Adani Green Energy Q3 Results, The third-quarter earnings of Adani Green Energy present a striking paradox. On one side, the company continues to scale at an extraordinary pace, posting higher revenues and adding record renewable capacity. On the other, its bottom line has nearly disappeared, raising serious questions among investors.
For Q3 FY26, the renewable energy major reported a consolidated net profit of just ₹5 crore, marking a dramatic 99% collapse compared to the ₹474 crore profit recorded in the same quarter last year. The headline numbers tell two very different stories—one of operational strength and another of financial strain.
This sharp earnings contraction underscores the Adani Green profit drop, as rising costs, higher depreciation, and finance-related pressures significantly outweighed revenue and EBITDA growth, making the Adani Green profit drop a central concern for investors tracking the company’s Q3 FY26 performance.
Top-Line Growth Remains Intact, But Profitability Takes A Hit
Starting with revenue, the company delivered respectable growth. Revenue from operations rose to ₹2,618 crore in Q3 FY26, reflecting a 12% year-on-year increase from ₹2,340 crore in Q3 FY25. From a pure growth perspective, this indicates that demand, capacity utilization, and project additions are all moving in the right direction.
However, the bottom line paints a far bleaker picture. With net profit shrinking to a negligible ₹5 crore, nearly all earnings were wiped out. This sharp contraction suggests that rising costs, higher depreciation, interest expenses, and other below-EBITDA factors overwhelmed the operational gains.
Power Supply Segment Delivers Robust Operational Momentum
Adani Green Energy Q3 Results, A closer look at the core business reveals encouraging signs. The power supply segment, which forms the backbone of Adani Green’s operations, posted 21% year-on-year revenue growth, reaching ₹2,420 crore during the October–December 2025 quarter.
More importantly, segment EBITDA surged 23% year-on-year to ₹2,269 crore. These numbers clearly show that operational efficiency and cash-generation capability are improving. The disconnect between strong EBITDA and weak net profit underscores the heavy financial burden associated with rapid expansion.
Strong EBITDA Versus Net Loss: The December Quarter Paradox
Despite robust operating performance, the December quarter delivered a net loss of ₹41 crore, a sharp reversal from a ₹492 crore profit in the same period last year and ₹583 crore in the preceding September quarter.
This divergence highlights a key reality of capital-intensive renewable businesses. As new assets are commissioned, interest costs rise, depreciation accelerates, and financing charges spike, often pushing reported profits into negative territory—even when underlying operations remain healthy.
Overall Income Continues To Trend Higher
While profitability struggled, the broader income picture stayed positive. Total income for the quarter increased 8% year-on-year to ₹2,837 crore, reinforcing the fact that Adani Green remains firmly in expansion mode.
In essence, the company’s growth engine is accelerating, but the cost of capital is absorbing much of the incremental benefit. Revenue streams are broadening, yet near-term earnings are under pressure.
Aggressive Capacity Expansion: 5.6 GW Added In A Single Year
The scale of investment becomes clear when examining capacity additions. During 2026, Adani Green commissioned 5.6 GW of new renewable capacity, a massive addition by any global benchmark.
According to CEO Ashish Khanna, this accounted for nearly 14% of India’s total solar and wind capacity additions for the year. As a result, operational capacity has now reached 17.2 GW, keeping the company on track toward its ambitious 50 GW long-term target.
Khavda And Rajasthan: Anchors Of Mega-Scale Clean Energy
A significant portion of this expansion is concentrated in resource-rich regions such as Khavda and large renewable sites across Rajasthan. These locations offer some of the best solar and wind conditions globally, making them ideal for giga-scale projects.
The Khavda development, in particular, has been positioned as the world’s largest renewable energy project under construction, expected to play a pivotal role in Adani Green’s global clean-energy standing.
Battery Storage And Hydro Projects: Preparing For The Next Phase
Beyond generation, Adani Green is moving aggressively into energy storage and hydro pumped storage solutions. The company is on track to deploy one of the largest single-location battery energy storage projects in the world in the near future.
Additionally, its hydro pumped storage project on the Chitravathi river in Andhra Pradesh is progressing as planned. These initiatives are critical to addressing renewable intermittency, ensuring stable power supply even during non-generation hours.
27 Billion Units Of Clean Power: Scale That Rivals Nations
During the first nine months of FY26, Adani Green generated over 27 billion units of clean electricity. To put this into perspective, the company notes that this output is sufficient to power a country the size of Azerbaijan for an entire year.
This milestone highlights how Indian renewable companies are now operating at nation-scale levels, reinforcing Adani Green’s emergence as a global clean-energy heavyweight.
Technology-Driven Operations: AI And Data At The Core
Adani Green Energy Q3 Results, Operational efficiency remains a key focus area. Working alongside its O&M partner Adani Infra Management Services, the company is leveraging machine learning, artificial intelligence, and advanced analytics to optimize performance.
In a portfolio exceeding tens of gigawatts, even marginal efficiency gains can translate into meaningful financial impact, especially during periods of margin pressure.
Consistently Exceeding PPA Commitments
Reliability remains a strong point. Adani Green has consistently generated more power than required under its power purchase agreements (PPAs) on an annual basis. During 9MFY26, PPA-linked generation already reached 79% of the full-year commitment.
For lenders, off-takers, and long-term investors, this serves as a strong validation of asset quality and operational discipline.
Market Reaction: Shares Slide Despite Expansion
Despite the operational progress, the market reaction has been harsh. Adani Green shares were trading 12.1% lower at ₹791.7, and the stock is now around 33% below its 52-week high of ₹1,177.
Investors appear more concerned about profit volatility, leverage, and aggressive capex, rather than revenue growth alone.
Another December Snapshot: Margins Expand, Concerns Persist
In an alternate December-quarter snapshot, revenue came in at ₹2,201 crore, up 30% from ₹1,697 crore a year earlier. EBITDA rose sharply to ₹1,824 crore, reflecting a 47.5% increase, while EBITDA margins expanded to an impressive 82.9%, up from 72.9%.
Yet again, despite improved margins and scale benefits, bottom-line volatility overshadowed operational success.
Growth Ambition Versus Profit Reality
Taken together, these results show a company deeply entrenched in a high-investment growth cycle. Adani Green is laying the groundwork for future dominance, even if short-term profitability looks subdued.
For long-term investors, this phase resembles foundation-building—capital-heavy, less glamorous, but potentially transformative once projects mature and financial pressures ease.
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Conclusion
Adani Green Energy Q3 Results, Adani Green Energy’s Q3 FY26 performance is defined by extremes. Revenue growth, capacity expansion, technology adoption, and project execution remain strong. EBITDA performance reflects solid operational health.
However, the near-total erosion of net profit and the swing into quarterly losses have triggered legitimate concerns. Market sentiment makes it clear: growth alone is no longer enough. The coming quarters will be critical in determining whether Adani Green can convert its massive scale and ambition into stable, sustainable earnings—without leaving shareholders uneasy.
