Stock Market Strategy - Adani Green Energy Surges 14percent after Strong Q2 Results - Profit Up 25% + EBITDA Up 9% YoY - Is it Time to Buy, Sell or Hold?
Adani Green Energy, the renewable energy arm of the Adani Group, saw its shares jump 14% in early trade on Wednesday, October 29, hitting a one-month high of ₹1,145. The rally came as a reaction to the company’s September quarter numbers, which beat Street estimates, also helping end the stock’s three-day losing streak.
Higher energy sales drive bottom-line performance
The company announced the numbers post-market hours on Tuesday. Though revenue largely stayed flat, higher energy sales and operational efficiency led to a 25% jump in consolidated net profit to ₹644 crore.
Energy sales rose 39% year-on-year to 19,569 million units from 14,128 million units a year ago, driven by growth across hybrid, wind, and solar segments. Total income dropped to ₹3,249 crore in the September quarter from ₹3,396 crore in the year-ago period. Total expenses stood at ₹2,874 crore, compared with ₹2,857 crore in Q2 FY25.
The company’s revenue from power supply rose to ₹2,776 crore from ₹2,308 crore in the same quarter last year, marking a 20% year-on-year growth in income from power supply.
Revenue from the “sale of goods,” which includes income from developing renewable energy plants for third parties on a contractual basis, dropped over 90% to just ₹48 crore.
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Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 9% year-on-year to ₹2,844 crore, while the EBITDA margin improved by nearly 11 percentage points to 87.5%.
On the capacity front, the company added 2.4 gigawatts (GW) of additional capacity during the first half of FY2025-26, with about 900 megawatts (MW) coming during the September quarter.
To be precise, the company aims to add 5 GW of new capacity in the current fiscal year. With the latest additions, its operational capacity stood at 16.7 GW as of September 30, keeping it on track to achieve its target of 50 GW of installed capacity by FY2030.
Adani Green Energy share price trend
The September quarter results gave a much-needed boost to the stock, which had remained on the sidelines since the start of this month.
With Wednesday’s rally, the stock’s returns for October rose to 10%. Though the stock has shown signs of recovery in recent months, it is still down 36% from its 53-week high and 67?low its all-time high of ₹3,050, recorded in April 2022.
Despite the sharp correction, the stock still trades 36?ove its 2019 lows. In its nine-year journey on Dalal Street, the stock has ended six years in the green, with 2020 marking its biggest annual jump of 532%.
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