Adani Green’s Energy Supply Revenue Jumps 45% as Shares Fall 4%
Key Facts
Adani Green Energy shares fell 4% in Thursday, October 22, trading, a day after the company reported second-quarter results for fiscal 2027. Energy supply revenue reached 4,019 crore rupees in the period ended September 30, up 45% from 2,776 crore rupees in the year-earlier period. Energy supply EBITDA also rose 51% to 3,835 crore rupees, compared with 2,543 crore rupees. The company announced the results on October 21, reporting growth in revenue and operating profit as the stock fell in the following session. The quarterly figures show an expansion in energy supply, the activity underpinning the revenue and margin metrics in the results.
Energy supply EBITDA margin improved to 92.0% in the second quarter, from 90.5% a year earlier. The margin applies to the energy supply segment as defined by the company, not its entire business. The improvement came as operating profit from the activity rose 51%, outpacing the 45% year-on-year revenue growth. In another operating measure, energy sales increased 33% to 12,090 million units during the quarter. Together, the indicators reflect higher sales volumes and an improved segment margin compared with the same quarter, while the stock still fell the day after the results were announced.
Adani Green attributed revenue and operating profit growth to continued expansion of operating capacity, deployment of advanced renewable technologies and strong operating performance across its sites. Operating capacity stood at 20.8 gigawatts in the first half of fiscal 2027, up 24% year on year, after the addition of 4,083 megawatts of new green capacity. The company said, "Strong growth in revenue and operating profit is driven by continued capacity expansion, deployment of advanced renewable energy technologies, and strong operating performance across all our sites." The company links the addition of new capacity with improved performance at existing assets, describing both as drivers of the reported increase in energy supply revenue and operating profit. First-half figures also provide broader context for quarterly sales growth, following the expansion of operating capacity during the period.
Operating profit growth extended into the first half, with energy supply operating profit rising 41% to 7,957 crore rupees, compared with 5,651 crore rupees in the first half of the previous fiscal year. Cash profit was 1,951 crore rupees in the second quarter, up 45% year on year, and reached 4,176 crore rupees in the first half, an increase of 35%. Meanwhile, first-half capital expenditure rose 38% to 17,160 crore rupees, reflecting the scale of investment accompanying capacity additions. The company said net debt to run-rate operating profit was 5.6 times in the first half. The figures combine earnings growth with expansion spending, alongside a debt measure reported by the company for the period.
In storage, the company added 3.08 gigawatt-hours of battery system capacity in the second quarter, taking cumulative capacity to 6.63 gigawatt-hours. It said capacity could exceed its 10 gigawatt-hour guidance for fiscal 2027. CEO Ashish Khanna linked storage expansion to monitoring the readiness of transmission infrastructure, saying: "We remain focused on expanding the deployment of storage systems, while closely monitoring the availability of transmission infrastructure." His comment adds an operational constraint to storage expansion plans, as the company monitors transmission availability alongside system deployment. This comes as the company seeks to expand its operating portfolio from 20.8 gigawatts in the first half to a target of 50 gigawatts by 2030.
The company’s investor relations page provisionally lists January 20, 2027, as the date for a board meeting to review third-quarter fiscal 2027 results, noting that the date and details are subject to change. The next results are expected to provide a fresh read on the trajectory of energy supply revenue and operating profit, alongside progress in capacity additions and storage. The date follows a quarter in which the company reported increases in operating capacity and energy sales, while shares fell in the session after the results announcement. Deployment of battery systems and the availability of transmission infrastructure also remain among the operational issues flagged by the CEO. The company presents the meeting date as provisional, not fixed.