CareEdge Ratings upgrades Adani Green Energy rating with stable outlook

New Delhi, Aug 25 (PTI) CareEdge Ratings on Monday upgraded Adani Green Energy's rating from 'AA-' to 'AA/Stable' due to its market leadership position, robust execution capabilities, and strong operational and financial profile.

According to a CareEdge Ratings statement on ratings assigned to bank facilities of the company, as of June 30, Adani Green Energy Ltd (AGEL) had an operational portfolio of 15.8 GWAC, comprising 70 per cent solar, 13 per cent wind, and 17 per cent hybrid assets.

In addition, the company has an under-construction portfolio of 15.1 GWAC, targeted for development in the next 4-5 years, the agency said.

AGEL's strong execution track record is demonstrated by its rapid scale-up of operations in recent years and its ability to develop projects in challenging locations, such as Khavda, Gujarat, where it currently operates 5.6 GWAC.

It has a long-term vision to establish a cumulative capacity of 30 GWAC in Khavda going forward.

Operational performance remained robust, supported by high plant and grid availability, generation exceeding design estimates, and a low collection period, CareEdge Ratings said.

These factors have translated into strong cash flows, healthy coverage indicators, and a comfortable liquidity position, it added.

The rating is also supported due to the presence of long-term (25-year) power purchase agreements (PPA) with central and state counter parties for 83 per cent of the operational portfolio, which provides long-term revenue certainty, it pointed out.

CARE Ratings Limited (CareEdge Ratings) also factors in improvement in capital structure, post conversion of warrants across tranches in FY25 and Q1 FY26.

The Adani family has infused Rs 9,350 crore, which has been utilised for the prepayment of holding company debt, partial repayment of related-party loans, and the remaining is earmarked for growth equity.

The agency also mentioned the ongoing criminal indictment and civil complaint filed against the company’s board members by the US Department of Justice (US DOJ) and by the Securities and Exchange Commission (US SEC).

Adverse rulings against them could have negative implications on the AGEL’s financial flexibility, particularly its ability to raise debt and equity in domestic and international markets, and consequently, affect the group’s capex plans, it stated.

CareEdge Ratings continues to monitor the situation and would take appropriate steps based on events unfolding in the future, it noted.

The Stable outlook on the long-term rating of AGEL reflects CareEdge Ratings’ opinion that the company will be able to scale up its operating portfolio by commissioning underlying projects within scheduled timelines.

The outlook is supported by the presence of long-term PPAs for the majority of the underlying capacity, the agency said.

AGEL is promoted by the Adani Group to foray into renewable energy projects. With its subsidiaries, the company currently has multiple power projects across locations, with a combined installed and commissioned operational capacity of 15.8 GWAC as of June 30, 2025.

The company targets to increase its operational capacity to 50 GWAC by 2030. With its subsidiaries, it sells power generated from these projects under a combination of long-term PPA on a merchant basis.

AGEL’s equity shares are listed on BSE and NSE. PTI KKS BAL