Adani Green Energy reported a 15% year-on-year (YoY) growth in its consolidated net profit at Rs 673 crore in the second quarter of FY27 and its revenue from operations grew 39% YoY to Rs 4,520 crore.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 46% YoY in the September quarter, supported by 33% growth in power generation.
Jefferies has maintained its ‘Buy' rating on Adani Green Energy shares with a target price of Rs 1,695, citing strong capacity additions, improving utilisation levels and the company's long-term renewable energy growth prospects. Adani Green share price target implies an upside potential of nearly 36% from Thursday's closing price.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The brokerage believes robust power demand and execution at the Khavda renewable energy project could help offset concerns over rising interest costs.
The company added 620 megawatts of capacity during the quarter and 1.5 gigawatts in the first half of FY27, taking its total installed capacity to 20.8 GW, up 24% year-on-year. Management maintained its FY27 capacity addition guidance of 4.5-5 GW and its target of reaching 50 GW of installed capacity by 2030.
ALSO READ: Swiggy Q2 Review: Motilal Oswal Cuts Target Price But Sees 32% Upside; Here's Why
Jefferies highlighted Adani Green's growing battery energy storage systems (BESS) portfolio, which has expanded to 6.6 gigawatt-hours from 1.6 GWh at the end of FY26. The company aims to scale up its BESS capacity to more than 10 GWh by the end of FY27, potentially supporting better realisations.
The brokerage also sees significant growth potential from Khavda in Gujarat, where Adani Green is developing 30 GW of renewable energy capacity as part of its 50 GW target. The project is expected to contribute more than 65% of incremental capacity additions through FY30.
On the balance sheet, Jefferies expects net debt-to-EBITDA to improve to 7.1 times by FY30 from 8.9 times in FY26, assuming installed capacity reaches 44 GW. Long-term power purchase agreements provide cash flow visibility, while staggered debt resets and better post-commissioning borrowing rates could limit the impact of higher interest costs.
Jefferies forecasts a 30% EBITDA compound annual growth rate over FY26-30 and maintains its Rs 1,695 price target, valuing the company at 20 times September 2028 estimated EV/EBITDA.
ALSO READ: Stocks To Buy Or Sell: Nagaraj Shetti Of HDFC Securities Picks These Two Shares For Short-Term
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
