Adani Green share price falls 5% despite strong Q1 results - Should you buy the Adani Group stock? | Stock Market News

Adani Green Energy share price: Shares of Adani Green Energy fell more than 5% on Thursday despite the company reporting a strong set of earnings for the quarter ended June 2026. The stock declined as much as 5.4% to an intraday low of ₹1,392.35 on the BSE after touching a day's high of ₹1,394.

The Adani Group stock has lost 7% in 1 month, however, it rose 16% in 3 months, 82% in 6 months, and 36% in the last 1 year.

The renewable energy company reported a 19% year-on-year increase in consolidated net profit to ₹845 crore in Q1 FY27, compared with ₹713 crore in the corresponding quarter last year. Revenue from operations rose 16% to ₹4,663 crore, while revenue from power supply jumped 29% to ₹4,280 crore from ₹3,312 crore.

Power supply EBITDA grew 33% year-on-year to ₹4,122 crore from ₹3,108 crore. The EBITDA margin improved to 94%, compared with 93% a year ago and 91% in the March quarter.

The company attributed the performance to capacity expansion and strong operating execution. Operational renewable energy capacity increased 27% year-on-year to 20,142 MW as of June 2026, up from 15,816 MW a year earlier and 19,294 MW at the end of March. During the quarter, Adani Green added 848 MW of capacity, taking its year-on-year additions to 4,327 MW.

Energy sales climbed 30% year-on-year to 13,657 million units, supported by new greenfield capacity additions and higher generation.

The company said it continues to face power curtailment, or the intentional restriction of electricity generation due to inadequate transmission infrastructure. Speaking during the post-results analyst call, Chief Executive Officer Ashish Khanna said curtailment reduced EBITDA by around 5%-7% during the quarter.

Khanna, however, expects the situation to improve as new transmission infrastructure becomes operational.

"Gradually, as and when more transmission lines are going to come up, we do foresee these tendencies of curtailment to weed out. And by the end of this calendar year, our expectation is that there should not be any curtailment, at least from Khavda, for all the capacities which we have installed," he said.

Commenting on the quarterly performance, Khanna said the company entered FY27 with strong momentum after crossing the 20 GW operational capacity milestone. He added that as renewable energy penetration increases and electricity demand continues to rise, energy storage will become increasingly important to ensure round-the-clock power reliability and grid stability.

Adani Green also said development of its 30 GW renewable energy project at Khavda, Gujarat, is progressing as planned. Spread across 538 sq km—nearly five times the size of Paris—the project had operational capacity of 10.3 GW at the end of June, up from 5.6 GW a year earlier. The portfolio includes solar, wind and hybrid projects, and the company reiterated that it remains on track to achieve 30 GW of renewable energy capacity at Khavda by 2029.

Over the past year, Adani Green commissioned 3,051 MW of solar capacity, including 2,662 MW at Khavda and 389 MW in Rajasthan. It also added 684 MW of wind capacity and 592 MW of solar-wind hybrid capacity at Khavda.

Despite the robust operational performance, Bernstein maintained its 'Underperform' rating on Adani Green. While describing the company as the strongest player in India's renewable energy sector, the brokerage expressed concerns over its revised commercial and industrial business structure.

Bernstein highlighted that Adani Green has allocated its entire 4 GW operating and planned merchant generation capacity, along with its 10 GWh battery storage capacity expected to come online this year, to Adani Energy Solutions under long-term fixed-tariff agreements.

According to the brokerage, the arrangement enables Adani Green to focus on project execution while preserving its return thresholds, with Adani Energy Solutions responsible for selling electricity to industrial customers, including data centres. However, Bernstein believes a meaningful portion of the future value creation from these assets has shifted to Adani Energy Solutions, reducing the upside potential for Adani Green shareholders.

Meanwhile, JM Financial maintained ADD with a TP of INR 1,549 (INR 1,622 earlier), valuing at 18x EV/EBITDA Sep’28E.

"With an installed base to 20.1GW, management reaffirmed their commitment of adding 4.5–5GW annually. The company also operationalised BESS capacity of 1,972MWh in Khavda, taking the total installed capacity to 3,551MWh. It is targeting 10GWh+ capacity in FY27E. However, the company has contracted merchant and BESS portfolio with AESL for further sales to data centres, C&I and others, sacrificing part of the arbitrage factoring in, which leads to 3–5% decline in earlier EBITDA estimates," it added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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