by Ankita Lodh on 24 January 2025, 4 minutes min read
Adani Energy is a well-known name in the emerging renewable energy sector in India. As part of the larger Adani Group, it plays a key role in helping India move towards cleaner energy.
The financial results for Q3 of the fiscal year 2024-25 (FY25) show how well the company is doing. Understanding these results is essential, especially in today’s economy, as they highlight the company’s growth and its position in the rapidly changing energy market.
Source: Adani Energy Solutions Investor Presentation
Adani Green Energy’s results in Q3 FY25 reveal a remarkable performance. The net profit surged by 85.2%, reaching ₹474 crore compared to ₹256 crore in the same quarter last year. This impressive growth underscores the company’s ability to capitalise on increasing demand for renewable energy solutions.
Revenue from operations also saw a modest increase of 2.3%, amounting to ₹2,365 crore, up from ₹2,311 crore in Q3 FY24. However, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) experienced a slight decline of 4%, totalling ₹1,601 crore, which resulted in a decrease in EBITDA margin from 72.1% to 67.7% year-on-year.
For the first nine months of FY25, Adani Green Energy achieved an EBITDA of ₹6,366 crore, marking an 18% YoY increase, which indicates steady growth.
On the operational side, Adani Green Energy expanded its renewable energy capacity by 37% YoY, bringing its total to 11.6 GW. This increase is crucial as it helps the company become a leader in India’s renewable energy sector, contributing significantly to the country’s solar and wind power installations.
Energy sales also grew by 23% YoY in the Adani Green quarterly results. This growth in capacity and sales reflects Adani’s commitment to sustainable practices and positions it well for future opportunities.
Adani Energy Solutions (AESL) also demonstrated strong financial performance in Q3 FY25. The net profit rose by 80% YoY, reaching ₹625 crore, up from ₹348 crore in Q3 FY24. Revenue from operations increased significantly by 24% YoY, totalling ₹6,000 crore due to new projects and higher demand for its services.
The EBITDA for AESL grew by 6% YoY to reach ₹1,831 crore, demonstrating effective management and operational efficiency. Adjusted PAT, which excludes one-time tax adjustments, stood at ₹440 crore—a notable increase of 26% YoY.
A key highlight for AESL was securing its largest project yet: the Rajasthan Phase III Part-I HVDC system. This project marks a significant milestone for the company and demonstrates its commitment to expanding infrastructure and improving operational efficiency.
These strategic developments are vital as they not only enhance AESL’s revenue but also strengthen its position within India’s competitive energy market.
After announcing Q3 FY25 results on January 23, 2025, market reactions varied between Adani Green Energy and Adani Energy Solutions. Adani Green’s share price fell nearly 1%, settling at ₹1,021.45 after experiencing a decline of over 39% over the past year due to broader market concerns affecting investor confidence in green energy stocks.
Source: Google Finance
In contrast, Adani Energy Solutions share price rose approximately 0.71%, trading at ₹806.80 after the results were released. However, as of January 24, 2024, the Adani Energy Solutions share is trading at ₹793.20.
Source: Google Finance
In the short term, market reactions suggest cautious optimism regarding AESL’s growth while reflecting concerns about Adani Green Energy’s declining margins despite strong revenue growth. However, both companies have solid long-term investment potential as they continue to expand their renewable energy portfolios and meet India’s growing demand for sustainable energy solutions.
Their positioning within the sector highlights their importance as they adapt to changes in regulations and market dynamics.
In summary, Q3 FY25 results for both Adani Green Energy and Adani Energy Solutions show that both companies are on a strong growth path despite facing challenges like margin pressures and market volatility. Their future growth potential looks promising as they continue to expand operations and invest in innovative projects that align with India’s sustainability goals.
The strategic outlook for both companies is positive; they are well-positioned to play a vital role in shaping India’s renewable energy landscape while addressing increasing energy demands sustainably and efficiently.
As India moves towards greener alternatives, Adani Energy stands out as a key player driving this change forward, making it an important part of the global conversation about renewable energy.
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