Adani Power Ltd. announces an acquisition

The exact aggregate contribution of the 10 subsidiaries cannot be calculated from the cited material, because the Scheme’s subsidiary-level pro-forma revenue and EBITDA figures are not included. The available figures only permit a whole-consolidated-versus-standalone bridge, which includes all consolidation effects and should not be attributed solely to these 10 entities.

FY26 reported bridge

†Derived as consolidated minus standalone.

On this broad bridge, consolidated entities added Rs 8,951.7 Crores of revenue and Rs 1,976.3 Crores of EBITDA in FY26. That equates to approximately 16.51% of consolidated revenue and 8.43% of consolidated EBITDA, derived from the reported consolidated and standalone figures. However, these percentages represent the aggregate effect of the entire consolidated perimeter, not the 10 subsidiaries alone.

The margin effect is clear: the businesses outside the standalone parent operated at a lower implied EBITDA margin—approximately 22.08%, derived from the consolidation uplift—than Adani Power standalone at 47.4%. Consequently, consolidation reduced reported EBITDA margin to 43.2% and operating margin to 34.8%. The exact pro-forma impact of integrating the 10 subsidiaries would require their FY26 aggregate revenue, EBITDA and operating profit from the Scheme.

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The amalgamation centralises the legal debt obligations at Adani Power, but it should not create incremental debt at the consolidated level. Once effective, the assets and liabilities of the 10 wholly owned subsidiaries will vest in Adani Power, and the subsidiaries will be dissolved without winding up. ^[9] The scheme has an appointed date of 1 April 2025, but it becomes effective only after the prescribed procedural steps are completed. ^[10]

Impact on consolidated debt

The key distinction is between legal borrower location and consolidated reporting:

• Legal position: loans and other liabilities previously contracted by the subsidiaries become direct obligations of Adani Power after effectiveness of the scheme. The parent therefore assumes the subsidiary debt on its own balance sheet. ^[11]
• Consolidated position: those subsidiaries were already wholly owned and consolidated in Adani Power's group accounts. Consequently, the same external debt was already included in consolidated borrowings; moving it from a subsidiary column to the parent entity does not, by itself, add a second layer of debt. The scheme analysis therefore expects zero net impact on consolidated assets, liabilities and equity purely from the legal merger. ^[11]
• No new Adani Power equity shares are to be issued to the subsidiary shareholders; shares held by Adani Power and its nominees are cancelled. ^[12]

The scheme may still improve debt fungibility and refinancing flexibility by placing borrowings under the parent, but that is a potential financing benefit, not an immediate reduction in gross debt. Any reduction in interest cost or debt would require subsequent refinancing or repayment; the amalgamation alone does not extinguish the obligations.

Does reported debt-to-equity change?

The consolidated debt-to-equity ratio should not mechanically change because of the amalgamation. Adani Power's reported consolidated ratio was 0.82x in both Q4 FY26 and Q1 FY27, while consolidated total debt was approximately Rs 53,556 Crores in Q1 FY27. ^{[13] [14]} This stability is consistent with the transaction being primarily a restructuring of legal entities rather than a new borrowing or equity-raising event.

The standalone ratio is the relevant metric that could be re-presented after effectiveness because subsidiary debt and assets would move onto Adani Power Limited's individual balance sheet. The latest standalone debt-to-equity ratio was 0.91x in Q1 FY27, with standalone total debt of approximately Rs 47,994 Crores. ^{[15] [16]} A post-effective standalone debt-and-equity bridge has not been reported, so the magnitude of any standalone ratio change cannot be calculated.

Bottom line: the merger changes who legally owes the debt, not the underlying consolidated debt burden. The reported consolidated debt-to-equity ratio should therefore remain broadly unchanged unless subsequent refinancing, repayment, accounting adjustments or equity changes alter the underlying balances.

The percentage cannot be calculated reliably from the cited evidence. Adani Power’s reported installed capacity is 18,330 MW, but the scheme’s effective date and the MW capacity transferred to, or directly held by, the parent are not stated. The required calculation is:

`Parent-held operational capacity ÷ 18,330 MW × 100`

The 18,330 MW figure is reported as total installed capacity, not as a post-scheme parent-versus-subsidiary ownership breakdown. ^[17]

The consolidation also cannot be shown to have materially reduced inter-company transactions. No before-and-after related-party transaction values, or post-scheme entity-level comparison, is reported in the cited material. Legally combining entities could eliminate transactions between the entities absorbed into the parent, but transactions with other group companies would remain; therefore, consolidation alone is not evidence of a significant reduction in the reported volume.

Required evidence for a definitive answer: the scheme document or post-effective-date ownership schedule showing parent-held MW, plus comparable pre- and post-scheme related-party transaction disclosures on the same basis—standalone or consolidated.