This article first appeared on GuruFocus .
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Energy Sales:Increased by 37% year on year, reaching 27.6 billion units.
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Operational Renewable Energy Capacity:Expanded by 48% year on year to 17.2 gigawatts.
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Greenfield Capacity Additions:Added 5.6 gigawatts in calendar year '25.
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Revenue from Power Supply:Increased by 25% year on year to INR8,508 crore.
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EBITDA:Grew by 24% to INR792 crore.
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EBITDA Margin:Achieved 91.5%.
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Release Date: January 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Adani Green Energy Ltd ( BOM:541450 ) reported a 37% year-on-year increase in energy sales, reaching 27.6 billion units.
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The company's operational renewable energy capacity expanded by 48% year-on-year to 17.2 gigawatts.
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Revenue from power supply increased by 25% year-on-year to INR8,508 crore, with an EBITDA growth of 24% to INR792 crore.
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Adani Green Energy Ltd was named the world's number one green utility in the 2025 global top 100 green utilities ranking by Energy Intelligence.
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The company is on track to deploy one of the world's largest single-location battery energy storage projects and continues to advance its hydro pump storage project.
Negative Points
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Grid availability issues have impacted generation for solar, wind, and hybrid projects, causing delays in expected capacity augmentation.
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Revenue realization per unit has been affected by seasonality and subdued market pricing for merchant power.
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There is a concern about the impact of rising raw material costs, such as silver, on project economics.
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The company faces challenges with grid curtailment, particularly in new project areas like Khavda.
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Interest costs have increased due to capacity additions, although currency depreciation impact is hedged.
Q & A Highlights
Q: How has grid availability impacted generation for solar, wind, and hybrid projects, and what would generation look like with 100% availability? A: Grid availability has been a challenge due to scheduling delays and documentation issues. We expected 2 to 3 gigawatts of augmentation last quarter, but only 1 gigawatt has been achieved recently. We anticipate further augmentation in the coming months, which should improve the situation.
Q: What is the current status of merchant sales, and when can we expect these to be sold on Power Purchase Agreements (PPAs)? A: We maintain around 20% of our capacity for merchant sales, which adds to our returns. We expect 1 to 2 gigawatts to be operationalized in PPAs in the coming year. Some of this capacity will also be used for our battery storage projects.
Q: With the current operational capacity of 17.2 gigawatts, what is the projected run rate EBITDA? A: For FY26, we project a run rate EBITDA of INR7,000 crore, including other income of about INR1,000 crore. The run rate EBITDA from power supply revenue is expected to be around INR16,000 crore.
Q: Why is revenue declining despite increased capacity, and is there a one-off factor affecting this? A: The decline is due to seasonality and lower wind speeds in the last quarter, coupled with grid curtailment issues. Merchant power pricing was also subdued. We expect improvements in the current quarter with better market pricing and reduced curtailment.
Q: How are interest costs affected by currency depreciation, and what would they be without this impact? A: We are fully hedged against currency depreciation, so there is no impact on interest costs from currency fluctuations. The interest cost increase is primarily due to capacity additions.
Q: What are the strategic plans for battery and pump storage in Adani Green's portfolio over the next few years? A: Battery and pump storage are very strategic for us. We plan to operationalize 3.5 gigawatt-hours of battery storage this financial year and aim to more than double this capacity next year. This will help mitigate short-term grid curtailment risks and enhance revenue from stored power.
Q: How does Adani Green plan to manage CapEx and debt for future expansions? A: We have ongoing debt raising activities to support our under-construction projects. Much of the required debt for the next year is already sanctioned. We aim to maintain our debt-to-EBITDA ratio as we expand to 50 gigawatts by FY30.
Q: What is the impact of rising silver prices on project costs, and how does Adani Green hedge against this? A: Silver is a component of solar module costs, but we mitigate price risks by being conservative in our cost estimates and leveraging our own module production capabilities. We also secure contracts in advance to ensure cost certainty.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
