/** blogpostTitle: AGEL FY26: Scaling Khavda, protecting margins with storage blogpostSlug: agel-fy26 blogpostShortTitle: AGEL FY26 Khavda scale and storage push blogpostCoverImageDescription: Ultra-realistic corporate-style cover image showing a clean financial dashboard on a laptop in the foreground with two charts: one line chart rising from 9,495 to 11,602 (INR crore revenue from power supply FY25 to FY26) and another rising from 8,818 to 10,865 (INR crore EBITDA FY25 to FY26). In the background, a wide, realistic renewable energy landscape suggesting a large single-location project: rows of solar panels and a few wind turbines on flat, arid terrain under a clear sky, representing the Khavda site. No logos or text labels, only visual charts and numbers on the screen. */

AGEL FY26: Scaling Khavda, protecting margins with storage

Adani Green Energy Limited (AGEL) ended FY26 with a familiar headline and a new subtext. The headline was rapid scale-up: operational capacity rose 35% year on year to 19.3 GW and electricity sales jumped 34% to 37.6 billion units. The subtext was that India’s renewable build-out is now running into grid and evacuation friction points, and the company is responding by leaning hard into storage.

On the core P&L metrics shared in the investor presentation, revenue from power supply rose to INR 11,602 crore (up 22% YoY) and EBITDA from power supply increased to INR 10,865 crore (up 23% YoY). EBITDA margin stayed very high at 91.2% (FY25: 91.7%). Cash profit, defined by the company as PAT plus depreciation plus deferred tax plus exceptional items, increased 11% YoY to INR 5,399 crore.

Behind these numbers sat one of the largest annual greenfield additions by the company. FY26 saw 5,051 MW of greenfield capacity added, with 4,613 MW operationalised at Khavda in Gujarat. AGEL also commissioned battery energy storage capacity of 1,376 MWh at Khavda, describing it as among the world’s largest single-location deployments.

Operating scale did the heavy lifting

AGEL’s FY26 performance was driven by capacity coming online and generating more units. The company reported sale of energy of 37,567 million units in FY26, up from 27,969 million units in FY25. Solar generation rose to 24,005 million units, wind to 4,918 million units, and the balance came from the hybrid portfolio.

The portfolio mix disclosed in the presentation shows a solar-heavy fleet. At the end of FY26, the company reported 70% solar, 13% wind and 17% hybrid within its 19.3 GW operating capacity. For FY30E, AGEL presented a 50 GW mix expectation of 69% solar, 13% wind, 10% hybrid and 8% PSP.

Operationally, management highlighted strong plant availability across technologies. In the executive summary, the company disclosed FY26 solar CUF of 24.0% with 99.2% plant availability, wind CUF of 26.6% with 95.6% plant availability, and hybrid CUF of 35.2% with 98.5% plant availability.

AGEL also emphasised its centralized monitoring model. The presentation describes the Energy Network Operations Center (ENOC) as a real-time monitoring setup for operating assets across 12 states, providing predictive maintenance and reducing mean time to repair. It also references an industrial cloud partnership with Google for ML and AI capabilities.

FY26 financial snapshot (as disclosed)

Note: The company defined EBITDA from power supply as revenue from power supply plus carbon credit income and prompt payment discount, net of specific cost adjustments. Cash profit is defined as PAT plus depreciation plus deferred tax plus exceptional items.

Khavda is the center of gravity, but evacuation mattered in FY26

Khavda, in Gujarat, is now the central execution story for AGEL. The investor presentation describes it as a contiguous renewable park spread over 538 sq. km, with solar irradiation potential around 2,060 kWh per sq. meter and wind speeds around 8 meters per second. AGEL reported 9.4 GW operational at Khavda and stated an ambition of 30 GW by 2029.

But FY26 also showed the limits of building generation capacity faster than evacuation lines can absorb. Curtailment and grid constraints came up repeatedly in the earnings call.

Management quantified the earnings impact unusually clearly. It stated that about INR 500 crore of EBITDA was lost in FY26 due to curtailment. It further said that when including weaker merchant realizations compared with the rates it expects to contract going forward, the total EBITDA impact in FY26 could be INR 1,300 to INR 1,500 crore.

This matters because AGEL’s operating portfolio in FY26 included a sizeable share of capacity selling as infirm or on merchant basis. On the call, management provided a breakdown of the 19.3 GW operating portfolio:

• 9.7 GW was said to be under PPAs.
• 5.3 GW was described as operating as infirm today, but under PPAs that would convert once all elements are in place.
• 4.2 GW was described as pure merchant capacity intended to be tied up in long-term contracts.

Management said the 5.3 GW infirm portion should convert incrementally by December 2026, with some possibly extending to March 2027.

Storage is becoming the operational hedge

AGEL’s strategic response to curtailment risk is to add large-scale battery storage and, longer term, pumped hydro storage.

In the presentation, AGEL disclosed BESS capacity of 1.4 GWh in FY26 and indicated a FY27E BESS target of 10+ GWh. On the call, management expanded on this. It said it expected to reach about 3 GWh of installed BESS capacity at Khavda shortly after the call date, and guided to adding north of 10 GWh by the end of FY27. The company described a 3-hour configuration, implying about 3.3 GW equivalent dispatch capacity for 10 GWh.

Management also provided indicative unit economics for BESS on the call. It stated it looks at setting up future BESS at around INR 1.5 crore per MWh of capex, and a thumb rule of about INR 25 lakh of EBITDA per MWh. It added that battery economics can look better when batteries charge from power that would otherwise be curtailed.

On pumped hydro, the company disclosed 5+ GW of PSP sites secured and, on the call, management stated it aims to complete its maiden 500 MW pumped hydro project at Chitravathi in Andhra Pradesh in the coming year.

Capital intensity rose, and so did debt

The speed of build-out is visible in capital deployment. The company reported capex incurred of INR 30,365 crore in FY26 (up 7% YoY), following INR 28,366 crore in FY25 (up 66% YoY).

Debt also increased meaningfully. AGEL reported net debt of INR 91,252 crore as of March 31, 2026, split between INR 73,677 crore for operational assets and INR 17,574 crore for assets under construction. Net debt was INR 64,462 crore at March 31, 2025. Net debt to run-rate EBITDA was disclosed at 5.6x in FY26 versus 5.1x in FY25.

The company also provided details on the bridge in net debt, including debt drawn of INR 22,748 crore, change in LC of INR 2,952 crore and forex MTM loss of INR 2,436 crore. It noted that it has hedged 100% principal amount of foreign currency debt and that the MTM provision is as per Ind-AS with no actual cash outflow.

In a separate slide on debt profile, AGEL disclosed that long-term debt constituted 90% of gross debt at March 2026, while short-term debt was 10% (including short-term trade credit of INR 8,639 crore). The presentation also showed a long-term debt repayment schedule through FY37.

Receivables and counterparty visibility

AGEL disclosed power sales receivables ageing as on March 31, 2026. Total not-due receivables were INR 1,198 crore and total due receivables were INR 101 crore, with INR 74 crore in the over-180-days bucket. The table showed due amounts concentrated in a few counterparties, including Uttar Pradesh Power Corporation Limited (UPPCL) and Power Trading Corporation.

The company stated receivables days (due) stood at 3 days as of March 31, 2026.

What management guided for FY27

The call provided a clearer sense of how AGEL is calibrating growth. Management stated the organization has capability to execute 7 to 8 GW per year, but is guiding to 4.5 to 5 GW of renewable additions in FY27 to avoid repeating a situation where evacuation lags execution. It also stated that FY27 capacity additions are expected to be 100% PPA-tied.

On evacuation, management disclosed that Khavda has about 9 GW of transmission capacity currently active and it expects an additional 7 GW of evacuation capacity to open up by December 2026 and another 7 GW by March 2027, noting timelines could shift by 3 to 4 months.

On capex, management guided to around INR 40,000 to INR 42,000 crore for FY27, with a comment that the number could touch the higher range discussed by investors.

Takeaways

AGEL’s FY26 results show that execution capability remains a core strength: 5.1 GW greenfield addition, 34% growth in energy sales, and EBITDA growth that kept margins above 91%. At the same time, the year made clear that evacuation and curtailment can create near-term volatility when a meaningful share of generation sells as infirm or merchant.

The company’s stated answer is scale storage quickly, align RE commissioning more tightly with evacuation readiness, and convert infirm and merchant exposure into contracted PPAs as transmission lines come online. The FY27 guidance on renewable additions, BESS scale-up, Khavda evacuation timelines and capex suggests AGEL is prioritising de-risked growth over maximum possible build-out speed.