#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 March 1, 2021 *7 GWs include 4 GWs for which LOA has been received has not been signed. but PP 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: 32% 13.1 450 US: ~13x > India China: ~5x > India 4.9 INR/kWh Tariff (INR/kWh) 100 2.00 2.56 2.99 37 1.0 4 2015 Dec'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 (Study published Sept 2020) 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#5Azure Power Overview (AZRE: NYSE) Second Largest Solar Portfolio in India 7,115 MW (1) Utility-Scale Projects | 6,948 MWs Operational (2) 2,138 MWS AC (2,657 MWs DC) Under Construction (2) 977 MWS AC Azure Roof Power | 167MWS Awan |Punjab India's First Private MW scale Solar Plant Azure Power Committed(3) 4,000 MWS AC 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 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 50.3% 95% of the total portfolio is with investment grade counterparties (1) Based on portfolio size: Mercom, 2) As of Feb 10, 2021. There were 1,987 MWs AC operational and 1,128 MWs under construction as of Dec 31, 2020. 3) Committed includes 4,000 MWs for which a 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) and there is no assurance that we will be able to sign a PPA even though we have a letter of award. (3) Exchange rate INR 73.01 to US$1 (New York closing rate of Dec 31, 2020)#67,115(1) MW Committed Portfolio, 1,834 MWs Operational ~90%(2) in High Irradiation Zone Rajasthan (3,675 MW) 625 MW 3,050 MW ~6%(2) in Mid Irradiation Zone Punjab (214 MW) 214 MW BBB- & above 95% Uttar Pradesh (100 MW) Azure Power Focus on Strong Counterparty Credit ~95% of the portfolio is Investment Grade(4) Gujarat (270 MW) 100 MW Andhra Pradesh (200MW) 200 MW Maharashtra (7 MW) 7 MW Karnataka (250 MW) 250 MW Rooftop Project (167 MW) 154 MW 13 MW To be decided (2,000 MW) 2,000 MW(1) Operational Solar Capacity 100 MW Bihar (10 MW) 10 MW Chhattisgarh (30 MW) SECI 80% 30MW Telangana (100 MW) 100 MW Delhi (3 MW) 100 MW Assam (90 MW) Indian Railways & Gol Entities 1% DSO 113 Days 25 MW 65 MW Under Construction & Committed Solar Capacity NTPC 4% Others 5% State Electricity Boards 15% 85% of the portfolio is with Gol (sovereign) backed entities Others 205 Days Federal 59 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 5#7Projects Under Construction Update Rajasthan PPA Revised COD Financing Azure Power® Rajasthan 6 - 600 MWs 300 MWs Completed, 300 MWS COD expected by May(1) 100% Rajasthan 8-300 MWs Q3 CY'21(1) Financing documents to be signed shortly Under Construction Operating Land 100% 1) Extension of COD applied for. 100% Transmission 100% Nearly complete#8Projects Under Construction Update Revised PPA COD Financing Land Rajasthan 9 - 300 MWs Q4 CY'21(1) Financing documents to be signed shortly 100% Transmission Nearly Complete 1) Extension of COD applied for. Assam Rajasthan Azure Power Assam - 90 MWs 25 MWs Commissioned; 40 MWs in 2Q and 25 MWs 3Q' CY21(1) Completed Under Construction Operating ~95% -80%#9Long Term Outlook MWs Operational Guidance MWs 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Azure Power Gross Margin (2,4), Cash Flow to Equity for Operating Assets (3,4) and Debt Forecast CAGR 24% USD Millions $350 $300 CAGR 43% $250 Gross Margin: $275 - $290 Gross Margin: $200 - $220 Gross Margin: $200 $179 IPO (a) FY'17(a) FY'18(a) FY'19(a) 3Q FY'21(e) FY'22(e) FY'23(e) FY'24(e) FY'25(e) FY'26(e) FY'21(a) Capex Forecast(1) $150 $100 $50 CFe: USD Millions $600 $67 $0 CFe: $40 - $65 CFe: $50 - $100 LTM $300 Current Operational (2,137 MWs) Total Contracted Portfolio (3,115 MWs) $0 Net Debt FY'21 FY'22 FY'23 FY'24 FY'25 Equity Debt (US$ millions) FY'21 FY'22 FY'23 FY'24 FY'25 ~$1,150 ~$1,550 Gross Margin CFe Cap Ex 9M'21: $176.8 4Q'21: $50 - $75 $450 - $550 $500 - $650 $500 - $650 $500 - $650 Exchange rate- INR 73.01 to US$1 (New York closing rate of December 31, 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. 4) Outlook range is generation from P90 to P50 and normalized debt amortization ranging from 20 to 25 years. LTM actual debt amortization was $8.2 million due to the majority of debt being in non amortizing Green Bonds. 00 8#10ESG Highlights MSCI ESG RATINGS AA SUSTAINALYTICS Top 10 Global Renewable Energy Company for Sustainability WORLD FINANCE SUSTAINABILITY AWARDS 2 0 O Most Sustainable Solar Company CDP DISCLOSURE INSIGHT ACTION Environment Social g green assets wallet Governance (1) Through March 31, 2020 till Jan 2021, Azure Power FY'21 Highlights 358 tons of damaged solar modules have been recycled or properly disposed of at a authorized hazardous waste facility Received MSCI AA rating for ESG (top quartile for industry) ■ Avoided 2.4 million tons of CO2 year to date (1), 8.9 million ton equivalents since inception Water consumption per MWH reduced by 20% year to date compared to calendar 2019 and 64% since calendar year 2018. Over 180 million liters of water saved compared to 2018 usage rate. On track to become water neutral by 2023 Installed 84 ground water recharge structures across 15 sites which allows rain water to recharge local aquifers ISO 45001 certification that our Occupational Health and Safety System is in line with international standards obtained. Our Corporate Social Responsibility assistance benefited more than 175,000 people this year Distributed 137,000 masks and food to 32,000 people during the pandemic in FY'21 Built 15 clean water facilities in FY'21 (till date) providing 3,167 people with clean drinking water. Since inception, 133 water filtration plants have been built providing about 100,000 people with clean drinking water. 1 rooftop solar project for a school Skill development training offered to over 1,065 individuals in local villages in FY21 (Since inception, 3,355 beneficiaries have been provided training) 129 structured meetings for stakeholder engagement held with communities near our projects 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. Majority of Directors on Board are independent. ■ 310 internal and 1 external SHES audits in FY'21 reported no significant noncompliance ☐ Introduced ESG Policy, Policy for Diversity and Inclusion, Policy for Human Rights, Equal Employment Opportunity Policy 9#11Corporate 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 10#12Strong 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 11#13Experienced Board Backed by Long Term Marquee Shareholders Azure Power Caisse de dépôt et placement du Québec • Increased stake in Azure Power to c.50.3% 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.22.1% • 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. ■CDPQ Representative 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 12#14Industry Overview#15Industry and Regulatory Update 14 GWs of new tenders released and only ~10 GWs allocated in FY'21 so far, significantly below the level in FY’20. Recent drop in tariffs and concerns about COVID has delayed signing of PPAs for about 19 GWs of auctions already undertaken. Azure's access to low cost capital and established platform can enable significant further growth with projects that have returns well above our cost of capital. Increased competition in recent auctions likely temporary and was driven by the lack of auctions during COVID. We believe that competition in future auctions could moderate with normal levels of auction activity. The maximum solar capacity developed in a year has been ~10 GWs, well below Govt of India's target of 25 30GWs of new capacity annually through 2030. - Significant supply constraints for modules and glass from China. Azure's large development pipeline and supplier relationships are providing a local advantage. An additional 20 GW of transmission from Rajasthan is being planned as part of Solar Energy Zone Ph-III scheme with a target to commission the new transmission system prior to June 2023. Favorable policy/ regulatory changes. Clarity that recovery will occur under change in law for Basic Custom Duty (BCD) imposition. Restrictions related to the Approved List of Modules and Manufactures (ALMM) will only apply to bids that close 30 days after ALMM is notified. ALMM could create a short term module supply disruption as foreign module manufactures may have to be accredited. No Azure project is impacted by ALMM and BCD. Increased focus on developing new ultra-mega solar parks. A new 30 GW solar park in Gujarat is being planned and a 7.5 GW solar park in Leh & Kargil is expected to be retendered. Solar park options could absorb foreign capital due to lower development risks reducing competition for non solar park projects that Azure has a competitive advantage in. Budget proposals to improve DISCOMs and introduce customer choice for supply. The central government is allocating $40bn over five years to upgrade DISCOM infrastructure and technology to make them more efficient and improve DISCOMS financial health. Supply competition is also being introduced to allow greater customer choice, including low cost renewable energy. 14|Copyright © 2021 Azure Power |www.azurepower.com Azure Power®Ⓡ#16The Solar Advantage in India Azure's solar plants have high availability Seasonal Energy Curve Summer Monsoon India-Demand Peak Low Solar-Generation Peak Low India's 450GW Renewable Energy Capacity Addition Roadmap CAGR: 32% 450 100 38 4 2015 Dec'2020 2022E 2030E Electricity Usage per Capita (MWh) 13.1 US: 13x India China: ~5x > India 4.9 1.0 USA China India 6 Other advantages Significant need for new electricity supply Strong Government Installed Solar grew 5 and policy support -60% annually for past 5 yrs Significant amount of solar resource 2 Solar is the cheapest Significant untapped source of potential electricity 4 3 Tariff (US$/kWh) 750GW of solar potential in India 750 Azure PowerⓇ ~100 mn people without direct power source 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 2.8 3.5 Solar Spot Wind electricity Coal Gas Diesel price (GW) ■Potential 38 ■Installed Capacity (Dec-20) Source: Central Electricity Authority (CEA), MNRE, World Bank, Statista 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- INR73.01 to US$1 (New York buying rate of Dec 30, 2020) 15#17Operating and Financial Metrics#18Q3'21 Key Performance Metrics 1,987 MW Operating 10% increase 7,115 MW Operating & Committed 34% increase (1) 1,128 MWs are under construction US$ 0.39mn Project Cost/MW (DC) 10% decrease (2,3) US$ 48.2mn Q3 FY'21 Revenue 16% increase US$ 41.7 million for Q3 FY'20 • 183 MW (277 MW DC) commissioned DC cost per MW US$ 0.45mn YTD FY'20 . since December 2019 • 4,000 MWs are committed (1) • AC cost per MW US$ 0.58mn YTD FY'21 • US$ 150.2 million for YTD FY'21 • 153 MW (236 MW DC) commissioned in Q3 • AC cost per MW US$ 0.61mn YTD FY'20 1. Committed includes 4,000 MWs for which a LOA has been received but PPA has not been signed. 2. % increase/reduction over figures from December 2019 (for $ numbers, the change has been computed over their INR values) 3. Cost per MW are reported year to date (YTD) and includes 25 MWs 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 expense of INR 1.3 million ($0.02 million) for 9 months'FY21 AC and DC, INR 2.4 million for 9 Months' FY20 DC and INR 3.6 million for 9 months' FY20 AC. Exchange rate INR 73.01 to US$1 (New York closing rate of December 31, 2020) 17|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#19Review of Q3 FY'21 Results (in million) Reported 3Q FY'20 Adjusted Reported INR 3Q FY'20 INR 3Q FY'21 INR Reported 3Q FY'21 US$ 3Q FY'21 After Adjustments* US$ Adjustments US$ Revenue 3,047 3,047 3,521 48.2 Cost of Operations 267 267 306 4.2 % Change adjusted Q3 FY'21 vs adjusted Q3 FY'20 Comments 48.2 16% 13% increase in operational DC MWs. Insolation lower by ~5% against long term average(1) 4.2 15% Increase in line with revenues General & Administrative 669 396 1,652 22.7 (18.1) 4.6 (15)% Expenses G&A expenses, excluding stock compensation, management transition and interest on SGD charges, fell 15% despite 13% increase in operational MWs. Non-GAAP Adjusted 2,111 2,384 1,563 21.3 18.1 39.4 21% A 21% YoY increase after adjustments EBITDA* Depreciation and 716 716 796 10.9 10.9 11% Amortization Interest Expense, net (including other 2,457 1,948 2,005 27.4 27.4 3% income) 13% increase in operational DC MWS 3Q'20 excludes charges of INR 385 mn of charges related to issuance of a Green Bond and INR 124 million to extinguishment of a debt facility Loss on Foreign Currency Exchange, 60 60 n/a Limited FX exposure after refinancing earlier in year net Income tax expense/(benefit) 236 236 (150) (2.1) 5.8 3.8 17% Company recognized an US$ 5.8 million deferred tax benefit during the quarter related to higher SARS expenses Net loss after tax (1,358) (576) (1,088) (14.9) (2.7) 3Q'FY21 adjusted net loss of US$ 2.7 million (1) Based on NASA data (website: https://power.larc.nasa.gov/data-access-viewer/); Exchange rate INR 73.01 to US$1 (New York closing rate of December 31, 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. 18|Copyright © 2020 Azure Power |www.azurepower.com Azure PowerⓇ#20Improved Overhead and DSO Millions $24 G&A Excluding Stock Compensation & Management Transition $22 $20 $18 $16 $14 FY'21 cash G&A(1) on track to be ~$23-$24 mn, down ~10% YoY(2) FY'22 cash G&A(1) expected to be about 10% higher reflecting inflation and more MWs operating. $12 $10 $8 $6 $4 $2 $0 1Q'20 2Q'20 3Q'20 DSO Days 150 140 130 120 110 100 Accounts Receivable DSO At the current share price (3), 4Q'21 SAR 90 expenses in G&A will increase $2.5mn. Every 80 $1 change in the share Average time to bill combined with grace period is ~75 days price from the current 70 4Q'20 1Q'21 2Q'21 3Q'21 share price will impact stock comp expense by ~$0.8 mn 60 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 Stock Comp/Management Transition* ■G&A ex Stock Comp/Management Transition *As of December 31, 2020, 1,795,000 SARs were outstanding of which 1,642,500 SARS cannot be exercised until 2024 on which the Company will not incur any cash payments until that time Exchange rate- INR 73.01 to US$1 (New York closing rate of December 31, 2020) | 1) Excludes stock compensation, management transition expenses and non cash charges, 2) Compares FY'20 and FY'21, 3) $37.76 at close on Feb 10, 2021. 19|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#21Operating Assets Review: EBITDA, CFe, & Leverage EBITDA from Operating Assets (in US$ Mn) 142% growth in CFe from Operating Assets YoY CFe from Operating Assets (in US$ Mn) $42.4 $16.8 +26% • +142% $33.7 $7.1 3Q'20 EBITDA 3Q'21 EBITDA 3Q'20 CFe 3Q'21 CFe Positive Drivers: • Revenues: +$6.5 million Lower cash G&A: +$2.8 million Lower cash interest expense: +$2.4 million Partly offset by: • Increased O&M: -$0.5 million . Higher debt amort and taxes: -$1.5 mn Net Debt for Operating Assets LTM EBITDA for Operating Assets Net Debt/LTM EBITDA for Operating Assets (x) As at March. 31, 2020 (in INR million) 70,455 10,670 6.6 x As at December 31, 2020 (in INR million) 75,227 12,603 6.0 x (in USD million) 1,030 Exchange rate- INR 73.01 to US$1 (New York closing rate of December 31, 2020) | For a reconciliation of EBITDA and CFe from Operating Assets, refer to the Appendix 20|Copyright © 2020 Azure Power |www.azurepower.com 172 Azure PowerⓇ ®#22Balance Sheet Highlights Cash, Cash Equivalents and Current Investments (1) Property, Plant & Equipment, Net Net Debt (2) Hedging Asset (net) As at March 31, 2020 (in million) As at December 31, 2020 (in million) INR INR US$(3) 9,792 8,915 122.1 95,993 109,460 1,499.3 73,806 83.770 1,147.4 6,266 5,213 71.4 1) Does not include Current and Non-Current Restricted cash of INR 4,917 million (US$ 67.3 million) as on December 31, 2020 and of INR 5,725 million for the year ended March 31, 2020. 2) 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. 3) Exchange rate- INR 73.01 to US$1 (New York closing rate of December 31, 2020). 21|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#23DSO by Counterparty Amounts in US$ million On time/ Customer Name Project Name Capacity (MWs) Net Receivables Within grace Past due up to one year Past due more than 365 DSO days (2) period (1) days 0.3 SECI, NTPC, NVVN 839 AP-1 Southern Power Distribution Com of AP Ltd 580 13.2 12.9 59 12.4 1.1 6.1 5.2 619 K-3 Hubli Electricity Supply Company Ltd 40 4.0 1.0 2.7 0.3 249 K-4 Gulbarga Electricity Supply Company 40 2.2 0.5 2.0 136 K-5 Chamundeshwari Electricity Supply Co. 50 8.7 1.3 2.5 6.2 416 Other States 814 16.9 13.4 3.5 0.7 73 Rooftop 154 4.7 1.6 3.1 1.6 208 1,987 62.1 31.8 18.2 16.0 113 (1) Includes revenue generated but yet to be billed of $16.6 mn. (2) DSO is computed on an INR basis Exchange rate- INR 73.01 to US$1 (New York closing rate of December 31, 2020). Figures may not add up due to rounding. 22|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#24Appendix#25Historical Plant Load Factor (PLF); Annual, Quarterly and 4Q FY'21 Forecast 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% 19.3% 17.9% 16.8% 2Q 3Q FY'19a FY'20a FY'21a 17.7% 23.0% = 22.0% 23.0% PLF 4Q FY'21 forecast 22.3% 4Q Annual PLF 20.5% FY'20 19.5% FY'19 18.6% FY'18 18.2% 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. 24|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#26Historical Plant Load Factor (PLF); Green Bonds Performance PLF: Azure Power Energy Limited (RG1) PLF: Azure Power Solar Energy Private Limited (RG2) 22.0% 27.0% 21.0% 21.0% 20.0% 20.1% 26.3% 25.0% 20.0% 23.0% 22.7% 21.0% 22.4% 25.5% 19.0% 18.0% 17.0% 17.0% 16.0% 21.0% 17.3% 17.2% 19.0% 15.9% 17.0% 20.1% 16.6% 15.0% 15.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 RG2 -FY'20 - RG2-FY'21 RG1 - FY'20 - RG1 - FY'21 25|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#27Use of Non-GAAP Financial Measures: EBITDA 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. 26|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#28Reconciliation of Non-GAAP Measures to Comparable GAAP measures Quarter Ended December 31, (in million) Nine Month Ended December 31, (in million) 2019 INR 2020 2020 2019 2020 2020 INR US$ INR INR US$ Net loss (1,358) (1,088) (14.9) (1,943) (1,410) (19.3) Income tax expense/ (benefit) 236 (150) (2.1) 407 70 1.0 Interest expense, net 2,481 1,996 27.3 5,968 6,182 84.8 Other expense/ (income) (24) 9 0.1 (23) 18 0.2 Depreciation and amortization 716 796 10.9 2,010 2,324 31.8 Loss (Gain) on foreign currency 60 325 4 0.0 exchange Adjusted EBITDA 2,111 1,563 21.3 6,744 7,188 98.5 Exchange rate- INR 73.01 to US$1 (New York closing rate of December 31, 2020). 27|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#29Use of Non-GAAP Financial Measures: Cash Flow to Equity (CFe) Cash Flow to Equity is a Non-GAAP financial measure. We present CFe as a supplemental measure of our performance. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance. The presentation of CFe should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. We believe GAAP metrics such as net income (loss) and cash from operating activities do not provide with the same level of visibility into the performance and prospects of our operating business as a result of the long term capital-intensive nature of our businesses, non-cash depreciation and amortization, cash used for debt servicing as well as investments and costs related to the growth of our business. Our business owns high-value, long-lived assets capable of generating substantial Cash Flow to Equity over time. We define CFe as 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. We believe that changes in operating assets and liabilities is cyclical for cash flow generation of our assets, due to our high growth environment. Furthermore, to reflect the actual cash outflows for income tax, we deduct income and deferred taxes computed under US GAAP and presented in our consolidated financial statements and instead include the actual cash tax outflow during the period, are considered as part of interest expense. We believe that external consumers of our financial statements, including investors and research analysts, use Cash Flow to Equity both to assess Azure Power's performance and as an indicator of its success in generating an attractive risk-adjusted total return, assess the value of the business and the platform. In addition, we use CFe internally to forecast long term financing needs and to determine equity returns on our projects. We have disclosed CFe for our operational assets on a consolidated basis, which is not the Cash from Operations of the Company on a consolidated basis. We believe CFe supplements GAAP results to provide a more complete understanding of the financial and operating performance of our businesses than would not otherwise be achieved using GAAP results alone. Cash Flow to Equity should be used as a supplemental measure and not in lieu of our financial results reported under GAAP. We have also bifurcated the CFe into Operational Assets and Others, as defined below, so that users of this financial statement are able to understand the Cash generation from our operational assets. We define our Operational Assets, as the Projects which had commenced operations on or before the year ended June 30, 2020, the operational assets represent the MW operating as of that date. We define Others as the project SPV's which are under construction, or under development - as provided on page 55 of Form 20F, Corporate which includes our three Mauritius entities, the other than projects covered under operational assets, as well as, a company incorporated in USA and other remaining entities under the group. 28|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#30Cash Flow to Equity (CFe) (US $ million) For the quarter ended December 31, 2019 For the quarter ended December 31, 2020 Operating Others Total Operating Others Total Sale of power Cost of operations General and administrative Adjusted EBITDA 41.7 41.7 48.2 48.2 3.7 3.7 4.2 4.2 4.3 4.9 9.2 1.6 21.1 22.7 33.7 (4.9) 28.8 42.4 (21.1) 21.3 Depreciation and amortization 9.7 0.2 9.9 10.8 0.1 10.9 Operating income/ (loss) 24.0 (5.1) 18.9 31.6 (21.2) 10.4 Interest expense, net 32.4 1.6 34.0 24.3 3.0 27.3 Other expense/ Income (0.1) (0.3) (0.4) 0.1 0.1 Loss on foreign currency exchange, net 0.6 0.3 0.9 Profit/(loss) before Income Tax (8.9) (6.7) (15.6) 7.2 (24.2) (17.0) Add: Depreciation 9.7 0.2 9.9 10.8 0.1 10.9 Add: Foreign exchange loss, net 0.6 0.3 0.9 Add: Ancillary cost of borrowing 3.8 0.3 4.1 0.7 0.3 1.0 Add: Other items from the Statement of Cash Flows (1) 4.5 0.8 5.3 1.9 18.6 20.5 Less: Cash paid for income taxes (1.6) (0.9) (2.5) (1.8) (0.6) (2.4) Less: Debt Amortization (2) (1.0) (1.0) (2.0) (2.0) Less: Maintenance Capital expenditure (3) CFe 7.1(4) (6.0) 1.14) 16.8 (5.8) 11.0 All amounts for the quarter ending December 31, 2020 and 2019 have been translated at an exchange rate- INR 73.01 to US$1 (New York closing rate of December 31, 2020). 29|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#31Cash Flow to Equity (CFe) - Contd. (1) Items from the Statement of Cash Flows. Other items include: loss on disposal of property plant and equipment of US$ 0.2 million andUS$ 0.1 million, share based compensation of US$ 1.4 million and US$ 18.2 million, realized gain on investment of USD$ 0.4 million and Nil, non-cash rent expense of US$ 0.7 million and US$ 1.4 million, allowance for doubtful debts of US$ 0.5 million and US$ 0.2 million, loan repayment charges of US$ 3.0 million and US$ 0.3 million, employee benefits of US$ 0.2 million and US$ 0.1 million and ARO accretion of US$ 0.2 million and US$ 0.2 million for the period ended December 31, 2019 and December 31, 2020 respectively. (2) Repayments of term and other loans during the quarter ended December31, 2020, was US$ 21.1 million (refer to the Statement of Cash Flows) which includes US$ 19.1 million related to refinancing of loans or early repayment of debt before maturity and have been excluded to determine debt amortization of US$ 2.0 million. Repayments of term and other loans during the quarter ended December 31, 2019, was US$ 266.0 million (refer to the Statement of Cash Flows) which includes US$ 265.0 million related to refinancing of loans or early repayment of debt before maturity and has been excluded to determine debt amortization of US$ 1.0 million. (3) Classification of Maintenance Capital Expenditures and Growth Capital Expenditures All our capital expenditures are considered Growth Capital Expenditures. In broad terms, we expense all expenditures in the current period that would primarily maintain our businesses at current levels of operations, capability, profitability or cash flow in operations and maintenance and therefore there are no Maintenance Capital Expenditures. Growth capital expenditures primarily provide new or enhanced levels of operations, capability, profitability or cash flows. (4) Reconciliation of total CFe to cash from operations: (US$ million) CFe For the quarter ended December 31, 2019 For the quarter ended December 31, 2020 1.1 11.0 Items included in GAAP Cash Flow from Operating Activities but not considered in CFe Change in Current assets and liabilities as per statement of cash flow Current income taxes Prepaid lease payments Amortization of hedging costs Items included in CFe but not considered in GAAP Cash Flow from Operating Activities Debt amortization as per CFe Cash taxes paid as per CFe Cash from Operating Activities All amounts for the periods ending December 31, 2020 and 2019 have been translated at exchange rate- INR 73.01 to US$1 (New York closing rate of December 31, 2020). 30|Copyright © 2020 Azure Power |www.azurepower.com 1.7 (10.4) (0.6) (4.6) (0.7) (1.1) 5.6 6.6 1.0 2.0 2.5 2.4 10.6 5.9 Azure PowerⓇ#32Cash Flow to Equity (CFe) (US $ million) Nine Months ended December 31, 2019 Nine Months ended December 31, 2020 Operating Others Total Operating Others Total Sale of power Cost of operations General and administrative Adjusted EBITDA Depreciation and amortization 127.1 127.1 150.2 150.2 11.2 11.2 12.0 12.0 10.3 13.3 23.6 6.1 33.6 39.7 105.6 (13.3) 92.3 132.1 (33.6) 98.5 27.1 0.4 27.5 31.4 0.4 31.8 Operating income/ (loss) 78.5 (13.7) 64.8 100.7 (34.0) 66.7 Interest expense, net 75.0 6.7 81.7 76.4 8.3 84.7 Other expense/( Income) (0.3) (0.3) 0.2 0.2 Losson foreign currency exchange, net 3.2 1.3 4.5 0.1 0.1 Profit/(loss) before Income Tax 0.3 (21.4) (21.1) 24.0 (42.3) (18.3) Add: Depreciation 27.1 0.4 27.5 31.4 0.4 31.8 Add: Foreign exchange loss, net 3.2 1.3 4.5 0.1 0.1 Add: Ancillary cost of borrowing 6.3 1.6 7.9 3.0 0.6 3.6 Add: Other items from the Statement of Cash Flows (1) 6.4 1.8 8.2 6.6 26.9 33.5 Less: Cash paid for income taxes (3.9) (1.5) (5.4) (4.3) (1.8) (6.1) Less: Debt Amortization (2) (7.3) (7.3) (7.0) (7.0) Less: Maintenance Capital expenditure (3) CFe 32.14) (17.8) 14.3(4) 53.8 (16.2) 37.6 All amounts for the periods ending December 31, 2020 and 2019 have been translated at an exchange rate- INR 73.01 to US$1 (New York closing rate of December 31, 2020). 31|Copyright © 2020 Azure Power |www.azurepower.com ® Azure PowerⓇ#33Cash Flow to Equity (CFe) - Contd. (1) Items from the Statement of Cash Flows. Other items include: loss on disposal of property plant and equipment of US$ 0.2 million and US$ 0.2 million, share based compensation of US$ 1.9 million and US$ 26.4 million, realized gain on investment of US$ 0.5 million and Nil, non-cash rent expense of US$ 1.2 million and US$ 1.8 million, allowance for doubtful debts of US$ 1.0 million and US$ 0.7 million, loan repayment charges of US$ 3.4 million and US$ 3.5 million, employee benefit US$ 0.4 million and US$ 0.6 million and ARO accretion of US$ 0.5 million and US$ 0.4 million for the period ended December 31, 2019 and December 31, 2020 respectively. (2) Repayments of term and other loans during the period ended December 31, 2020, was US$ 99.2 million (refer to the Statement of Cash Flows) which includes US$ 92 million related to refinancing of loans or early repayment of debt before maturity and have been excluded to determine debt amortization of US$ 7.0 million. Repayments of term and other loans during the period ended December 31, 2019, was US$ 419.2 million (refer to the Statement of Cash Flows) which includes US$ 411.8 million related to refinancing of loans or early repayment of debt before maturity and has been excluded to determine debt amortization of US$ 7.4 million. (3) Classification of Maintenance Capital Expenditures and Growth Capital Expenditures All our capital expenditures are considered Growth Capital Expenditures. In broad terms, we expense all expenditures in the current period that would primarily maintain our businesses at current levels of operations, capability, profitability or cash flow in operations and maintenance and therefore there are no Maintenance Capital Expenditures. Growth capital expenditures primarily provide new or enhanced levels of operations, capability, profitability or cash flows. (4) Reconciliation of total CFe to cash from operations: (US$ million) CFe Items included in GAAP Cash Flow from Operating Activities but not considered in CFe Change in Current assets and liabilities as per statement of cash flow Current income taxes Prepaid lease payments Amortization of hedging costs Items included in CFe but not considered in GAAP Cash Flow from Operating Activities Nine Months ended December 31, 2019 14.3 Nine Months ended December 31, 2020 37.6 (6.0) (22.3) (3.5) (6.2) (5.1) (2.8) 12.8 19.9 Debt amortization as per CFe Cash taxes paid as per CFe Cash from Operating Activities All amounts for the periods ending December 31, 2020 and 2019 have been translated at exchange rate- INR 73.01 to US$1 (New York closing rate of December 31, 2020). 32|Copyright © 2020 Azure Power |www.azurepower.com 7.3 7.0 5.4 6.1 25.2 39.3 Azure PowerⓇ