Let's start with a quick reality check. You might have heard about a 74% profit surge and a 38% revenue jump for Adani Green Energy in Q2 FY27. Here's the thing: I couldn't verify those specific numbers in the official filings or market data I accessed.
What the data actually shows is power supply revenue of ₹4,019 crore in Q2 FY27, up 45% from ₹2,776 crore in Q2 FY26. That's impressive growth, just not 38%. On the profit side, the disclosed metric is cash profit of ₹1,951 crore, up 45% year-on-year. The net profit figure for Q2 FY27? It's simply not available in the materials I could retrieve. Investor Presentation +2
This gap likely comes from different revenue bases. Total consolidated revenue includes other income and various line items, while power supply revenue is just that—revenue from selling electricity. My market data feed doesn't even have Q2 FY27 results yet, showing Q1 FY27 consolidated revenue at ₹4,663 crore (up 16.4% YoY) as the latest available. So let's stick to what we can actually verify.
The story here is straightforward: more capacity, more power.
That's not small—it's a 24% increase in operational capacity to 20,763 MW AC. Investor Presentation +2
Breaking it down by segment, solar capacity grew from 11,593 MW in H1 FY26 to 14,550 MW in H1 FY27. Wind rose from 2,142 MW to 2,947 MW, and hybrid projects from 2,945 MW to 3,266 MW. More capacity means more electricity sold, and that's exactly what happened. Energy sales jumped 32% YoY to 25,747 million units in H1 FY27, up from 19,569 million units a year earlier. Investor Presentation +1
But here's where it gets interesting. Q1 FY27 power supply revenue was ₹4,280 crore. Against that, Q2's ₹4,019 crore represents about a 6% sequential decline (my calculation). So the growth story is year-on-year, not quarter-on-quarter. Q2 tends to be seasonally weaker—management has called it a "difficult quarter" due to monsoon conditions. Transcript +1
I couldn't find a specific capacity utilization factor (CUF) for Q2 FY27 in the retrieved materials. Without that number, it's hard to say exactly how much utilization impacted revenue versus the prior quarter. But we do know energy sales grew faster than capacity in H1 (32% versus 24%), suggesting generation efficiency improved even if we can't pin down the exact CUF. Investor Presentation
This is where Adani Green Energy really stands out.
The EBITDA margin? A staggering 92.0%, up from 90.5% a year earlier. Investor Presentation
For context, that's not normal. Most companies would kill for margins in the teens. Adani Green operates in a different league because of its business model—long-term power purchase agreements (PPAs) with relatively fixed costs. Management credits its O&M (operations and maintenance) approach for lowering costs per unit of generation. Investor Presentation
But here's the catch: EBITDA isn't profit. The company has significant debt—net debt stood at ₹1,02,973 crore as of September 2026, up from ₹91,252 crore six months earlier. That debt comes with interest costs, and that's where the volatility shows up. Investor Presentation
Look at the historical net profit trend: Q3 FY26 collapsed to just ₹5 crore (down 99% YoY), while Q1 FY27 hit ₹983 crore. EBITDA margins stayed steady in the 90-94% band throughout, but net profit swung wildly. Why? Interest, depreciation, and other costs below the EBITDA line. I couldn't find Q2 FY27 finance costs or depreciation figures, but the pattern is clear from prior quarters. Annual Report
On the pricing front, the blended PPA rate sits around ₹3.10 per unit. New solar contracts are coming in lower, at about ₹2.60-2.80 per unit, while new wind commands ₹3.70-3.80 per unit. This means newer projects will earn less per unit than older ones—a gradual margin compression over time that's masked for now by the legacy portfolio. Transcript
Merchant power sales add another layer. In Q1 FY27, merchant realization was about ₹2.5 per unit including renewable energy certificates (RECs). REC income sits in "other operating revenue," which jumped to ₹602 crore in FY26 from ₹165 crore in FY25. But this line also includes viability gap funding, change-in-law costs, and carbon credits, so it's not pure REC income. Transcript +1
Then there's curtailment—when grid constraints force renewable generators to produce less than they could. Management estimates curtailment cost about ₹500 crore of EBITDA in FY26, with a potential ₹800-1,000 crore impact at current contracting rates. That's real money left on the table. The silver lining?
This is a capital-intensive business, and Adani Green is spending aggressively. Q1 FY27 capex hit ₹8,800 crore, up 41% YoY. The company targets 5 GW of capacity addition in FY27 (excluding storage), with a long-term goal of 50+ GW by 2030. Transcript +2
Storage is a big part of the story. In Q2 FY27, the company operationalized 3,081 MWh of battery energy storage at Khavda, taking total installed storage to 6,632 MWh. Management targets over 10 GWh this year and has a 500 MW pumped storage project at Chitravathi scheduled for FY27. Estimated BESS costs run about ₹1.5 crore per MWh, with arbitrage expected at ₹4-5 per unit. Investor Presentation +3
All this spending shows up in the debt profile. Net debt rose roughly ₹11,700 crore in six months. The good news? Maturities are well-staggered. Major repayments don't hit until FY29 (₹11,238 crore) and FY30 (₹10,619 crore). The company has a US$3.4 billion revolving construction facility, investment-grade issuances, and tenors up to 20 years. Plus, 100% of foreign-currency debt is hedged. Investor Presentation +3
But leverage is high. Computed net debt to EBITDA hit 8.0x in FY26, up from 5.34x in FY24. Interest coverage is thin at about 1.66x EBITDA to interest. This explains the volatile net profits despite stellar EBITDA margins. Investor Presentation
Here's the thing about building massive infrastructure—returns take time. Return on Capital Employed (ROCE) peaked at 10.93% in FY24 but has since declined to 7.17% in FY26. Why? Assets under construction don't generate earnings until they're commissioned. As all that capacity comes online, run-rate EBITDA is guided to grow from ₹17,000 crore currently to ₹21,000 crore by FY27-end. If that happens, ROCE should improve—but we're not there yet. Investor Presentation +1
Let's put Adani Green in context.
Thermal and integrated utilities like JSW Energy, Adani Power, and Tata Power operate with lower margins (20-55%) but often have different risk profiles. Investor Presentation
What about those headline-grabbing comparisons? Eternal reported a 92% profit surge in Q2 FY27 to ₹125 crore—but that's on a tiny base with net margins around 0.5%. Adani Green's Q1 FY27 net margin was 22.2% (₹983 crore on ₹4,431 crore sales). Different businesses, different scales. Investor Presentation +1
Lakshmi Machine Works? Q2 FY27 results aren't even available yet. In Q1 FY27, LMW reported 23.4% revenue growth and a 384% profit jump to ₹56 crore—but with operating margins around 7.4%. That's capital goods execution, not renewable generation. Investor Presentation
Strip away the unverifiable headlines, and here's what we know: Adani Green Energy is growing capacity aggressively, generating industry-leading EBITDA margins, and positioning itself for a renewable future. But the debt load is substantial, net profit is volatile, and returns on capital are still playing catch-up with all that investment.
The 45% revenue growth and 92% EBITDA margins are real and verified. The 74% profit surge? That's a number I couldn't confirm. In financial storytelling, the difference matters. Investor Presentation +1
