Adani Green Energy Ltd
Adani Green Energy Ltd
Utilities F&OAdani Green Energy Limited, incorporated in 2015, is a holding company of several subsidiaries carrying business of renewable power generation within the group and is primarily involved in renewable power generation and other ancillary activities. [1]
Adani Green Energy commands a premium valuation at 124.9x PE and 12.87x PB, justified partly by strong 33% 5-year sales CAGR and 44% profit CAGR. However, zero dividend payout, low interest coverage, and potential interest capitalization raise financial risk concerns that warrant caution at current levels despite 87.5% analyst buy ratings.
Key Fundamentals
LargecapPower GenerationPowerTechnical Indicators
Key Insights
Strengths
1- Company's median sales growth is 31.4% of last 10 years
Weaknesses
6- Stock is trading at 12.6 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Company has low interest coverage ratio.
- Tax rate seems low
- Company has a low return on equity of 13.1% over last 3 years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoAdani Green Energy commands a premium valuation at 124.9x PE and 12.87x PB, justified partly by strong 33% 5-year sales CAGR and 44% profit CAGR. However, zero dividend payout, low interest coverage, and potential interest capitalization raise financial risk concerns that warrant caution at current levels despite 87.5% analyst buy ratings.
- Exceptional long-term revenue growth with 10-year compounded sales CAGR of 85% and 5-year CAGR of 33%, demonstrating sustained business expansion
- 87.5% of analysts (7 out of 8) have a buy rating, reflecting strong institutional confidence in the growth story
- Compounded profit growth of 44% over 5 years and 70% over 10 years shows improving profitability at scale
- Stock delivered 59% return in the last 1 year, significantly outperforming broader market indices
- Median sales growth of 31.4% over last 10 years indicates consistent capacity additions in the renewable energy space
- 3-year ROE of 13% is reasonable for a capital-intensive utility with aggressive growth phase, and has improved from 11% over 10 years
- Market cap of Rs 2,49,646 crore positions ADANIGREEN as a large-cap renewable energy pure play benefiting from India's net-zero commitments
- PE ratio of 124.9x is extremely elevated even for a growth stock, leaving minimal margin of safety for execution slippage
- Price-to-book of 12.87x is excessively high for a utility company, indicating the stock prices in decades of future growth
- Zero dividend yield despite repeated profitability suggests cash flows are stretched or being redirected entirely to debt servicing and capex
- Low interest coverage ratio signals high financial leverage risk, particularly vulnerable in a rising interest rate environment
- Possible capitalization of interest costs may be flattering reported profits, masking true operational economics
- ROE of just 13.1% over 3 years is inadequate relative to the 12.87x book value premium investors are paying
- TTM sales growth has decelerated to 15% from the 5-year CAGR of 33%, suggesting the law of large numbers is catching up
- TTM profit growth of only 10% versus 5-year CAGR of 44% indicates meaningful earnings growth deceleration at current scale
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- Fresh US bribery scrutiny lingers Jun 1
Shares fell 2.95% to ₹1,406.50 on Jun 3 after fresh US regulatory scrutiny over alleged $265 million bribery in renewable energy contracts, despite DOJ dropping charges on May 18 and SEC settling for $18 million on May 15.
- $1B offshore loan post-settlement Jun 17
AGEL is in talks to raise $1 billion in offshore debt, potentially in two tranches over three months, with terms dependent on lender negotiations following the US settlement overhang.
- World's largest BESS at Khavda May 26
Commissioned cumulative 3.37 GWh battery storage at Khavda — the world's largest single-location BESS outside China — completed within 10 months of construction start, with plans to add 10+ GWh in FY27 and 50 GWh over five years.
- Operational capacity nears 20 GW Jun 1
Commissioned 50 MW solar at Khavda bringing total operational renewable capacity to 19,835.8 MW, after adding 5.1 GW greenfield capacity in FY26 with energy sales up 34% YoY to 37,567 million units.
- 1,990 MWh BESS and 50 MW solar May 26
Operationalized 1,990 MWh BESS and 50 MW solar projects at Khavda, taking total renewable capacity to 19,785.8 MW at that date.
- Promoter stake reshuffled internally Jun 9
Ardour Investment Holding sold 2.15 crore shares (1.3% stake) at ₹1,510/share for ₹3,246.50 crore to Adani Infra (India) Ltd; shares rose ~3% to ₹1,532 post-deal, indicating intra-group transfer rather than exit.
- GIFT City subsidiary incorporated Jun 12
Incorporated Adani Global IFSC Limited on June 3, 2026, as a wholly-owned Global Treasury Centre in GIFT City, Gujarat.
- FY26 BRSR report filed May 29
Filed Business Responsibility and Sustainability Report for FY26 reporting 19.294 GW operational capacity and net water positive status.
- 11th AGM scheduled June 25 May 27
Annual General Meeting set for June 25, 2026, via video conferencing in compliance with MCA and SEBI circulars.
- Global investor roadshow in June May 26
Scheduled investor meetings in Singapore, New York, and London in June 2026, including Nomura Investment Forum and Jefferies Corporate Access Day.
TL;DR: Adani Green is executing strongly on capacity additions, approaching 20 GW operational with world-leading battery storage at Khavda and 34% YoY energy sales growth. The key risk remains residual US regulatory uncertainty — despite DOJ/SEC settlements in May 2026, fresh scrutiny headlines continue to trigger 3-5% selloffs and constrain institutional re-entry. The $1 billion offshore loan effort and global investor roadshow signal management confidence that the legal overhang is fading, but market sentiment will remain volatile until US inquiries are conclusively closed.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,598 | 2,162 | 2,220 | 2,311 | 2,527 | 2,794 | 3,005 | 2,340 | 3,073 | 3,800 | 3,008 | 2,618 | 3,502 |
| Expenses | 334 | 81 | 521 | 645 | 693 | 415 | 788 | 460 | 671 | 758 | 405 | 377 | 620 |
| Operating Profit | 2,264 | 2,081 | 1,699 | 1,666 | 1,834 | 2,379 | 2,217 | 1,880 | 2,402 | 3,042 | 2,603 | 2,241 | 2,882 |
| OPM % | 87% | 96% | 77% | 72% | 73% | 85% | 74% | 80% | 78% | 80% | 87% | 86% | 82% |
| Other Income | 265 | 178 | 353 | 264 | 234 | 271 | 294 | 280 | 39 | 189 | 158 | 208 | 117 |
| Interest | 1,338 | 1,393 | 1,165 | 1,242 | 1,224 | 1,426 | 1,448 | 1,251 | 1,368 | 1,525 | 1,635 | 1,698 | 1,626 |
| Depreciation | 392 | 451 | 474 | 481 | 497 | 596 | 621 | 618 | 663 | 767 | 834 | 886 | 885 |
| PBT | 799 | 415 | 413 | 207 | 347 | 628 | 442 | 291 | 410 | 939 | 292 | -135 | 488 |
| Tax % | 38% | 34% | 29% | 33% | 24% | 28% | 6% | -37% | 29% | 25% | -81% | -27% | 11% |
| Net Profit | 507 | 323 | 371 | 256 | 310 | 629 | 515 | 474 | 383 | 824 | 644 | 5 | 514 |
| EPS in Rs | 3.21 | 2.03 | 2.35 | 1.62 | 0.95 | 2.82 | 1.74 | 3.11 | 1.45 | 4.39 | 3.54 | -0.25 | 2.41 |
Profit & Loss
| Mar 2016 15m | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 28 | 502 | 1,480 | 2,058 | 2,549 | 3,124 | 5,133 | 7,776 | 9,220 | 11,212 | 12,928 |
| Expenses | 14 | 98 | 637 | 532 | 1,099 | 883 | 1,621 | 2,806 | 1,881 | 2,323 | 2,143 |
| Operating Profit | 13 | 403 | 843 | 1,526 | 1,450 | 2,241 | 3,512 | 4,970 | 7,339 | 8,889 | 10,785 |
| OPM % | 48% | 80% | 57% | 74% | 57% | 72% | 68% | 64% | 80% | 79% | 83% |
| Other Income | 7 | 80 | 42 | 73 | -111 | 391 | 507 | 667 | 1,323 | 1,316 | 1,072 |
| Interest | 23 | 334 | 552 | 1,121 | 995 | 1,953 | 2,617 | 2,911 | 5,088 | 5,492 | 6,484 |
| Depreciation | 6 | 333 | 543 | 1,062 | 394 | 486 | 849 | 1,300 | 1,903 | 2,498 | 3,372 |
| PBT | -9 | -184 | -210 | -585 | -50 | 193 | 553 | 1,426 | 1,671 | 2,215 | 2,001 |
| Tax % | 3% | -75% | -35% | -19% | 22% | 6% | 12% | 32% | 25% | 10% | 1% |
| Net Profit | -9 | -47 | -138 | -475 | -68 | 182 | 489 | 973 | 1,260 | 2,001 | 1,987 |
| EPS in Rs | -0.58 | -0.37 | -1 | -3.03 | -0.15 | 1.34 | 3.13 | 6.15 | 6.94 | 9.12 | 10.03 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Balance Sheet
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 160 | 1,274 | 1,564 | 1,564 | 1,564 | 1,564 | 1,564 | 1,584 | 1,584 | 1,584 | 1,647 |
| Reserves | -9 | -71 | -223 | 369 | 792 | 636 | 1,050 | 5,720 | 9,058 | 10,553 | 18,318 |
| Borrowings | 4,132 | 4,347 | 9,864 | 11,142 | 14,867 | 24,209 | 52,832 | 54,223 | 64,858 | 80,040 | 1,03,545 |
| Other Liabilities | 1,286 | 610 | 4,503 | 1,582 | 1,201 | 2,283 | 3,508 | 5,382 | 12,586 | 18,587 | 19,478 |
| Total Liabilities | 5,569 | 6,160 | 15,709 | 14,658 | 18,424 | 28,692 | 58,954 | 66,909 | 88,086 | 1,10,764 | 1,42,988 |
| Fixed Assets | 2,781 | 4,341 | 9,120 | 10,388 | 12,554 | 16,429 | 28,452 | 48,336 | 62,284 | 79,914 | 1,02,138 |
| CWIP | 1,962 | 267 | 1,725 | 743 | 1,208 | 4,452 | 19,899 | 5,291 | 6,427 | 14,480 | 19,031 |
| Investments | 7 | 26 | 87 | 77 | 477 | 502 | 574 | 1,149 | 1,515 | 2,743 | 2,983 |
| Other Assets | 819 | 1,525 | 4,777 | 3,449 | 4,185 | 7,309 | 10,029 | 12,133 | 17,860 | 13,627 | 18,836 |
| Total Assets | 5,569 | 6,160 | 15,709 | 14,658 | 18,424 | 28,692 | 58,954 | 66,909 | 88,086 | 1,10,764 | 1,42,988 |
Cash Flow
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | — | 28 | 649 | 1,625 | 1,965 | 1,601 | 3,127 | 7,265 | 7,713 | 8,957 | 10,135 |
| Investing | — | -1,511 | -4,428 | -2,666 | -3,743 | -9,137 | -18,730 | -3,857 | -21,060 | -19,828 | -26,227 |
| Financing | — | 1,559 | 3,942 | 1,045 | 2,161 | 7,083 | 15,986 | -2,973 | 13,953 | 11,475 | 15,615 |
| Net Cash Flow | — | 76 | 162 | 3 | 383 | -453 | 383 | 435 | 606 | 604 | -477 |
| Free Cash Flow | — | -889 | -3,763 | -1,244 | -1,431 | -4,529 | -11,728 | 3,927 | -7,987 | -15,804 | -15,857 |
| CFO/OP | — | 7 | 78 | 108 | 137 | 72 | 90 | 146 | 106 | 103 | 95 |
Ratios
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 850 | 245 | 209 | 134 | 106 | 175 | 129 | 104 | 53 | 50 | 60 |
| Inventory Days | — | — | — | 383 | — | — | — | — | — | — | — |
| Days Payable | — | — | — | 455 | — | — | — | — | — | — | — |
| Cash Conversion Cycle | 850 | 245 | 209 | 63 | 106 | 175 | 129 | 104 | 53 | 50 | 60 |
| Working Capital Days | -12,275 | -218 | -678 | -182 | -193 | -407 | -576 | -175 | -905 | -438 | -369 |
| ROCE % | — | 2% | 4% | 4% | 8% | 10% | 8% | 8% | 10% | 9% | 7% |
Documents
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Company Information
Adani Green Energy Limited, incorporated in 2015, is a holding company of several subsidiaries carrying business of renewable power generation within the group and is primarily involved in renewable power generation and other ancillary activities. [1]