Adani Green Energy Powers Ahead with Robust H1 FY26 Performance

Adani Green Energy Limited (AGEL), a dominant force in India's renewable energy sector, has delivered a strong financial and operational performance for the first half of fiscal year 2026. The company, known for its aggressive expansion in green energy, reported a significant surge in key financial metrics, underscoring its commitment to sustainable growth and operational excellence. This period highlights AGEL's strategic execution and its pivotal role in India's energy transition.

For H1 FY26, AGEL's revenue from power supply climbed to an impressive INR 6,088 crore, marking a 26% year-on-year increase. This robust top-line growth was mirrored in its profitability, with EBITDA from power supply rising by 25% to INR 5,651 crore. The company maintained an industry-leading EBITDA margin of 91.8%, a testament to its efficient operations and advanced O&M capabilities. Cash profit also saw a healthy uptick, growing by 17% year-on-year to INR 3,094 crore. These figures reflect AGEL's ability to convert its expanding operational capacity into strong financial returns.

Financial Highlights: A Snapshot

The company's revenue split by contract type for operational capacity shows a significant portion from long-term agreements, with 81% derived from 25-year fixed tariff Power Purchase Agreements (PPAs) and 19% from merchant and Commercial & Industrial (C&I) sales. This balanced mix provides both stability and opportunities for higher returns.

Operational Expansion and Strategic Vision

AGEL's operational capacity witnessed a substantial 49% year-on-year increase, reaching 16.7 gigawatts. This growth was fueled by the addition of 2.4 gigawatts of greenfield capacity in H1 FY26 alone, representing 74% of the total annual capacity addition in FY25. The company is firmly on track to achieve its ambitious target of 50 gigawatts by 2030, reinforcing its position as India's largest and fastest-growing pure-play renewable energy company.

A cornerstone of AGEL's expansion strategy is the Khavda Renewable Energy Plant in Gujarat, poised to become the world's largest single-location renewable energy project. Currently, 7.1 gigawatts are operational, with a target of 30 gigawatts by 2029. This mega-project benefits from strategic location, scale efficiencies, advanced design, and innovative execution, including AI/ML for real-time monitoring and robotics for project delivery.

Navigating Challenges and Future Outlook

While AGEL's growth trajectory is impressive, the company transparently addressed operational challenges. Solar grid availability, for instance, saw a dip to 89.0% in H1 FY26, attributed to one-off disruptions and a lag in transmission infrastructure for newly commissioned projects. The Capacity Utilization Factor (CUF) for solar was also affected by a prolonged monsoon season. However, management emphasized that the overall impact of these issues on total generation is less than 5%, and they are actively working with stakeholders to mitigate these concerns.

Looking ahead, AGEL is exploring Battery Energy Storage Systems (BESS) development at an unprecedented scale, leveraging its existing solar assets and land for a competitive edge. The company plans an annual capex of INR 30,000-35,000 crore for the next two years to support its aggressive growth. Management expects net debt to run rate EBITDA to remain between 4 to 5 times in the near term, with a sharp reduction anticipated from FY29 onwards as new projects become operational and contribute to EBITDA.

AGEL's commitment to sustainability is also evident in its strong ESG performance, ranking 1st globally by FTSE Russell and 1st in India and 7th globally by Sustainalytics in the renewable energy sector. This holistic approach, combining aggressive growth, operational efficiency, and strong governance, positions Adani Green Energy as a key player in India's renewable energy future.