Detailed Narrative
Q3 & 9M FY26 Performance Overview
Adani Green Energy reported robust financial and operational performance for Q3 & 9M FY26. Energy sales surged by an impressive 37% year-on-year, reaching 27.6 billion units. Revenue from power supply increased by 25% year-on-year to INR8,508 crores, while EBITDA grew by 24% to INR7,921 crores, achieving a strong EBITDA margin of 91.5% for the first nine months of the fiscal year.
Capacity Expansion and 2030 Targets
The company's operational renewable energy capacity expanded by 48% year-on-year, reaching 17.2 gigawatts. In calendar year 2025, Adani Green added 5.6 gigawatts of greenfield capacity. The company remains firmly on course to achieve its ambitious target of 50 gigawatts by 2030, with plans to add another 10 gigawatts in FY27 and a broader roadmap for 30 gigawatts over the next four years.
Grid Constraints and Curtailment Impact
Grid availability issues and delays in transmission augmentation impacted generation, particularly in Q3 FY26. Management noted that 2-3 gigawatts of augmentation expected in Q3 did not materialize. However, 1 gigawatt has been augmented in January 2026 for Rajasthan, and another 2-3 gigawatts from Khavda are expected in Q4 FY26. Seasonal wind speeds also contributed to lower Plant Load Factors (PLFs) in Q3, particularly at Khavda.
Merchant Power Strategy and Pricing
Adani Green maintains an opportunistic approach to merchant power, expecting to operationalize 1-2 gigawatts of this capacity into PPAs in the coming year. Merchant power pricing was subdued in Q3 FY26, with solar realization at INR2.20 per unit and wind at INR3.5 per unit, compared to INR2.82 and INR4.15 respectively in Q3 FY25. The company anticipates better market pricing in Q4 FY26 and views infirm power as an add-on to return expectations.
Battery Storage and Hybrid Projects
The company is on track to commission India's largest single-location battery energy storage project (3.5 GWh) by the end of FY26, with plans to more than double this capacity in FY27. The hydro pumped storage project on the Chitravathi River in Andhra Pradesh is also progressing. These storage solutions are deemed highly strategic for arbitrage opportunities, mitigating grid curtailment risks, and providing Round-The-Clock (RTC) power, differentiating Adani Green in the industry.
Capex and Debt Profile
Adani Green projects a significant capital expenditure of INR35,000-40,000 crores for FY27 to support its aggressive capacity growth towards 50 GW by 2030. The company's net debt stands at INR76,000 crores, with an overall debt to EBITDA run rate of 5.6x, which is expected to remain stable as capacity scales. Debt funding for the next 9-12 months is already secured, and the company's debt is fully hedged against currency fluctuations, with interest cost increases primarily due to capacity additions.
Cost Management and Industry Outlook
Operating and maintenance costs for solar are INR3.5-4 lakh per megawatt and for wind are INR6-6.5 lakh per megawatt, with expectations for reduction due to scale, especially at Khavda. The company acknowledges commodity price volatility (e.g., silver being 8-12% of total project cost) but mitigates risks through conservative bidding, in-house module manufacturing, and advance contracts. Management noted a broader industry trend of 42 GW of Letters of Award (LOAs) not yet translated into PPAs, indicating a shift towards RTC and peak power tenders.