ADANIGREEN - Adani Green Energy Limited Share Price

Management shared an optimistic outlook for Adani Green Energy, highlighting a record fiscal year 2025 with significant operational and financial achievements. The company added 3.3 gigawatts of capacity, the highest by any renewable energy firm in India, contributing to 16% of India's utility-scale solar and 14% of wind power installations.

Looking forward, the management is on track to develop the world's largest renewable energy plant at Khavda in Gujarat, with a target of reaching 30 gigawatts by 2029. They have operationalized over 4 gigawatts from Khavda and aim to add an additional 5 gigawatts in the current fiscal year. Notably, the solar Capacity Utilization Factor (CUF) at Khavda recently exceeded 32%.

Financially, FY '25 marked an EBITDA exceeding $1 billion, an increase of 22% year-on-year, with energy sales growing by 28% to 28 billion units. The revenue from power supply rose 23% to INR 9,495 crores. The company has successfully refined its long-term debt facility of $1.06 billion, ensuring alignment with cash flow lifecycles and maintaining strict credit discipline.

Furthermore, Adani Green's commitment towards environmental goals is evident as they achieved water-positive operations a year ahead of schedule and sustained top ranks in global ESG assessments. The management emphasized a strategic capital framework aimed at achieving 50 gigawatts by 2030, reinforcing their leadership in the renewable sector.

1. Question: "What are the key constraints you think you'll have to overcome to achieve the target of 30 gigawatts by 2029?"

   Answer: "I believe our past achievements, especially the 4 gigawatts we currently have, instill confidence. A robust infrastructure is already in place for our employees and labor in Khavda, making us the preferred developer in the area. Additionally, environmental factors and management practices are lessons we've learned. We're confident these will aid our journey to reach 30 gigawatts by 2029."

2. Question: "What is the solar CUF experienced in Khavda on a full-year basis?"

   Answer: "The Capacity Utilization Factor (CUF) depends heavily on solar irradiation. In Q4, we reported 32.4%, and we expect similar performances annually, albeit with seasonal variations. We're experiencing robust numbers currently and anticipate this trend to continue, especially following the stabilization of last year's capacities."

3. Question: "What is the status of your contracted PPAs and capacities in the pipeline?"

   Answer: "We have 33 gigawatts of projects, with approximately 30 gigawatts contracted and 3 gigawatts as merchant capacity. Future power generation will include merchant and storage components. Currently, around 14% of our operational capacity is merchant-based, with more expected as we target our 50-gigawatt goal by 2030."

4. Question: "What were the challenges faced in achieving the 5 gigawatts target for FY25?"

   Answer: "Environmental conditions affected our performance, notably rain and soil issues. We've addressed these challenges and learned crucial lessons. Our new preparedness allows us to be confident that we'll achieve a significant increase in capacity this year as we apply these insights."

5. Question: "What are the upcoming timelines for your Maharashtra project?"

   Answer: "The timeline includes an initial 2 gigawatts followed by an additional 1 gigawatt every six months, with execution aligned to our PPA plan dynamics. We intend to adhere strictly to these timelines."

6. Question: "How do you view the imminent end of the ISTS waiver and its potential impact?"

   Answer: "We are closely monitoring this situation; while we aim to align with government policies, we will adapt our strategy as needed in accordance with any developments surrounding the ISTS waiver."