Adani Green Energy Limited (AGEL) officially addressed a significant operational challenge alongside its FY26 earnings release on April 23, 2026. While the company celebrated a record year of growth, it confirmed that inadequate transmission infrastructure has become a major financial drag.
The company estimates it took an EBITDA hit of ₹1,200–₹1,500 crore in FY26 due to “power curtailment”—a situation where green energy is generated but cannot be evacuated to the national grid due to lack of line capacity.
1. The “Grid Bottleneck” Crisis
The impact reflects a structural mismatch in India’s energy transition: generation capacity is growing faster than the transmission network.
- Stranded Capacity: As of early 2026, industry reports indicate that over 50 GW of renewable energy capacity across India was “stranded” or underutilized due to transmission limits.
- Calibrated Expansion: Due to these bottlenecks, AGEL has decided to slow its project deployment. While the company has the execution capability to add 7–8 GW annually, it is moderating its FY27 target to 4.5–5 GW to ensure new projects can actually reach the grid.
- Returns at Risk: Curtailment directly affects project internal rates of return (IRR). By generating power that isn’t paid for (as it never hits the grid), the effective cost of electricity for the developer increases.
2. FY26 Financial Highlights
Despite the ₹1,500 crore curtailment hit, AGEL delivered a robust set of numbers, driven by a massive jump in operational assets.
| Metric | FY2025-26 Performance | Change (YoY) |
| Operational Capacity | 19.3 GW | ▲ 35% |
| Total Revenue | ₹11,602 Crore | ▲ 22% |
| EBITDA from Power | ₹10,865 Crore | ▲ 23% |
| Energy Sales | 37,567 Million Units | ▲ 34% |
| Net Debt | ₹91,252 Crore | ▲ 41% |
- Global Record: AGEL added 5.1 GW of greenfield capacity in FY26, the highest single-year addition by any company globally (excluding China).
- Khavda Hub: The 30 GW Khavda project in Gujarat remains the primary engine, with 7.1 GW now operational at that site alone.
3. The “Grid Insurance” Strategy: BESS
To mitigate future curtailment losses, AGEL is pivoting toward Battery Energy Storage Systems (BESS).
- Buffer Strategy: Instead of losing curtailed power, AGEL plans to store excess midday solar energy in massive batteries and discharge it during peak evening hours when grid space is available.
- Massive Scale-up: After installing 1.4 GWh in FY26, the company plans to commission over 10 GWh of BESS capacity by FY27.
- Financial Hedge: This “grid insurance” is intended to protect EBITDA margins, which currently stand at an industry-leading 91%, from being eroded by further transmission delays.
4. Market View: High Growth vs. High Leverage
The stock responded positively to the results, trading up 2.25% following the announcement, but analysts remain divided on the long-term cost of this strategy.
- Valuation Concerns: AGEL’s P/E ratio remains high (ranging from 111x to 140x), significantly above the industry average.
- Debt Levels: With net debt crossing ₹91,000 crore, investors are closely watching the execution of the BESS plan to see if it can successfully offset the “lost revenue” from transmission gaps.