Azure Power Investor Presentation

Use 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

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