Adani Green Energy Limited (NSE: ADANIGREEN) Q4 2025 Earnings Call dated Apr. 29, 2025
Corporate Participants:
Pritha Majumdar — Managing Director, Leverage and Acquisition Finance
Viral Raval — Head, Investor Relations
Ashish Khanna — Chief Executive Officer
Saurabh Shah — Chief Financial Officer
Raj Kumar Jain — Head, Business Development
Analysts:
Love Sharma — Analyst
Michael Stansfield — Analyst
Eric Liu — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Adani Green Energy Limited’s FY ’25 Fixed Income Earnings Conference Call. [Operator Instructions] And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions]
I now hand the conference over to Ms. Pritha Majumdar, Managing Director from the Leverage and Acquisition Finance Team from Standard Chartered Bank. Thank you. And over to you, ma’am.
Pritha Majumdar — Managing Director, Leverage and Acquisition Finance
Thanks, Michelle. Good afternoon, everyone. This is Pritha Majumdar from Standard Chartered Bank.
On behalf of Adani Green Energy Limited, we are very pleased to welcome you all to the FY ’25 earnings call. From the company on the call today, we have with us Mr. Ashish Khanna, CEO; Mr. Saurabh Shah, CFO; Mr. Anupam Misra, Head, Group Corporate Finance; Mr. Raj Kumar Jain, Head, Business Development; and Mr. Viral Raval, Head, Investor Relations.
With that very quick round of introductions, I would like to hand this over to Viral to take this forward. Viral, over to you. Thank you.
Viral Raval — Head, Investor Relations
Thank you, Pritha. A warm welcome to all the participants in this call.
Adani Green Energy has continued its strength of delivering good operational and financial performance. We hope you would have had the opportunity to go through the earnings presentation we have uploaded on our website.
Let me take a brief moment to introduce Mr. Ashish Khanna who has now taken the charge as the CEO of Adani Green from 1st April of this year. Mr. Khanna is an industry veteran and a campaigner for green growth. Prior to joining us, he was at the forefront of leading the renewable business of Tata Power as CEO of Tata Power Renewable Energy. His 36 years of career span ranges from oil and gas, petrochemicals, thermal power and renewables. Mr. Khanna has completed an executive program from IIM Ahmedabad, holds Master’s Degree in Management and Systems from IIT Delhi, and Bachelors of Engineering from Delhi College of Engineering.
Along with Mr. Ashish Khanna, as Pritha said, we have Saurabh Shah, CFO, Raj Kumar Jain, Head of Business Development, Anupam Misra, the Head of Corporate Finance, and I look after Investor Relations.
Let me hand over to Mr. Ashish Khanna for a brief opening remarks to be followed by Q&A.
Ashish Khanna — Chief Executive Officer
Thank you, Viral. Good afternoon, everyone. Welcome to this call. I am thrilled to share the outstanding operational and financial performance of Adani Green Energy for the fiscal year 2025. As you know, FY ’25 has been a record year for India’s renewable energy growth with a remarkable addition of 30 gigawatt, which includes, of course, the hydro assets too.
At Adani Green, as always, we have contributed significantly by adding 3,309 megawatt of new capacities. This is highest ever by any renewable company in this country. Our efforts accounted for 16% of India’s utility-scale solar and 14% of wind power installation in FY ’25. We have done more than double than anyone else or any other developer in this country.
As you know, we are also making significant progress towards developing the world’s largest renewable energy plant at Khavda in Gujarat. In a short span of two years, we have operationalized more than 4 gigawatt of renewable power there. We are well on track now to complete 30 gigawatt from Khavda by 2029. It is a great place to have the renewable assets. Of course, it took us time to initially stabilize and install and develop that particular area. But now, we are well tuned to take full advantage of the solar and the wind potentials at Khavda.
Testimony of the same is that we have achieved 32.4% of solar CUF in the last quarter. All of this has also been made possible because of our focus towards advanced technologies, whether it is in the part of a product like bifacial n-type modules, single-axis trackers, and of course, cleaning from a waterless robotic cleaning system. This relentless focus on execution and of course, operational excellence, duly aided by the advanced technology which we are deploying at Khavda and other projects too is further cementing our leadership in renewable sector in this country.
In FY ’25, we surpassed more than $1 billion in EBITDA. Our energy sales increased by 28% on a Y-o-Y basis, reaching to 28 billion units. Revenue from power supply grew by 23% to INR9,495 crores and EBITDA increased by 22% to INR8,818 crores. We continue to prioritize digitization, robust capital management, and best-in-class governance. Our advanced analytics techniques, automation, and AI-driven decision-making processes are helping us to optimize not only the cost, but also the time for executing projects and excellence in operations, and of course, our higher standards on safety and governance.
This year, FY ’25 was also an important milestone in our capital management journey. Adani Green refinanced its maiden construction facility of $1.06 billion. This long-term refinancing, rated AA+, represents door-to-door tenure of 19 years and is well aligned with our cash flow life cycle of underlying asset portfolio. We have a comprehensive capital management framework to fully fund our growth up to 50 gigawatt by 2030, while maintaining a strict credit discipline.
We remain committed to our environment, social, and governance goals, and all our operations are now water positive. This goal we have achieved even before our target. We continue to maintain top rankings from esteemed global ESG rating agencies like ISS ESG, who assigned us number one in Asia, and then Sustainalytics, which has ranked us amongst the top 10.
We attribute our success to the dedication and the motivation and the hard work of our team, a steadfast trust and support of our shareholders and partners. Together, we are committing to create a lasting value for our shareholders and delivering whatever Chairman has envisioned and give us the vision for a clean and affordable power of 50 gigawatt by 2030. We also have a target in our endeavor to achieve 5 gigawatt in this financial year.
I will now leave it on for your questions and answers.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin with the question-and-answer session. [Operator Instructions] The first question is from the line of Love Sharma from JPMorgan. Please go ahead.
Love Sharma
Hi, thanks management for hosting this call. Just one — a few questions from me. I think one — firstly, on the cash balance side, if you could just highlight on the two RG bonds, RG1 and RG2. What would be the year-end cash balance in those two assets?
And secondly, in terms of the — given the movement in the bond prices for both the RG1 and RG2 because of global markets as well as the US Treasury, the dollar prices on those seem to be very attractive. Any thoughts on if you could consider any kind of bond buyback in those two bonds? That’s it.
Ashish Khanna
I request, Saurabh, our CFO, to answer this, Love.
Saurabh Shah
So from the perspective of your first question, which was on the cash balance, which is there on RG1 and RG2, we would just like to inform you that on our — in our presentation, it is on slide number 34, where in the — the cash balance in RG1 is about INR600 crores, which is there. And RG2 also, that number is in the range of about INR700-odd crores.
Love Sharma
Okay, got it. And in terms of how much could be distributed by — based on the covenants, which we have another two bonds from the INR600 crores, INR700 crores? Could you give a rough sense?
Saurabh Shah
So — see, from the aspect of distribution, it is also to do with there are certain assets in this which are of — which we have with our JV partner. So that distribution takes place based on that also. But the portion out of this which is distributable is to the tune of about INR400 crores-odd.
Love Sharma
Okay, this is total across the two?
Saurabh Shah
Yeah, each — INR400 crores each in both.
Viral Raval
So the distribution, as you know, when we issue the compliance certificate, in the compliance certificate, there is a proper cash flow waterfall mechanism, which is followed. So we keep the necessary reserves, we keep necessary amount of cash for the regular maintenance, and then only it is upstream. So that full working of how much will be upstream will come in the compliance certificate, and only then it will be upstream. Before the compliance certificate issuance, there is no upstream that happens.
Love Sharma
You won’t be able to — understood. Understood. Okay, that’s very clear. Thank you for that. And just one last question — I think a follow up on the previous question related to that would be any thoughts on the buyback of the two bonds?
Ashish Khanna
No, we have not — Love, I’ll take that question. So Love, I think these are two bonds which are amortizing bonds where the cash flow generated is sort of used for repayment over a period of 20 years, 18 years, right? So in these two bonds, ideally, we are not in the process. In a corporate bond structure like Adani Ports, Adani Electricity, we would strategically keep doing buybacks and market actions. So we would not look at buyback in these kind of structures, right?
But tactically, if there is market dispute, like what happened during the tariff situation, it gives us an opportunity to sort of make a small profit and also indicate to the short sellers that we have a very strong technical curve and therefore they should not — we would not incentivize short sellers to come into our paper. I think from that standpoint, we can still look at it, but as of now, nothing decided. So I would be going ahead of myself over here.
But the philosophy from a group standpoint is here that it makes sense. So for example, a 2030 Adani Electricity, we would not address this in 2029, but we would start addressing it way in advance. So from that standpoint — similarly, would be the case here.
Love Sharma
Okay. Okay. That’s very clear. Thanks. That’s it from my side.
Operator
Thank you. [Operator Instructions] The next question is on the line of Michael Stansfield from UBS Asset Management. Please go ahead.
Michael Stansfield
Hey, yeah. Thanks, management, for the update. Just quickly, for FY ’26, I just want to confirm I heard correctly. So for this year, FY ’26, we have five gigawatts of operational projects coming online. And if you could just reiterate what the guidance is for the total capex on that. And then also, you made a statement that for the 50-gigawatt guidance for FY ’30, can you walk through what is funded at this point for that? I mean, I think that we’ve talked in the past about like FY ’26 and ’27, that’s all fully funded, but like longer term, are there equity and debt financing that have to be put in place?
Saurabh Shah
Yeah. Hi. So see, from a capex perspective, based on 5 gigawatt of addition that we are looking at for the current year, we are looking at a capex of about INR31,000 crores in FY ’26 to be done, which is more or less fully funded from debt as well as equity perspective. For our overall target of 50 gigawatt, the equity perspective — once the entire warrants is completely converted to equity, then our entire equity funding for up to FY ’30 for 50 gigawatt is fully funded.
From a debt perspective, we constantly keep on reviewing the longevity of our — the tenure our debt, and based on that, we continue to look at how to target and get that debt completed. And from a perspective of debt, we also have a $3.4 billion of construction facility, which is available. Plus, we also have a non-fund-based limit of about $1.2 billion, which we constantly utilize for that. So all in all, our debt tie-up, which we keep on looking at over a one-year period, that we keep on doing it. So for the next one, one and a half years, we target to complete that, which we are doing for this year. And from that way, we will continue to do that for the remaining next three to four years. Hope this answers your question.
Michael Stansfield
Sorry, just I might have misheard. So the total capex for this year is INR31,000 crore?
Saurabh Shah
Yes.
Michael Stansfield
So at that, we’re going to be — so we’re talking around $3.6 billion, of which 75-25 debt to equity?
Saurabh Shah
Yes, 75-25. And most of that debt, we’ve already tied up.
Michael Stansfield
Okay. Fair enough. Cool. Thank you.
Operator
Thank you. [Operator Instructions] We’ll take the next question from the line of Eric from Nomura. Please go ahead. Eric, I have unmuted your line. Please proceed with the question. I’m sorry, Eric, we are unable to hear you right now.
Eric Liu
Hello? Can you hear me?
Operator
Yes, please proceed.
Eric Liu
Okay, great. So sorry, I think it’s a more generic question. I think I understand management is expanding the Khavda solar park across the solar mainly with wind. But how do you see any other new types of, let’s say, pump storage hydro? I mean, is the company also looking forward to develop this kind of — I mean, this kind of complicated structure, and how do you see the economics over these kind of new technologies? Thank you.
Ashish Khanna
Eric, can I summarize what I understood from your question? There were some challenges on the line. So what you’re asking on a generic level is that besides the project like Khavda, how is the management looking at other types of RE, including hydro and PSP? Is that the question or I have misconstrued it?
Eric Liu
No, sorry. Can you hear me clearly? I think right now I’m going quite slow.
Ashish Khanna
I think, Eric, we couldn’t be able to understand your question that well. I will tell you my understanding of your question. You are asking that other than Khavda, how are we looking at other renewable assets like hydro and PSP? Is that your question or we have misconstrued it?
Eric Liu
Yeah, yeah, yeah. So I think more about the capacity expansion, how do you see the economics in the pumped storage hydro, I mean, or those kind of battery storage? I mean, is the company also looking forward to expanding into these fields apart from the plain vanilla or wind solar hybrid?
Ashish Khanna
Yes, I think we are looking into both of those storage assets as well as the pumped storage and the battery storage is concerned. So looking at it very closely, as you know, on the pumped storage, our first plant of Chitravathi, which is 500 megawatt, is all set to be commissioned by September ’27. We are committed for it.
In totality, we are all set for gigawatt capacities in PSP. As well as the generic tariffs are concerned, I would say that on a pumped storage, one do get because of the advantage of adding storage with the renewable power, less than INR5, which makes the overall cost very attractive in that sense. You will be hearing from us about the battery storage part very closely. We are looking at it very closely and I think we have a great opportunity there.
So in the last two years, the whole market of round-the-clock renewable power. Thank you. So I’m saying that in the last one year or two, we have seen that there has been a demand of the peak power or the round-the-clock renewable power and I think our company is very well poised to take full advantage of these opportunities which are available. Like I said, we are looking very closely on the battery storage, and in the times to come, you will hear about it from us. As always, our plans have been big and what serves the country best and so is in the case of the pumped storage too.
Eric Liu
Got it. So — and can I understand right now, how is the — I mean, in terms of IRR across these kind of projects, how do I see it right now?
Raj Kumar Jain
Yeah, sure. Eric, I think, as Ashish mentioned, from an India perspective, the opportunity is huge when it comes to pumped storages and the batteries. The economics have actually is moving towards a place where these are — the cost is less than the grid prices. So there is a lot of opportunities which are there in front of us. The IRRs are better than what you get in a normal plain vanilla solar or wind project by close to a couple of percentage points above 10. So it finally depends.
So it is difficult to answer as a singular number, but it finally depends on what is the site you have. So like you would understand in case of pumped storage, how many reservoirs someone is making, natural reservoir is there, closed loop, open loop, all those things are there. We try to ensure that whatever pumped storages we are developing are efficient when it comes to capital cost, and that, in turn, leads to a significantly better IRR than a lot of competition you would hear in the market.
Eric Liu
Got it. Thank you. Thanks a lot.
Operator
Thank you. [Operator Instructions] The next question is from the line of Love Sharma from JPMorgan. Please go ahead.
Love Sharma
Hi, thanks again. So maybe just to follow up on some of the topic which I think the company has also mentioned in the earnings release about the DOJ case and the SEC case. Where do we stand currently on that? If you could just highlight, is there any progress there, anything in terms of hearings, anything which you could share with us? Thanks.
Ashish Khanna
Well, I think we have been emphasizing on what is available is all across. First of all, let us reiterate that this is against the individuals and not the company. The matter has been there in public. You know exactly what is happening. We have an independent review too, which was also shared across, was shared with our auditors, independent directors. And so from a group standpoint as a better governance and transparency as well as regulatory compliances, it has been done and I think it has been mentioned too.
So from a DOJ standpoint, like I said, it’s all quite going forward. The alleged — the allegations are there and I think we should be seeing some positive results on it too, from the individual standpoint.
Love Sharma
Okay. And could you share if this case has progressed to any kind of hearing stage at all or are we still in sort of the situation where we were a couple of months back, basically the indictment stage?
Saurabh Shah
See, Love, we are not a party to it. So as a company, we — whatever disclosures and whatever information that we have is all shared in public. We don’t have anything further on that to add and we are not aware if there is any further thing development within that case.
Love Sharma
Okay. That’s useful. Thanks.
Operator
Thank you. [Operator Instructions] As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments. Thank you. And over to you, sir.
Ashish Khanna
Thank you. I think it was a short and a crisp. I once again appreciate all the participants who have come out there. I would like to reiterate from a management standpoint our commitment for an excellent execution as well as the operations of AGEL in this coming year. There are lots of learnings which are going to help us in achieving the targets which we are clearly on track to achieve as well as the fiscal and the physical targets which we have in front of us. Once again, thanks for your participation. I hand it over to Viral.
Viral Raval
Thank you very much, Pritha, Standard Chartered team and Chorus for organizing this call. Thanks a lot all the participants for taking the time out to join this call. Please feel free to reach out to us if you have any further questions. Thank you.
Operator
[Operator Closing Remarks]