Synopsis: Adani Green reported a strong Q1 FY27 with double-digit growth in revenue and profit, backed by higher renewable capacity and power generation, but the stock fell amid valuation and leverage concerns.
The shares of this large cap company majorly engaged in business of renewable power generation and other ancillary activities majorly active across solar, wind, hybrid power plants were in focus after the company announced Q1 FY27 result.
With the market capitalization of Rs. 2,24,486 Crores, the shares of Adani Green Energy Ltd were trading at around Rs. 1478 per share which is 10 percent discount from its 52 week high of Rs. 1632 per share. It is trading at a P/E of 160 and delivered an ROCE of 7.39 percent
YoY Performance (Q1 FY27 vs Q1 FY26)
Adani Green Energy posted a strong year-on-year performance in Q1 FY27. Revenue from Power Supply grew by 29.2 percent to Rs. 4,280 crore from Rs. 3,312 crore, while Total Income rose 16.4 percent to Rs. 4,663 crore from Rs. 4,006 crore. Profit before share of profit from Associate and Joint Venture, Exceptional Items, and Tax expanded 24.5 percent to Rs. 1,190 crore from Rs. 956 crore, and Profit before Tax increased 26.5 percent to Rs. 1,188 crore from Rs. 939 crore.
Profit for the period climbed 19.3 percent to Rs. 983 crore from Rs. 824 crore, while Net Income attributable to equity holders of the parent rose 18.5 percent to Rs. 845 crore from Rs. 713 crore. On the expense side, Finance Costs increased 31.2 percent to Rs. 2,001 crore from Rs. 1,525 crore, and Depreciation and Amortisation expenses grew 33.8 percent to Rs. 1,026 crore from Rs. 767 crore.
QoQ Performance (Q1 FY27 vs Q4 FY26)
On a sequential basis, Adani Green demonstrated solid operational improvement. Revenue from Power Supply surged 38.3 percent to Rs. 4,280 crore from Rs. 3,094 crore in Q4 FY26, while Total Income grew 25.1 percent to Rs. 4,663 crore from Rs. 3,727 crore. Profit before share of profit from Associate and Joint Venture, Exceptional Items, and Tax nearly doubled, rising 99.7 percent to Rs. 1,190 crore from Rs. 596 crore.
Profit before Tax jumped 143.4 percent to Rs. 1,188 crore from Rs. 488 crore, and Profit for the period surged 91.2 percent to Rs. 983 crore from Rs. 514 crore. Notably, Net Income attributable to equity holders of the parent saw a dramatic 112.8 percent increase to Rs. 845 crore from Rs. 397 crore. Finance Costs increased 23.1 percent QoQ to Rs. 2,001 crore from Rs. 1,626 crore, while Depreciation and Amortisation expenses rose 15.9 percent to Rs. 1,026 crore from Rs. 885 crore.
P/E Trend
Adani Green’s valuation has remained elevated over the past three years despite fluctuations. The stock traded at a P/E of 216.8x in March 2024, which moderated to 120x in March 2025 before expanding again to 160x in March 2026. The consistently high valuation reflects strong investor expectations for the company’s long-term renewable energy growth and execution.
Borrowings Trend
The company’s borrowings have increased steadily as it continues to fund its aggressive expansion plans. Total borrowings rose from Rs. 64,858 crore in March 2024 to Rs. 80,040 crore in March 2025, and further increased to Rs. 1,03,545 crore in March 2026. The rising debt underscores the capital-intensive nature of Adani Green’s business as it invests in expanding its renewable energy portfolio.
Conclusion
Adani Green Energy demonstrated robust financial growth in Q1 FY27, driven by strong top-line revenue expansion from its core power supply operations. The company achieved substantial earnings growth on both a year-on-year and sequential basis, significantly boosting net profitability for shareholders.
However, this growth was accompanied by higher capital costs, as finance charges and depreciation expenses continued to escalate. Overall, strong operational performance successfully offset these rising operational expenses to deliver a profitable quarter.
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