Adani Green Q3 profit fell sharply in the December quarter of FY26, even as the company reported strong revenue growth and rising power generation. Adani Green Energy Ltd posted a 99 percent year-on-year decline in consolidated net profit to ₹5 crore for the quarter ended December.
The sharp fall in profit came despite steady operational performance, supported by higher electricity output and new renewable capacity additions across India.
During the third quarter, revenue from power supply increased 21 percent compared with the same period last year. Total operating revenue rose 7.6 percent to ₹2,837 crore, driven by higher generation and commissioning of new renewable assets.
The company also reported ₹185 crore in other operating income. This included receipts from viability gap funding, change-in-law claims, net carbon credit income, generation-based incentives, and project management consultancy services. These income streams helped strengthen the topline during the quarter.
Despite this, profitability remained under pressure. Higher finance costs and increased depreciation weighed on earnings as the company continued to invest heavily in expanding its renewable energy portfolio.
Company officials said the profit decline does not reflect any slowdown in demand. Power offtake remained stable, supported by long-term power purchase agreements that provide predictable revenue visibility.
Adani Green highlighted robust operating performance during the financial year so far. The company generated more than 27 billion units of clean electricity in the first nine months of FY26.
Management said this level of generation would be sufficient to power a country the size of Azerbaijan for an entire year, underscoring the scale of operations achieved during the period.
Even as short-term earnings weakened, Adani Green continued to expand its renewable footprint at a rapid pace. During calendar year 2026, the company added 5.6 GW of renewable energy capacity.
This accounted for nearly 14 percent of India’s total solar and wind capacity additions during the year. The growth was driven by greenfield projects, deployment of advanced renewable technologies, and faster commissioning of large assets.
Major capacity additions were reported from resource-rich locations such as Khavda in Gujarat and several sites in Rajasthan. These regions offer strong solar and wind potential, supporting higher generation efficiency over time.
Industry analysts say large renewable developers in India are prioritizing scale and long-term capacity growth. This approach often results in near-term pressure on profits due to higher borrowing costs and depreciation, even as revenues continue to rise.
Reports from global financial media have also pointed to margin pressure across India’s renewable sector, as companies ramp up investments amid rising financing costs.
In summary, Adani Green Q3 profit dropped sharply despite strong revenue growth and record capacity additions. The results reflect an expansion-led strategy, with short-term earnings volatility offset by long-term clean energy growth ambitions.