDA
The Company has complied with the financial covenants throughout the reporting period. There are no indications that the Company would have difficulties complying with the covenants when they will be next tested as at September 30, 2026, an interim reporting date and for the next financial year ending at March 31, 2027 as may be applicable.
During the year, the Company prepaid certain non current borrowings and refinanced facilities as a part of active treasury management. There were no material prepayment penalties associated with such repayments.
a. During the financial year 2021-22, the erstwhile wholly owned subsidiary of the Company, Adani Power (Mundra) Limited (now amalgamated with the Company), had issued 5,00,00,000 nos. of upto 5% Non-cumulative Compulsory Redeemable Preference shares ("NCRPS'') of ' 100 each amounting to ' 500 crore and had called ' 60 per share amounting to ' 300 crore. On account of amalgamation, the Company cancelled such NCRPS and issued fresh NCRPS on the same terms during the financial year 2022-23.
a. Security Details as at March 31, 2026
i) Working Capital Demand Loans, Trade Credits, and Cash Credits provided by Banks (Working Capital Facilities) aggregated to ' 6,194.86 crore. It carried annual weighted average interest rate of 4.73% p.a.
ii) The facilities with respect to Company (other than facilities availed for Godda TPP) are secured by first mortgage, deed of hypothecation and charge on the identified leasehold and freehold project land at Mundra TPP, Tiroda TPP, Kawai TPP, Udupi TPP, Raipur TPP, Raigarh TPP, Dahanu TPP and Solar Bitta plant, immovable and movable assets, both present and future assets of the Company, operating cash flows including book debts, receivables, permitted investments, advances, intangible assets etc. except "investments in equity share capital, unsecured loans, quasi equity etc., Godda TPP and certain non-project land", on paripassu basis with the lenders of the Company.
iii) The facilities availed by Godda TPP are secured by first charge on the identified immovable, movable and leasehold land, both present and future assets of the project on paripassu basis with other secured lenders.
b. Security Details as at March 31, 2025
i) Working Capital Demand Loans, Trade Credits and Cash Credits provided by Banks (Working Capital Facilities) aggregating to ' 6,710.95 crore are secured by first mortgage, deed of hypothecation and charge on the identified leasehold and freehold project land at Mundra TPP, Tiroda TPP, Kawai TPP, Udupi TPP, Raipur TPP, Raigarh TPP, Dahanu TPP and Solar Bitta plant, immovable and movable assets, both present and future assets of the Company, operating cash flows including book debts, receivables, permitted investments, advances, intangible assets etc. except "investments in equity share capital, unsecured loans, quasi equity etc., Godda TPP and certain non-project land", on paripassu basis with the lenders of the Company. It carried annual weighted average interest rate of 5.90% p.a.
ii) In case of Godda TPP, Secured trade credits, Working Capital Demand Loan and Cash Credit aggregating to ' 2,026.21 crore are secured by first mortgage and charge on the identified immovable, movable and leasehold land, both present and future assets of the project on paripassu basis with other secured lenders. It carried annual weighted average interest rate of 8.36% p.a.
c. Working Capital Demand Loans are repayable on demand and Trade Credits are repayable on their respective due dates.
d. The Company has sanctioned borrowings / facilities from banks on the basis of security of inter alia current assets. The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts.
Includes majorly ' 60.20 crore (Previous year ' 667.24 crore) on account of additional cost for procurement of coal based on power supplies obligation, as may be required, ' Nil (Previous year ' 50.87 crore) on account of Fair Valuation of contingent liabilities recognised on acquisition of Raipur TPP (Refer Note 45), ' 47.02 crore (Previous year ' 47.02 crore) towards accrual of demand for matter related to National Green Tribunal ("NGT") (Refer Note 49) and ' 165.95 crore (Previous year ' Nil) deposit received.
(i) In respect of Tiroda TPP
(a) In the matter of non-availability of coal due to cancellation of Lohara coal block for the Company's 800 MW power generation capacity at Tiroda thermal power plant ("Tiroda TPP”), the Hon'ble Supreme Court vide its order dated April 20, 2023, upheld the orders of Maharashtra Electricity Regulatory Commission ("MERC”) and APTEL, granting compensation (including carrying costs thereon) towards additional coal cost for the use of alternate coal.
Similarly, in a matter relating to shortfall in availability of domestic coal under New Coal Distribution Policy ("NCDP”) and Scheme of Harnessing and Allocating Koyala (Coal) Transparently in India ("SHAKTI”) policy of the government, for the Company's 2,500 MW power generation capacity at Tiroda TPP, the Hon'ble Supreme Court vide its orders dated March 3, 2023 and April 20, 2023, upheld the MERC's and APTELs orders granting compensation (including carrying costs thereon) towards additional cost for the use of alternate coal.
Basis above favourable regulatory orders, the Company has continued to recognise tariff compensation claims towards additional coal cost of ' 2,716.39 crore during the year ended March 31, 2026.
(b) Apart from above, in one of the matters relating to cost factors for computation of tariff compensatory claim, on account of consumption of alternate coal, MSEDCL filed an appeal with APTEL against MERC order dated November 28, 2020 in favour of the Company and dismissal order dated September 11, 2021 against review petition filed by MSEDCL. APTEL vide its order dated July 9, 2024 dismissed the appeal filed by MSEDCL. Subsequently, MSEDCL filed an appeal with the Hon'ble Supreme Court in the matter which is pending adjudication.
Further, MERC vide its order dated October 6, 2025, allowed petition filed by MSEDCL w.r.t. interpretation of its earlier order relating to compensation for in-land transportation cost factor for the transfer of alternate coal. The Company aggrieved with such an order, had filed a review petition with MERC on October 14, 2025, which was upheld by MERC vide its order dated December 2, 2025. MSEDCL has preferred an appeal with APTEL against the said MERC order which is pending adjudication.
The Company does not expect any adverse outcome in the matter and continues to recognise change in law claims as per past practice.
(c) MSEDCL has unilaterally deducted certain amounts towards change in law claims for taxes and duties leviable during pre-GST regime. The Company has filed a petition against the same with MERC and MSEDCL has also filed a cross petition in the matter. The Company has recognized revenue from change in law taxes and duties on conservative basis net-off such claims for ' 718.88 crore (including ' 578.51 crore pertaining to earlier periods) during the year ended March 31, 2026.
ii) In case of PPAs governed by section 62 of Electricity Act, 2003, the Company recognises revenue from sale of power based on the most recent tariff order / provisional tariff approved by the respective Regulatory Commission, as modified by the orders of Appellate Tribunal for Electricity ("APTEL') / Regulatory commissions and necessary provisions / adjustment considered on conservative basis. This revenue is recognized having regard to mechanism provided in applicable tariff regulations and the bilateral arrangements with the Discoms. Such tariff orders are subject to conclusion of final tariff orders in terms of Multiyear Tariff ("MYT”) Regulations at the end of respective tariff period.
iii) In respect of Kawai TPP
In the matter relating to shortfall in availability of domestic linkage coal, the Hon'ble Supreme Court vide its order dated August 31, 2020 has admitted all tariff compensation claims for additional coal costs incurred for power generation and the Company continues to realise the claim amount towards compensation.
During the financial year 2023-24, Rajasthan Urja Vikas and IT Services Limited ("RUVITL') (formerly known as Rajasthan Urja Vikas Nigam Limited) had filed a fresh petition before Rajasthan Electricity Regulatory Commission ("RERC”) primarily challenging the methodology and operating parameters considered while arriving at the tariff compensation claim for additional coal cost incurred for power generation by the Company which had earlier been settled by RUVITL in March, 2022 based on the Hon'ble Supreme Court order dated August 31, 2020. The RERC vide its order dated September 1, 2023 dismissed the petition of RUVITL. RUVITL had preferred an appeal with APTEL in the matter, which is pending adjudication. The Company continues to recognise the revenue based on principle as approved in the order passed by the Hon'ble Supreme court.
iv) In respect of Mundra TPP
(a) Gujarat Urja Vikas Nigam Limited ("GUVNL') approached CERC to determine the base rates for power sales under Bid 1 & Bid 2 revised Supplemental Power Purchase Agreements ("SPPAs”) dated March 30, 2022, with retrospective effect from October 15, 2018, for further submission to the Government of Gujarat ("GoG”). CERC vide its order dated June 13, 2022 recommended the base rates for final approval of GoG. Further, CERC escalation index shall apply over base rates as on October 15, 2018 as per the provisions of SPPAs for determination of subsequent period energy rates.
Pending approval of the base rates by GoG, the Company has been supplying power to GUVNL based on certain mechanism whereby actual fuel cost incurred, gets pass through in the billing of energy charges, from March 1, 2022 onwards till date. The Company also realised significant amounts of invoices billed to GUVNL, although there were certain deductions made by GUVNL, which are pending reconciliation / settlement.
The Company continues to recognise energy charges revenue as per agreed mechanism, pending approval of base rates, which has impact on the Company's energy charges claims, depending on the trend of coal price movement. The escalation index has positive impact on energy charges as at reporting date. The Company does not expect any adverse outcome in this matter.
(b) The Company has claimed compensation for alternate coal cost incurred for supply of power under 1,200 MW of Supplemental Power Purchase Agreement (SPPA) with Haryana Discoms. The Haryana Discoms have sought certain information to validate such claims. Pending final resolution of the matter, Haryana Discoms continue to pay 50% of the claims made by the Company from June 2023 till date. The Company expects a favorable outcome in the matter and has accordingly recognised revenues of ' 599.03 crore during year ended March 31, 2026, which has been realized as well.
v) Revenue from operations (including amounts disclosed separately elsewhere in other notes) includes following amounts / (net of reversals) pertaining to earlier years, based on the orders received from various regulatory authorities such as MERC / CERC, APTEL, the Hon'ble Supreme Court and reconciliation / settlement with Discoms relating to various claims towards change in law events.
vi) Godda thermal power plant (”Godda TPP”), is having a long-term Power purchase agreement (PPA) with Bangladesh Power Development Board ("BPDB”) for supply of power from its 1600 MW thermal power station.
Since inception of the said PPA, Godda TPP has been supplying power and raising monthly invoice in compliance with PPA and Godda TPP has been receiving payments on a regular basis. The Company has recovered a significant amount from BPDB during the year ended March 31, 2026 including late payment surcharge. The management is confident of recovering the balance receivables and does not expect any adverse outcome in the matter. Pursuant to the Company's request, Singapore International Arbitration Centre has selected and appointed an expert to resolve certain matters pending in reconciliation. Both the Company and BPDB have nominated their representatives for interaction with the expert. Subsequently, the Company has signed appointment agreement with the expert.
vii) For transaction with related parties, Refer note 69
i) Includes Interest income in nature of Late payment surcharge ("LPS") / carrying cost of ' 1,217.06 crore (including ' 1,033.83 crore pertaining to earlier periods) (Previous year - ' 949.33 crore (including ' 732.83 crore pertaining to earlier periods)) from DISCOMs towards change in law claims and over due receivables.
ii) Includes interest on bank fixed deposit/margin money of ' 422.14 crore (Previous year - ' 330.72 crore), interest on loans given and OCDs of ' 993.89 crore (Previous year - ' 333.67 crore) and interest on income tax refund ' 2.78 crore (Previous year - ' 21.21 crore).
iii) In respect of the Udupi Thermal Power Plant ("Udupi TPP”), CERC, vide its order dated January 7, 2026, allowed the Company's petition for recovery of carrying cost on account of change in tariff and delayed payment surcharge on the carrying cost claim . Accordingly, the Company has recognised carrying cost / LPS of ' 1,007.31 crore during the year, which has been realized subsequently.
The Power Company of Karnataka Limited (PCKL) and Karnataka Escom's have filed an appeal before APTEL against the said order. The Company does not expect any adverse outcome in the matter.
iv) Includes income from mutual fund of ' 32.72 crore (Previous year - ' 74.54 crore) and income from Commercial Paper/ Certificate of Deposit of ' 3.74 crore (Previous year - ' Nil).
v) Gain on Sale of Investment mainly includes gain on sale of Government Securities.
vi) Miscellaneous income mainly includes income from water charges of ' 83.69 crore (Previous year ' 52.31 crore) and refund from government authorities of ' 563.66 crore (pertaining to earlier periods) (Previous year ' 89.82 crore).
43 Business Combinations
Acquisition of Adani Dahanu Thermal Power Station ("ADTPS")
The Company, through Business Transfer Agreement dated September 30, 2024 with North Maharashtra Power Limited ("NMPL'), a related party of the Company, acquired 2x250 MW (500 MW) Adani Dahanu Thermal Power Station ("ADTPS”) located at Dahanu, Maharashtra. The ADTPS was acquired by the Company on a going concern basis along with right of use over the land, from NMPL, at a consideration of ' 815 crore arrived at based on independent fair valuation.
ADTPS supplies power under a long-term Power Purchase Agreement with Adani Electricity Mumbai Limited. The accounting of this transaction has been done as per Ind AS 103 "Business Combinations".
The business combination has been undertaken to strategically expand the Group's operational footprint. The acquisition is expected to generate operational synergies and long-term value through enhanced scale.
44 During the year ended March 31, 2026, the National Company Law Tribunal ("NCLT”) vide its order dated March 17, 2026, approved the resolution process of Jaiprakash Associates Limited (''JAL') under the Insolvency and Bankruptcy Code, 2016. The Resolution Plan enables Adani Enterprises Limited to nominate one or more 'Implementing Entities' to implement the Resolution Plan or any part thereof, by acquiring assets from JAL. In this respect, the Company expressed in-principle interest in becoming one of the 'Implementing Entities' under the Resolution Plan for acquiring certain power assets and investments from JAL, subject to necessary approvals.
45 Contingent Liabilities and Commitments (to the extent not provided for) :
(a) Contingent Liabilities :
(' In crore)
Particulars
As at
March 31, 2026
March 31, 2025
i) Claims against the Company not acknowledged as debts in respect of:
a. Income Tax demands (under appeal)
8.85
3.39
b. Custom Duty (Refer note 1(a) and 2 below)
251.70
499.68
c. Transmission Line Relinquishment (Refer note 1(b) below)
154.50
d. Central Sales Tax (under appeal) (Refer note 3 below)
13.10
e. Goods and Services Tax (under appeal)
33.13
224.01
f. Additional penalty towards water charges (Refer note 4 below)
173.90
Total
635.18
1,068.58
1) (a) In Case of Raipur TPP, The Ministry of Power, Government of India vide letter dated September 8,
2011 had granted Provisional Mega Power Status Certificate under the Mega Power Policy for construction of its 1,370 MW Thermal based Power Plant. In terms of the same, the Company has availed exemptions of duty of customs and excise duty upon submission of bank guarantees worth ' 960.01 crore and pledge of margin money deposits of ' 59.67 crore. The grant of final Mega power status of Raipur TPP is dependent upon plant achieving tie up under long term Power Purchase Agreements (PPAs). During the current year, Raipur TPP was able to achieve tying-up 100% of its installed capacity under long-term Power Purchase Agreements. Ministry of Power vide its letter dated December 19, 2024 and letter dated April 10, 2026, has also granted Final Mega Power Certificate. Accordingly, Raipur TPP is eligible for Mega Power benefits availed in form of exemption from customs and excise duty and hence the matter now stands settled.
(b) In case of Raipur TPP, the Company had entered into a bulk power transmission agreement ('BPTA') with Power Grid Corporation of India Limited ('PGCIL) dated March 31, 2010 as per which the Company was granted Long term Access ('LTA') of 816 MW. However, owing to non-availability of PPA, which as per management is beyond the control of the Company, Raipur TPP was not in a position to utilise the LTA and has accordingly sought for surrender of the LTA, for which PGCIL has raised demand of ' 154.50 crore towards relinquishment charges on the Company. However, the said claim will be subject to the outcome of the petition dated September 7, 2020 filed by the Company before the APTEL. Presently, the Company has taken legal opinion in the matter as per which there are force majure events and other factors as per which it is not liable to pay charges.
2) The custom duty demands amounting to ' 248.10 crore and ' 3.60 crore at Udupi TPP and Tiroda TPP respectively, pertaining to Coal Classification matter is being contested at Customs, Excise and Service Tax Appellate Tribunal ("CESTAT") pertaining to period March 2012 to February 2013.
3) The Central Sales Tax matter of Company's Mundra TPP, pertaining to consideration of the credit notes on account of price revision, relates to FY 2017-18 and is being contested at Commissioner Appeals.
4) In case of Godda TPP, Water resource department ("WRD"), Jharkhand has charged additional penalty on the amount of penalty on water charges which has not been accepted by the Company as per the terms of agreement and the matter is under discussion with WRD to reconsider the demand pertaining to period April 2020 to June 2022.
ii) In case of Mundra TPP, apart from above, the Development Commissioner, Mundra has issued a show cause notice to the Company in case of Mundra TPP for the period FY 2009-10 to FY 2014-15 in relation to custom duty on raw materials used for generation of electricity supplied from SEZ to DTA, which amounts to ' 963.94 crore. The Company has contested the said show cause notice. Further, the management is of the view that such duties on raw material are eligible to be made good to Mundra TPP under the PPA with Discoms or are refundable from the Authorities. Hence, the Company has not considered this as contingent liability.
iii) The Company has assessed that it is only possible, but not probable, that outflow of economic resources will be required in respect of above matters.
(b) Commitments :
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) (Refer note below)
37,293.92
24,217.71
Capital commitment mainly includes open purchase order of ' 35,616.05 crore (net of capital advances)
(Previous Year - ' 22,964.96 crore) pertaining to expansion projects at Raipur TPP, Raigarh TPP, Kawai TPP
and greenfield projects in Assam and Bihar.
Other Commitments:
i) The Company has given a commitment to lenders of Mahan Energen Limited (MEL) that it will not transfer its 49% equity holding in MEL outside the Adani Power Group, except with the prior approval of lenders.
ii) The Company and Druk Green Power Corp. Ltd. ("DGPC”), Bhutan's state-owned utility, has signed the shareholders agreement (SHA) and have jointly incorporated a new entity (with 49:51 shareholding respectively) for setting up a 570 MW hydroelectric project under "Wangchhu Hydroelectric Power Limited” ("WHPL”) in Bhutan. During the current year, the Company has invested ' 24.50 crore in equity shares of said Joint venture and total outstanding commitments related to this SHA as at March 31, 2026 is ' 24.50 crore.
iii) The Company has issued a letter of financial, operational and capex support to MEL for a period of not less than twelve months from the date of approval of Mel's financial statements for the year ended March 31, 2026, to enable MEL to meet its obligations and execute its projects.
46 Leases
The Company has lease contracts for land, building and computer hardware used in its operations (including used in expansion projects). Leases of these items have lease terms between 2 to 99 years. The Company is restricted from assigning and subleasing certain leased assets. The Company's obligation under its leases are secured by the lessor's title to the right-of-use assets.
The weighted average incremental borrowing rate applied to lease liabilities are in range of 8.50% to 9.00%. (Previous year 8.50% to 9.00%)
The Company through erstwhile subsidiary, Raipur Energen Limited ("REL') had incurred cost of ' 55.57 crore and ' 30.75 crore towards development of Talabira Coal mine and Ganeshpura Coal mine, respectively in the earlier years.
In the above matter, earlier the Company had filed two writ petitions with Hon'ble Delhi High Court requesting surrender of the said mines in view of Union of India's ("UoI”) notification dated April 16, 2015 stating capping of the fixed / capacity charges and also requested to refund the costs incurred along with the release of bid security. The Hon'ble Delhi High Court vide its single order dated April 15, 2019 dismissed the petitions on the ground of delay in filling of writ petitions. Consequently, the Company filed petitions before Hon'ble Supreme Court to set aside the order of the Hon'ble Delhi High Court. Pending adjudication of the petitions, Hon'ble Supreme Court directed UoI and others vide its order dated May 30, 2019 that no coercive action to be taken in these matters.
The management expects favourable resolution of these matters and is reasonably confident to realise the entire cost spent towards these coal mines as compensation in the subsequent periods.
However, the matter has been pending for long period of time, the Company based on prudence principles has fully provided the amount in the books.
(b) The Company had sought cancellation of the Jitpur coal block and requested the Nominated Authority, Ministry of Coal, New Delhi, to cancel the Vesting Order, vide its representation dated October 31, 2020 and also requested for refund of costs of ' 138.66 crore incurred by it and release of the performance bank guarantee of ' 92.90 crore given to the Nominated Authority. The Nominated Authority concluded the fresh e-auction of Jitpur Coal Block on September 13, 2022. Pursuant to this, the Coal Mines Development and Production Agreement ("CMDPA") has been signed between the new bidder and the Nominated Authority, Ministry of Coal on October 13, 2022.
The Nominated Authority has issued the Final Compensation Order dated November 13, 2024. The Company has received ' 32.70 crore and is confident of recovering the remaining amount.
48 During the year, the Company has recognized transmission expenses of ' 137.13 crore based on true - up order pertaining to earlier years.
49 The National Green Tribunal ("NGT") in a matter relating to non-compliance of environmental norms relating to Udupi thermal power plant ("Udupi TPP”) directed the Company vide its order dated March 14, 2019, to make payment of ' 5.00 crore as an interim environmental compensation to Central Pollution Control Board ("CPCB"). NGT vide its order dated May 31, 2022 directed the Company to deposit an additional amount of ' 47.02 crore. The Company has recognised expense provision in the books on a conservative basis, although, the Company has filed an appeal with the Hon'ble Supreme Court dated August 26, 2022 against the above referred NGT order. Pursuant to order of the Hon'ble Supreme Court (SC) dated January 6, 2026 the Company has deposited ' 26 crore with the Registry of Supreme Court to grant stay order to remain in force until further orders. The Udupi TPP continues to operate in compliance with all the conditions under Environment Clearance as at reporting date.
50 On March 31, 2026, the Company has determined the recoverable amounts of all its thermal power plants over their useful lives based on the Cash Generating Units ("CGUs”) identified, as required under Indian Accounting Standards ("Ind AS”) 36 "Impairment of Assets”, based on the estimates relating to tariff, demand for power, operational performance of the plants, life extension plans, market prices of coal and other fuels, exchange variations, inflation, terminal value, climate change impact, etc. which are considered reasonable by the Management. On a careful evaluation of the aforesaid factors, the Management of the Company has concluded that the recoverable value of all the thermal power plants is higher than their carrying amounts including goodwill assigned to each CGU.
On a careful evaluation of the aforesaid factors, the Management of the Company has concluded that the recoverable value of such CGUs individually is higher than their respective carrying amounts as at March 31, 2026. However, if these estimates and assumptions were to change in future, there could be corresponding impact on the recoverable amounts of the Plants.
The Company's risk management activities are subject to the management direction and control under the framework of Risk Management Policy as approved by the Board of Directors of the Company. The Management ensures appropriate risk governance framework for the Company through appropriate policies and procedures and the risks are identified, measured and managed in accordance with the Company's policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have appropriate skills, experience and supervision. It is the Company policy that no trading in derivatives for speculative purposes may be undertaken.
The Company's financial liabilities (other than derivatives) comprises mainly of borrowings including interest accrual, leases, trade, capital and other payables. The Company's financial assets (other than derivatives) comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade and other receivables.
In the ordinary course of business, the Company is exposed to Market risk, Credit risk and Liquidity risk.
(i) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises four types of risk: interest rate risk, currency risk, commodity risk ad equity price risk.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the part of Company's debt obligations with floating interest rates.
The Company manages its interest rate risk by having a mixed portfolio of fixed and variable rate loans and borrowings. Significant portion of Company's borrowing is in INR (?) and are borrowed at fluctuating interest rate.
The sensitivity analysis have been carried out based on the exposure to interest rates for instruments not hedged against interest rate fluctuation at the end of the reporting period. The said analysis has been carried out on the amount of floating rate liabilities outstanding at the end of the reporting period. The year end balances are not necessarily representative of the average debt outstanding during the year. A 50 basis point increase or decrease represents management's assessment of the reasonably possible change in interest rates.
I n case of fluctuation in interest rates by 50 basis points on the exposure of borrowings (having fluctuating rates i.e. exposed to changes in rates) of ' 34,197.96 crore as on March 31, 2026 and ' 26,089.56 crore as on March 31, 2025 respectively and if all other variables were held constant, the Company's profit or loss for the year would increase or decrease as follows:
The Company intends to hold investment in liquid mutual fund for relatively shorter period and hence, interest rate risk is not material to that extent.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (trade receivables) and borrowings in the form of Trade Credits. The Company manages its foreign currency risk by hedging transactions that are expected to realise in future. The Company also enters into various foreign exchange hedging contracts such as forward covers, swaps, options etc. to mitigate the risk arising out of foreign exchange rate movement on foreign currency borrowings and trade payables (including capital creditors).
The Company's exposure to commodity price is affected by a number of factors including the effect of regulations, the price volatility of coal prices in the market, including imported coal, contract size and length, market condition etc. which is moderated by optimising the procurement under fuel supply agreement and getting compensated under long term power purchase agreements and change in law regulations. In case, the Company anticipates non-availability of coal, the same is mitigated by sourcing imported coal in advance to meet the demand. Its operating / trading activities require the on-going purchase for continuous supply of coal and other commodities. Therefore the Company monitors its purchases closely to optimise the procurement cost.
The Company does not have equity price risk except to the extent impairment of investment.
(ii) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
The Company is having majority of receivables from State Electricity Boards which are Government undertakings and have interest clause on delayed payments and hence, they are secured from credit losses in the future. Receivables are secured by letter of credit amounting to ' 2,505.89 crore (Previous year ' 3,777.84 crore).The Company holds sovereign guarantee of Bangladesh Government, for the entire receivables under Power purchase agreement with BPDB.
The Company has issued financial guarantees to banks on behalf of and in respect of loan facilities availed by its subsidiaries. In accordance with the policy of the Company, the Company has recognised these financial guarantees as liability at fair value (Refer note 24 and 31). Outstanding loans in the subsidiary against the financial guarantee contracts given by the Company as at March 31, 2026 is ' 950 crore (Previous year ' 950 crore).
This comprises of deposit with banks, loans, investments in mutual funds, derivative assets, security deposits and other receivables. The Company limits its exposure to credit risks arising from these financial assets and there is no collateral held against these because counter parties are group companies, banks and recognised financial institutions. Banks and recognised financial institutions have high credit ratings assigned by credit rating agencies.
(iii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities.
The Company monitors its liquidity requirement using cash flow forecasting models. These models consider the maturity of its financial investments, committed funding and projected cash flows from operations. The Company's objective is to provide financial resources to meet its business objectives in a timely, cost effective and reliable manner and to manage its capital structure. A balance between continuity of funding and flexibility is maintained through internal accruals as well as adequately adjusting the working capital cycle.
Having regard to the nature of the business wherein the Company is able to generate regular cash flows over a period of time, any surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in highly liquid mutual funds with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities; or lent to group entities at market determined interest rate.
Trade credits are included in the Company's supplier finance arrangement. Refer note 28 for further disclosures about the arrangement.
The Company expects to generate positive cash flows from operations in order to meet its external financial liabilities as they fall due and also consistently monitors funding options available in the debt and capital market with a view to maintain financial flexibility.
The table below has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities upto the maturity of the instruments.
i) The above ageing has been calculated based on due date as per terms of agreement. In case where due date is not provided, date of transaction is considered.
ii) Trade receivable includes certain balances which are under reconciliation / settlement with Discoms for payment / closure.
iii) In respect of the Company's 40 MW solar power plant at Bitta, in the matter of alleged excess energy injected in terms of the PPA, GUVNL has withheld ' 72.10 crore against power supply dues during the year ended March 31, 2022. Gujarat Electricity Regulatory Commission ("GERC”) vide its order dated November 3, 2022 directed GUVNL to make payment of the amount withheld within three months from the date of order along with late payment surcharge as per PPA. However, GUVNL has filed an appeal with APTEL against the said order of GERC and the matter is pending adjudication. The Company, as per interim order of APTEL dated February 28, 2023, has received ' 51.75 crore being 75% of the withheld amount subject to outcome of appeal with APTEL. The management, based on GERC order, expects favorable outcome in the matter.
iv) In respect of receivable from GUVNL against Mundra TPP, refer note 35(iv)(a).
v) Also refer note 3(viii).
54 Capital management :
The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth. The Company's overall strategy remains unchanged from previous year.
The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments.
The funding requirements are met through a mixture of equity, unsecured perpetual securities, internal fund generation and other long term borrowings (including consolidation of borrowings). The Company monitors capital and long term debt on the basis of debt to equity ratio.
(i) Debt is defined as Non-current borrowings (including current maturities).
(ii) Capital is defined as Equity share capital, Instruments entirely equity in nature and other equity including reserves and surplus.
The Company believes that it will able to meet all its current liabilities and interest obligations in timely manner.
The Company's capital management ensure that it meets financial covenants attached to the interest bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to levy penal interest and immediately call all borrowings as per terms of sanction. There have been no breaches in the financial covenants of any interest bearing loans and borrowings in the current year. No changes were made in the objectives, policies or processes for managing capital by the Company during the year.
The fair value of the financial assets and financial liabilities included in the level 2 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties. The most frequently applied valuation techniques include forward pricing and swap models, using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rates curves of the underlying derivative.
The fair values of investments in Mutual Funds / Commercial Papers / Certificate of Deposits / Alternative Investment Fund units is based on the net asset value ('NAV').
There have been no transfer between Levels during the year ended March 31, 2026 and March 31, 2025
(c) Compensated Absences
The actuarial liability for compensated absences as at the year ended March 31, 2026 is ' 78.10 crore (As at March 31, 2025'88.31 crore).
The Company has funded benefit plan and have purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate, which can result in a increase in liability without corresponding increase in the funded asset as applicable.
(v) Nature of CSR activities - During the current year, the Company has contributed ' 271.86 crore (Previous year - ' 71.03 crore) to Adani Foundation, ' Nil (Previous year - ' 24.50 crore) to Adani Medicity and Research Center, ' Nil (Previous year - ' 45.29 crore) to Adani Institute For Education and ' 8.00 crore (Previous year - ' 0.86 crore) to Adani Skill Development Centre for various CSR activities and balance amount was spent on construction, medical care and development of local area.
The Company has purchased insurance policies to provide for payment of gratuity to the employees. Every year, the insurance Company carries out a funding valuation based on the latest employee data provided by the Company.
xi. The Company has defined benefit plans for Gratuity to eligible employees. The contributions for which are made to Life Insurance Corporation of India who invests the funds as per Insurance Regulatory Development Authority guidelines.
The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.
The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2025-26.
63 The Company had issued 0.01% Compulsory Redeemable Preference shares (CRPS) of ' 100 each amounting to ' 415.86 crore during the financial year 2022-23. During the current year, dividend of ' 0.04 crore (Previous Year - ' 0.04 crore) has been paid. Further, the Board of Directors of the Company has proposed dividend of ' 0.04 crore for the Financial Year 2025-26 which is subject to approval of the shareholders.
64 a) During the previous year, Coastal Energen Private Limited ("CEPL'), having capacity of 1,200 MW (2x600
MW) coal fired power plant in the state of Tamil Nadu was acquired by a Consortium, including the Company being a part of the Consortium. Further, the approved resolution plan also included the amalgamation of CEPL with Moxie Power Generation Limited ("MPGL”), a Special Purpose Vehicle ("SPV”) incorporated by the Consortium, in which the Company holds 49% equity stake. On fulfillment of conditions precedent as per the NCLT order, the SPV has made upfront payment of ' 3,335.52 crore to the financial and operational creditors and CEPL has been amalgamated with MPGL as per NCLT order w.e.f. August 31, 2024.
Further, upon appeal filled by the erstwhile director of CEPL, National Company Law Appellate Tribunal ("NCLAT”) vide its order dated September 6, 2024, had instructed that for the time being the status quo to be maintained and resolution professional will continue to operate the plant. In response to the petition filed by the Company against the said NCLAT order, the Hon'ble Supreme Court ("SC”) vide its order dated September 12, 2024, had ordered that status quo as was operating before NCLAT order was passed on September 6, 2024 shall continue to remain in operation until the matter is disposed of by the NCLAT.
(b) During the previous year, National Company Law Tribunal ("NCLT”) vide its order dated August 21, 2024, approved the resolution plan submitted by the Company for acquisition of Lanco Amarkantak Power Limited ("LAPL'), a Company undergoing Corporate Insolvency Resolution Process ("CIRP”) under the Insolvency and Bankruptcy Code. LAPL had capacity of 600 MW (2x300 MW) coal fired power plant and is also setting up 1,320 MW (2x660 MW) coal fired power plant in the state of Chhattisgarh. LAPL has been acquired by the Company w.e.f. September 6, 2024 on fulfillment of conditions precedent as per the NCLT order and on infusion of agreed amount of equity share capital of ' 1 crore, along with upfront payment of ' 4,101.00 crore to its lenders. Subsequent to the acquisition, the name of LAPL has been changed to Korba Power Limited ("KPL').
(c) During the current year, the National Company Law Tribunal ("NCLT”) vide its order dated June 18, 2025, approved the resolution plan submitted by the Company for acquisition of Vidarbha Industries Power Limited ("VIPL'), a Company undergoing Corporate Insolvency Resolution Process ("CIRP”) under the Insolvency and Bankruptcy Code. VIPL has capacity of 600 MW (2x300 MW) coal fired power plant in the state of Maharashtra. On completion of conditions precedent including upfront payment of ' 4,000 crore to its lenders, VIPL has become wholly owned subsidiary of the Company with effect from July 7, 2025. The transaction has been accounted for in accordance with Ind AS 103 "Business Combinations" w.e.f. July 1, 2025 using practical expedient.
(d) On September 5, 2025, the Company and Druk Green Power Corp. Ltd. ("DGPC”), Bhutan's state-owned utility, has signed the shareholders agreement (SHA) for setting up a 570 MW hydroelectric project at Wangchhu in Bhutan ("Project”). Pursuant to such SHA, the Company and DGPC have jointly incorporated a new entity (with 49:51 shareholding respectively) titled "Wangchhu Hydroelectric Power Limited” ("WHPL”) in Bhutan to undertake the said Project.
(e) During the year ended March 31, 2026, the Company has incorporated a wholly owned subsidiary namely, Adani Atomic Energy Limited ("AAEL”), to generate, transmit and distribute electric power derived from nuclear and / or atomic energy.
65 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). Further, No funds have been received by the Company from any parties (Funding Parties) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the funding party or provide any guarantee, security or the like on behalf thereof.
66 The Board of Directors of the Company at its meeting held on October 30, 2025, approved the scheme of amalgamation of wholly owned subsidiaries of Adani Power Limited ("APL”), viz. (i) Adani Power Dahej Limited ("APDL”); (ii) Kutchh Power Generation Limited ("KPGL”) (a step down wholly owned subsidiary of APL, as 100% equity shares of KPGL are held by APDL); (iii) Resurgent Fuel Management Limited ("RFML”); (iv) Mahan Fuel Management Limited ("MFML”); (v) Orissa Thermal Energy Limited ("OTEL”); (vi) Korba Power Limited ("KPL'); (vii) Anuppur Thermal Energy (MP) Private Limited ("ATEMPPL'); (viii) Mirzapur Thermal Energy (UP) Private Limited ("MTEUPPL'); (ix) Emberiza Infra Park Limited ("EIPL”); and (x) Vidarbha Industries Power Limited ("VIPL') with APL, with appointed date of April 1, 2025, in terms of the provisions of sections 230 to 232 and other applicable provisions of the Companies Act, 2013. During the year, the Company has filed the scheme with respective NCLTs. The Scheme will be effective on receipt of regulatory approvals. Accordingly, impact of the said scheme has not been considered in these standalone financial statements.
67 As on November 21, 2025, the Government of India notified four Labour Codes, effective immediately, replacing the existing 29 labour laws.
The impact of implementation of the Labour Codes has resulted in an increase of ' 43.54 crore in the liabilities for defined benefit obligation. The amount has been measured and recognised based on management assessment of the impact on defined benefit obligation on such implementation and net incremental liability has been recognised as an employee benefit expenses during the year ended March 31, 2026, The Company continues to monitor the finalization of Central and State Rules, as well as Government clarification on other aspects of the Labour Codes, and will recognize the consequential impact, if any, based on such developments.
68 In the financial year 2022-23, a short seller report ("SSR") was published having certain allegations on some of the Adani Group Companies, including Adani Power Limited ("the Company") and its subsidiaries.
The Hon'ble Supreme Court of India ("SC") by its order dated January 3, 2024, disposed of all matters of appeal relating to the allegations in the SSR and in various petitions including those relating to separate independent investigations. During the current year, SEBI vide its order dated September 18, 2025 concluded two Show Cause Notices (SCNs) and found no non-compliance of provisions of the Listing Agreement and SEBI LODR Regulations pertaining to related party transactions with regard to certain transactions with third parties in earlier financial years. All allegations mentioned in the said SCNs and the proceedings were closed with no penalty or further directions.
The SEBI had also issued SCN(s) pertaining to allegations, of wrongful categorisation of shareholding of certain entities with respect to SEBI public shareholding norms. The Company made necessary submissions to SEBI for resolution of the matters. In respect of this matter, the Adani Group has also obtained legal opinion from independent law firm, which did not identify any non-compliance of applicable laws and regulations.
I n view of the foregoing, the SC order and conclusion of SCNs by SEBI order referred above, and absent any regulatory or adjudication proceeding as at date (other than in relation to SCNs for one matter as mentioned above), the management of the Company has concluded that there is no non-compliance of laws and regulations and accordingly, no material consequences thereof as on reporting date.
v) Details in respect of transactions with related parties in terms of Regulation 23 of the SEBI (LODR), Regulations 2015 is also disclosed above.
vi) Terms and conditions of transactions with related parties.
The Company and its subsidiaries undertake sale and purchase of power with Powerpulse Trading Solutions Limited (PTSL), a subsidiary of Adani Energy Solutions Limited (AESL) on energy exchanges and under bilateral agreements. The sale and purchase of power to PTSL are executed at market discovered prices. PTSL charges nominal trading margin for traded quantum which is within the range provided under CERC regulation. Accordingly, the transaction is on an arm's length basis and in the ordinary course of business.
The Comapny has extended loan to its subsidiaries for expansion or for operational requirements. The Company provided funds to subsidiaries in the form of unsecured loan. The loan provided with an interest rate based on nominal margin on Comapny's projected weighted average long-term rupee borrowing cost during FY 2025-26. Accordingly, the transaction is on an arm's length basis and in the ordinary course of business.
The Company is availing PMC service from Adani Infra (India) Limited (AIIL) for its various expansion projects. The PMC fees have been benchmarked as per market rates. Accordingly, the transaction is on an arm's length basis and in the ordinary course of business.
72 The Company does not have any transaction to report against the following disclosure requirements as notified by MCA pursuant to amendment to Schedule III:
1. Crypto Currency or Virtual Currency
2. Benami Property held under Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
3. Registration of charges or satisfaction with Registrar of Companies
4. Related to Borrowing of Funds:
i. Wilful defaulter
ii. Utilisation of borrowed fund and share premium
iii. Discrepancy in utilisation of borrowings
iv. Discrepancy in information submitted towards borrowings obtained on the basis of security of current assets
5. There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
73 During the previous financial year 2024-25, the Company's management became aware of an indictment filed by United States Department of Justice (US DOJ) and a civil complaint by Securities and Exchange Commission (US SEC) in the United States District Court for the Eastern District of New York (EDNY) against a non-executive director of the Company. The director is indicted on three counts namely (i) alleged securities fraud conspiracy (ii) alleged wire fraud conspiracy and (iii) alleged securities fraud for making false and misleading statements and as per US SEC civil complaint, director omitting material facts that rendered certain statements misleading to US investors under Securities Act of 1933 and the Securities Act of 1934. The Company has not been named in these matters.
During the year ended, the legal counsels representing the director have agreed to accept service of US SEC on behalf of such director, without accepting the jurisdiction of EDNY and reserving all rights and defences available to them. Subsequently, the legal counsels had filed letter with EDNY court and sought pre-motion conference in the matter including grounds for dismissal of the US SEC's civil complaint based on all defences including as to jurisdiction and merits of the matters. As at reporting date, the matter is pending to be heard by EDNY court.
Having regard to the status of the above-mentioned matters as at reporting date, and the fact that the matters stated above do not pertain to the Company, there were no impact to the Company as at year ended March 31, 2025. There are no changes to the above conclusions as at and for the year ended March 31, 2026.
74 The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software except the evidence of the audit trail feature being enabled and operated for direct changes to underlying database of the ERP software from May 27, 2025 to December 11, 2025 was purged due to technical constraints with retention period of the storage solution. Further, there is no instance of audit trail feature being tampered with in respect of the accounting software where such feature is enabled. Additionally, the audit trail of relevant prior years has been preserved for record retention to the extent it was enabled and recorded in those respective years by the Company as per the statutory requirements for record retention.
75 According to the management's evaluation of events subsequent to the balance sheet date, there were no significant adjusting events that occurred other than those disclosed / given effect to, in these financial statements as of April 29, 2026.