🧾 Let’s review the quarterly result
⚡ Revenue Jumps on Power Supply Surge.
Adani Green reported consolidated revenue of ₹4,006 crore for Q1 FY26, up 29 percent YoY from ₹3,112 crore in the same quarter last year.
The bulk of revenue came from power supply at ₹3,312 crore, which rose significantly on the back of new capacity additions and higher plant load factors.
Revenue from equipment and services also grew to ₹429 crore compared to ₹224 crore in Q1 FY25, showing a sharp uptick in EPC execution.
💰 Other Income Softens, But Still Significant. Other income stood at ₹206 crore vs ₹318 crore YoY. While it declined, it remains a meaningful contributor, mainly due to internal treasury operations and government-linked incentives.
📉 Expenses Rise, But EBITDA Supports Bottom Line.
Total expenses came in at ₹3,050 crore, higher than ₹2,437 crore YoY. Key cost contributors were:
* Finance cost of ₹1,525 crore (up 7 percent YoY), reflecting debt-backed expansion
* Depreciation and amortization at ₹767 crore vs ₹596 crore last year
* Other expenses at ₹304 crore, which included asset maintenance and site opex
Despite cost inflation, operating leverage helped deliver a strong EBITDA of ₹1,750 crore approximately.
📈 Profit Up 31 Percent YoY.
Profit before tax and share of JV/Associates stood at ₹939 crore vs ₹628 crore last year, reflecting 49 percent growth.
After accounting for taxes and JV profit share, **net profit for the quarter came in at ₹824 crore**, up from ₹629 crore in Q1 FY25 — marking a **31 percent jump**.
Out of this, ₹713 crore is attributable to equity holders, and ₹111 crore to non-controlling interest.
📊 Margins Hold Despite High Finance Cost.
The company continues to manage spreads well even as interest burden remains heavy due to aggressive capex over past 3 years.
Net profit margin for the quarter stood at around 20.5 percent, supported by scale and execution efficiency.
📦 Exceptional Items and Clean-Up
Exceptional items for the quarter were ₹17 crore, related to project restructuring and write-offs. The number is far lower than ₹47 crore in Q1 FY25 and ₹166 crore in Q4 FY25.
📌 Final Word
Adani Green Energy has delivered another high-energy quarter with revenue growth across power supply and EPC streams.
Despite rising finance costs and execution headwinds, profit grew over 30 percent — supported by new operational capacity, strong JV performance, and stable tax outflow.
Cash flow sustainability remains key, but strong equity base and long-term PPAs offer continued visibility.
⚠️ Key Risk Factors to Watch
High leverage and interest exposure:
Despite growth, finance cost remains elevated and the company has a low interest coverage ratio. Any funding stress or rise in rates could impact margins.
Governance and regulatory risk:
U.S. indictment of Adani group executives and allegations of corruption pose reputational and funding access risks, possibly affecting international financing.
Equity dilution risk:
Aggressive capacity expansion requires fresh equity and debt. Frequent capital raises may dilute shareholder value. Weak ROI trends (~13%) may add to concerns.
Market volatility and valuation pressure:
Trading at a high multiple and close to 52-week lows indicates elevated volatility and limited buffer to negative surprises.
📉 Technical Analysis (As of July 28, 2025)
Closing price on NSE: ₹1,003.9 — stock rose nearly 3% on result day
The stock is moving in a trading range between ₹980 and ₹1,045 over the past few months, with support near ₹980 and resistance around ₹1,040.
There was significant volume activity today driven by the Q1 result announcement.
RSI is neutral around mid‑50 range, showing no clear directional bias
📌 Trading View
Near-term traders can look for a break above ₹1,040 with volume as a buy trigger.
Disclaimer :- The investments discussed or recommended in the market analysis, research reports, etc. may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and only after consulting such independent advisors as may be necessary.
