Adani Green Energy FY26: Revenue ₹11,602 crore (+22% YoY), EBITDA ₹10,865 crore (+23%), EBITDA margin 91.2%, 37.6 billion units of energy sold, operational capacity 19.3 GW (5.1 GW added in FY26, +35% YoY). Khavda operational portfolio: 9.4 GW. FY27 guidance: 4.5-5 GW capacity additions (100% under PPAs), 10 GWh+ battery storage commissioning. Target: 50 GW by 2030.
The Scale of What Was Built
In one year — FY26 — Adani Green Energy added 5.1 GW of renewable capacity. To put that in context, 5.1 GW is larger than the entire installed renewable capacity of many mid-sized countries. The company's total operational portfolio of 19.3 GW makes it one of the largest renewable energy companies in the world by operational capacity.
| Metric | FY26 |
|---|---|
| Revenue from Power Supply | ₹11,602 crore (+22% YoY) |
| EBITDA | ₹10,865 crore (+23% YoY) |
| EBITDA Margin | 91.2% |
| Energy Sales | 37.6 billion units |
| Operational Capacity | 19.3 GW |
| Capacity Added FY26 | 5.1 GW (+35% YoY) |
| Khavda Portfolio | 9.4 GW |
What Management Said: Key Themes from the Earnings Call
1. The 50 GW Roadmap Is Not Changed Management reiterated the 50 GW by 2030 target without qualification. At 19.3 GW today, the company needs to add approximately 30 GW over the next four years — roughly 7-8 GW per year. FY27 guidance of 4.5-5 GW is below that run rate. Management's expectation is that execution velocity accelerates as the Khavda infrastructure matures and transmission connectivity improves.
2. 100% PPAs — No Merchant Risk in FY27 Additions All of the 4.5-5 GW to be added in FY27 are under Power Purchase Agreements. This means revenue for the new capacity is pre-contracted with known counterparties (state distribution companies, SECI, etc.) before commissioning. There is no merchant pricing risk on FY27 additions. This is a strong risk-reduction signal — management is growing with locked-in cash flows, not speculative capacity.
3. Battery Storage as the Curtailment Solution Curtailment — where the grid cannot absorb the plant's full generation — reduced effective utilisation in FY26. The solution: 10 GWh+ of battery energy storage commissioning in FY27. Battery storage allows plants to store excess generation during the day and dispatch it in the evening when grid demand is higher and curtailment risk is lower. Management expects this to "resolve the majority of curtailment issues" in FY27.
4. Khavda as the World's Largest Renewable Site The 9.4 GW Khavda operational portfolio is the current crown jewel. Khavda's eventual designed capacity is 30 GW — meaning the site itself will eventually exceed the company's current total operational portfolio. The site's scale advantages (shared infrastructure, integrated transmission, optimised logistics) make it progressively more cost-efficient as capacity is added.
5. India's Policy Environment as a Structural Tailwind India added 55 GW of non-fossil fuel capacity in FY26 — a national record. The government's energy security agenda, increasing focus on electrification, and the global energy transition are collectively creating a political and regulatory environment strongly supportive of renewable expansion. ISTS (Inter-State Transmission System) charge waivers for renewable energy projects reduce the effective cost of long-distance power transmission.
Tailwinds and Headwinds
What management sees driving growth:
- India's record 55 GW non-fossil fuel capacity addition signals strong policy commitment
- Global energy security focus → electrification and renewables as priority
- ISTS charge waiver for renewable projects reducing effective transmission cost
- Battery storage (10 GWh+ FY27) expected to resolve curtailment issues
What management flagged as risks:
- Curtailment from transmission evacuation constraints (partial resolution expected via storage)
- Lower merchant power prices in Q3 FY26 — merchant capacity creates pricing volatility
- Complex regulatory environment for grid integration and transmission planning
Understanding the 91.2% EBITDA Margin
For investors unfamiliar with renewable energy economics, a 91.2% EBITDA margin sounds extraordinary — because in most industries, it is impossible. For a renewable energy generator, it is structurally normal.
Once a solar/wind plant is built and commissioned, the variable costs are minimal: there is no fuel (the sun is free), maintenance costs are low, and labour is a small fraction of revenue. The major costs are debt servicing (depreciation and finance costs are below EBITDA) and network charges. Revenue is mostly pre-determined by the PPA tariff × actual generation. So EBITDA margins of 85-92% are the sector norm, not an outlier.
What matters in renewable energy is: (1) the PPA tariff locked in (higher tariff = more revenue per unit), (2) the capacity factor/utilisation (how much of rated capacity actually generates), and (3) debt levels (high leverage magnifies equity returns but also risk).
Key Takeaways
- FY26: 19.3 GW operational capacity, 5.1 GW added (+35% YoY), on track for 50 GW by 2030 target
- Revenue ₹11,602 cr (+22%), EBITDA ₹10,865 cr (+23%), margin 91.2%
- FY27: 4.5-5 GW additions (all 100% under PPAs — no merchant risk), 10 GWh+ battery storage
- Khavda: 9.4 GW operational, eventually designed for 30 GW — world's largest renewable site
- Curtailment risk being resolved through battery storage investment
- India's 55 GW non-fossil fuel addition in FY26 reflects strong policy tailwinds
FAQ
What were Adani Green Energy's Q4 FY26 results? FY26: Revenue ₹11,602 cr (+22%), EBITDA margin 91.2%, 19.3 GW operational capacity, 5.1 GW added, energy sales 37.6 billion units.
What is Adani Green Energy's 2030 target? 50 GW of operational capacity. Currently at 19.3 GW. FY27 guidance: 4.5-5 GW additions, all under PPAs.
Why is EBITDA margin 91.2%? Renewable energy generators have near-zero variable costs (no fuel). Revenue is pre-contracted through PPAs. EBITDA margins of 85-92% are structurally normal for the sector.
Related: Waaree Renewable Tech Q4 FY26 Earnings Analysis · Nifty Energy Index Stocks List · Nifty Realty Index Stocks List
Disclaimer: This article is for informational purposes only and does not constitute investment advice.