Adani Green — Q4 FY26 earnings call

Call held 24 Apr 2026

Management summary

Adani Green reported robust Q4 and full-year FY26 results, driven by significant capacity additions and strong operating performance. The company added a record 5.1 GW of greenfield capacity and made substantial progress in battery energy storage, targeting 10 GWh+ annually. Despite an EBITDA loss of INR 1,300-1,500 crores in FY26 due to curtailment, management is actively mitigating these risks through BESS deployment and expects improved transmission infrastructure. The company remains on track for its 50 GW by 2030 target with a focus on long-term PPAs.

Highlights

  • Strong revenue growth of 22% YoY to INR 11,602 crores and EBITDA growth of 23% to INR 10,865 crores, demonstrating operational excellence.

  • Achieved highest greenfield annual capacity expansion globally outside of China, adding 5.1 GW in FY26.

  • Significant progress in BESS deployment, with 3 GWh added recently and a target of 10 GWh+ annually, acting as a hedge against grid issues.

  • Secured an inaugural BBB+ credit rating from a Japanese agency, equivalent to India's sovereign rating, reflecting fiscal discipline.

  • Commitment to long-term PPAs, with over 90% of new capacity additions expected to be tied up in such contracts.

Concerns

  • Incurred an EBITDA loss of INR 1,300-1,500 crores in FY26 due to curtailment and lower realizations from infirm power.

  • Acknowledged ongoing challenges with grid availability and transmission constraints in India, which may lead to pockets of uncertainty.

Key financials

2 periods

Headline

  • Revenue from Power Supply
    ₹11,602 Cr
    YoY +22%
  • EBITDA
    ₹10,865 Cr
    YoY +23%
  • EBITDA Margin
    91.2%

FY26

  • Lost EBITDA
    ₹1,300 Cr

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

28 GW

as of 2026-03-31 quantified

Composition

Mix 3 contract types
  • Operating Capacity - 100% PPA 9.7 GW 50.5%
  • Operating Capacity - Infirm (Interim Merchant) 5.3 GW 27.6%
  • Operating Capacity - Pure Merchant 4.2 GW 21.9%

Share of order book by contract type, derived from disclosed amounts

Adani Green has 28 GW of signed capacity, with 19.3 GW currently operational. The operational capacity includes 9.7 GW under 100% PPAs, 5.3 GW as interim merchant power expected to convert to PPAs, and 4.2 GW as pure merchant capacity to be tied up in long-term contracts.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹40,000 Cr
    • Battery storage capacity (10 GWh) ₹15,000 Cr
    From a capital cost perspective, you can consider a cost of about INR1.5 crores per megawatt hour. So that should be about INR 15,000 crores total capex in the coming years for the battery storage that we want to set up. ... Around INR 40,000 to 42,000 crore is what we are guiding to the market generally. But yes, the number can touch around the number that you're speaking about.
  • Debt Debt disclosed Cost 8.9%
    And sir, with the recent improvement in the rating, our blended rate is at 8.9% in the presentation. Do we see improvement there? Or will it remain same? We expect downward pressure on that number.

Guidance & targets

Capacity

  • Cumulative Operating Capacity Capacity · by 2030 · High confidence 50 GW
    With this, we further consolidated our leadership position in India's renewable energy sector, and that's put us very firmly on course to achieve 50 gigawatts by 2030.

    — Sagar Adani

Capacity Addition

  • Annual Greenfield Capacity Addition Capacity Addition · coming year (FY27) · High confidence 4.5-5 GW
    So again, good question. We will be looking at an addition in the coming year of somewhere between 4.5 to 5 GW.

    — Sagar Adani

  • Annual Execution Capability Capacity Addition · per year · Medium confidence 7-8 GW
    Basically, today, our capability as an organization is to be able to execute a capacity of around 7 to 8 gigawatts per year.

    — Sagar Adani

Battery Storage Capacity

  • Annual Battery Storage Addition Battery Storage Capacity · per year · High confidence 10 GWh+
    And we are very comfortable that we will continue to be able to maintain, achieve and probably only make better and increase going forward. That should comfortably put us in a 10 gigawatt hour plus range of being able to add those many amount of capacities in a given year.

    — Sagar Adani

  • Total Battery Storage Addition Battery Storage Capacity · by end of this year (FY27) · High confidence north of 10 GWh
    Yes, we'll be adding north of 10 gigawatt hours of batteries by end of this year.

    — Sagar Adani

Pumped Hydro Capacity

  • Maiden Project Completion Pumped Hydro Capacity · coming year (FY27) · High confidence 500 MW
    On the pumped hydro side, we are making noteworthy progress, and we aim to complete our maiden 500-megawatt project at Chitravathi in Andhra Pradesh in this coming year.

    — Sagar Adani

PPA Profile

  • Long-term PPA Coverage for New Capacity PPA Profile · going forward · High confidence more than 90%
    And from this year onwards as well as going forward, you will see that our long-term stated goal remains that more than 90% of the capacities that AGEL adds will be tied up in long-term PPAs and long-term contracts.

    — Sagar Adani

Tariff Realization

  • Solar PPA Rates (New Contracts) Tariff Realization · going forward · High confidence INR 2.60-2.80
    And when we go forward, we're looking at contracting additional solar capacity around the range of about INR 2.60 to 2.80

    — Sagar Adani

  • Wind PPA Rates (New Contracts) Tariff Realization · going forward · High confidence INR 3.70-3.80
    and we're looking at contracting additional wind capacity around the range of about INR 3.70 to 3.80.

    — Sagar Adani

EBITDA

  • EBITDA per MWh from BESS EBITDA · High confidence INR 25 lakhs
    And we think that at a very comfortable level, we should be able to get about INR 25 lakhs of EBITDA per megawatt hour from a thumb rule perspective.

    — Sagar Adani

Evacuation Capacity

  • Additional Evacuation Capacity in Khavda Evacuation Capacity · by December 2026 · High confidence 7 GW
    So, we expect an additional 7 gigawatts of evacuation that is opening up in Khavda by December of 2026.

    — Sagar Adani

  • Additional Evacuation Capacity in Khavda Evacuation Capacity · by March 2027 · High confidence 7 GW
    And then we expect an additional 7 gigawatts that is coming up by March of '27.

    — Sagar Adani

  • Total Additional Evacuation Capacity in Khavda Evacuation Capacity · next 12-15 months · High confidence 14-15 GW
    So, from where we are today, somewhere between 14 to 15 gigawatts of additional capacity should open up in Khavda over the next 12 to 15 months.

    — Sagar Adani

Infirm Power Conversion

  • Conversion of Infirm Capacity to PPAs Infirm Power Conversion · incrementally by December 2026 / March 2027 · High confidence 5.3 GW
    All of this will incrementally happen by December of 2026. Some of it might remain, which will get done by March 2027. But that will continue as infirm selling in the merchant until that point in time. But again, it's a question of elements, right? So as soon as all the elements come up, they'll automatically get converted into PPAs.

    — Sagar Adani

What to watch in Q1 FY27

Additional Evacuation Capacity in Khavda

next 12-15 months
Current 9 GW active
Target 7 GW by Dec 2026, another 7 GW by March 2027

Why it matters

Crucial for enabling further capacity additions and reducing curtailment risks.

So, we expect an additional 7 gigawatts of evacuation that is opening up in Khavda by December of 2026. ... And then we expect an additional 7 gigawatts that is coming up by March of '27.

Risks & concerns

  • Transmission and Evacuation Constraints

    medium

    Constraints led to INR 1,300-1,500 crores EBITDA loss in FY26; management is limiting execution and adding BESS as a hedge.

    We are stopping our execution at a number of about between 4.5 to 5 gigawatts, looking at the transmission and evacuation constraints that we expect to happen going forward because unlike the past year, what the mistake that we do not want to repeat going forward is to have capacities coming up and then evacuation not being sufficiently available.

    Management acknowledged

  • Regulatory Complexity in India's Power Sector

    low

    The regulatory framework can be complicated, leading to pockets of uncertainty and complications from time to time.

    Well, we work within the regulatory framework of India, which can many times be relatively complicated and is not always that straightforward, right? So we're talking about very significant capacities being added in the country over the next 5, 7 years across multiple places in the country, all being interconnected with each other at the same time, interfacing with what the demand profile looks like as well.

    Management acknowledged

Q&A highlights

7 direct
BESS capacity ramp-up and operational milestones Direct
So, our capacity ramp-up and addition on the battery side has been very significant so far and is very robust. The only sensitivity we see with that is the capital flexibility to be able to fund the growth of batteries and to be able to have the organizational capability to manage the supply chain. These are only 2 sensitivities. Batteries are delinked with pretty much everything else. In fact, batteries operate as a hedge to the lack of grid availability.

Analyst questioned the feasibility of rapid BESS expansion; management confirmed significant progress and strategic role of BESS as a grid hedge.

Asked by Manish Somaiya

Economics of Battery Energy Storage Systems (BESS) Direct
From a return economics point of view, we think that batteries give similar to or in fact, in many cases, slightly better. Obviously, there's a market-related element because we discharge capacities from our batteries many times in the evening peak and the rates in the evening peak also contribute to how the economics work. So, there are 1 or 2 inputs that are outside driven. But from an overall capital intensity versus returns. We basically look at funding our BESS portfolio at about INR1.5 crores per megawatt hour. That's the range at which we are setting up our future capacities. And we think that at a very comfortable level, we should be able to get about INR 25 lakhs of EBITDA per megawatt hour from a thumb rule perspective.

Management provided specific capital intensity and EBITDA per MWh figures for BESS, indicating favorable returns compared to core renewables.

Asked by Manish Somaiya

Impact of curtailment and infirm power on FY26 EBITDA Direct
Yes, please. So we've lost about INR 500 crores of EBITDA in the past year on account of curtailment. And if you look at the rate at which we're looking at contracting our merchant capacity this year going forward versus the realization that we had in the past year, the loss would be in the range of somewhere between INR 800 crores to INR1,000 crores. So, we would have lost a total of somewhere between INR1,300 crores to INR1,500 crores of EBITDA in the past year, which we do not expect to be happening going forward as we move in the coming year and the years after that.

Management quantified the significant financial impact of operational challenges in FY26 and expressed confidence in avoiding similar losses going forward.

Asked by Mohit Kumar

Transmission constraints and conversion of infirm power to PPAs Direct
We are stopping our execution at a number of about between 4.5 to 5 gigawatts, looking at the transmission and evacuation constraints that we expect to happen going forward because unlike the past year, what the mistake that we do not want to repeat going forward is to have capacities coming up and then evacuation not being sufficiently available. So that is something we are very cognizant of and our capacity addition plan makes sure to factor for that completely. ... Yes, AGEL has a public commitment, and we've always maintained that very clearly from our side that AGEL will always look to and will always endeavor to make sure that the capacity that it is setting up are always a significant majority of them are tied up in long-term contracts.

Management clarified its strategy of moderating capacity additions due to grid constraints and emphasized its commitment to long-term PPAs for new capacity, addressing investor concerns about merchant exposure.

Asked by Mohit Kumar

Future growth plans, C&I market, and Adani Energy Solutions' role Direct
So Adani Green Energy Solutions, both contract capacities on an arm's length market test basis. So, both companies and both management, so Adani Energy Solutions has an independent market test view in terms of, if they wanted to buy within that time frame, the given quantity of solar power, what is the rates that they would be able to contract at. ... So I think that's the basis on which they decide. I think that number today, as I said, it's somewhere between INR 2.60 to 2.80 for solar and somewhere between INR 3.70 to 3.80 for wind. And those are numbers at which they're contracting today.

Management detailed the arm's length commercial terms and tariff ranges for C&I contracts through its sister company, providing transparency on future revenue streams.

Asked by Nikhil Nigania

Whether the worst of transmission/curtailment issues are behind Partial
So, if your question to me is that does this ensure that there will never be curtailment going forward, that everything will be hunky dory and run smoothly. I think we should always make sure and work from the perspective of expecting that in a country that's as complex and as interfaced as India is, there may always be pockets of uncertainty or complications that come up from time to time. ... All we can do is what is in our hand, which is what we are doing, which is making sure that we have enough and more battery capacities being added up that even from a country perspective, if this matter becomes an issue, it does not remain an issue for Adani Green.

Management acknowledged the inherent complexities and potential for future issues in India's grid, but highlighted proactive measures (BESS) to insulate Adani Green.

Asked by Nikhil Nigania

FY27 Capex for RE and Battery Storage Direct
Around INR 40,000 to 42,000 crore is what we are guiding to the market generally. But yes, the number can touch around the number that you're speaking about.

Management confirmed the substantial capex outlay for FY27, indicating aggressive expansion plans for both renewable energy and battery storage.

Asked by Bhavik Shah

PLF for FY25 capacity in Khavda Direct
For this year, most of the capacities or all of these capacities have come in Khavda only. And in Khavda, we have a very good CUF as compared to the overall CUF, which we have in our portfolio. So, for Khavda, even without this curtailment, we have had a CUF upwards of 27%. And in wind also, we have CUF upward of about 29-30% in Khavda.

Management provided specific CUF figures for new solar and wind capacities in Khavda, demonstrating strong operational performance despite curtailment.

Asked by Puneet

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Detailed narrative

Robust Financial and Operational Performance in FY26

Adani Green Energy reported a strong financial performance for FY26, with revenue from power supply increasing by an impressive 22% year-on-year to INR 11,602 crores. This growth translated into a 23% rise in EBITDA, reaching INR 10,865 crores, maintaining an industry-leading EBITDA margin of 91.2%. The company also achieved a significant operational milestone by adding 5.1 GW of greenfield capacity during the year, bringing its cumulative operating portfolio to 19.3 GW, marking the highest annual capacity expansion globally outside of China.

Strategic Focus on Battery Energy Storage Systems (BESS)

The company is making substantial strides in deploying Battery Energy Storage Systems (BESS) as a strategic hedge against grid availability and curtailment issues. In the last 3-4 months, Adani Green has already added approximately 3 GWh of BESS capacity in Khavda, aiming to reach north of 10 GWh by the end of FY27 and targeting 10 GWh+ annually. Management highlighted that BESS offers similar or even slightly better return economics compared to core renewable projects, with a capital intensity of INR 1.5 crores per MWh and an expected EBITDA of INR 25 lakhs per MWh.

Addressing Transmission Constraints and Curtailment Losses

Adani Green acknowledged that transmission and evacuation constraints, along with lower realizations from infirm power, resulted in a significant EBITDA loss of INR 1,300-1,500 crores in FY26. To mitigate these challenges, the company is consciously limiting its FY27 capacity additions to 4.5-5 GW and is aggressively deploying BESS. Furthermore, management expects substantial improvements in evacuation infrastructure, with an additional 14-15 GW of capacity projected to open up in Khavda over the next 12-15 months (7 GW by Dec 2026 and another 7 GW by March 2027).

Long-term PPA Strategy and C&I Market Engagement

The company reiterated its commitment to securing long-term Power Purchase Agreements (PPAs), stating that over 90% of its future capacity additions will be tied up in such contracts. For new solar capacity, PPA rates are expected to be in the range of INR 2.60-2.80, while wind capacity is projected at INR 3.70-3.80. Adani Green leverages its sister company, Adani Energy Solutions Limited (AESL), to interface with C&I customers, contracting capacities on an arm's length, market-driven basis, ensuring optimal realization for its power generation.

Aggressive Capex Plans and 2030 Capacity Target

Adani Green is on track to achieve its ambitious target of 50 GW operating capacity by 2030. This expansion will be supported by substantial capital expenditure, with an estimated FY27 capex in the range of INR 40,000-42,000 crores. A significant portion of this outlay, approximately INR 15,000 crores, is earmarked for the development of 10 GWh of battery storage capacity. The company also plans to complete its maiden 500 MW pumped hydro project in Chitravathi, Andhra Pradesh, in the coming year.

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