Emkay Global Financial Services raised the target price for Adani Green Energy (AGEL) to Rs 1,500 from Rs 1,350, looking at an upside of 21.4% from the current market price. This came after the company reported a healthy set of quarterly earnings for the fourth quarter of FY26. 

The company is planning to invest around Rs 15,000 crore in FY27 to add more than 10 gigawatt-hours (GWh) of battery energy storage capacity, as it sharpens its focus on delivering reliable and dispatchable clean power.

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Here’s what the brokerage house thinks of the company in detail –

Adani Green: Robust capacity growth

Adani Green Energy’s operational capacity increased by 35% YoY to 19.3GW by the end of Q4FY26. This expansion directly led to a 20% YoY rise in consolidated EBITDA, reaching Rs 28.8 billion for the quarter.

“FY27 RE capacity addition guidance is capped at 4.5-5GW due to transmission constraints, though with 14GW of evacuation capacity slated to come up in Khavda by March 2027, additions could accelerate thereafter,” said the brokerage house.

Strategic BESS deployment

Adani Green is accelerating the deployment of Battery Energy Storage Systems (BESS), targeting an addition of 10GWh in FY27. BESS serves as a strategic hedge against transmission constraints, allowing the Adani Group company to store surplus daytime energy and dispatch it during peak evening hours when realisations are higher.

Adani Green: Expansion of transmission infrastructure

The brokerage notes the successful commissioning of transmission lines in Rajasthan and Khavda. Furthermore, approximately 14GW of additional evacuation capacity is slated to come online in Khavda by March 2027, which is expected to materially ease previous constraints and accelerate project execution for Adani Green.

“Q4 earnings were supported by commissioning of transmission lines in Rajasthan and Khavda, along with better merchant realisations,” said Emkay Global Financial Services. 

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Adani Green: Strong earnings growth visibility

The brokerage expects revenue and earnings Compound Annual Growth Rate (CAGR) of over 30% and 60%, respectively, between FY26 and FY30. This growth is further supported by a transition of merchant and infirm power to long-term PPAs, with over 90% of incremental capacity expected to be PPA-linked.

Adani Green: Improved operational metrics

The brokerage’s strong positive on the company also reflects a recovery in Capacity Utilisation Factors (CUF) and better merchant realisations. Specifically, normalised solar CUFs are expected to trend upward as higher-yield projects in Khavda represent a larger share of the total portfolio.

Adani Green Energy share price performance

The share price of Adani Green Energy has risen 8% in the last five trading days. The stock has given a return of 55% in the last one month and 25% in the last six months. Adani Green Energy’s stock price has surged 33% over the past one month.

Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.