Skip to content

    Adani Green

    ADANIGREENGood
    Power·29 Oct 2025
    Management Summary

    Adani Green delivered strong operational and financial performance in H1 FY26 with record capacity additions despite challenging monsoon conditions. The company remains firmly committed to its 5 GW addition target for FY26 and 50 GW by 2030. Grid evacuation delays impacted less than 5% of total generation, with 4.8 GW of infirm power being sold at merchant rates. Management signaled upcoming BESS strategy announcement at unprecedented scale.

    Highlights

    8

    • Energy sales rose 39% YoY to 19.6 billion units in H1 FY26

    • Renewable capacity expanded 49% YoY to 16.7 GW

    • H1 greenfield capacity additions of 2.4 GW, representing 74% of entire FY25 additions

    • Revenue from power supply up 26% YoY to INR 6,088 crores in H1

    • EBITDA grew 25% YoY to INR 5,651 crores with best-in-class 92% margin

    • Cash profits surged 17% YoY to INR 3,094 crores in H1

    • 4.8 GW of capacity currently sold as infirm/pre-COD power

    • PSP Chitravathi (500 MW) at 57% physical completion, total cost INR 2,600 crores

    What Changed3

    vs Q3 FY26

    Guidance items12 → 6 (-6)Risks discussed5 → 4 (-1)Q&A highlights8 → 3 (-5)
    Key financials

    Metrics

    11

    Periods

    2

    Headline

    7
    • EBITDA Margin
      92%
    • Operational Capacity
      16.7 GW
      YoY+49%
    • Run Rate EBITDA (Power Sale)
      ₹14,100 Cr
    • Gross Block
      ₹94,000 Cr
    • CWIP
      ₹16,000 Cr

    H1

    4
    • Revenue from Power Supply
      ₹6,088 Cr
      YoY+26%
    • EBITDA
      ₹5,651 Cr
      YoY+25%
    • Cash Profit
      ₹3,094 Cr
      YoY+17%
    • Energy Sales
      $19.6B
      YoY+39%

    Segment breakdown

    • Merchant Solar2.119.6%
    • Merchant Wind5.1347.8%
    • Blended Merchant3.532.6%
    Donut· Share of Realization

    Guidance & targets

    6
    CategoryTargetPriority
    Capacity Addition
    FY26 Greenfield Addition
    5 GW
    		High
    Capacity
    Total Capacity by 2030
    50 GW
    		High
    Capex
    Annual Capex FY26
    INR 30,000 crores
    		High
    Capex
    Annual Capex FY27-FY28
    INR 30,000-35,000 crores per year
    		Medium
    Leverage
    Net Debt/Run Rate EBITDA
    4x-5x range for next 2-3 years
    		Medium
    Run Rate EBITDA
    Quarterly EBITDA
    INR 34 billion per quarter
    		High

    Risks & concerns

    6
    RiskSeverity

    Grid evacuation delays at Khavda affecting capacity utilization

    Less than 5% impact on total generation; expects 10 GW evacuation capacity at Khavda by year-end and 17 GW within 9 months — Both acknowledged

    medium

    High leverage with net debt/EBITDA at 5.1x including under-construction

    Management expects 4-5x leverage for next 2-3 years, sharp decline from FY29 as capex cycle matures — Analyst acknowledged

    medium

    Lower hybrid PLF declining from 43% to 39% YoY in Q2

    Management attributed to different solar-wind mix in new hybrids vs intensive Rajasthan hybrid; design CUF varies by PPA requirement — Analyst downplayed

    low

    Slowdown in renewable energy tendering and aggressive BESS tender pricing

    Management noted shift from pure solar to peak power/storage tenders; chose not to compete in aggressively priced BESS tenders to protect returns — Analyst acknowledged

    medium

    Areas of Evasion(2)

    • Detailed BESS strategy and economics
    • Google data center partnership specifics

    Q&A highlights

    3

    “this total impact is actually less than 5%. And that is the impact of all this curtailment which is having on our event”

    Quantifies the revenue impact of grid evacuation delays at Khavda, a key investor concern given massive capacity build-out

    asked by Aniket Mittal

    1 min read5 chapters

    Detailed Narrative

    01

    Record Capacity Execution Despite Challenging Conditions

    AGEL added 2.4 GW of greenfield capacity in H1 FY26, representing 74% of entire FY25 additions. This was achieved despite erratic monsoon conditions and a cyclone. The company commissioned close to 900 MW in Q2 alone, which management described as unprecedented🌐 in India. FY26 target remains 5 GW with capex of INR 30,000 crores.

    02

    Merchant Power as Revenue Bridge

    With 4.8 GW of infirm/pre-COD capacity, merchant sales form a significant revenue bridge. Solar merchant realization was INR 2.1/unit plus INR 0.35 REC, while wind achieved INR 5.13/unit, yielding a blended ~INR 3.5/unit. Management emphasized these are add-ons above PPA returns from early execution, not a permanent revenue model.

    03

    Khavda Mega Project and Evacuation

    The Khavda renewable energy plant has 7.1 GW of solar, wind, and hybrid assets including 661 MW of group projects operational. Grid evacuation is expected to reach 10 GW by year-end with 17 GW capacity expected within 9 months. Curtailment impact is less than 5% of total generation.

    04

    Storage Strategy - PSP Progress and BESS Ambitions

    The 500 MW Chitravathi PSP is 57% complete at a cost of INR 2,600 crores (INR 5.1-5.2 crores/MW). The larger 1,800 MW UP PSP has a 6-year timeline with heavy capex in final 3 years. Management teased an unprecedented🌐 BESS strategy to be announced shortly, explicitly stating it's not included in the 50 GW target.

    05

    Leverage and Financial Outlook

    Net debt to run rate EBITDA stands at 4.4x for operational assets and 5.1x including under-construction debt. Management guided for 4-5x range over next 2-3 years with sharp deleveraging from FY29 as capex cycle matures. Run rate EBITDA from power sales is INR 14,100 crores. Solar capex at INR 4-4.5 crores/MW remains competitive.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.