Adani Green Energy’s net debt rose 35% year-on-year to ₹1,02,973 crore at the end of September 2026, as the renewable energy company continued investing in new generation capacity and battery storage. The company’s net debt stood at ₹91,252 crore at the end of March 2026, while gross debt increased to ₹1,14,848 crore in September. The figures highlight the capital required to build large renewable energy projects and the importance of converting construction investments into operating cash flows.
Despite the increase in borrowings, Adani Green reported strong operational growth in the first half of financial year 2027. Revenue from power supply increased 36% year-on-year to ₹8,299 crore, while EBITDA from power supply grew 41% to ₹7,957 crore. Management says fixed-rate project loans and long-term power purchase agreements help protect the business from interest-rate fluctuations. However, the company’s debt burden, construction pipeline and transmission infrastructure delays remain important factors for investors to monitor.
Key Takeaways
- Net debt: Rose 35% year-on-year to ₹1,02,973 crore as of September 2026.
- Gross debt: Reached ₹1,14,848 crore, compared with ₹1,00,164 crore in March 2026.
- Revenue growth: First-half revenue from power supply increased 36% to ₹8,299 crore.
- Operating performance: First-half EBITDA from power supply climbed 41% to ₹7,957 crore.
- Capital expenditure: The company invested approximately ₹17,160 crore during H1 FY2027, up 38% year-on-year.
- Interest-rate protection: Management said approximately 72% of project loans carry fixed interest rates.
- Expansion target: Adani Green aims to increase operational renewable energy capacity toward 50 GW by 2030.
How Much Has Adani Green’s Debt Increased?
Adani Green’s latest financial figures show that its borrowing has increased alongside its renewable energy expansion programme. Net debt reached ₹1,02,973 crore on September 30, 2026, compared with ₹76,071 crore in the corresponding period of the previous financial year.
The company’s net debt also increased from ₹91,252 crore in March 2026. This represents an increase of approximately 13% over six months, reflecting additional funding requirements as projects progress through construction.
| Debt metric | March 2026 | September 2026 |
|---|---|---|
| Gross debt | ₹1,00,164 crore | ₹1,14,848 crore |
| Net debt | ₹91,252 crore | ₹1,02,973 crore |
| Net debt-to-run-rate EBITDA | 5.6x | 5.6x |
Source: Adani Green Energy’s H1 FY2027 investor presentation, as reported by Investing.com.
Gross debt represents borrowings before deducting cash and relevant cash balances, while net debt accounts for those deductions. The two measures therefore provide different perspectives on the company’s financial obligations.
The net debt-to-run-rate EBITDA ratio remained at 5.6 times. Although the ratio was unchanged from March, it remains a key indicator of leverage because it compares borrowing with the operating earnings used to assess the business’s capacity to service debt.
Why Is Adani Green Borrowing More?
The increase in debt is closely connected to Adani Green’s capital expenditure programme. Renewable energy projects require substantial upfront investment in solar panels, wind turbines, transmission connections, land development and battery storage before they generate their full operating cash flows.
Adani Green invested approximately ₹17,160 crore in capital expenditure during the first half of FY2027, a 38% increase compared with the previous year. The company also added 4,083 MW of renewable energy capacity on a year-on-year basis, helping its operational portfolio reach approximately 20.8 GW.
Battery storage is another significant investment area. During the September quarter, the company added 3,081 MWh of battery energy storage capacity at Khavda in Gujarat. Its total installed battery storage capacity reached approximately 6,632 MWh.
These investments are intended to expand electricity generation and improve the ability to manage renewable power supply. However, they also require financing before all the associated assets begin generating revenue.
The central financial challenge is timing: debt and construction costs can increase immediately, while the cash flows from new projects build up over time.
Strong Revenue Growth Provides Support
Higher debt does not automatically mean a company’s financial position is deteriorating. Investors also need to examine whether revenue, operating earnings and cash generation are growing alongside borrowings.
Adani Green reported strong growth across several operating measures during H1 FY2027.
| Financial metric | H1 FY2026 | H1 FY2027 | Year-on-year change |
|---|---|---|---|
| Revenue from power supply | ₹6,088 crore | ₹8,299 crore | +36% |
| EBITDA from power supply | ₹5,651 crore | ₹7,957 crore | +41% |
| Cash profit | ₹3,094 crore | ₹4,176 crore | +35% |
| Energy sales | 19,569 million units | 25,747 million units | +32% |
| Operational capacity | — | 20.8 GW | +24% |
Source: Adani Green Energy’s official H1 FY2027 results.
The figures indicate that the company is generating more revenue and operating earnings as additional capacity becomes available. Its EBITDA margin from power supply reached 92.9% for the first half, reflecting the operating characteristics of its renewable energy portfolio.
However, EBITDA is not the same as cash available to repay debt. Interest payments, taxes, capital expenditure and other financial commitments also affect the cash left over for debt servicing. Consequently, sustained revenue growth must eventually translate into sufficient cash generation to support the balance sheet.
How Adani Green Is Managing Interest-Rate Risk
One concern with a highly leveraged infrastructure business is that rising interest rates can increase financing costs. Adani Green says much of its project borrowing is structured to reduce this exposure.
During its October 2026 earnings call, company management said approximately 72% of project loans carried fixed interest rates for periods of around three to five years. These loans are therefore less immediately sensitive to changes in market interest rates.
The company also relies on long-term power purchase agreements, many structured around fixed tariffs. Such agreements can provide revenue visibility over the life of a project, although actual cash generation can still be affected by operating performance, grid access and contractual conditions.
Adani Green reported that its average interest cost declined to 8.9% in September 2026 from 11.1% in 2019. Management also explained that project credit ratings can improve once construction is completed and assets become operational, potentially allowing refinancing at lower rates.
These measures can help contain borrowing costs, but they do not eliminate financial risk. Fixed-rate loans still require repayment, and the company must continue generating sufficient cash to meet interest and principal obligations.
Transmission Delays Remain a Risk
Renewable energy projects depend not only on generation equipment but also on transmission infrastructure capable of carrying electricity to the grid. Delays in transmission lines or restrictions on grid availability can prevent completed generation assets from operating at their full potential.
BusinessLine reported that transmission delays and curtailment affected Adani Green’s potential EBITDA during the first half of FY2027. The company has also said that it is monitoring transmission infrastructure availability as it expands its solar, wind and storage portfolio.
This issue matters financially because debt associated with a project may already be outstanding even if the project cannot deliver all its expected electricity. If operating cash flows arrive later than planned, leverage can remain elevated for longer.
Battery storage may help manage some fluctuations in renewable electricity supply, but it is not a complete substitute for adequate transmission capacity. Investors will therefore need to watch whether infrastructure delays ease and whether new assets contribute to earnings on schedule.
What Does the Debt Increase Mean for Investors?
Adani Green’s latest results present two sides of the same expansion strategy. On one side, the company is adding renewable capacity, growing energy sales and increasing operating earnings. On the other, the pace of investment requires substantial borrowing and leaves the company with a significant debt burden.
The unchanged net debt-to-run-rate EBITDA ratio of 5.6 times offers some context, but it should not be interpreted as proof that leverage is low or that future debt growth will be harmless. The ratio depends on both debt and operating earnings, and its direction will matter as more projects become operational.
Investors should focus on several indicators in upcoming results:
- Whether net debt growth slows as new projects begin operating.
- Whether operating cash flow improves relative to capital expenditure.
- Whether interest costs remain manageable.
- Whether transmission delays and power curtailment decline.
- Whether the company progresses toward its renewable capacity targets without a disproportionate increase in leverage.
These indicators provide a more complete picture than the headline debt figure alone.
The Bigger Picture
Adani Green’s rising debt reflects a broader feature of renewable energy development: companies must finance large infrastructure investments well before receiving the full economic benefits. The transition to cleaner electricity requires capital for generation, storage and grid infrastructure, and financing structures play a major role in determining how quickly projects can be built.
The company’s operating growth is encouraging, but the sustainability of its expansion depends on execution and financial discipline. Strong revenue and EBITDA growth need to be accompanied by predictable project commissioning, reliable grid access and adequate cash generation. The balance between investment and deleveraging will be central to assessing Adani Green’s financial trajectory.
FAQs
1. What is Adani Green’s total debt in September 2026?
Adani Green Energy reported net debt of ₹1,02,973 crore and gross debt of ₹1,14,848 crore as of September 30, 2026.
2. Why did Adani Green’s debt increase by 35%?
The year-on-year increase reflects the financing required for renewable energy capacity expansion and battery storage investments. The company spent approximately ₹17,160 crore on capital expenditure during the first half of FY2027.
3. Is Adani Green’s revenue growing despite higher debt?
Yes. Revenue from power supply rose 36% year-on-year to ₹8,299 crore in H1 FY2027, while EBITDA from power supply increased 41% to ₹7,957 crore.
4. How is Adani Green reducing its interest-rate risk?
Management said approximately 72% of its project loans carry fixed interest rates for three to five years. Long-term power purchase agreements also provide revenue visibility, although they do not eliminate all operating and financial risks.
5. What should investors watch next?
Investors should monitor net debt, cash generation, capital expenditure, interest costs, transmission infrastructure progress and the rate at which new projects become operational. These factors will help show whether earnings growth can support the company’s borrowing requirements.
Looking Ahead
Adani Green is expected to continue investing in renewable energy generation and battery storage as it works toward its 50 GW operational capacity target by 2030. The key question is whether the company can bring projects online on schedule, maintain operating growth and generate enough cash to support its debt obligations. Transmission availability and the timing of project commissioning will remain important variables.
For investors, the next phase will be about more than adding capacity. The company will need to demonstrate that expansion can translate into durable cash flows and gradually improve its leverage profile. If operating assets grow faster than the construction pipeline and debt stabilizes, the balance sheet could strengthen over time; if costs or delays persist, financial flexibility may remain under pressure.
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