Adani Power Gets CARE AA+ Rating Upgrade; Outlook Remains Stable
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Adani Power has received an upgrade in its long-term credit rating from CARE Ratings to CARE AA+ with a stable outlook. The agency has also reaffirmed its short-term rating at CARE A1+.
Adani Power's long-term (LT) rating has been upgraded to CARE AA+ from CARE AA, with a stable outlook. CARE Ratings has also retained the company's short-term rating at CARE A1+. The rating action covers the company's bank facilities and debt instruments.
The upgrade comes as Adani Power's operational capacity stood at 18.33 GW as of 30 June 2026. Another nearly 24 GW of capacity is under development. As of 30 June 2026, around 95% of its installed capacity was tied to power purchase agreements (PPAs), up from 85% in August 2024.
What Has Driven The Credit Rating Upgrade?
The plant availability factor (PAF) for Adani Power continued to remain above the industry average. Across its operational portfolio, the PAF stood at 96% in Q1 FY27 and 89% in FY26. As a result, the business was able to fully recover its capacity charges.
Moreover, the company's cash situation also remained steady. Cash and cash equivalents totalled ₹10,739 crore as of 30 June 2026. At the end of FY26, debtor days stood at 80 days. The number shows that off-takers had made their payments on schedule.
EBITDA Has Remained Above ₹18,000 Crore
Adani Power's continuing earnings before interest, taxes, depreciation, and amortisation (EBITDA) remained above ₹18,000 crore in each of FY24, FY25 and FY26. The figure remained below ₹10,000 crore until FY23.
The improvement has continued into FY27. Reported EBITDA for Q1 FY27 stood at ₹8,369 crore, compared with ₹6,150 crore in Q1 FY26. The spread between revenue per unit sold and the associated coal cost has also remained above ₹2 per unit over the past three years, supporting relatively stable cash flows.
CARE Ratings expects EBITDA to remain above ₹22,000 crore over the medium term. The agency cited contracted capacity, better fuel availability and contributions from projects currently under development as key factors.
What Risks Do CARE Ratings Continue To Track?
Adani Power's expansion plans remain a major consideration, even after the upgrade. The company has proposed adding nearly 23.72 GW of capacity, involving cumulative capital expenditure of around ₹2 lakh crore over the medium term.
This scale of expansion brings execution, funding and commissioning risks. CARE Ratings also continues to monitor pending regulatory matters involving the Mundra, Tiroda and Korba (Lanco Amarkantak) projects. These include final tariff orders from the Central Electricity Regulatory Commission (CERC) and the Supreme Court of India.
The company is also entering nuclear and hydro power generation, both of which have longer gestation periods. Its exposure to state distribution utilities remains another consideration because their financial position could lead to payment delays.
How Did Adani Power Ltd. Share Price React?
Today, on 18 August, Adani Power shares are trading above their previous close. At 2:13 pm, the shares were trading at ₹207.42. The stock opened at ₹203.80 and moved between an intraday low of ₹203.57 and a high of ₹208.67 during the session. Its previous close stood at ₹203.56.
Also Read - Stock Market Update 18 August 2026: Sensex Sheds Over 250 Pts; Nifty 50 Below 24,250
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