Adani Green Q3: Investec Optimistic On Capacity Growth, Operational Strength

Adani Green Energy Ltd. delivered robust numbers for the third quarter of fiscal 2025, with strong growth in its renewable energy capacity and consistent operational efficiency. According to Investec, the company's ability to expand its capacity while maintaining strong operational performance continues to be a key driver of its success.

Investec has maintained a 'buy' rating on Adani Green Energy, with a target price of Rs 2,515, reflecting a potential upside of approximately 144.2% from the current market price of Rs 1,030.

AGEL posted 85% year-on-year increase in consolidated net profit, which amounted to Rs 474 crore for the quarter. The company also saw a significant drop in interest costs by 24%, helping improve its profit margins. The adjusted PAT (after accounting for minority interest and extraordinary items) surged by 76.5% to approximately Rs 496 crore.

The brokerage firm highlighted AGEL's 32% year-on-year growth in energy sales, which amounted to 5.98 billion units during the third quarter. This surge in energy sales was attributed to the company's ongoing expansion in renewable energy capacity, which increased by 37% year-on-year to 11.6 gigawatts. The growth in capacity was bolstered by AGEL's ability to add 425 MW of new renewable energy capacity during the quarter, a significant jump compared to 162 MW added in the same period last year.

Additionally, during the quarter, AGEL made a significant move by signing a power purchase agreement with Maharashtra State Electricity Distribution Co. to supply 5 GW of solar power for 25 years, a long-term contract that further strengthens its portfolio, Investec noted.

The brokerage emphasised that AGEL's continued capacity addition, strong operational execution, and long-term PPAs position it well for sustained growth in the renewable energy sector.

Disclaimer: NDTV Profit is a subsidiary of AMG Media Networks Limited, an Adani Group Company.