Adani Green Energy's Net Profit Doubles in Q2FY26 on Strong Capacity Growth

Adani Green Energy Limited announced a net profit of Rs 583 crore for the second quarter of FY26, more than doubling from Rs 276 crore in the same period last year. Revenues saw a marginal increase, standing at Rs 3,008 crore in Q2FY26, almost flat compared to Rs 3,005 crore in Q2FY25. However, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) jumped 17.4% to Rs 2,603 crore. Crucially, EBITDA margins improved from 73.8% to 86.5%, indicating better cost management and operational leverage.

The company's operational renewable energy capacity grew by an impressive 49% year-on-year, reaching 16.7 Gigawatts (GW), positioning Adani Green Energy as the largest renewable energy producer in India. In the first half of FY26, the company added 2.4 GW of greenfield capacity, which is 74% of the total capacity added in the entire FY25. Notable greenfield additions occurred in Khavda, Gujarat, Rajasthan, and Andhra Pradesh, spanning solar, wind, and hybrid projects.

CEO Ashish Khanna expressed confidence in achieving 5 GW of capacity addition in FY26 and meeting the target of 50 GW by 2030, noting the company produced 19.6 billion units of clean power. He also emphasized the adoption of innovative technologies, digitalization for operational efficiency, and a continued commitment to ESG (Environmental, Social, and Governance) initiatives.

Impact: This robust financial performance and aggressive capacity expansion signal strong growth prospects for Adani Green Energy. It suggests potential positive momentum for the company's stock and reinforces confidence in India's renewable energy sector. The company's strategic focus on technology and sustainability further bolsters its long-term outlook. Impact: 9/10

Heading: Important Terms Explained EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance. It shows how much profit a company generates from its core business operations before accounting for financing costs, taxes, and non-cash expenses like depreciation and amortization. EBITDA Margins: Calculated as EBITDA divided by total revenue, expressed as a percentage. It indicates the profitability of a company's operations relative to its revenue. A higher margin signifies better efficiency. GW (Gigawatt): A unit of power equal to one billion watts. It is commonly used to measure the capacity of large power plants and grids. Greenfield capacity: Refers to the development of new industrial or commercial projects from the ground up, on undeveloped land. In the context of renewable energy, it means building entirely new power plants or facilities. ESG (Environmental, Social, and Governance): A set of standards for a company's operations that investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company's leadership, executive pay, audits, internal controls, and shareholder rights.