Adani Green Energy Ltd (ADANIGREEN) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator: Ladies and gentlemen, good day and welcome to Adani Green Energy Limited Q2 FY27 earnings conference call hosted by Emkay Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr. Sabri Hazarika from Emkay Global Financial Services Limited. Thank you and over to you, sir.
Sabri Hazarika (Emkay Global Financial Services Limited): Good morning everyone and on behalf of Emkay Global, I welcome you all to the Q2 FY27 post earnings conference call of Adani Green Energy Limited. We have with us the top management from the company led by Mr. Ashish Khanna, CEO, Adani Green, Mr. Rajat Saksaria, CEO, BESS, Saurabh Shah, CFO and Virgil Jain, Head Investor Relations. So, today's session would be opening remarks and update on the performance by the management followed by the question and answer round. Now, without any further delay, I would request Mr. Khanna for the opening remarks. Over to you, sir.
Ashish Khanna (Adani Green Energy Ltd): Thank you, Sabri. Good morning everyone and thanks for joining
Ashish Khanna (Adani Green Energy Ltd): call on our Q2 FY '27 results. As we know, India's energy transition is gaining unprecedented momentum, as the country rapidly scales renewable energy and electrification to strengthen energy security and advance its decarbonization and sustainability goals. With about 308 GW of installed non-fossil fuel capacity, representing more than 54% of total installed power capacity, the country is progressing rapidly towards the 500 GW target by 2030. India's peak electricity demand continues to reach new highs, reflecting rising consumption driven by industrial growth, electric mobility, data centers and the broader electrification of the economy. Against this backdrop, Adani Green Energy delivered another strong performance in H1 FY '27, crossing the significant milestone of 20 GW of operational capacity. Our 20.8 GW portfolio supplied clean power equivalent to the needs of more than 4.4 million homes while helping avoid 17.5 million tons of CO2 emissions during the period. Our operating and financial performance remained robust. Energy sales increased 32% year-on-year to 25.7 billion units in H1, supported by a 24% increase in greenfield capacity addition on YoY basis. Revenue from power supply in H1 FY '27 increased 36% year-on-year to INR 8,299 crore, while EBITDA grew 41% YoY to INR 7,957 crore, enabling us to deliver industry-leading EBITDA margin of 93%. The total EBITDA during H1 FY '27 was INR 8,276 crore. If curtailment would not have been there, this EBITDA would have been close to INR 9,000 crores. The performance during quarter two was equally strong, with revenue from power supply increasing 45% year-on-year to INR 4,019 crore, while EBITDA from power supply ending 51% higher YoY to INR 3,835 crore, resulting in strong EBITDA margin of 92% during the quarter. Energy storage is becoming the next major pillar of our growth. During the quarter, we commissioned 3 GWh of battery energy storage at Khavda, taking our total installed storage capacity to 6.6 GWh. This capacity accounts for more than 50% of India's operational BESS. We remain firmly on track to exceed 10 GWh during the year. While our maiden 500 MW pumped storage project at Chitravathi is also progressing towards its completion by year-end. At Khavda, the world's largest renewable energy plant, we have commissioned 10.8 GW of solar, wind and hybrid capacity. Our focus on technology, digitization, and advanced analytics continues to support high asset availability and strong operating performance across the portfolio. Looking ahead, we see significant opportunities emerging from growing needs for firm and dispatchable renewable energy, rising power demand from AI, data centers and hyperscalers, alongside growing demand for integrated renewables plus storage solutions from commercial as well as industrial customers. Our investment in BESS is also helping mitigate curtailment challenges at Khavda by providing greater flexibility in managing renewable energy generation and enabling the utilization of power that would have been otherwise wasted. We will continue to closely monitor the developments on transmission infrastructure availability at Khavda, and at the same time, we have significantly accelerated the development of BESS to insulate ourselves from delays, if any, on transmission network. We remain focused on disciplined execution of our INR 2.4 lakh crore CapEx program to
Ashish Khanna (Adani Green Energy Ltd): by 30 backed by securing new capacities under long-term contracts and prudent capital allocation. We remain committed to maintaining 13% to 14% ROE threshold by tying up capacities with AA+ counterparties. At AGEL, we remain neutral from counterparty standpoint and will pursue opportunities that deliver high returns while offering long-term contractual visibility and desired credit quality. On sustainability, AGEL retained its number one global ranking in alternative electricity sub-sector by FTSE Russell for the second consecutive year. Our Khavda best project was also recognized as the largest project of the year at India Energy Storage Week 2026. Additionally, our Chitravathi, Gandikota, and Tarali pump storage projects received the best Construction Safety Excellence Award at the IBC Safe India Conclave and Awards. As India's power requirements grow, our strategy is clear, combine renewable energy at scale with storage, technology, and disciplined execution to deliver most reliable clean power. Thank you.
Sabri Hazarika (Emkay Global Financial Services Limited): Sir, shall we open the floor for Q&A now?
Ashish Khanna (Adani Green Energy Ltd): Please do.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar (ICICI Securities): Yeah. Good morning, sir, and congratulations for a very good set of results. My first question is can you just talk about the transmission asset commissioning, especially in Khavda region? Have you seen any acceleration from the Power Grid side or the other players to accelerate this commissioning so that there will be lesser and lesser, you know, the the curtailment as you go forward, yeah?
Ashish Khanna (Adani Green Energy Ltd): I think, so, thanks Mohit for your question. I think we don't have any doubt about the credibilities and the capabilities of, whether it is AESL or Power Grid, on execution of these transmission lines. And we are monitoring it very closely too. I think there are certain things which are not helping them with respect to ROW issues on which they are working very closely. And both the state and central government has a lot of focus towards it. From our side, while it is out of our control, but we closely and very closely monitor it and are aware of all the efforts which they are taking.
Mohit Kumar (ICICI Securities): So, understood. I'll take it offline, maybe. The second question is, what is your target for commissioning this fiscal, and how much of this capacity will be is tied up under C&I?
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