Shares of Adani Green Energy rose more than 3% on January 24, following the company’s robust earnings for the December quarter. The stock surged as much as 3.13%, reaching ₹1,062.55 in early trading on the National Stock Exchange (NSE). By 9:23 am, it had moderated slightly, gaining 1.43% to ₹1,044.95 per share. This strong upward movement came after the Gautam Adani-led renewable energy giant posted impressive financial results, with a significant increase in its profit after tax (PAT) and solid revenue growth.
For the three-month period ended December 2024, Adani Green reported an 85.15% surge in its consolidated PAT, which reached ₹474 crore, up from ₹256 crore in the same period last year. This sharp increase was driven by higher revenue from power supply, which rose 12.91% to ₹1,993 crore, compared to ₹1,765 crore during the same quarter in the previous fiscal year. The surge in revenue reflects the company’s growing capacity and operational efficiency, which are key components of its ongoing expansion strategy.
Despite the strong profit and revenue figures, the company reported a slight dip in its earnings before interest, taxes, depreciation, and amortization (EBITDA). The EBITDA for the December quarter stood at ₹1,601 crore, down from ₹1,666 crore in the year-ago period. The EBITDA margin also saw a decline, dropping to 67.7% from 72.1% last year. This decrease is attributed to the rising costs associated with the company’s rapid expansion and the increasing share of renewable energy projects, which often come with higher upfront costs.
One of the key highlights of Adani Green’s performance was the company’s continued growth in operational capacity. The firm expanded its total capacity by 37% year-on-year (YoY), reaching 11,609 megawatts (MW). This included the addition of 2,113 MW of solar capacity and 312 MW of wind capacity in Khavda, Gujarat, as well as 126 MW of wind capacity in Gujarat and 580 MW of solar capacity in Rajasthan. These additions are part of Adani Green’s aggressive expansion plan to scale up its renewable energy capacity and strengthen its position in the global clean energy sector.
CEO Amit Singh emphasized the company’s commitment to developing the world’s largest renewable energy plant in Khavda, Gujarat. This plant is expected to play a pivotal role in supporting India’s renewable energy goals and bolstering Adani Green’s dominance in the industry. In addition to large-scale solar and wind projects, the company has shifted its strategy to include the deployment of Battery Energy Storage Systems (BESS), taking advantage of significant cost declines in recent quarters. BESS is crucial for grid integration, enabling the storage and efficient distribution of renewable energy, and will complement Adani Green’s existing solar, wind, and hydro-pumped storage projects.
The company’s focus on expanding its energy storage capabilities is seen as a strategic move to ensure the reliability and stability of its growing renewable energy portfolio. The deployment of BESS is expected to help address the intermittency challenges associated with renewable energy sources like solar and wind. This aligns with global trends towards enhancing energy storage technologies to support the growing shift towards clean energy.
Adani Green also reported a 23% YoY increase in energy sales, backed by strong operational performance and capacity additions. The company’s ability to ramp up its energy sales while expanding its capacity highlights its efficiency and potential for sustained growth in the renewable energy sector. Investors seem to be responding positively to the company’s strategic plans, as evidenced by the rise in its stock price. As Adani Green continues to scale its operations and deploy advanced energy storage solutions, it is well-positioned to benefit from the global push towards clean energy transition.
