Whalesbook
Strong Fourth Quarter Results
Adani Green Energy's revenue climbed 22% year-on-year to Rs 11,602 crore in the fourth quarter. Energy sales surged 34% to 37,567 million units. Growth was driven by aggressive capacity additions and improved plant efficiency. EBITDA also exceeded Jefferies' expectations by 5%, mainly due to lower operating expenses.
Jefferies Raises Target Price
Jefferies reiterated its 'buy' rating on Adani Green Energy, lifting its price target to Rs 1,435 from Rs 1,260. This new target suggests a potential 16.6% upside from its previous trading level. The recommendation reflects confidence in the company's operational execution and expansion plans.
Transmission Constraints Impact Capacity Plans
Management now targets 4.5 gigawatts of new capacity, down from earlier projections of 7-8 gigawatts, due to significant transmission evacuation challenges. This constraint has also led to a revised FY27 capacity addition guidance of 5 gigawatts, reduced from a previous forecast of 6.3 gigawatts.
Long-Term Growth Outlook
Despite short-term capacity challenges, Adani Green remains on track to meet its 2030 goal of 50 gigawatts of capacity. The company currently operates 19.3 gigawatts of capacity, indicating significant room for future growth despite ongoing infrastructure limitations.