India Ratings Affirms Stable Outlook For Adani Green Energy

India Ratings and Research on Monday affirmed Adani Green Energy Ltd's credit rating at ‘IND AA-' with a 'Stable' outlook and resolved the rating watch with negative implications.

The resolution follows the successful refinancing for Rs 8,900 crore that was due on March 31, 2025, and was executed before the due date, "demonstrating AGEL's ability to raise capital and access to funding channels", the agency said.

"Furthermore, the capacity addition's pace has not been impacted because of the ongoing investigations against the promoters, which gives comfort on AGEL's ability on execution of the large-planned capex. Lastly, a continued drawdown on sanctioned limits has ensured that the projects are on track," India Ratings said.

The agency noted Adani Green's strong execution with a capacity addition of 3.3 gigawatts during fiscal 2025 and an additional 1 GW likely by May 15, resulting in an operating capacity of around 15 GW.

"The rating also considers a healthy diversification among counterparties, with a majority of counterparties belonging to the highest credit quality; portfolio diversification achieved both geographically and in generation sources across wind and solar, and healthy cash upstreaming from the operating SPVs when the restricted covenants are met, thus allowing higher deployable equity for under-construction projects," India Ratings said.

The agency expects the annual capex run rate of Adani Green to be stepped up to Rs 25,000 crore-30,000 crore yearly over fiscal 2026 to 2028 from about Rs 24,800 crore in fiscal 2025, with a capacity addition of around 5 GW each year.

As 75-80% of the capex is likely to be financed through debt, AGEL's ability to ensure a timely debt tie-up for the special purpose vehicles remains a key rating monitorable. The company's cash flow of operations increased to Rs 8,360 crore during fiscal 2025 due to an improvement in the operating income.

Considering the run rate Ebitda, the company's consolidated leverage as per India Ratings is likely to improve sequentially over the medium term to less than five times.

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