Adani Green

Adani Green Energy reported robust financial performance in Q1 FY27, with energy sales increasing 30% year-over-year to 13.7 billion units. Revenue from power supply grew 29% to INR 4,280 crores, while EBITDA from power supply surged 33% to INR 4,122 crores, achieving an impressive 94% EBITDA margin. The company's current run-rate EBITDA for its operational portfolio stands at INR 17,000 crores, with an expected increase to INR 21,000 crores for FY27.

The company surpassed the 20 GW milestone in greenfield renewable capacity, solidifying its position as India's largest and fastest-growing renewable energy producer. During the quarter, Adani Green commissioned 1.9 GW of battery energy storage capacity at Khavda, bringing the total installed BESS capacity to 3.5 GW-hour. The company remains on track to add 5 GW of greenfield capacity and achieve over 10 GW-hour of BESS capacity in FY27, alongside commissioning its maiden 500 MW pump storage project at Chitravathi.

Adani Green has strategically transitioned its previously merchant-classified renewable projects to C&I contracts with Adani Energy Limited (AESL) to de-risk its revenue streams. This move aims to secure long-term, predictable returns by mitigating market vagaries, with contracts for solar and wind projects spanning 25 years and battery projects 15 years, all at fixed prices and based on arm's-length transactions following SECI guidelines.

The company is aggressively expanding its BESS portfolio, targeting 10+ GW-hour by the end of FY27 and an ambitious 50 GW-hour by FY30. Management expects BESS projects to generate an EBITDA of INR 25-30 lakh per MW-hour in FY27, leveraging an arbitrage model by storing power when cheap (INR 2.5/unit) and selling when prices are high (INR 4-5/unit). Concerns regarding battery fires were addressed, with management clarifying past incidents were related to inverters and confirming comprehensive insurance coverage.

Adani Green reported a significant CapEx of INR 8,800 crores during Q1 FY27, marking a 41% year-over-year increase. The company has guided for a total CapEx of INR 42,000 crores for FY27, primarily allocated towards the expansion of 5 GW in renewable energy and reaching 10+ GW-hour in cumulative battery capacity. This substantial investment underscores the company's commitment to aggressive growth and efficient capital deployment.

While the company experienced a 5-7% impact on overall EBITDA due to curtailment, particularly from Khavda, management anticipates this issue will be resolved by the end of the calendar year as more transmission lines become operational. They are closely monitoring the progress of 7 GW of evacuation capacity expected to come online by year-end, which is crucial for integrating new capacity and optimizing power evacuation.