Will a strong FY26 run drive the next phase of the stock’s rise?
Overview: A new brokerage upgrade has refocused Adani Green, further strengthening growth visibility and improving execution momentum, sparking renewed optimism about the stock’s next potential move.
The outlook for India’s green energy sector remains very positive, driven by aggressive renewable capacity additions, policy support and growing power demand. The sector is witnessing rapid expansion of solar, wind, hybrid and storage assets. In this environment, Adani Green Energy remains a key agent, strengthening its leadership in India’s clean energy transition by adding over 5 GW in FY26 and expanding its operating capacity to 19.3 GW.
Market capitalization is Rs. Shares of Adani Green Energy Ltd were trading at 1,78,768 Crores, around Rs. 1085 per share, a 7.8% discount from the 52-week high of Rs. 1177 per share and a P/E of 108 while the industry P/E is 33.
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Macquarie maintains a constructive stance on Adani Green Energy Limited and has raised its target price to Rs. 1,320, driven by strong execution and improved long-term growth visibility. The brokerage believes faster capacity growth and a solid earnings trajectory could support further upside and lead to a valuation reassessment in the medium term.
Strong FY26 execution boosts confidence
Regarding the financial year FY26, Macquarie is positive that the company ended FY26 well due to the over 5 GW of capacity additions achieved by Adani Green Energy Limited during the period. This is a very important operational milestone for Adani Green Energy Limited. Because this means the project was completed quickly and will make us a leader in the clean energy sector.
FY30 capacity growth forecast
Given the impressive FY26 results, Macquarie now expects the installed base to reach +40GW by FY30, up from its previous estimate of 30GW. The revised numbers highlight the company’s expectations of being able to scale operations much faster than previously anticipated. This means increased power generation capacity, improved cash flow visibility, and improved profit visibility. Accelerating capacity expansion is still the most important trigger factor for the rise in stock prices.
Solid revenue growth and upgraded targets
Macquarie raised its target stock price to Rs. 1,320. According to the company’s new forecast, EBITDA is expected to grow at 25%+ CAGR over the next five years, driven by economies of scale and efficiency. On the other hand, in a bullish scenario consistent with management’s estimates, growth could rise to 40% CAGR. Expectations for high profit growth are a key basis for upward revisions in valuation.
finances:
Year-on-Year Analysis: Revenue from operations increased from Rs. 2340 Crores to Rs. It increased by 11% to 261.8 billion won. Operating profit increased from 100 billion won to 100 billion won. 1880 Crores to Rs. 2241 Crores, an increase of 19%, with net profit down from Rs. 474 crores ~ Rs. 500 million, 99% decrease
Quarterly Analysis: Revenue from operations declined from Rs. 3008 Crores to Rs. It decreased by 28% to 216.8 billion won. Operating profit decreased from 100 million won. 2603 Crores to Rs. 2241 Crores, down 14%, with net profit down from Rs. 644 Crores to Rs. 500 million, 99.2% decrease
conclusion
Overall, Adani Green Energy Limited remains well-positioned for long-term growth through strong execution, expanding renewable energy pipeline, and improving revenue visibility. The upgraded brokerage targets reflect confidence in continued capacity growth, which could continue to serve as a key catalyst for future share price re-ratings and investor interest.
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