Synopsis: TotalEnergies’ planned sale of up to 6% stake in Adani Green highlights a major profit surge from its 2021 investment, even as the French energy major continues to back the company’s strong renewable expansion.
This company is a holding company of several subsidiaries carrying business of renewable power generation within the group and is primarily involved in renewable power generation and other ancillary activities is now in the focus after Total Energies are likely to sell stake in the company.
With market capitalization of Rs. 1,68,016 cr, the shares of Adani Green Energy Ltd are currently trading at Rs. 1,021 per share, decreasing more than 1% in today’s market session making a low of Rs. 1,015.70, from its previous close of Rs. 1,029.75 per share.
News
TotalEnergies is said to be willing to unload up to a 6% stake in Adani Green Energy, which could raise close to Rs. 10,200 crore (about $1.14 billion). The stake was bought in January 2021 for around $2.5 billion and is now worth nearly $8 billion, TotalEnergies making a significant profit in this deal.
The sale of the stake is a part of TotalEnergies’ plan to cash its investment and lighten the debt, in the middle of the general plan to reduce the annual capital expenditure by $1 billion from 2027 to 2030. TotalEnergies, through its subsidiaries, holds close to 19% stake in AGEL,15.58% through TotalEnergies Renewables Indian Ocean Ltd and 3.41% through TotalEnergies Solar Wind Indian Ocean Ltd.
Adani Green Energy is the largest renewable energy company in India with an operational capacity of more than 16.6 GW and a target of 50 GW by 2030. TotalEnergies, however, has expressed its intention to support the expansion of the renewable capacity of Adani Green despite the possible stake sale.
After the news, the shares of Adani Green Energy slightly decreased, which shows the ongoing strategic realignment of TotalEnergies. Still, they acknowledge the solid growth of Adani Green Energy in the clean energy sector.
About the company
Adani Green Energy Ltd (AGEL) is one of India’s largest renewable energy companies and a key part of the Adani Group. It develops, builds, owns, and operates solar, wind, and hybrid power projects across the country. With a rapidly expanding portfolio and long-term power purchase agreements, AGEL plays a major role in India’s clean energy transition. The company continues to scale aggressively, backed by strong infrastructure capabilities and a focus on sustainability-driven growth.
The company reported stable revenues with sales rising marginally from Rs. 3,005 crore in Q2FY25 to Rs. 3,008 crore in Q2FY26. EBITDA grew strongly by 17% YoY, increasing from Rs. 2,217 crore to Rs. 2,603 crore. Net profit improved from Rs. 515 crore to Rs. 644 crore, reflecting a 25% YoY increase. EPS also saw a sharp jump of 103% YoY, rising from Rs. 1.74 to Rs. 3.54. ROCE stands at 8.70%, while ROE is 14.6%. The company has posted a strong profit growth of 127% CAGR over the past five years.
Written by Manideep Appana
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
