#17 GW+ Pan India Portfolio of Solar Assets India's First Private Grid Connected MW Solar Plant Issued India's First Solar Green Bond Investor Presentation December, 2020 Azure Power R#2Disclaimer Azure Power Forward-Looking Statements This information contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, including statements regarding our future financial and operating guidance, operational and financial results such as estimates of nominal contracted payments remaining and portfolio run rate, and the assumptions related to the calculation of the foregoing metrics. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: the availability of additional financing on acceptable terms; changes in the commercial and retail prices of traditional utility generated electricity; changes in tariffs at which long term PPAs are entered into; changes in policies and regulations including net metering and interconnection limits or caps; the availability of rebates, tax credits and other incentives; the availability of solar panels and other raw materials; our ability to attract and retain our relationships with third parties, including our solar partners; our ability to meet the covenants in debt facilities; meteorological conditions; impact of the COVID-19 pandemic and lockdowns in India and globally; supply disruptions; power curtailments by Indian state electricity authorities and such other risks identified in the registration statements and reports that we have filed with the U.S. Securities and Exchange Commission, or SEC, from time to time. In the presentation, portfolio represents the aggregate megawatts capacity of solar power plants pursuant to PPAs, signed or allotted or where we have been cleared as one of the winning bidders or won a reverse auction but has yet to receive a letter of allotment. There is no assurance that we will be able to sign a PPA even though we have a letter of award. All forward-looking statements in this presentation are based on information. available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. This presentation also contains non-GAAP financial measures. We have provided a reconciliation of such non-GAAP financial measures to the most directly comparable measures prepared in accordance with U.S. GAAP in the Appendix to this presentation. 1#3Executive Summary#4Market Opportunity 450 GWs of Opportunity By 2030 ~30 GWs per year Azure Power India's 450GW Renewable Energy Capacity Addition Roadmap (1) Electricity Usage per Capita (MWh) (2) Solar is the Lowest Cost Source of Power (3) CAGR: 28% 450 13.0 US: ~11x > India China: ~4x > India 4.9 INR/kWh Tariff (INR/kWh) 100 38 1.2 2.00 2.56 2.99 4 2015 Sept'2020 2022E 2030E USA China India Solar Spot Wind Coal Gas Diesel price Expect ~25 GWs of new capacity auctions in India by end of CY'21 1) Economic Times 2) CEA Report 2019, Statista - Worldwide consumption of electricity by countries Recent auctions indicate mid-teen equity returns 3) Solar is L1 of November 2020 SECI Auction: Spot Electricity Price - IEX October 2020 average: Wind - L1 2 GW SECI auction August 2020: Coal, Gas, Diesel tariffs are from Lazard LCOE Study Nov 2019 3#5Management Commitment to Capital Discipline Capital discipline is the foundation to our success 1 2 3 4 5 Azure Power Delivery of projects on time and on budget Enhance returns on invested capital with efficiency gains and cost optimisation Optimize capital structure to lower risk and cost of capital Risk mitigated approach to new projects that must meet threshold returns above cost of capital If returns on future growth do not meet thresholds, will explore giving back capital 4#6(1) Azure Power Overview (AZRE: NYSE) One of the Largest Solar portfolios in India 7,115 MW (1) Utility-Scale Projects | 6,948 MWs Operational 1,834 MW Under Construction 1,281 MW Azure Roof Power | 167MWs Azure Power Committed(1) 4,000 MW Awan |Punjab India's First Private MW scale Solar Plant Gandhinagar | India First MW Scale Distributed Solar Rooftop Project Founded in 2008, built India's first private utility-scale solar project in 2009 Fully integrated business from development to EPC, financing & management Operational MW growth of 95% CAGR from March 2009 95% of the total portfolio is with investment grade counterparties Total capital raised over US$2.5(2) billion since inception First Indian energy assets to list in NYSE, United States First Solar Green Bond out of India listed on SGX CDPQ, large AAA-rated Canadian pension fund, owns 50.4% Portfolio as on Sept 30, 2020: Includes 4,000 MWs which LOA has been received but PPA has not been signed; The PPA will follow only after the power is contracted with DISCOMS under a power sale agreement (PSA). There is no assurance that we will be able to sign a PPA even though we have a letter of award. (2) Exchange rate INR 73.54 to US$1 (New York closing rate of Sept 30, 2020) 5#77,115(1) MW Committed Portfolio, 1,834 MWs Operational ~90%(2) in High Irradiation Zone Rajasthan (3,675 MW) 475 MW ~6%(2) in Mid Irradiation Zone Punjab (214 MW) 214 MW BBB- & above 95% Azure Power Focus on Strong Counterparty Credit ~95% of the portfolio is Investment Grade(4) 3200 MW Gujarat (270 MW) 100 MW Andhra Pradesh (200MW) 200 MW Maharashtra (7 MW) 7 MW Karnataka (250 MW) 250 MW Rooftop Project (167 MW) 151 MW 16 MW Uttar Pradesh (100 MW) 100 MW Bihar (10 MW) 10 MW Chhattisgarh (30 MW) SECI 80% 30MW Telangana (100 MW) 100 MW Delhi (3 MW) 100 MW To be decided (2,000 MW) Assam (90 MW) 2,000 MW(1) 90 MW Operational Solar Capacity Under Construction & Committed Solar Capacity Indian Railways & Gol Entities 1% NTPC 4% Others 5% State Electricity Boards 15% 85% of the portfolio is with Gol (sovereign) backed entities Ground Mount DSO 125 Days Others 205 Days Federal 68 Days ~60% of revenues are with Highest Rated Counterparties Category A States (4) 63 Days Rooftop Irradiation Zones (3)(kWh/m2/day): High >5.5 | Mid Between 5.5-4.5 | Mid Low 4.5-3.5 (1) 4,000 MWs of Committed Capacity has an LOA but has not yet received a PPA. (2) For ground mounted project (3) National Renewable Energy Laboratory (4) Considered Integrated Rating Report by Ministry of Power, Gol, wherever Credit Rating is not available 6#8Visible Historical and Future Growth Azure PowerⓇ Substantial Revenue Growth to Portfolio Revenue Run-Rate (1) SMW % of Revenue Growing Portfolio with Strong Contracts in Place 7,800 4,000 7,115 6,500 5,200 3,900 1,281 2,600 1,300 1,834 40% 30% 20% 10% 0% Operational Under Construction Committed Portfolio Total Portfolio(1) (includes LOA) Captured Significant Economies of Scale 15 10 225250 FY'15 IPO FY'17 FY'18 FY'19 FY20 G&A as % of Revenue (Ihs)(1) LTM O&M per MW-year (rhs) US$ Thousand/MW/Year Revenues (US $ Million) EBITDA (US$ Million) $193 $172 $112 $144 $44 $61 165% $705 Committed Under Construction Operating IPO FY'17 FY'18 FY'19 FY'20 LTM Committed Revenue 370% Increase In Adjusted EBITDA Since IPO In 2016 $160 $140 $120 $100 $141 $114 $110 $82 $80 $60 $43 $40 $30 $20 $0 IPO FY'17 FY'18 FY'19 FY'20 LTM Exchange rate- INR73.54 to US$1 (New York buying rate of September 30, 2020) 1) Portfolio as on Sept 30, 2020: Includes 4,000 MWs which LOA has been received but PPA has not been signed; The PPA will follow only after the power is contracted with DISCOMS under a power sale agreement (PSA). There is no assurance that we will be able to sign a PPA even though we have a letter of award. 2) Portfolio run-rate (please refer Form 6k Equals annualized payments from customers extrapolated based on the operating & contracted capacity as on September 30, 2020). 3) Excludes charges in FY'20 and FY'21 related to management transition, stock appreciation rights, interest charges on safe guard duties, and provisions of accounts receivables. | IPO data is LTM 30 June, 2016| EBITDA - For a reconciliation of Non-GAAP measures to comparable GAAP measures refer to appendix. 7#9Projects Under Construction Update Rajasthan Under Construction Operating Azure Power Rajasthan 6 - 600 MWs Rajasthan 8-300 MWs PPA Revised COD Q1 CY'21 (300 MWS COD expected by Dec) Q3 CY'21 Financing Land Construction 100% 100% Near complete 100% Transmission ~90% complete; AC system work well under way Work on transmission in process Projects are on budget to date Expect completion before expected revised COD 8#10Projects Under Construction Update Revised PPA COD Financing Land Rajasthan 9 - 300 MWs Q3 CY'21 Nearly complete -85% Assam Rajasthan Construction Transmission 50% completed Expect completion before expected revised COD 1) Extension of COD applied for. 6 Azure Power Assam -90 MWs 25 MWs Commissioned August 2020; 40 MWs Q1 CY'21, 25 MWS 3Q' CY21 (1) ' Completed Under Construction Operating Land in place for ~85 MWs Transmission ~80% complete Projects are on budget to date#114 GW Project Win Is Significantly Value Accretive Tariff ~15% higher than similar SECI central grid connected auctions we have won Opportunity for 20%+ equity IRRS Potential of around 6.0x EV/EBITDA build cost Azure Power Present Value of Equity for 4 GW Win (2) PV of Equity Value (USD Mn) $1,000 $800 $600 $400 $200 10.0% 12.5% 15.0% Cost of Equity ■9% Interest Rate 10% Interest Rate 11% Interest Rate Project Cost 59 63/Watt Net PLF Overloading 50% Tariff Opex 8% of Revenue Initially Key Assumptions for 4 GWS 28.9% 29.3% Leverage 75% 3.9 ¢/ kWh Interest Rate 9.25 10.25% Degradation 0.60% Potential Upside Opportunities to reduce O&M given benefits of scale and technology Potential use of bi-facial modules could increase PLF Green bond financing could reduce lending costs and reduce equity requirements improving returns Further reduction in module prices and BOS reflecting buying power and gains in productivity Exchange rate- INR 73.54 to US$1 (New York closing rate of September 30, 2020), 1) PV Insights, Mercom, 2) As of September 30, 2020 10 US$/ Watt Loan Tenor 20-22 Years Module prices have a long history of declines (1) $0.40 $0.30 $0.20 $0.10 $0.00 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20#12USD Millions $600 $300 Long Term Outlook MWs Operational Guidance MWs 8,000 7,000 6,000 CAGR USD Millions 5,000 30% $700 4,000 CAGR 3,000 $600 40% 2,000 1,000 $500 IPO(a) FY'17(a) FY'18(a) FY'19(a) 2Q FY'21(a) FY'21(e) Cap Ex Guidance FY'22(e) FY'23(e) $0 FY'21 FY'22 FY'23 Equity Debt FY'24 FY'25 (US$ millions) FY'22 FY'23 FY'24 FY'25 FY'21 Cap Ex 1H'21: $97.7 2H'21: $225 - $275 $600 $700 $500 - $650 $500 - $650 $500 - $650 FY'24(e) FY'25(e) $400 $300 $200 $100 Azure Power Gross Margin (2), Cash Flow to Equity for Operating Assets (3) and Debt Forecast Gross Margin: $180 $190 - Gross Margin: $275 - $290 CFe: $45 - $60 60 $0 LTM Current Operational (1,834 MWs) Net Debt $978mn Exchange rate- INR 73.54 to US$1 (New York closing rate of September 30, 2020) (1) Midpoint of guidance, (2) Revenue less cost of operations equals Gross Margin. Corporate G&A as overhead is covered during construction in cap ex. (3) CFe (cash flow to equity) for Operating Assets is profit before tax (the most comparable GAAP metric), adjusted for net cash provided for used/in operating activities, other than changes in operating assets and liabilities, income and deferred taxes and amortization of hedging costs; less: cash paid for income taxes, debt amortization and maintenance capital expenditure. LTM actual debt amortization was $7.2 million but projections assume normalized debt amortization over 20 years. 11 CFe: CFe: $70 - $100 $170 - $210 Total Contracted Total Committed Portfolio (3,115 MWs) Portfolio (7,115 MWs) $1,550 mn EBITDA CFe $3,100 mn Gross Margin: $575 - $675#13Recent Sustainability Disclosure Reaping Rewards SUSTAINALYTICS Top 10 Global Renewable Energy Company for Sustainability WORLD FINANCE SUSTAINABILITY AWARDS 202 0 Most Sustainable Solar Company CDP DISCLOSURE INSIGHT ACTION Environment Social green PIMCO ESG Governance assets case study wallet on Highlights Avoided 7.8 mn tons of CO2 equivalents since inception (1) Azure Power 40% saving last year in water consumption per unit of electricity generated (2) Aim to become water neutral by 2023 Volunteer study in FY'20 to ascertain the ecological impact of new projects in Rajasthan 19 training sessions conducted in FY'20 with 254 participants across 11 sites on air pollution and environment awareness Created over 4,300 local jobs since inception in the remote communities we operate in Clean water plants built in FY'19 / '20 to provide over 71,000 people with drinking water 46 smart classrooms installed in last 18 months 12 houses built for low-income families in FY'20 800+ streetlights and 4 washrooms for communities installed in FY'20 Skill development training offered to over 2,500 individuals in local villages during FY'20 Enhanced Health and Safety Policy implemented in FY'20 All projects comply with World Bank Equator Principles Comply with SEC, NYSE, SGX governance standards 22% of Board is female 341 internal and 3 external audits in FY'20 reported no significant noncompliance Azure Power (1) Up to March 31, 2019, 2) CY 2019 compared to CY 2018 12 12#14Corporate Social Responsibility Programmes Azure Power POWERING COMMERCIA Aure Pawe Azure Power POWERING UTILE Azure PowerⓇ Promoting livelihood enhancement by providing skill development across 7 sites in Gujarat Donation of modified wheelchair and two wheelers to the disabled army veterans Promoting education by providing smart class in Government schools across multiple states Safe drinking water covering over 60,000 beneficiaries GG- Azure Power Thatzd 1,000+ Solar street lights installed to promote rural electrification Built community toilets for sanitation and hygiene 13#15Strong Governance and Disclosure Standards Home country regulatory requirements Only Indian Solar Independent Power Producer listed on NYSE Standards reinforced by listing requirements Strong Corporate Governance SEC & NYSE requirements that also require regular reporting Azure Power SGX-ST requirements requiring periodic reporting Azure Power R Compensation Committee ■ Assist the board in discharging matters related to compensation Key Committees Audit Committee ■ Prudently oversee the accounting and financial reporting process of the company ■ All directors are independent Nominating and Governance Committee ■ Review & make recommendations with respect to corporate governance ■ Conduct annual reviews of Board's Independence Whistle Blower Policy ■ Providing conducive environment to employees and directors for safe and secure reporting of unethical conduct Key Policies Anti Bribery and Corruption Policy ■Committed to conduct business ethically ■Compliance with United States of America's Foreign Corrupt Practices Act Code of Business Conduct and Ethics ■ Conducting the business with honesty, integrity and ethical behavior Corporate Social Responsibility Strong community partnerships ■Constantly working with communities for betterment For further details on policies, please refer to http://investors.azurepower.com/corporate-governance/governance-documents 14#16Experienced Board Backed by Long Term Marquee Shareholders Azure Power Caisse de dépôt et placement du Québec • Increased stake in Azure Power to c.50.4% through multiple rounds & open market purchase • 2nd largest Canadian pension fund (Rated AAA) • Over US $250 bn assets, of which over c. US$ 4.5bn invested in India • Long term institutional investor: Investments in infrastructure globally of c.US$ 23bn of which c.53% in Energy IFC International Finance Corporation WORLD BANK GROUP IFC Global Infrastructure Fund • Made its first investment in company in 2010 and increased stake through multiple rounds with current holding of c.24.5% • Arm of World Bank and largest global development institution • US$27bn+ investment since 2007 in Infra & Natural Resources Long term institutional investor: Leading global investor in emerging market renewable power with c. US$6.1 billion invested Barney Rush Chairman and Independent Director ■Serves on the board of ISO-New England, the electric grid and wholesale market operator for six U.S. states ■Served as Group CEO of Mirant Europe and Chairman of the Supervisory Board of Bewag serving utility in Germany Ranjit Gupta Chief Executive Officer and Director ■Extensive experience in Renewable Energy, Thermal Power and the O&G industry ■ Co-founded and served as the Chief Executive Officer of Ostro Energy Supriya Sen Independent Director Over 30 years of experience in banking, private equity, capital markets and multilateral funding and investment as well as significant involvement in sustainability initiatives globally and in India. ■Currently, Senior Advisor with Mckinsey Arno Harris Independent Director Former founder and CEO of Recurrent Energy and Prevalent Power ■Serves as a board member emeritus and former board chair of the Solar Energy Industry Association Khalid Peyrye Independent Director ■Heads the Corporate Secretarial and Administrative cluster of AAA Global Services ■■Previously was a Money Laundering and Compliance officer for a leading financial services company Cyril Cabanes Non-Executive Director Vice President, Head of Infrastructure Transactions, Asia-Pacific at CDPQ ■■20+ years of experience across all facets of infrastructure transactions including acquisitions, financing and fundraising Deepak Malhotra Non-Executive Director ■Director, Infrastructure, South Asia at CDPQ ■18+ years of experience in infrastructure financing. He previously worked at International Finance Corporation, World Bank, at a leading credit agency in India and in the Merchant Navy M.S Unnikrishnan Non Executive Director ■ Over 30 years of experience in the energy and environmental sector. Asia Innovator of the Year by CNBC Asia, one of the best CEOs in India by Grant Thorton, and India Innovator of the Year by CNBC India ■Managing Director and CEO of Thermax Ltd. Yung Oy Pin (Jane) Lun Leung Independent Director ■ Extensive experience in accounting, auditing, taxation, corporate secretarial and administration in the United Kingdom & Mauritius. ■Previously she has worked with Ascough Ward Chartered Accountants, Kingston Marks Chartered Certified Accountants and Deloitte & Touche across various sectors 15#17Industry Overview#18Industry and Regulatory Update Azure Power Industry Update India's power supply remains in a deficit at 0.3% for the first half of FY'21. Continued strong growth opportunities despite COVID19. During the quarter, 2.89 GWs of tenders were released and 2.19 GWs of capacity was auctioned. Increasing pressure on DISCOMS to sign Power Supply Agreements (PSAs) with intermediary procurers such as SECI as many DISCOMs are short of meeting their RPOS and recent proposed changes in the Electricity Act would stiffen penalties for not meeting RPO requirements. Indian Energy Exchange (IEX) launched pan-India Green Term Ahead Market (GTAM) in electricity in August 2020. This trading will facilitate price discovery on a continuous basis and can be used to satisfy Renewable Purchase Obligations (RPO) Regulatory Update Basic Custom Duty (BCD) – The current expectation is that a 10 - 20% BCD will be imposed, which will be in addition to the SGD, although there has not been a final decision. Safe Guard Duty and BCD are pass through as per our PPAs. The Ministry of Power (MOP) has issued draft standard bidding documents to select bidders for acquiring a majority stake in distribution licensees for the distribution and retail sale of electricity. This will help get private players in the distribution business to revive DISCOMS. Numerous positive changes proposed to be included in Electricity Act and Electricity Rules including expediting recovery of change in law events, enshrinement that renewable capacity are “must run", new rules on curtailment, establishment of the Electricity Contract Enforcement Authority focused on contractual disputes, strengthening of payment security mechanisms, requirements to adopt tariffs within certain time limits, and an increase in penalties and enforcement of Renewable Purchase Obligations (RPOs). 17#19The Solar Advantage in India Azure's solar plants have high availability Seasonal Energy Curve Summer Monsoon India-Demand Peak Low Solar-Generation Peak Low India's 450GW Renewable Energy Capacity Addition Roadmap CAGR: 28% 450 100 38 4 2015 Sept'2020 2022E 2030E Electricity Usage per Capita (MWh) 12.8 US: 11x India - Azure PowerⓇ ~100 mn people without direct power source China: ~4x > India 4.3 0.9 USA China India 6 Other advantages Significant need for new electricity supply Strong Government Installed Solar grew 5 and policy support -60% annually for past 5 yrs Significant amount of solar resource 2 Solar is the cheapest Significant untapped source of potential electricity 4 3 Tariff (US$/kWh) 750GW of solar potential in India 750 Irradiation (kWh/m2) 5.1 4.8 4.7 4.2 3.8 India Spain US Australia Italy Solar is 8% of India's Installed Capacity Hydro 13% Thermal 63% Nuclear 2% Other Renewable 4% O Wind 10% Solar 8% US Cents/kWh 2.7 3.5 Solar Spot Wind electricity price Coal Gas Diesel (GW) ■ Potential 38 Installed Capacity (Sept-20) Source: Central Electricity Authority (CEA), MNRE, World Bank, Reuters, Deloitte Industry Report; Solar and Wind tariffs are L! of SECI auctions over last 12 months: Coal, Gas, Diesel tariffs are from Lazard LCOE Study Nov 2019 Exchange rate- INR73.54 to US$1 (New York buying rate of Sept 30, 2020) 18#20Operating and Financial Metrics#212Q FY'21 Key Performance Metrics Azure Power $ $ 1,834 MW Operating 2% increase 7,115 MW Operating & Committed (1) 111% increase US$ 0.45m Project Cost/MW (DC) 2% increase(2)(3) US$ 14.5m Q2 CFe from Operating Assets 50% increase (2) US$ 9.7 million# for Q2 Sep 19 • US$ 36.8 million# for YTD Sep 20 36 MW (116 MW DC) commissioned since September 2019 • 1,281 MWs are under construction • DC cost per MW US$ 0.45m for Sep 19 • • 4,000 MWs are committed (1) . AC cost per MW US$ 0.53m for Sep 20 • 25 MW AC commissioned in Q2 FY21 • AC cost per MW US$ 0.66m for Sep 19 1. The PPA for the committed 4 GWs of capacity with a LOA will follow only after the sale of power is contracted with DISCOMs under a power sale agreement (PSA) 2. % increase/reduction in INR over figure from September 2019 3. Cost per MW are reported year to date (YTD) and includes 25 MW's completed in Assam which has higher logistic and construction costs and is also reflected in a higher PPA tariff; excludes SGD impact which is a pass through expenses of INR 1.3 million ($0.02 million) for 1H'FY21 AC and DC, INR 2.4 million for 1H’FY20 DC and INR 3.6 million for 1H’FY20 AC. #Exchange rate INR 73.54 to US$1 (New York closing rate of September 30, 2020) 20 20#22Review of Q2 FY'21 Results (in million) Reported 2Q FY'20 INR Reported 2Q FY'21 INR Reported 2Q FY'21 US$ 2Q FY'21 After % Change Adjustments* US$ Adjustments Adjusted Q2FY'21 vs US$ Q2FY'20 Revenue 2,847 3,504 47.6 47.6 23% Cost of Operations 253 309 4.2 Comments Azure Power 5% increase in operational DC MWs. Additional revenue of $2.2 million from recovery of SGD/ GST. 4.2 22% Increase in line with revenues General & Administrative 514 877 11.9 (6.7) 5.2 (25)% Expenses Non-GAAP Adjusted 2,080 2,318 31.5 6.7 38.2 35% EBITDA* Depreciation and 671 773 10.5 10.5 15% Amortization Interest Expense, net (including other 1,923 2,023 27.5 27.5 5% income) Higher YoY due to stock appreciation rights (SARS) expense of US$ 6.7 million reflecting 87% increase in share price during 2Q' FY21; excluding SARS, down 25% YoY A 35% YoY increase after adjustments 5% increase in operational DC MWs $1.9 of additional interest expense offset by increase in interest income of $0.6 mn and absence of refinancing charges in the same quarter last year Loss on Foreign Currency Exchange, 215 (13) (0.2) (0.2) (106)% Limited FX exposure after refinancing earlier in year net Income tax expense/(benefit) 27 (97) (1.3) 2.4 1.1 200% Net Profit after tax (756) (368) (5.0) 4.3 (0.7) Company recognized an US$ 2.4 million deferred tax benefit during the quarter related to higher SARS expenses 2Q'FY21 adjusted net loss of US$ 0.7 million Exchange rate INR 73.54 to US$1 (New York closing rate of September 30, 2020) | *For a reconciliation of Non-GAAP measures to comparable GAAP measures, refer to the Appendix. Refer to earnings press release for further information. Adjustments are charges or additional items that are non recurring, recurring but expected to be materially higher or lower going forward or we expect recovery of in the future. 21#23Operating Assets Review: EBITDA, CFe, & Leverage EBITDA from Operating Assets (in US$ Mn) 50% growth in CFe from Operating Assets YoY CFe from Operating Assets (in US$ Mn) $34.0 +20% $40.7 +50% $9.7 $14.5 • 2Q'20 EBITDA 2Q'21 EBITDA 2Q'20 Cfe 2Q'21 Cfe Azure Power Positive Drivers: Revenues: +$8.9 million Lower Debt Amortization: +$2.2 million Partly offset by: • O&M: -$0.8 million G&A: -$1.5 million Cash Interest Expense: -$3.5 million As at Sept. 30, 2019 As at September 30, 2020 (in INR million) (in INR million) (in USD million) Net Debt for Operating Assets LTM EBITDA for Operating Assets Net Debt/LTM EBITDA for Operating Assets (x) 70,455 10,670 6.6 x 70,868 11,966 5.9 x Exchange rate- INR 73.54 to US$1 (New York closing rate of September 30, 2020) | For a reconciliation of EBITDA and CFe from Operating Assets, refer to the Appendix 22 22 963.7 162.7#24Balance Sheet Highlights Cash, Cash Equivalents and Current Investments* Property, Plant & Equipment, Net Net Debt# Hedging Asset (net) As at March 31, 2020 (in million) As at September 30, 2020 (in million) Azure Power INR INR US$## 9,792 7,828 106.4 95,993 103,712 1.410.3 73,806 79,721 1,084.0 6,266 5,290 71.9 *Does not include Current and Non-Current Restricted cash of INR 6,219 million (US$ 84.6 million) as on September 30, 2020 and of INR 5,725 million for the year ended March 31, 2020 # Net debt is presented after net of hedging derivative value and cash and cash equivalents. The hedging asset (net) is directly related to hedging foreign debt from variances in foreign exchange changes and is included in Other Assets on the Balance Sheet. ## Exchange rate- INR 73.54 to US$1 (New York closing rate of September 30, 2020). 23 23#25DSO by Counterparty Amounts in US$ million On time/ Customer Name Project Name Capacity (MWs) Net Receivables Within grace Past due up to one year period (1) 689 11.4 11.4 Past due more than 365 days Azure Power DSO days (2) SECI, NTPC, NVVN Southern Power Distribution Com of AP Ltd AP-1 6869 54 54 10.6 1.0 5.1 4.5 546 K-3 Hubli Electricity Supply Company Ltd 40 5.3 0.9 4.0 0.4 331 K-4 Gulbarga Electricity Supply Company 40 2.2 0.5 1.7 132 K-5 Chamundeshwari Electricity Supply Co. 50 8.0 1.2 2.3 4.5 382 Other States 824 18.1 13.7 4.4 0 82 Rooftop 141 4.6 1.8 2.8 211 1,834 60.3 30.5 18.6 11.1 114 (1) Includes revenue generated but yet to be billed of $15.9 mn. (2) DSO is computed on an INR basis Exchange rate- INR 73.54 to US$1 (New York closing rate of September 30, 2020). Figures may not add up due to rounding. 24#26FY'21 Guidance Azure Power - 2,300 2,500 MWs Operating by March 31, 2021 INR 15,300 - 15,800 million (1) of Revenue for FY'21 3Q FY'21 Revenue: INR 3,600 - 3,800 million Q3 FY'21 PLF 19.5%- 20.5% 1) US$ 208-212 Mn (at September 30, 2020 exchange rate- INR73.54 to US$1) 25#27Appendix#28Historical Plant Load Factor (PLF); Annual, Quarterly and 3Q FY'21 Forecast Azure Power 24.0% 23.0% 22.0% 21.5% 21.0% 20.0% 19.0% 18.0% 17.0% 16.0% 19.4% 15.0% 1Q 22.7% 16.4% 18.8% 16.8% 22.3% Annual PLF 20.5% FY'20 19.5% 19.5% 20.5% PLF FY'19 18.6% 3Q FY'21 forecast FY'18 18.2% 17.9% 2Q 3Q FY'19a FY'20a FY'21a 17.7% 4Q Note Q1/Q2 PLF have been adjusted for 17.3 million additional units, for which billing was done in Q2 but the generation pertained to Q1. 22 27#29Historical Plant Load Factor (PLF); Green Bonds Performance PLF: Azure Power Energy Limited 27.0% 22.0% 21.0% 21.0% 20.0% 20.1% 19.0% 18.0% 17.0% 17.0% 16.0% 17.3% 15.9% Azure Power PLF: Azure Power Solar Energy Private Limited 26.3% 25.0% 20.0% 23.0% 22.7% 21.0% 19.0% 17.0% 21.0% 20.1% 16.6% 15.0% 15.0% Q1 Q2 Q3 Q4 Q1 Q2 RG1 - FY'20 Q3 Q4 RG2 -FY'20 RG2 -FY'21 RG1 - FY'21 28 25.5%#30Use of Non-GAAP Financial Measures: EBITDA Azure Power Adjusted EBITDA is a non-GAAP financial measure. We present Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with USGAAP GAAP and should not be viewed as an alternative to USGAAP GAAP measures of performance. The presentation of Adjusted EBITDA should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. We define Adjusted EBITDA as net loss (income) plus (a) income tax expense, (b) interest expense, net, (c) depreciation and amortization, and (d) loss (income) on foreign currency exchange. We believe Adjusted EBITDA is useful to investors in evaluating our operating performance because: •Securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities; and ⚫it is used by our management for internal reporting and planning purposes, including aspects of its consolidated operating budget and capital expenditures. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the Company's results as reported under USGAAP GAAP. Some of these limitations include: ⚫it does not reflect its cash expenditures or future requirements for capital expenditures or contractual commitments or foreign exchange gain/loss; ⚫it does not reflect changes in, or cash requirements for, working capital; ⚫it does not reflect significant interest expense or the cash requirements necessary to service interest or principal payments on its outstanding debt; ⚫it does not reflect payments made or future requirements for income taxes; and ⚫although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or paid in the future and Adjusted EBITDA does not reflect cash requirements for such replacements or payments. Investors are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. For more information, please see the table captioned "Reconciliations of Non-GAAP Measures to Comparable GAAP Measures" in this presentation. 29 29#31Reconciliation of Non-GAAP Measures to Comparable GAAP measures Azure Power® Quarter Ended September 30, (in million) Six Month Ended September 30, (in million) 2019 2020 2020 2019 2020 2020 INR INR US$ INR INR US$ Net loss (756) (368) (5.0) (585) (322) (4.5) Income tax expense/ (benefit) 27 (97) (1.3) 171 220 3.0 Interest expense, net 1,927 2,023 27.5 3,487 4,186 56.9 Other (income) (4) (4) Depreciation and amortization 671 773 10.5 1,294 1,528 20.8 Loss (Gain) on foreign currency 215 (13) (0.2) 265 4 0.1 exchange Adjusted EBITDA 2,080 2,318 31.5 4,628 5,616 76.3 Exchange rate- INR 73.54 to US$1 (New York closing rate of September 30, 2020). 30#32Use of Non-GAAP Financial Measures Azure Power Adjusted EBITDA is a non-GAAP financial measure. The Company presents Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The presentation of Adjusted EBITDA should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. The Company defines Adjusted EBITDA as net loss (income) plus (a) income tax expense, (b) interest expense, net, (c) depreciation and amortization, and (d) loss (income) on foreign currency exchange. The Company believes Adjusted EBITDA is useful to investors in evaluating our operating performance because: •Securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities; and ⚫it is used by our management for internal reporting and planning purposes, including aspects of its consolidated operating budget and capital expenditures. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations include: ⚫it does not reflect its cash expenditures or future requirements for capital expenditures or contractual commitments or foreign exchange. gain/loss; ⚫it does not reflect changes in, or cash requirements for, working capital; ⚫it does not reflect significant interest expense or the cash requirements necessary to service interest or principal payments on its outstanding debt; ⚫it does not reflect payments made or future requirements for income taxes; and ⚫although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or paid in the future and Adjusted EBITDA does not reflect cash requirements for such replacements or payments. ⚫investors are encouraged to evaluate each adjustment and the reasons the Company considers it appropriate for supplemental analysis. For more information, please see the table captioned "Reconciliations of Non-GAAP Measures to Comparable GAAP Measures" in this presentation. 31#33Cash Flow to Equity (CFe) For the quarter ended September 30, 2019 For the quarter ended September 30, 2020 Azure Power (US $ million) Operating Others Total Operating Others Total Sale of power Cost of operations General and administrative Adjusted EBITDA 38.7 38.7 47.6 47.6 3.4 3.4 4.2 4.2 1.3 5.7 7.0 2.7 9.2 11.9 34.0 (5.7) 28.3 40.7 (9.2) 31.5 Depreciation and amortization 9.0 0.1 9.1 10.3 0.2 10.5 Operating income 25.0 (5.8) 19.2 30.4 (9.4) 21.0 Interest expense, net 22.3 3.9 26.2 25.5 2.0 27.5 Other Income (0.1) (0.1) Loss/(gain) on foreign currency exchange, net 1.9 1.0 2.9 (0.2) (0.0) (0.2) Profit before Income Tax 0.8 (10.6) (9.8) 5.1 (11.4) (6.3) Add: Depreciation 9.0 0.1 9.1 10.3 0.2 10.5 Add: Foreign exchange loss, net 1.9 1.0 2.9 (0.2) (0.0) (0.2) Add: Ancillary cost of borrowing 2.4 0.4 2.8 2.2 (1.2) 1.0 Add: Other items from the Statement of Cash Flows (1) 1.1 0.7 1.8 1.3 7.2 8.5 Less: Cash paid for income taxes (1.0) 0.3 (0.7) (1.8) (0.8) (2.6) Less: Debt Amortization (2) (4.6) (4.6) (2.4) (2.4) Less: Maintenance Capital expenditure(3) CFe 9.6(4) (8.1) 1.5(4) 14.5 (5.9) 8.6 All amounts for the quarter 2020 and 2019 have been translated at an exchange rate- INR 73.54 to US$1 (New York closing rate of September 30, 2020). 32