Adani Green is a renewable energy-based company with an operational capacity of 16.7 GW and a capex of Rs 12,400 crore. We’ll understand through this article its business model and revenue sources
Adani Green, which is a holding company of several subsidiaries carrying on the business of renewable power generation within the group, is primarily involved in renewable power generation and other ancillary activities. The details of how the company generates revenue from this activity will be analysed in this article.
With a market cap of Rs 1,72,904 crore, the shares of Adani Green Energy Ltd are trading at a price of Rs 1,060. The shares are trading at a PE of 80, whereas its median PE is 223.
What does Adani Green Energy do?
AGEL’s energy portfolio is built on a smart mix of clean technologies, led mainly by solar power, which contributes 70%, and supported by wind, which is 13%, and hybrid projects with 17% that blend the best of both, supported by incurred capex of Rs. 12,400 Crores in the first half of FY26.
The company is also stepping into pumped-storage hydro (PSP), which basically acts like a huge natural battery. When there’s extra solar or wind power, water is pushed uphill and stored, and when demand rises, that water is released to produce electricity. By adding this storage capability to its solar and wind projects, a company can deliver cleaner power more steadily and reliably, day and night.
Every project that AGEL works on begins long before a single panel or turbine is put in place. The business first determines the ideal sites with plenty of sun or wind, gets the property and grid connection, and then carefully plans the project. When everything is prepared, the company’s internal staff take over the construction
After the plant is up and running, AGEL continuously monitors and fine-tunes performance to keep power generation high and reliable. The clean electricity produced is then supplied to government utilities and businesses through long-term contracts, giving AGEL a steady income while it continues to operate and maintain the project throughout its life or till the contract lasts.
How do they generate revenue out of this?
AGEL earns most of its money by selling clean electricity, and its revenue model is built for stability. The company locks in the majority of its power through long-term, 25-year fixed-tariff PPAs with government utilities, ensuring steady and predictable cash flows. This forms the backbone of its income. The remaining share of power is sold to commercial and industrial customers or through merchant markets, where prices can be more flexible and sometimes higher. Around 81% comes from the PPAs, and the remaining 19% from commercial and industry supply.
As the renewable market evolves, AGEL is also tapping newer models like Contract-for-Difference (CFD) and hybrid contracts to diversify its earnings. Alongside power sales, the company earns a small boost from carbon credit income and payment incentives. Altogether, this mix of fixed, reliable contracts and flexible market-linked opportunities gives AGEL a balanced and sustainable revenue stream.
Financials and Others
The revenue from operations for the company stood at Rs 3,008 crore when compared to Rs 3,005 crore in Q2 FY25, which is the same on a YoY basis. However, the net profit grew by 25 per cent on a YoY basis when you compare the Q2 FY26 profit at Rs 644 crore to Rs 515 crore in Q2 FY25.
The promoters have been increasing their stake quarter on quarter in the company . From 60.93 per cent of the holding in September 2024 to 61.91 per cent and 62.44 per cent in June 2025 and September 2025, which showcases a sense of confidence that the promoters have in the future proceeds of the firm.
Written by Leon Mendonca
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