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Adani Green Energy Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤23rd Jan 26

Summary : Adani Green Energy reports robust 37% YoY energy sales growth, 48% operational capacity expansion to 17.2 GW, and strong financial performance, reinforcing its leadership in renewable energy with ambitious expansion plans and ESG commitment.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated 9M FY26: Finance Costs ₹4,858 Crores, Depreciation ₹2,487 Crores, Cost of Equipments/Goods Sold ₹1,068 Crores.
  2. Standalone 9M FY26: Cost of Equipments/Goods Sold ₹11,790 Crores, Finance Costs ₹977 Crores, Changes in inventories (₹874 Crores).
  3. Receivables from tariff disputes fair valued, anticipating recovery over three years.
  4. Consolidated 9M FY26: Power Supply ₹8,508 Crores, Sale of Goods/Equipments ₹490 Crores, Others ₹428 Crores.
  5. Standalone 9M FY26: Sale of Goods/Equipments ₹11,804 Crores, Others ₹280 Crores, Power Supply ₹7 Crores.
  6. Consolidated Cash Profit for 9M FY26 was ₹3,906 Crores, a 7% YoY increase.
  7. Ongoing tariff disputes with various DISCOMs.
  8. Indictment by US DOJ and SEC against certain directors.
  9. Consolidated Paid-up Equity Share Capital ₹1,647 Crores (as of Dec 31, 2025).
  10. Standalone Paid-up Equity Share Capital ₹1,647 Crores (as of Dec 31, 2025).
  11. Consolidated Segment Assets: Renewable power generation ₹1,31,762 Crores, Sale of Goods/Equipments ₹1,490 Crores.
  12. Issuance of Warrants to the Promoter Group for ₹9,350 Crores.
  13. Power Consumption Agreement with RSWM Limited, a captive consumer.
  14. Consolidated results include 49 reviewed subsidiaries, 36 reviewed subsidiaries, 1 reviewed associate, and 1 reviewed joint venture.
  15. Consolidated results also include 90 unaudited subsidiaries and 1 unaudited joint venture, deemed not material.
  16. Standalone results reflect the parent company's direct operations and investments, with different revenue and expense figures.

Corporate Overview

  1. India (operating across 12 states).
  2. Key project locations include Khavda (Gujarat), Rajasthan, and Andhra Pradesh.
  3. Ongoing tariff disputes with various DISCOMs.
  4. Legal and regulatory proceedings against certain directors (not the company) by US DOJ and SEC.
  5. Managing one-time expenses related to refinancing borrowings and project write-offs.
  6. Power Purchase Agreements (PPAs) for energy sales.
  7. Government regulations and policies for renewable energy projects.
  8. Financing facilities for project development and operations.
  9. Develops, owns, and operates utility-scale grid-connected solar, wind, hybrid, and energy storage solutions.
  10. Engaged in renewable power generation and related ancillary activities.
  11. Involves sale of solar and wind power equipments, including to subsidiaries.
  12. Confident and bullish on growth trajectory and operational excellence.
  13. Emphasizes leadership in green energy transition and sustainability.
  14. Committed to achieving ambitious capacity targets and creating stakeholder value.
  15. State Electricity Distribution Companies (DISCOMs) like TANGEDCO, GESCOM, CESCOM, UPPCL.
  16. PTC India Limited for power sales.
  17. Captive consumers, such as RSWM Limited.
  18. Renewable power generation and other related ancillary activities.
  19. Sale of renewable power equipments and related services.
  20. Operational capacity reached 17.2 GW as of December 31, 2025, a 48% YoY growth.
  21. Added 2,995 MW greenfield capacity in 9M FY26.
  22. Developing the world's largest 30 GW renewable energy plant at Khavda, Gujarat, with 7.7 GW operational.
  23. Targeting 50 GW renewable energy capacity by 2030.
  24. Developing the 30 GW renewable energy plant at Khavda by 2029.
  25. Deployment of single-location battery energy storage and hydro pumped storage projects.

Risk Factors

  1. Directors facing US DOJ/SEC indictment.
  2. Ongoing tariff disputes with DISCOMs.
  3. Redemption obligation for Class B shares.
  4. New Labour Codes increase expenses.

Key Drivers

  1. Operational capacity grew 48% YoY.
  2. Energy sales increased 37% YoY.
  3. Khavda project progressing rapidly.
  4. Ranked World's No. 1 Green Utility.

Auditor’s Report

  1. Limited Review Report (conclusion, not an audit opinion).
  2. Indictment by U.S. Department of Justice and SEC complaint against certain directors.
  3. Auditors drew attention to the US DOJ/SEC indictment against directors, but their conclusion was not modified.

Board Commentary

  1. Interim dividend of ₹332 Crores declared to Total Energies Renewables Singapore Pte Limited.
  2. Indictment by US DOJ and SEC against certain directors.
  3. Ongoing tariff disputes with various DISCOMs.
  4. Impact of new Labour Codes on employee benefit expenses.
  5. Indictment by U.S. Department of Justice and SEC complaint against certain directors.
  6. Ongoing tariff disputes with Gulbarga Electricity Supply Company Limited and Hubli Electricity Supply Company Limited.
  7. Tariff dispute with Uttar Pradesh Power Corporation Limited regarding delayed commissioning.
  8. Approved issuance of 6,31,43,677 Warrants to Promoter Group for ₹9,350 Crores.
  9. Utilized ₹9,350 Crores from warrants for debt repayment and investments in subsidiaries.
  10. Invested ₹5,916 Crores in Unsecured Perpetual Securities.

Corporate Governance

  1. Committed to upholding principles of good governance.
  2. Independent law firms conducted a review, identifying no non-compliances or irregularities.
  3. Audit Committee reviewed and Board of Directors approved financial results.
  4. Management Committee approved warrant conversion and equity share allotment.
  5. Indictment by U.S. Department of Justice and SEC against certain directors, not the company.

Management Discussion & Analysis

Future Strategy

  1. Achieve 50 GW renewable energy capacity by 2030.
  2. Develop the world's largest 30 GW renewable energy plant at Khavda.
  3. Leverage technology to reduce the Levelized Cost of Energy (LCOE).
  4. Maintain ESG leadership and sustainable growth practices.

Industry Overview

  1. Strong growth in the renewable energy sector, driven by greenfield capacity additions.
  2. Leveraging advanced renewable energy technologies for efficiency and scale.

Macroeconomic Outlook

  1. Positioned as India's largest and fastest-growing pure-play renewable energy company.
  2. Significant contributor to India's new solar and wind capacity additions.

Operational Focus Areas

  1. Project development excellence with advanced resource planning and supply chain management.
  2. Expanding operational capacity to meet growth targets.
  3. Enhancing O&M efficiency through real-time monitoring and higher plant availability.
  4. Reducing O&M costs to maintain industry-leading EBITDA margins.

Performance Drivers

  1. Robust greenfield capacity addition of 5.6 GW.
  2. Deployment of advanced RE technologies and strong plant performance.
  3. Operational excellence through data analytics, machine learning, and AI.
  4. Commissioning of new capacities in resource-rich sites like Khavda, Gujarat, and Rajasthan.

Risk Control Measures

  1. Independent review by law firms found no non-compliances in governance matters.
  2. Management anticipates favorable outcomes in tariff disputes based on legal advice.
  3. Foreign currency exposure mitigated through derivative instruments.

Critical Risks

  1. Pending legal and regulatory proceedings against certain directors.
  2. Ongoing tariff disputes with various electricity distribution companies.
  3. Potential for delays in large-scale project execution.
  4. Fluctuations in foreign currency exchange rates affecting borrowings.
Adani Green Energy Ltd (ADANIGREEN) Quarterly Report Analysis & Insights | Dhanarthi