Adani Green Energy reported strong operating growth for the second quarter of FY27, supported by new renewable energy projects, higher electricity sales and expanding battery storage capacity.

However, the company’s consolidated financial results reveal an important difference between rapid operating growth and more moderate growth in net profit.

For the quarter ended September 30, 2026, consolidated revenue from operations increased approximately 41.6% year-on-year to ₹4,258 crore from ₹3,008 crore.

Total consolidated income, which also includes other income, rose approximately 39% to ₹4,520 crore from ₹3,249 crore.

Consolidated profit attributable to the company’s shareholders increased approximately 15.4% to ₹673 crore, compared with ₹583 crore a year earlier.

The broader consolidated net profit figure, including profit attributable to non-controlling interests, stood at approximately ₹747 crore, against ₹644 crore last year.

These two profit figures should not be used interchangeably when discussing shareholder earnings. The most striking feature of the results is that revenue grew substantially faster than profit attributable to shareholders.

One reason is the company’s increasing depreciation and financing expenses as it commissions more renewable energy infrastructure.

Consolidated finance costs rose to ₹2,119 crore from ₹1,635 crore in the corresponding quarter last year. Depreciation and amortisation expenses also increased to ₹1,084 crore from ₹834 crore.

These expenses are particularly important for Adani Green because renewable energy projects require substantial investment before they begin generating revenue.

Despite these costs, the company’s underlying power generation business delivered strong operational performance.

Revenue from power supply increased 45% year-on-year to ₹4,019 crore from ₹2,776 crore. Power-supply EBITDA increased 51% to ₹3,835 crore, compared with ₹2,543 crore in Q2 FY26.

The company reported a power-supply EBITDA margin of 92%, compared with 90.5% a year earlier. This margin relates specifically to the power-supply business and should not be confused with the consolidated operating margin or net profit margin.

Electricity sales increased 33% year-on-year to 12,090 million units, reflecting the contribution of additional generating capacity.

At the end of September 2026, Adani Green’s operational renewable energy portfolio reached approximately 20.8 gigawatts.

Operational capacity increased 24% compared with the corresponding period last year. The company added approximately 4,083 megawatts of renewable capacity on a year-on-year basis.

This included 2,957 MW of solar capacity, 805 MW of wind capacity and 321 MW of solar-wind hybrid capacity. The Khavda renewable energy development in Gujarat remains central to the company’s expansion strategy.

Operational renewable capacity at Khavda reached approximately 10.8 GW, making the project an increasingly important contributor to electricity generation.

Adani Green continues to target 50 GW of operational renewable energy capacity by 2030. However, achieving this target will depend on project execution, financing availability, equipment supply and transmission infrastructure.

Another significant development during the quarter was the expansion of battery energy storage capacity. Adani Green installed approximately 3,081 megawatt-hours of battery storage capacity at Khavda during Q2 FY27.

This increased cumulative operational battery storage capacity to approximately 6,632 MWh, or 6.63 GWh.

The company described Khavda as the world’s largest single-location battery energy storage installation and said its capacity represented more than half of India’s operational battery storage capacity.

Battery storage can help renewable energy developers supply electricity beyond the hours when solar and wind resources are available. However, storage profitability depends on project costs, operating efficiency, utilisation and commercial agreements.

The first-half financial results also demonstrated strong growth in the core power business. During H1 FY27, revenue from power supply increased 36% to ₹8,299 crore from ₹6,088 crore.

Power-supply EBITDA rose 41% to ₹7,957 crore from ₹5,651 crore, while electricity sales increased 32% to 25,747 million units. Adani Green reported first-half cash profit of ₹4,176 crore, representing growth of 35% year-on-year.

However, the company also incurred capital expenditure of approximately ₹17,160 crore during the first six months of FY27.

Its net debt-to-run-rate EBITDA ratio stood at approximately 5.6 times, highlighting the importance of financing costs and cash generation.

For investors, the key issue is whether newly commissioned projects can generate sufficient additional cash flow to support the company’s expansion commitments.

Transmission availability, interest expenses, project commissioning schedules and battery storage economics will remain important factors to monitor.

Adani Green’s Q2 FY27 results therefore present a mixed but significant picture: strong electricity sales and operating EBITDA growth, alongside more moderate shareholder profit growth and substantial financing requirements.

The next few quarters will help determine whether rising generation capacity and storage deployment can translate into stronger sustainable earnings and improved financial flexibility.