Adani Group Renewable Energy Stock Outlines Rs 42,000 Crore FY27 CapEx Plan; Targets 5 GW Capacity Addition; Check Details

On Monday, Indian equity benchmark indices ended higher, with the benchmark Nifty 50 index rising 228.50 points, or 0.96 per cent, to 23,995.95. Amid the positive market sentiment, Adani Green Energy (AGEL) share price jumped 0.33 per cent to Rs 1,399.70 after the company reaffirmed its FY27 growth outlook, highlighting aggressive renewable capacity expansion, higher capital expenditure and improving operational performance.

Adani Green Energy Targets 5 GW Capacity Addition in FY27

Adani Green Energy said it remains on track to add 5 GW of greenfield renewable energy capacity during FY27 as part of its long-term growth strategy. Following the commissioning of 1.9 GW of Battery Energy Storage Systems (BESS) during the first quarter, the company aims to achieve a cumulative 10+ GWh battery storage capacity by the end of the financial year.

The company also expects to commission its first 500 MW Pump Storage Project (PSP) at Chitravathi, Andhra Pradesh, during FY27, marking another milestone in strengthening its renewable energy portfolio.

Adani Green Energy Rs 42,000 Crore CapEx and Higher EBITDA Guidance

Management has guided for a capital expenditure of approximately Rs 42,000 crore during FY27 to support renewable generation capacity, battery storage and associated infrastructure.

The company expects the run-rate EBITDA of its operational portfolio to increase to around Rs 21,000 crore by the end of FY27, compared with the current run-rate of Rs 17,000 crore. It also expects the battery storage business to generate an EBITDA of approximately Rs 25 lakh to Rs 30 lakh per MWh, and plans to report BESS performance as a separate business segment to provide greater transparency.
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Focus on Operational Efficiency

Adani Green Energy management said power curtailment currently impacts EBITDA by around 5 per cent to 7 per cent. However, management expects this issue to be largely resolved by the end of calendar year 2026, supported by the planned addition of nearly 7 GW of transmission capacity.

Portfolio De-Risking Strategy

As part of its long-term strategy, Adani Green Energy is transitioning its merchant renewable capacity into long-term Commercial & Industrial (C&I) power contracts with Adani Energy Solutions Limited (AESL). According to the company, these contracts are structured on an arm's-length basis and provide predictable cash flows through 25-year agreements for Solar and wind assets and 15-year agreements for battery storage projects.

About Adani Green Energy

Adani Green Energy Ltd is one of India's largest renewable energy companies, engaged in the development, ownership and operation of utility-scale solar, wind, hybrid renewable energy and battery energy storage projects. The company has one of the country's largest renewable energy portfolios and continues to expand its presence through greenfield developments and strategic investments. Adani Green Energy has delivered strong returns to investors, with the stock rising 74.91 per cent over the past six months.

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Disclaimer: The article is for informational purposes only and not investment advice.