Adani Green Energy Ltd: Pioneering India’s Clean Energy Future
Company Overview
Established in 2015, Adani Green Energy Limited (AGEL) is one of India’s leading renewable energy companies, dedicated to harnessing solar and wind power for a sustainable future. Headquartered in Ahmedabad, Gujarat, AGEL is a key subsidiary of the Adani Group, a diversified conglomerate renowned for its contributions across various industries. AGEL operates a robust portfolio of renewable energy assets, with projects strategically located across India. As of 2024, the company boasts an operational capacity of over 8 GW and a total portfolio of nearly 20 GW, including assets under construction. AGEL is committed to achieving its ambitious target of 45 GW renewable capacity by 2030, reinforcing its role as a global leader in clean energy.
The company has established itself as a pioneer in adopting cutting-edge technology and innovative practices. AGEL integrates artificial intelligence and machine learning to optimize energy production and enhance operational efficiency. Its extensive use of predictive maintenance ensures reliability and cost-effectiveness, making it a preferred partner for power utilities and governments. A cornerstone of AGEL’s strategy is its long-term Power Purchase Agreements (PPAs) with reputed off-takers, which ensure stable cash flows and reduced market volatility. These agreements, often spanning 25 years, reflect the trust and confidence of stakeholders in AGEL’s capabilities.
Adani Green has also made significant strides in sustainability and environmental stewardship. By offsetting millions of tons of carbon dioxide emissions annually, the company actively contributes to India’s climate action goals and aligns with global ESG (Environmental, Social, Governance) standards. AGEL’s efforts have been recognized globally, including awards for excellence in renewable energy development and corporate responsibility. With its strong domestic foundation, forward-looking strategies, and unwavering commitment to sustainability, Adani Green Energy Limited continues to lead India’s transition to a green energy future. By leveraging its innovative approach and operational expertise, AGEL aims to play a pivotal role in shaping a sustainable and energy-secure world.
Returns Summary
| YTD | 1 Month | 6 Month | 1 Year | 2 Year | 3 Year | 5 Year |
| -35.44% | -2.02% | -43.10% | -32.78% | -42.93% | -25.60% | 592.94% |
Result Highlights
Adani Green Energy Limited (AGEL) has reported robust financial and operational performance for the second quarter of fiscal year 2025 (Q2 FY25), reflecting significant growth across key metrics.
- Revenue Growth: AGEL’s revenue from operations increased by 30% year-over-year (YoY) to ₹3,376 crore in Q2 FY25, up from ₹2,589 crore in the same quarter of the previous year.
- Net Profit: The company achieved a consolidated net profit of ₹515 crore, marking a 39% YoY increase compared to ₹371 crore in Q2 FY24.
- Net Profit: The company achieved a consolidated net profit of ₹515 crore, marking a 39% YoY increase compared to ₹371 crore in Q2 FY24.
- Capacity Expansion: The operational capacity grew by 34% YoY to 11,184 megawatts (MW), driven by substantial greenfield additions, including 2,000 MW of solar capacity and 250 MW of wind capacity in Khavda, 418 MW of solar capacity in Rajasthan, and 200 MW of wind capacity in Gujarat.
- Energy Sales: Energy sales increased by 20% YoY, totalling 14,128 million units in H1 FY25, attributed to the robust capacity additions and strong operational performance.
- Cash Profit: The company’s cash profit surged by 27% YoY to ₹2,640 crore, reflecting enhanced financial strength.
- Power Purchase Agreement (PPA): AGEL secured a 5 GW solar PPA from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), significantly boosting its contracted portfolio and revenue-generating capabilities.
- Power Purchase Agreement (PPA): AGEL secured a 5 GW solar PPA from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), significantly boosting its contracted portfolio and revenue-generating capabilities.
- Debt Management: AGEL fully redeemed a USD 750 million Holdco bond, aligning with its commitment to systematic deleveraging and robust capital management.
Recent Developments
In November 2024, AGEL faced legal challenges when U.S. authorities indicted founder Gautam Adani and key executives on charges of bribery, alleging a $265 million scheme to secure power supply contracts in India. These allegations led to a substantial decline in AGEL’s stock value, erasing approximately $9.6 billion in market capitalization. Following these developments, S&P Global Ratings revised its outlook on AGEL from ‘stable’ to ‘negative,’ citing concerns over the company’s ability to access funding and maintain investor confidence. As of December 24, 2024, AGEL’s stock closed at ₹1,031.05, reflecting a year-to-date decline of approximately 32.75%. The company’s market capitalization stands at ₹1.63 trillion. Key financial ratios include a Price-to-Earnings (P/E) ratio of 144.79 and a Price-to-Book (P/B) ratio of 9.39.
AEGL Outlook and contribution to Industry
AGEL remains on track to achieve its 2030 renewable energy capacity target of 50 GW, including at least 5 GW of energy storage. The company’s focus on sustainability, operational excellence, and governance practices positions it favourably for continued industry-leading growth.
AGEL has set ambitious goals to significantly expand its renewable energy capacity. The company plans to invest approximately ₹1,500 billion (US$18 billion) to increase its wind and solar capacity at Khavda in Gujarat’s Kutch region from 2 GW to 30 GW by 2030. This expansion is part of AGEL’s broader target to achieve 45 GW of renewable energy capacity by 2030, contributing to India’s sustainable energy transition. In line with its growth strategy, AGEL is embracing advanced technologies to enhance operational efficiency. The company is integrating Industry 4.0 solutions, such as N3uron’s technology, to optimize its renewable energy operations.
AGEL plays a vital role in India’s renewable energy landscape. As of March 2019, the company managed approximately 5,290 MW of wind and solar power plants across 11 states in India, with an operational capacity of around 2,360 MW. AGEL’s projects contribute significantly to India’s renewable energy targets, supporting the nation’s commitment to increasing the share of renewables in its energy mix. One of AGEL’s notable projects is the Khavda Renewable Energy Plant, which, upon completion, is expected to be the world’s largest renewable energy plant, covering an area five times the size of Paris. This project exemplifies AGEL’s commitment to large-scale renewable energy development and its contribution to global clean energy initiatives.
In summary, AGEL’s strategic investments and large-scale projects position it as a key contributor to India’s renewable energy sector, aligning with global sustainability goals and supporting the country’s energy transition efforts.
Balance Sheet & Cash Flow Analysis
Adani Green Energy Ltd (AGEL) is demonstrating significant growth, driven by substantial investments in renewable energy infrastructure. Over the years, the company has increased its equity capital modestly from ₹1,564 crores in 2022 to ₹1,584 crores in 2024, while reserves have grown impressively from ₹-71 crores in 2017 to ₹8,992 crores in 2024, reflecting improved profitability and financial health. The company’s borrowings have surged from ₹4,347 crores in 2017 to ₹67,430 crores in 2024, showcasing its reliance on debt to finance its aggressive expansion strategy. This increased leverage, while supporting growth, also presents potential risks if the returns on these investments fall short.
AGEL’s fixed assets have grown substantially, from ₹4,341 crores in 2017 to ₹64,632 crores in 2024, indicating heavy investments in renewable energy projects. The company’s investments in Capital Work in Progress (CWIP) and other long-term assets signal its continued expansion. Despite negative cash flows from investing activities, which reflect heavy capital expenditures, AGEL has shown strong operational cash flow, growing from ₹28 crores in 2017 to ₹7,713 crores in 2024. This reflects the company’s increasing profitability and its ability to generate internal funding for growth.
However, AGEL’s heavy reliance on debt financing and its large-scale investments could pose risks, especially if the returns on its projects do not materialize as expected. Effective debt management and successful project execution will be essential for maintaining financial stability. Overall, while AGEL’s growth prospects remain strong, careful monitoring of leverage and cash flow management will be crucial to sustaining its expansion and ensuring continued financial health.