Adani Green Energy
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Adani Green Energy's management has articulated a confident outlook, emphasizing a strategic shift towards fixed-price contracts to mitigate market volatility, which is expected to enhance revenue predictability and support margin expansion. The company's ambitious target of adding 5 GW of renewable capacity annually, alongside significant investments in battery energy storage, positions it well for robust earnings growth. However, challenges such as grid curtailment and elevated leverage present risks that could impact financial performance. Vista's forecast reflects an expectation of accelerating revenue growth and improving margins, supported by the company's strategic initiatives and the favorable industry backdrop. The renewable energy sector in India is experiencing strong demand, driven by government policies and a shift towards sustainable energy solutions, which further underpins Adani Green's growth trajectory. Over the next 12-24 months, key opportunities include the successful execution of capacity expansions and the resolution of transmission bottlenecks, while watchpoints include the management of financial leverage and the pace of infrastructure development
Why We Like This Stock
- Management's transition to fixed-price contracts enhances revenue predictability and reduces exposure to market volatility
- The ambitious 5 GW annual capacity addition target and significant investments in battery storage are expected to drive robust earnings growth
- Favorable industry dynamics and government support for renewable energy bolster the company's long-term growth outlook
Things To Watch Out For
- Grid curtailment and transmission bottlenecks pose near-term operational challenges that could impact revenue growth
- Elevated leverage and weak interest coverage increase financial risk, potentially affecting investor sentiment
- Dependence on timely infrastructure development and land acquisition may hinder the execution of growth plans
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,220 | 11,212 | 12,928 | 14,912 | 19,227 |
| Profit Before Tax (Cr.) | 1,938 | 2,553 | 1,803 | 2,498 | 3,445 |
| PBT Margin | 21.0% | 22.8% | 1394.6% | 16.7% | 17.9% |
| Net Profit (Cr.) | 1,689 | 2,352 | 2,001 | 2,192 | 2,518 |
| Earnings Per Share | 9.3 | 10.9 | 10.1 | 11.1 | 15.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Cantor Fitzgerald | ▲ Overweight | 1,570 | 24-Jul-2026 |
| Emkay Global | ▲ Buy | 1,500 | 28-Apr-2026 |
| ICICI Securities | ► Add | 1,650 | 23-Jul-2026 |
| Investec | ▲ Buy | 1,650 | 03-Aug-2026 |
| JMFinancials | ► Hold | 1,299 | 09-Jun-2026 |
| Jeffries | ▲ Buy | 1,730 | 09-Jun-2026 |
| Macguire | ▲ Outperform | 1,800 | 03-Aug-2026 |
Company Overview
Show Company Profile
Adani Green Energy Limited generates and supplies renewable energy to central and state government entities and government backed corporations in India. The company develops, builds, owns, operates, and maintains power plants through renewable sources, such as solar, wind, and hybrid. It operates solar power plants with an operational capacity of 10,103 megawatts (MW); wind power plants with an operational capacity of 2,140 MW; and hybrid power plants with an operational capacity of 2,140 MW. Adani Green Energy Limited was incorporated in 2015 and is headquartered in Ahmedabad, India.