Adani Green Q3 profit trips 99% on higher sales in spot market, interest cost

Adani Green Energy Ltd, the renewable energy arm of the Adani Group, barely made a profit in the quarter ended December 31 as high sales in the spot market, where prices are low, and high interest costs hurt the company’s margins.

The company’s consolidated net profit in the third quarter of fiscal 2026 (Q3 of 2026) ₹5 crore ₹474 crore in the corresponding quarter last year. However, revenue from operations increased by more than 9% on an annual basis. ₹2,618 crore in the same period.

The decline in profits came as a result of higher sales of electricity on the commercial market, where prices were much lower than those charged through grid power supply.

According to its investor presentation, the company sold 12 billion units of electricity in the commercial market out of a total of 27.6 billion units in the nine months ending December 31, 2025. Of these 12 billion units, 7 billion units were intended for long-term power purchase agreements but were sold on the spot market, the company said.

The company did not provide this bifurcation for the December quarter.

Revenue from renewable energy through long-term power purchase agreements, ₹2-3 per unit, but on the spot market prices often approach zero during solar production hours, which explains the drop in profits.

In the December quarter, the company also reported a 36% year-on-year increase in interest cost. ₹1,698 crore and almost doubling of other expenses ₹328 crore.

Adani Green Energy did not disclose its net debt position as of December 31, 2025. Net debt of the company as of September 30, 2025 ₹76,071 crore.

The firm has one of the largest equity investment stakes in the diversified Adani Group. It not only invests in the development of renewable energy projects, but also makes significant investments in the installation of 5 gigawatts (GW) pumped hydro storage projects.

The company said it had an operational renewable energy portfolio of 17.2 GW, the largest in India, as of December 31. It operationalized nearly 500 megawatts (MW) of capacity during the quarter and is adding capacity at a compound annual growth rate of 40% since FY20, the fastest pace in the industry. It targets 50 GW capacity by FY30.

More than two-thirds of the company’s energy capacity comes from standalone solar projects, with the remainder coming from wind or hybrid projects. Adani Green’s flagship renewable energy project near Khavda in Gujarat had a capacity of 7.7 GW at the end of the quarter. The project is aimed to be the world’s largest renewable energy facility with a capacity of 30GW by 2029.

Shares of Adani Green Energy Ltd closed down 14.63% on BSE ₹772.1, after the US Securities and Exchange Commission filed a petition in federal court to evade Indian authorities and directly issue subpoenas to Adani Group chairman Gautam Adani and Adani Green executive director Sagar Adani is in a 14-month-old bribery case involving the company. Earnings were announced during market hours.