Adani Green Energy Ltd, the renewable energy arm of the Adani Group, barely made a profit during the quarter ended 31 December as high sales in the spot market, where prices are subdued, and high interest costs ate into the company’s margins.
The company’s consolidated net profit in the third quarter of fiscal year 2026 (Q3 FY26) tumbled to ₹5 crore from ₹474 crore during the corresponding quarter last year. However, revenue from operations rose over 9% year-on-year to ₹2,618 crore in the same period.
The fall in profit came as a result of high sale of power in the merchant market, where prices are much lower than those accrued through utility power supply.
Out of its total sale of 27.6 billion units of electricity during the nine months ending 31 December 2025, the company sold 12 billion units in the merchant market, as per an investor presentation. Of these 12 billion units, 7 billion units were meant for long term power purchase agreements, but were sold in the spot market, the company said.
The company did not provide this bifurcation for the December quarter.
Revenue for renewable energy through long term power purchase agreements ranges between ₹2-3 per unit, but in the spot market, prices often approach near-zero during solar generation hours, explaining the fall in profit.
During the December quarter, the company also reported a 36% year-on-year increase in interest cost to ₹1,698 crore and nearly doubling of other expenses to ₹328 crore.
Adani Green Energy did not disclose its net debt position as of 31 December 2025. As of 30 September 2025, the company had net debt of ₹76,071 crore.
The firm accounts for one of the largest shares of capital investment in the diversified Adani Group. It is investing not just in developing renewable energy projects, but has also committed significant investments in setting up 5 gigawatts (GW) of pumped hydro storage projects.
The company reported having 17.2GW of operational renewable energy portfolio as of 31 December, the largest in India. It operationalized around 500 megawatts (MW) of capacity during the quarter and has been adding capacity at the compounded annual growth rate of 40% since FY20, the quickest pace in the industry. It is targeting 50GW capacity by FY30.
Over two-thirds of the company’s power capacity is from standalone solar projects, while the rest was from wind or hybrid projects. Adani Green’s flagship renewable energy project near Khavda in Gujarat had 7.7 GW capacity at the end of the quarter. The project aims to be the largest renewable energy installation in the world by 2029 at 30GW capacity.
Shares of Adani Green Energy Ltd fell 14.63% on the BSE to close at ₹772.1 after the US Securities and Exchange Commission moved a federal court to sidestep Indian authorities and serve summons directly to Adani Group chair Gautam Adani and Adani Green executive director Sagar Adani in a 14-month old bribery case involving the company. The earnings were disclosed during market hours.