Adani Green Energy (AGEL), a leading renewable energy company, has reported robust financial results for the fourth quarter of fiscal year 2025, showcasing significant year-over-year growth. The company has also called for an Extraordinary General Meeting (EGM) to seek shareholder approval for a material related party transaction.

Q4 FY25 Financial Highlights

AGEL reported impressive financial performance for Q4 FY25:

The company's profit growth is particularly noteworthy, considering it absorbed exceptional losses of ₹1.66 billion during the quarter.

Full Year FY25 Performance

For the full fiscal year 2025, Adani Green Energy continued its growth trajectory:

• Revenue increased by 23% year-over-year to ₹99.00 billion
• EBITDA grew by 23% to ₹90.00 billion

Analyst Outlook

ICICI Securities has maintained a 'Buy' rating on Adani Green Energy stock, projecting a 25% upside potential. This positive outlook reflects confidence in the company's growth strategy and market position in the renewable energy sector.

Extraordinary General Meeting Announcement

AGEL has scheduled an Extraordinary General Meeting (EGM) for May 23, 2025, to be held via video conferencing. The primary agenda item is to seek shareholder approval for a material related party transaction with Adani Renewable Energy Fifty Six Limited (ARE56L), a step-down subsidiary of AGEL.

Key Points of the Proposed Transaction

1. Transaction Value: The aggregate value of the proposed contracts with ARE56L is up to ₹10,866.00 crores.

2. Nature of Transactions:

   • Sale of Goods: Up to ₹5,375.00 crores
   • Rendering of Services: Up to ₹491.00 crores
   • Issuance of Corporate Guarantee: Up to ₹5,000.00 crores

3. Purpose: The transactions are aimed at supporting ARE56L in setting up solar power projects of up to 1,150 MW at Khavda, Gujarat.

4. Justification: The company states that these transactions will leverage economies of scale in procurement, provide infrastructure support, and facilitate financing for the subsidiary's projects.

5. Duration: The contracts are proposed to be executed during FY 2025-26, with deliveries and services spanning up to FY 2027-28, except for infrastructure maintenance services which will be for a 30-year period.

The proposed transaction's value represents approximately 96.91% of AGEL's audited consolidated annual turnover for FY 2024-25, making it a material related party transaction requiring shareholder approval.

Adani Green Energy's management emphasizes that these transactions will be conducted at arm's length and in the ordinary course of business, aligning with the company's growth strategy in the renewable energy sector.

Shareholders are advised to review the detailed explanatory statement provided with the EGM notice before casting their votes on this significant transaction.

As Adani Green Energy continues to expand its renewable energy portfolio, these strategic moves and strong financial performance underscore the company's commitment to growth and value creation in the green energy sector.

Adani Green Energy Limited (AGEL), a leading player in India's renewable energy sector, has unveiled ambitious plans for substantial growth and significant capital expenditure in the coming years. The company, known for its focus on solar and wind energy projects, recently shared its strategic outlook during a conference call with investors and analysts.

Operational Expansion and Capital Expenditure

AGEL anticipates bringing 5 gigawatts (GW) of operational projects online in the fiscal year 2026. This projection underscores the company's commitment to rapidly expanding its renewable energy portfolio and contributing to India's clean energy goals.

To support its growth trajectory, Adani Green Energy has outlined a substantial capital expenditure plan, projecting a capex of approximately Rs. 31,000.00 crore for the fiscal year 2026. This significant investment demonstrates AGEL's confidence in the renewable energy market and its determination to strengthen its position in the sector.

Project Development and Financing

As part of its expansion strategy, AGEL's subsidiary, Adani Renewable Energy Fifty Six Limited (ARE56L), is setting up solar power projects of up to 1,150 MW at Khavda, Gujarat. To facilitate the financing of these projects, AGEL is considering providing a corporate guarantee of up to Rs. 5,000.00 crore for ARE56L. This medium-term guarantee, potentially lasting up to three years, will be in place until the necessary security documents are executed. The company plans to charge up to 1% of the guarantee amount, subject to sanction conditions.

Infrastructure and Services

Adani Green Energy has secured a large parcel of land on a long-term lease from the Government of Gujarat at Khavda for setting up Hybrid renewable parks. The company will provide infrastructure support services to ARE56L for the development of its solar power plants in these parks, including:

• Setting up infrastructure and evacuation facilities
• Annual maintenance of the established infrastructure

Material Related Party Transaction

Given the scale of transactions between AGEL and its subsidiary ARE56L, the company is seeking shareholder approval for material related party transactions. The aggregate value of contracts with ARE56L is expected to be up to Rs. 10,866.00 crore, including:

Shareholder Approval

Adani Green Energy has scheduled an Extraordinary General Meeting (EGM) on May 23, 2025, to seek shareholder approval for these material related party transactions. The company emphasizes that all proposed transactions will be conducted at arm's length and in the ordinary course of business.

As Adani Green Energy continues to expand its operational capacity and invest in new projects, these strategic moves are likely to play a crucial role in shaping the company's future in the renewable energy landscape.