Adani Green Energy reported a 23% year-on-year increase in EBITDA to Rs 10,865 crore for the financial year ended March 31, 2026, driven by a record greenfield capacity addition of 5.1 GW. The company’s operational capacity grew 35% to 19.3 GW, maintaining its position as India’s largest renewable energy producer. Revenue from power supply for the year rose 22% to Rs 11,602 crore, while energy sales increased 34% to 37,567 million units.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026. The auditors, M/s. S R B C & Co. LLP and M/s. Dharmesh Parikh & Co. LLP, issued an unmodified opinion on the standalone and consolidated financial results. The auditors drew attention to an indictment by the U.S. Department of Justice and a complaint by the U.S. Securities and Exchange Commission against certain directors, noting that the outcome of the proceedings is pending.

Financial Performance

The company posted a cash profit of Rs 5,399 crore for FY26, an 11% increase from the previous year. The EBITDA margin for the year stood at 91%. For the quarter ended March 31, 2026, revenue from power supply was Rs 3,094 crore, and EBITDA from power supply was Rs 2,944 crore.

Operational Highlights

Adani Green Energy added 5,051 MW of greenfield capacity in FY26, which is 1.5 times the capacity added in FY25. The additions included 3,412 MW of solar capacity, 683 MW of wind capacity, and 956 MW of solar-wind hybrid capacity. The company installed 1,376 MWh of battery energy storage system (BESS) capacity at Khavda, Gujarat.

The operational portfolio at Khavda stands at 9.4 GW. The company is targeting more than 10,000 MWh of BESS capacity by FY27. The total operational portfolio of 19,294 MW is expected to power over 8.7 million homes and avoid approximately 36 million tonnes of CO2e emissions annually.

Governance and Approvals

The Board approved the reappointment of three independent directors—Mr. Romesh Sobti, Mrs. Neera Saggi, and Dr. Anup Shah—for a second term. It also recommended the appointment of M/s. Shah Dhandharia & Co. LLP and the re-appointment of M/s. S R B C & Co. LLP as joint statutory auditors. M/s. T. R. Chadha & Co. LLP was appointed as the new internal auditor.

Mr. Lokesh Kumar Jeengar was appointed as Head - Business Development & Strategy, succeeding Mr. Raj Kumar Jain, who transitioned to a new role within the Adani Group. The Board approved convening the 11th Annual General Meeting on June 25, 2026, via video conferencing.

Macquarie has maintained its Outperform rating on adani green energy and raised its target price to ₹1,800, underpinned by a constructive outlook on the company's capacity expansion trajectory and energy storage integration. The brokerage's revised assessment reflects confidence in the company's ability to sustain robust earnings growth over the medium term, even as near-term profitability faces pressure from elevated interest costs.

Key Investment Thesis

Macquarie's bullish stance is anchored in two primary growth drivers — the integration of Battery Energy Storage Systems (BESS) and a consistent annual capacity addition run-rate of 5.5GW. These factors are expected to underpin a 30% EBITDA CAGR over the next five years, with the company's operational capacity surpassing the 20GW milestone.

The following table summarises the key parameters of Macquarie's updated coverage:

Estimate Revisions and Near-Term Headwinds

Macquarie has revised its EBITDA estimates for FY28–29 upward by 6–10%, reflecting the improved capacity outlook and BESS-driven revenue potential. Despite this positive revision, the brokerage acknowledges that higher interest costs remain a drag on near-term Earnings Per Share (EPS), tempering the immediate earnings uplift from the capacity scale-up.

BESS Integration as a Strategic Catalyst

The incorporation of BESS into Adani Green Energy's operational framework is highlighted as a significant strategic development. Energy storage solutions are increasingly critical to renewable energy projects, enabling better grid integration and round-the-clock power supply capabilities. Macquarie's analysis suggests that BESS integration, combined with the steady 5.5GW annual additions, positions the company to capture a larger share of India's growing renewable energy demand.

Overall, Macquarie's revised target price of ₹1,800 and maintained Outperform rating reflect a broadly positive medium-to-long-term outlook for Adani Green Energy, with the near-term EPS impact of higher interest costs identified as the primary risk to monitor.