Azure Power Q2/2022 Financial Results

Azure Power Improved Operating Revenues In Q2/2022 By 25% Annually

Azure Power Q2/2022 Financial Results

Azure Power’s operational capacity at the end of September 2021 increased 31% YoY to 2.21 GW. (Source: Azure Power Global Limited)

  • Azure Power’s operating revenues in Q2/2022 added up to $59.1 million, having gone up by 25% YoY
  • Its operational, contracted and awarded MWs increased to 7.22 GW at the end of the quarter
  • Management expects to sign PPAs for 2.333 GW capacity with SECI as the latter has been able to sign PSAs for 7 GW with Andhra Pradesh

Indian renewable energy company Azure Power exited Q2/2022 (period ending September 30, 2021) with 25% increase in its operating revenue to $59.1 million, thanks mainly to projects commissioned post September 30, 2020 and additional revenue of $5.5 million from sale of carbon credits. Adjusted EDITDA for the company increased 59% YoY to $49.8 million.

During the quarter, its project construction activities were negatively impacted by COVID-19’s 2nd wave, but it secured extensions on the same. “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 current year, amid disruption due to second wave of COVID-19,” stated the management.

As of September 30, 2021, Azure Power had 2.21 GW of operational capacity that went up 31% over previous year with cumulative operational, contracted and awarded MWs increasing to 6.95 GW which increased to 7.22 GW subsequent to the quarter end with new wins. This includes 4 GW of contracted and awarded capacity for which it has received letters of award (LOA).

However, in November 2021 it secured power purchase agreements (PPA) with the Solar Energy Corporation of India (SECI) for 600 MW out of 4 GW manufacturing linked projects capacity which it will build in Rajasthan (see India PV News Snippets).

Azure Power CEO Ranjit Gupta expects to soon sign PPAs for 2.333 GW capacity of the SECI win as the government agency has recently signed power sale agreements (PSA) with the state of Andhra Pradesh. “These are heartening and significant developments post elongated period of wait on these projects. Tariffs of INR 2.54/- for the 600 MW PPAs and INR 2.42/- for PPAs to be signed under Andhra Pradesh PSAs, are significantly value accretive. We expect returns comfortably above the upper end of our threshold targets. Given the work we have already done with land acquisition and securing transmission connectivity, we will strive to complete these projects before time,” added Gupta.

Philip Shen of Roth Capital Partners considers this a significant development for the company as it could ‘serve as a meaningful near-term positive catalyst as it would secure a total of nearly 3GW of projects to support growth for years ahead’. Azure Power is also expanding its portfolio to green hydrogen.


For 2022 (fiscal year ending March 31, 2022), Azure Power has reiterated its previous guidance of operational MWs between 2.75 GW and 2.95 GW, excluding rooftop portfolio. Revenues are guided for between $241 million and $255 million. Close to 90% of the expected revenue is from commissioned and operational projects that have not been materially impacted due to COVID-19.

Remaining revenue is subject to when under construction plants are commissioned which is difficult to forecast due to pandemic related disruptions, the management explained.

For Q3/2022, it has guided for revenues between $55.3 million and $58.0 million.

About The Author

Anu Bhambhani

SENIOR NEWS EDITOR Anu is our solar news whirlwind. At TaiyangNews, she covers everything that is of importance in the world of solar power. In the past 9 years that she has been associated with TaiyangNews, she has covered over thousands of stories, and analysis pieces on markets, technology, financials, and more on a daily basis. She also hosts TaiyangNews Conferences and Webinars. Prior to joining TaiyangNews, Anu reported on sustainability, management, and education for leading print dailies in India. [email protected]

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