Adani Green Energy Ltd (AGEL), India's largest renewable energy company, reported a robust 25% year-on-year (YoY) increase in its consolidated net profit for the second quarter of fiscal year 2026. For investors tracking India's green energy space, the strong bottom-line performance was a clear highlight, driven by significant capacity additions and improved operational efficiency, even as the company's total income saw a slight dip.
For the quarter ending 30 September 2025, Adani Green's net profit climbed to Rs. 644 crore, up from Rs. 515 crore in the same period last year. The positive results were well-received by the market, with the company's shares rallying over 11% in the following trading session.
Table of Contents
- Adani Green's Q2 Financials: A Tale of Two Incomes
- What's Powering Adani Green's Growth?
- Operational Efficiency and Future Outlook
- The Investor's Bottom Line: Key Takeaways
- Frequently Asked Questions (FAQs)
The headline numbers reveal a story of impressive profitability driven by operational scale, though overall income faced some headwinds due to non-operational factors.
Key Financial Highlights for Q2 FY26
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The seemingly contradictory figures of a 20% rise in core operational revenue versus a drop in total income can be attributed to factors like changes in other income or adjustments from the previous year. For investors, the key metric is the Revenue from Power Supply, which clearly indicates the health of the core business.
To evaluate how the market reacted to Adani Green’s Q2 FY26 performance, check the latest Adani Green share price, technical charts, and valuation ratios for updated insights.
Adani Green's primary source of revenue is the sale of energy generated from its vast portfolio of solar and wind power plants, secured through long-term Power Purchase Agreements (PPAs). The impressive 20% growth in this core revenue was a direct result of two key factors:
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Massive Capacity Addition: The company's operational capacity surged by 49% YoY to 16.7 GW. This includes the addition of 2.4 GW of new renewable energy capacity in the first half of FY26 alone. This aggressive expansion, particularly at resource-rich sites in Khavda, Gujarat, and Rajasthan, has significantly boosted the company's power generation capabilities.
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Strong Plant Performance: Total energy sales for the quarter jumped by 39% YoY, driven by both the new capacity and the high efficiency of its existing plants. The company has consistently generated electricity exceeding its annual PPA commitments.
Adani Green continues to operate at exceptionally high levels of efficiency. The EBITDA margin of 90.5% from its power supply business, while slightly lower than the previous year, remains at an industry-leading level, showcasing strong cost control.
Looking ahead, the company is firmly on track to meet its ambitious growth targets. CEO Ashish Khanna stated, "Having already added 2.4 GW RE capacity in H1FY26, we're on a firm path to 5 GW capacity addition in FY26 and reaching our targeted capacity of 50 GW by 2030". The development of the 30 GW renewable energy plant at Khavda remains a cornerstone of this long-term strategy.
The Engineer’s Trade has released a detailed video on Adani Green Q2 Results 2026, covering key financials, profit trends, and market reaction — definitely worth watching for investors following the stock.
Adani Green's Q2 results offer several key insights for investors:
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Strong, Predictable Profit Growth: The 25% jump in net profit, driven by the core business of selling power, underscores the company's robust earnings model based on long-term PPAs.
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Execution at Scale: The rapid addition of new capacity demonstrates AGEL's strong project execution capabilities, a key differentiator in the capital-intensive infrastructure space.
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Industry-Leading Margins: The sustained high EBITDA margins reflect a highly efficient operation that translates directly to strong profitability.
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Debt Levels to Monitor: As a capital-intensive business, Adani Green's debt levels are a critical metric to watch. While the company has been successful in securing financing, investors should keep an eye on its debt servicing capabilities.
In conclusion, Adani Green's Q2 performance is a clear indicator of a company in a high-growth phase, successfully executing its ambitious expansion plans. The core business of generating and selling renewable power is strong and growing, leading to healthy profits and cash flows.
Want to understand how Adani Green built momentum before this quarter’s performance? Read the detailed Adani Green Q1 FY26 Results analysis to see how capacity additions earlier in the year fueled sustained profit growth.
1. What was Adani Green Energy's net profit in Q2 FY26?
Adani Green reported a consolidated net profit of Rs. 644 crore, a 25% increase year-on-year. Some reports noted a profit of Rs. 583 crore, but the company's filing confirmed the Rs. 644 crore figure.
2. Why did Adani Green's total income fall while its core revenue grew?
The 20% growth in 'Revenue from Power Supply' reflects the core business health. The dip in 'Total Income' was likely due to non-operational factors like lower other income compared to the previous year.
3. What is driving the company's growth?
Growth is primarily driven by massive capacity expansion (up 49% YoY to 16.7 GW) and strong operational performance of its solar and wind power plants.
4. What is Adani Green's future capacity target?
The company is on track to add 5 GW of capacity in FY26 and aims to reach a total operational capacity of 50 GW by 2030.
5. Is Adani Green Energy a good investment?
For long-term investors looking to participate in India's renewable energy story, AGEL's consistent delivery on capacity targets and profitability makes a compelling case. However, its high valuation and debt levels are factors to consider.