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Informist, Friday, Jan. 23, 2026

By Prateem Rohanekar and Sunil Raghu

MUMBAI – Adani Green Energy Ltd. has identified electricity evacuation constraints and low wind speeds during the December quarter as having affected its operational performance, resulting in the company reporting its first-ever loss in 24 quarters.
 

The Adani Group's renewable energy company reported a consolidated net loss of INR 410 million for the December quarter, against a net profit of INR 4.92 billion a year ago and a net profit of INR 5.83 billion for the trailing quarter. The company's consolidated revenue for the quarter was INR 26.18 billion, up around 12% on year but down 13% on quarter.

The management told analysts in a post-earnings conference call that the wind speed, particularly in regions like Khavda in Kutch district of Gujarat, was the sole reason for the lower plant-load factor at Khavda. Of the company's total capacity of 17.2 gigawatts, 7.7 gigawatts is installed in Khavda.

The management said profitability was also affected by the lack of evacuation infrastructure, a short-term risk that the company is trying to mitigate using battery storage of electricity. "...evacuation is a challenge on a short-term basis," a top official said. "We are timing it so that we install our solar projects in line with what is coming on a long-term basis. However, to mitigate the risk on a short-term basis, battery storage will come in very handy." The company said battery storage solutions and capacity addition would aid its pricing which has been affected by power evacuation constraints.

The third reason for lower profits in the December quarter was a fall in merchant power or spot electricity prices. The company's solar merchant power price in Oct-Dec was INR 2.30/unit, down over 18% from INR 2.82/unit in the trailing quarter. The wind merchant power price in the December quarter was INR 3.5/unit, down nearly 16% from INR 4.15/unit in the September quarter.

The company said it would expand generation capacity to 50 gigawatts in the financial year 2029-30 (Apr-Mar). The renewable energy company said it expects to incur a capital expenditure of INR 350 billion to INR 400 billion in FY27 towards the capacity expansion. "Now, since we are expanding in areas like Khavda and Rajasthan, which have a larger capacity, especially in Rajasthan, maybe we are going (to have) 30 gigawatts at a single location. These costs, on an overall basis, are also going to reduce as and when we keep on growing our capacities in Khavda," the top official said.

The company remained neutral on high silver prices, saying the impact was only for the short term. "In a module, my understanding is that (the impact of silver prices on cost) is between 15-22%," the official said. "On an overall basis, it's not going to make or break... But yes, these recent increases do otherwise impact on a short-term basis."

Friday, the company's shares closed at INR 772.80, down 14.5%, on the National Stock Exchange. The stock prices of Adani Group companies tumbled after Reuters reported that the US Securities and Exchange Commission has sought permission from a US court to issue a legal summons to Chairman Gautam Adani and his nephew Sagar Adani in connection with an alleged fraud and bribery case.  End

Edited by Rajeev Pai

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