Azure Power’s Revenue Increases 25% YoY to ₹4.38 Billion in Q2 FY 2022

Azure Power, an independent solar power producer, has reported a 25% year-over-year (YoY) increase in its operating revenue in the second quarter (Q2) of the financial year (FY) 2022, driven by projects commissioned after Q2 2020.

The revenue jumped to ₹4.38 billion (~$59.1 million) during the quarter from ₹3.50 billion (~$46.30 million) in the same period last year.

In Q2 FY 2022, the company posted a net loss of ₹300 million (~$4 million), an 18.57% decline compared to a net loss of ₹368 million (~$4.86 million) in the same period last year. The decline in the loss was mainly due to additional income on the sale of carbon credits of ₹408 million (~$5.5 million), reversal of stock appreciation rights expense, offset by an increase in legal and professional cost, and tax expense.

The solar power producer’s adjusted earnings before interest, taxes, depreciation and amortization (EBIDTA) stood at ₹3.68 billion (~$49.8 million) in Q2, a 59.31% increase compared to ₹2.31 billion (~$30.54 million) in the same period last year.


In Q2, the company incurred ₹127 million (~$1.7 million) on foreign exchange as the Indian rupee appreciated against the US dollar by 0.1%. Its income tax expenses in Q2 stood at ₹821 million (~$11.1 million) compared to an income tax benefit of ₹97 million (~$1.28 million) in Q2 2022.

The company expects revenues between ₹4.1 billion (~$55.3 million) and ₹4.3 billion (~$58 million) in the upcoming quarter. For FY 2022, the revenue is expected between ₹17.9 billion (~$236.58 million) and ₹18.9 billion (~$249.83 million) and operational solar capacity around 2.75 GW – 2.95 GW.

As of Q2 FY 2022, Azure has 2.21 GW of operating solar projects, increasing 31% over Q1 FY 2021. The company has an operating, contracted, and awarded solar capacity of 6.95 GW as of June 30, 2021. It has received letters of award for over 4 GW of solar capacity; however, power purchase agreements (PPA) have not been signed yet. It has commissioned 158 MW AC (188 MW DC) of solar capacity in Q2.

The company said it expects to have an operational capacity of between 2,750 MW and 2,955 MW, excluding the rooftop portfolio, by March 31, 2022.

According to Azure Power, the project cost per MW (AC) was ₹39.6 million (~$523,357) for the first half (1H) of FY 2022, and the project cost per MW (DC) stood at ₹34.7 million (~$458,599). Excluding the impact of safeguard duty, the DC and AC costs per MW could be down by ₹2.9 million (~$38,321) and ₹3.3 million (~$43,606), respectively.

In Q2, the cost of operations per MW declined marginally to ₹150,000 (~$2,100) from ₹160,000 (~$2,200) in the same period last year.

In Q2, electricity generation stood at 1,001 million kWh, an increase of 231 million kWh or 30% compared to the power generated in the same quarter last year. The increase in power generation was primarily due to an additional 529 MW AC (728 MW DC) operating capacity, including a rooftop portfolio.

The company’s plant load factor was 20.2% and 21.9% for Q2 and 1H 2022, compared to 18.8% and 20.8%, respectively, in the same period last year. The increase was mainly because of the addition of AC and DC capacity and improved plant performance.

Azure said that a few of its construction activities were negatively impacted by the second wave of Covid-19. It had received extensions on these projects. “We continue to engage with our offtakers for extensions relating to scheduled commissioning on certain renewable energy projects, in reference to relaxation granted by Ministry of New & Renewable Energy (MNRE) in the current year,” it said.

Last month, Azure Power signed a PPA for 600 MW of ISTS-connected solar power projects with Solar Energy Corporation of India.

Mercom had earlier reported that Azure Power won a capacity of 180 MW by quoting ₹3.43 (~$0.045)/kWh in the Maharashtra State Electricity Distribution Company’s auction to procure 300 MW of power from grid-connected interstate and intrastate wind projects.

According to Mercom’s India Solar Market Leaderboard 1H 2021 ReportAzure Power emerged as one of the top three utility-scale solar project developers in 1H of the calendar year (CY) 2021.