CHENNAI: Adani Green Energy Ltd (AGEL) reported a sharp rise in profits and revenue for the first quarter of FY26, driven by strong growth in renewable power capacity and improved operational performance.
The company’s consolidated EBITDA rose 29% year-on-year (YoY) to Rs 30,400 crore, supported by a 45% increase in its total operating capacity, which now stands at 15.8 GW. Power generation improved significantly, leading to a 42% jump in power sales during the quarter.
AGEL’s adjusted net profit (APAT) grew 51% YoY to ₹730 crore. Revenue also rose by 36% YoY and 24% quarter-on-quarter (QoQ) to ₹3,800 crore, with core power supply revenue contributing ₹3,310 crore.
The company achieved better capacity utilisation factors (CUFs), especially in wind energy, which reached 42.3%. Hybrid and solar CUFs also showed improvement, backed by increased output from resource-rich sites.
However, AGEL faced a 7% drop in average realisation per unit of power, mainly due to lower merchant power tariffs. Merchant and infirm power sales now account for 41% of the total, up from 33% in the previous quarter.
Total capital expenditure stood at Rs 6,500 crore for the quarter, while gross debt remained steady at Rs 78,000 crore.
During Q1, the company added 1.6 GW of renewable energy capacity, with major progress at its Khavda project site, which now has 5.6 GW in place. AGEL reaffirmed its target to add 5 GW of new capacity in FY26, despite minor delays at Khavda due to evacuation issues. These are expected to ease in the next quarter.
AGEL continues to explore new opportunities in battery energy storage systems (BESS) and pumped storage projects (PSP), with a 5 GW PSP pipeline under development. The company also expects borrowing costs to decline slightly during the year from the current 9.1–9.2% range.
Stock analysts at leading brokerage Emkay Global say that despite some operational challenges and volatility in merchant tariffs, they remain bullish on AGEL’s long-term prospects. The stock has a “Buy” rating with a target price of Rs 1,500, based on strong growth potential and steady earnings.
However, they caution that risks remain, including project delays, regulatory changes, and technology-related uncertainties.