Adani Green Energy Ltd (AGEL) – FY26 Results Deep Analysis

key financial highlights

• Revenue (FY26): ₹13,819 Cr
• YoY Growth: +11.2% (vs ₹12,422 Cr)
  
• PAT (FY26): ₹1,987 Cr
• YoY Growth: Slight decline vs ₹2,001 Cr
  
• EBITDA Proxy Insight
• High depreciation + finance cost structure typical of infra/renewable model

Cash flow analysis

Operating Cash Flow (OCF): ₹10,135 Cr

• Strong and growing
• Indicates stable underlying power generation business

Investing Cash Flow: (₹26,227 Cr)

• Massive capex in:
  • Solar/Wind assets
  • Infrastructure expansion

Financing Cash Flow: ₹15,615 Cr

• Funded via:
  • Debt (major contributor)
  • Equity & instruments

Net Cash Movement

• Net cash decline despite strong OCF
• Reason: Capex >> Operating cash

Conclusion:

AGEL is in a hyper-growth infra phase

balance sheet Analysis

• Total Assets: ₹1,44,097 Cr
• Significant jump (expansion mode)

• Total Debt (approx):
  • Non-current borrowings: ₹87,897 Cr
  • Current borrowings: ₹10,476 Cr
    Total Debt ~ ₹98,000+ Cr

• Equity: ₹29,879 Cr
  • Debt-to-Equity ≈ 3.2x+ → HIGH LEVERAGE

Margin & cost structure

Key Cost Drivers:

• Finance Cost: ₹6,484 Cr
• Depreciation: ₹3,372 Cr
  
• These two alone eat a major portion of profits

Interpretation:

• Cash business strong
• Accounting profits suppressed due to infra nature

Earning quality check

Drivers:

• Cash flows strong (positive sign)
• Profit quality impacted by:
  • High interest burden
  • Depreciation

Interpretation:

• This is typical for renewable companies in expansion stage

key risks

• High Debt Load
  • Rising interest cost risk
  • Refinancing dependency
• Execution Risk
  • Large-scale capex execution
• Regulatory Risk
  • Power tariffs
  • Government policies
• Cash Flow Timing Risk
  • Delays in receivables from DISCOMs

Business Model Understanding

AGEL is:

• Asset-heavy renewable infra company
• Revenue = Long-term PPAs (stable)
• Growth = Continuous capex

Insights:

• High debt
• High depreciation
• Strong OCF but weak free cash flow

Strategic Interpretation

• Focus:
  • Capacity addition
  • Market dominance in renewables
• Not focused on near-term profitability

Final conclusion