Adani Green — Q1 FY27 earnings call

Call held 22 Jul 2026

Management summary

Adani Green Energy reported a strong Q1 FY27 with significant growth in energy sales and revenue, driven by capacity additions and operational efficiency. The company achieved a 94% EBITDA margin from power supply and made substantial progress in battery energy storage commissioning. A strategic shift towards C&I contracts with Adani Energy Limited (AESL) was highlighted to de-risk merchant capacity, supported by a robust CapEx plan of INR 42,000 crores for FY27 to achieve ambitious capacity expansion targets.

Highlights

  • Energy sales rose 30% Y-o-Y to 13.7 billion units, demonstrating strong operational performance.

  • Revenue from power supply increased 29% Y-o-Y to INR 4,280 crores, reflecting robust growth.

  • EBITDA from power supply surged 33% Y-o-Y to INR 4,122 crores, achieving an impressive 94% EBITDA margin.

  • Commissioned 1.9 GW of battery energy storage capacity, bringing total installed BESS capacity to 3.5 GW-hour, ahead of targets.

  • CapEx increased 41% Y-o-Y to INR 8,800 crores during the quarter, highlighting efficient capital deployment for expansion.

Concerns

  • Curtailment had an impact of 5-7% on overall EBITDA, though management expects it to be resolved by calendar year-end.

Key financials

2 periods

Headline

  • Energy Sales
    13.7 billion units
    YoY +30%
  • Revenue from Power Supply
    ₹4,280 Cr
    YoY +29%
  • EBITDA from Power Supply
    ₹4,122 Cr
    YoY +33%
  • EBITDA Margin
    94%
  • Run-rate EBITDA (Current)
    ₹17,000 Cr

Q1 FY27

  • CapEx
    ₹8,800 Cr
    YoY +41%

What they filed

Q1 FY27: revenue up 16.6%, net profit up 19.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue3,005 2,340 3,073 3,800 3,008 +0%2,618 +12%3,502 +14%4,431 +17%
EBITDA2,217 1,880 2,402 3,042 2,603 +17%2,241 +19%2,882 +20%3,985 +31%
Net profit515 474 383 824 644 +25%5 −99%514 +34%983 +19%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

5,000 MW

as of 2026-06-30 quantified

Execution

Targeted for the current financial year (FY27)

Composition

  • Battery Energy Storage Systems (BESS) (product) 10,000 MWh
The company is on track to add 5 GW of greenfield capacity and 10+ GW-hour of BESS capacity in FY27.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex ₹8,800 Cr this quarter · ₹42,000 Cr (FY27) planned
    • Expansion in Renewable Energy capacity
    • Expansion in Battery Energy Storage Systems (BESS) capacity
    Our CapEx of INR8,800 crores during the quarter increased by 41% Y-o-Y, highlighting the efficient capital deployment with every passing quarter.

Guidance & targets

Capacity

  • Greenfield Capacity Addition Capacity · FY27 · High confidence 5 GW
    We remain on track to add 5 GW of greenfield capacity this year.

    — Ashish Khanna

  • BESS Capacity Target Capacity · FY27 · High confidence 10+ GW-hour
    We are well positioned to achieve our 10-plus GW-hour target this year.

    — Ashish Khanna

  • Pump Storage Project Commissioning Capacity · FY27 · High confidence 500 MW
    We are also on schedule to commission our maiden 500 MW pump storage project at Chitravathi, Andhra Pradesh, in this financial year.

    — Ashish Khanna

  • Cumulative BESS Capacity Capacity · FY30 · High confidence 50 GW-hour
    overall target till FY '30, we have come out and said that we would like to do about 50 GW-hour of batteries till FY '30

    — Saurabh Shah

Capex

  • Total Capex Capex · FY27 · High confidence INR 42,000 crores
    So, see from a Capex perspective, the FY '27 guidance is about INR42,000 crores of Capex to be done for FY '27

    — Saurabh Shah

Profitability

  • BESS EBITDA per MW-hour Profitability · FY27 · Medium confidence INR 25-30 lakh per MW-hour
    It's about INR25 lakh to INR30 lakh per MW-hour in that range where the EBITDA would come in based on the capitalization that takes place over the next nine months of the year.

    — Saurabh Shah

  • Expected Run-rate EBITDA Profitability · FY27 · High confidence INR 21,000 crores

    Previously INR 17,000 crores → INR 21,000 crores

    For the expected for the FY '27, it is about INR21,000 crore.

    — Saurabh Shah

What to watch in Q2 FY27

Curtailment Impact on EBITDA

By calendar year-end 2026
Current 5-7% impact on overall EBITDA
Target Reduced/eliminated, especially from Khavda

Why it matters

Direct impact on profitability; resolution indicates improved operational efficiency and grid integration.

by the end of this calendar year, our expectation is that there should not be any curtailment, at least from Khavda, for all the capacities which we have installed.

Risks & concerns

  • Curtailment

    medium

    Currently impacts 5-7% of overall EBITDA, primarily from Khavda, but expected to be resolved by calendar year-end with new transmission lines.

    Analyst acknowledged

  • Evacuation Capacity Delays

    medium

    Potential delays in substation and transmission lines for 14 GW of capacity addition; management is closely monitoring to bring 7 GW online by calendar year-end.

    Analyst acknowledged

  • Battery Fire Incidents

    low

    Concerns about battery fires in the industry were addressed; management clarified past incidents were related to inverters (PCS) not batteries, and confirmed comprehensive insurance coverage.

    Analyst downplayed

Q&A highlights

8 direct
Curtailment impact and outlook Direct
a curtailment has an impact of in the range of 5% to 7% on our overall EBITDA as we speak. Gradually, as and when more transmission lines are going to come up, we do foresee these tendencies of curtailment to weed out. And, by the end of this calendar year, our expectation is that there should not be any curtailment, at least from Khavda, for all the capacities which we have installed.

Quantifies the current financial impact of curtailment and provides a clear timeline for its resolution, indicating improved operational efficiency ahead.

Asked by Nikhil Nigania

Strategic shift from merchant to C&I contracts via AESL Direct
what we were planning as merchant earlier is now effectively being sold as C&I to Adani Energy to de-risk ourselves on a long-term basis, as you said? A - Ashish Khanna. Exactly. So, what we have, we have taken off the risk of merchant capacities and the risk thereof, ups and downs.

Explains a significant strategic change to de-risk revenue streams by converting merchant capacity to long-term C&I contracts with a group entity, ensuring stable returns.

Asked by Nikhil Nigania

Rationale for Adani Energy (AESL) intermediation Direct
we concentrate more on operational excellence, project execution, deploying the CapEx more efficiently, and then de-risk any vagaries of market from long-term perspective, and get our long-term returns as per our expectations with which we are building the project. Ups and downs of the market, we are not taking into consideration, and hence to de-risk ourselves from those we have tied up with Adani Energy.

Clarifies the strategic rationale behind using AESL as an intermediary, emphasizing risk mitigation and focus on core execution for AGEL.

Asked by Nikhil Nigania

PPA terms for AESL tie-ups (duration and price) Direct
So, in case of batteries, it is for 15 years and fixed for that period. And, in case of solar and wind, it is for 25 years and fixed for the price at a rate. So, there is no change which is expected.

Provides crucial details on the long-term nature and fixed pricing of the new C&I contracts with AESL, ensuring revenue predictability.

Asked by Apoorva Bahadur

BESS EBITDA trajectory for FY27 Direct
from the BESS perspective, we have given a thumb rule, which is going to apply for the overall EBITDA profile for FY '27. It's about INR25 lakh to INR30 lakh per MW-hour in that range where the EBITDA would come in based on the capitalization that takes place over the next nine months of the year.

Offers specific financial guidance for the nascent BESS segment, indicating expected profitability per unit of capacity.

Asked by Baiju Joshi

Risk of battery fires and insurance coverage Direct
what got fired actually were what is called PCS or inverters because there was what is called IGBT failure. While that itself is not a good thing, but that's not very uncommon. It has happened in the past. So, batteries per se have not got fired is another component which can happen in any other plant.

Addresses a significant safety concern in the rapidly expanding battery storage sector, clarifying the nature of past incidents and confirming insurance coverage.

Timeline for 14 GW evacuation capacity addition Direct
I think we do expect, by the end of this year, another 7 GW, which is going to come. That is this calendar year. And another quarter or two, the balances should be there online.

Provides a timeline for critical grid infrastructure development, which is essential for evacuating power from new projects and mitigating curtailment risks.

Asked by Swetha Rakhecha

Capex guidance for FY27 and FY28 Direct
So, see from a Capex perspective, the FY '27 guidance is about INR42,000 crores of Capex to be done for FY '27 because we are looking at about 5 GW of expansion in RE and 10 GW plus we want to reach as a cumulative capacity in batteries.

Confirms the substantial capital expenditure planned for the current fiscal year, indicating aggressive expansion in both renewable energy and battery storage.

Asked by Bhavik Shah

2 min read 6 chapters

Detailed narrative

Q1 FY27 Performance Highlights

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.

Capacity Expansion and Milestones

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.

Strategic Shift to C&I with AESL

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.

Battery Energy Storage System (BESS) Strategy

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.

Capital Expenditure Plans

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.

Operational Efficiency and Curtailment

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.

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