Adani Green Q1 EBITDA Surges 33% on Mega-Scale Capacity Rush
Adani Green Energy Ltd, which builds and runs massive solar and wind farms across India and sells the electricity to government utilities and private businesses under long-term contracts, reported a 29% year-on-year jump in power supply revenue to ₹4,280 crore for the June 2026 quarter. Its operational capacity crossed 20,000 MW after adding 848 MW in the three months, while EBITDA from power supply — earnings before interest, tax and depreciation — grew even faster at 33% to ₹4,122 crore, the company said in its quarterly update to stock exchanges. The numbers extend the company’s established playbook of adding greenfield capacity at a furious pace and converting that capacity into locked-in, high-margin revenue, reinforcing both its dominance of India’s renewable space and its path toward a targeted 50 GW by 2030.
Financial Highlights: A Quarter of Record Spreads
The growth in revenue and profit during Q1 FY27 was primarily a volume story. Sale of energy rose 30% year-on-year to 13.7 billion units, driven by a 27% increase in operational capacity to 20,142 MW . The company’s EBITDA margin from power supply expanded to an industry-leading 93.7%, up from 92.8% a year ago, as its technology-driven operations kept costs low even as the asset base grew . Cash profit — a proxy for pre-growth cash generation — rose 28% to ₹2,225 crore .
The quarterly trend shows a business where both topline and margins are scaling in tandem. Revenue from power supply has more than doubled in two years, while the EBITDA margin has consistently stayed above 90%:
| Metric (₹ Cr) | Q1 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|
| Revenue from Power Supply | 3,312 | 3,094 | 4,280 |
| EBITDA from Power Supply | 3,108 | 2,944 | 4,122 |
| EBITDA Margin (Power Supply) | 92.8% | 90.5% | 93.7% |
Operational Scale-Up: Khavda Drives a 4.3 GW Capacity Surge
The quarter’s capacity addition of 848 MW was part of a broader 4,327 MW greenfield build-out over the past twelve months that took the total operational portfolio to 20,142 MW . The additions were spread across technology:
- Solar: 3,051 MW added, including 2,662 MW at the Khavda mega-site in Gujarat
- Wind: 684 MW added, entirely at Khavda
- Hybrid (solar+wind): 592 MW added, also entirely at Khavda
The concentration at Khavda — a sprawling 538 sq km renewable energy park, roughly five times the size of Paris — underscores how single-location execution drives speed and cost efficiencies. The site now has 10.3 GW operational, and the company reiterated a target of 30 GW from Khavda alone by 2029 . The strategy of building at scale in resource-rich regions is yielding high capacity utilisation factors (CUFs): solar CUF at 25.3%, wind at 44.4%, and hybrid at 49.0% during the quarter, backed by plant availability above 95% across all segments .
The generation growth has consistently outpaced PPA commitments. In Q1, the company’s actual generation was 31% of the annual PPA requirement, a high run-rate that management has previously flagged as a sign of strong operational performance . The broader portfolio now spans 12 states and includes 25-year fixed-tariff PPAs, commercial & industrial (C&I) contracts, and a shrinking merchant segment .
Khavda & Energy Storage: Batteries Arrive as a Hedge Against Grid Constraints
A milestone within the quarter was the commissioning of 1,972 MWh of battery energy storage systems (BESS) at Khavda, taking total installed storage to 3,551 MWh as of June 30, 2026 — over 10 times the storage capacity the company had at the end of FY25 . The deployment, described as one of the world’s largest single-location installations, is a direct response to grid curtailment and a strategic enabler of more valuable, round-the-clock power supply.
The economic logic was laid out in earlier management commentary: batteries absorb power that would otherwise be curtailed and wasted, and then sell it during evening peak hours at higher rates. During a recent earnings call, the CFO explained that BESS is being funded at a capital cost of roughly ₹1.5 crore per MWh, targeting ₹25 lakh of EBITDA per MWh — returns that are “similar to or slightly better” than the core solar/wind portfolio . With 1,972 MWh already in place and a near-term goal of 10 GWh of front-of-the-meter BESS by FY27, storage is becoming a material pillar of the 50 GW by 2030 ambition, alongside pumped storage projects where 5 GW of sites have already been secured across five states .
ESG & Operational Edge: Waterless Robots and Top Ratings Bolster the Margin Story
The company’s ability to sustain a 94% EBITDA margin depends critically on operational efficiency, and its latest update showed continued progress on that front. India’s largest waterless robotic cleaning deployment now covers 12.4 GW of solar capacity, or 72.2% of the total solar fleet, and helped cut freshwater consumption to 0.007 kilolitres per MWh of generation — a fraction of the 3.5 kl/MWh statutory limit for thermal power plants . The company also maintained its “Net Water Positive” status with a water balance index that improved 30% year-on-year .
On ESG ratings, AGEL retained the highest CRISIL ESG score in the Indian power sector for the fifth consecutive year, scored a leading 87.3 from CareEdge, and was ranked 1st globally in the alternative electricity segment by FTSE Russell . While the direct financial benefit of top-tier ESG credentials is difficult to quantify from a single quarter’s numbers, management has consistently argued that superior ratings help lower the cost of capital and unlock green-bond funding — a critical advantage for a business that consumed over ₹26,000 crore in capex in FY26 alone .
Funding the Growth: Debt Piles Up, but Margins Provide Cushion
The aggressive capacity addition is being financed predominantly through debt. Total borrowings stood at ₹1,01,440 crore at the end of FY26, up 30% from ₹78,069 crore a year earlier, with long-term debt accounting for the bulk of the increase . The debt-to-equity ratio improved marginally to 3.4x from 3.46x, helped by an equity issuance of ₹7,012 crore during FY26 . Net debt rose to ₹99,705 crore.
Finance costs have been climbing in lockstep — from ₹1,525 crore in Q1 FY26 to ₹2,001 crore in Q1 FY27 . The interest coverage ratio (EBITDA divided by finance costs) was a thin 1.76x for FY26, though the company’s operational cash generation of over ₹10,000 crore annually and the steadily expanding EBITDA base provide a cushion .
The US$3.4 billion revolving construction facility that the company has highlighted in presentations is not yet reflected as a separate drawdown in the published balance sheet, but its existence underscores the availability of committed credit lines to back the planned pipeline of 5 GW of under-construction renewable projects and 2 GWh of under-construction BESS . With promoter warrants of US$1.125 billion also in place, the company maintains that its equity requirements for the 50 GW target are fully funded .
The quarter’s numbers, therefore, paint a picture of a business that is executing on its scale-up thesis with remarkable consistency: capacity additions are running at record levels, margins remain best-in-class, and the integration of storage is opening up new revenue opportunities. The counterbalance is a large and growing debt load, but as long as the 94% EBITDA margin holds and new capacity continues to come online, Adani Green’s financial engine is well-oiled for the journey to 50 GW.
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