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Q&A Section of the Earnings Transcript

Question 1: "Can you just talk about the expectations on the merchant and PPA tariff realizations in the second half given softness in merchant pricing that we have seen so far?"

Answer: As for PPA rates, they will not change since they are long-term agreements. We achieved an average realization of Rs. 5.70 per unit in Q2 FY26, which we expect to maintain. Merchant realization in Q2 FY26 was Rs. 5.37 per unit. For the balance period, we anticipate an average realization closer to Rs. 6, similar to historical rates.

Question 2: "Are there any plans to increase the PPA percentage from the current 88% to avoid pricing volatility?"

Answer: We recently signed a medium-term PPA with Maharashtra DISCOM at Rs. 5.55 per unit, and an LOI from Karnataka at Rs. 5.78 per unit. Currently, around 91% of our capacity is tied up under PPAs, and we are actively seeking to increase this to reduce volatility.

Question 3: "How should we think about CAPEX in FY26 and beyond, including the funding mix?"

Answer: Our CAPEX will primarily be funded by internal accruals, given strong cash flow from operations. For the interim, we may need to secure bridge financing from domestic capital markets or banks, but overall, a significant portion will come from internal funds.

Question 4: "Can you provide an update on the Assam bid status for 3.2 GW?"

Answer: We have concluded the bids and are currently the L1 party, with commission approval received. We expect to receive formal communication soon about the bid results.

Question 5: "What is the breakdown of the 17 GW bids across states?"

Answer: The bids include 3,200 MW in Rajasthan, 1,320 MW in Uttarakhand, 1,600 MW in Maharashtra, 4,000 MW in Uttar Pradesh, and 2,260 MW in West Bengal. Additionally, Karnataka has 1,600 MW and Gujarat has 4,000 MW, bringing the total to approximately 22,000 MW.

Question 6: "What is the timeline for connecting the Godda Power Plant to the Indian grid?"

Answer: We anticipate the connection by December 2025. We can sell power from Godda to the Indian market under conditions specified in the PPA, primarily if Bangladesh defaults on payments or schedules.

Question 7: "What is the estimated CAPEX for the 23 GW expansion plan?"

Answer: The total estimated CAPEX for the expansion is approximately Rs. 2 lakh crore.

Question 8: "Will the new PPAs include passed-through costs for fuel, avoiding fixed tariffs?"

Answer: Yes, new standard bidding documents require quoting tariffs only for the first year with fuel costs passed through based on operational parameters. Capacity charge variations may occur across states but will largely remain flat.

Question 9: "There was a report indicating a target of Rs. 70,000 crores EBITDA in six years; is this for the entire 42 GW or just for 30 GW?"

Answer: This report reflects media analysis; the management has not provided such specific guidance. Our aim is to exceed any projections made.

Question 10: "How is the reduction in fuel cost from the cess repeal being reflected in contracts with states?"

Answer: The situation varies by state. Some states have issued change-in-law notices; others may do so soon. The regulatory commissions will determine the passing on of costs based on these notices.