Adani Green Energy’s net debt rose 35 per cent year-on-year to ₹1.03 lakh crore at the end of September 2026, but the renewable energy company said around 72 per cent of its project loans carry fixed interest rates, limiting the impact of interest-rate fluctuations on a substantial portion of its borrowings as it expands capacity.
The Adani Group company’s net debt stood at ₹1,02,973 crore on September 2026, compared with ₹76,071 crore in the first half of FY26 and ₹91,252 crore at the end of March 2026. The increase reflects investments in new renewable energy capacity, including battery storage projects, with debt associated with projects under construction rising faster than that linked to operational assets. Debt attributable to operational assets rose 27 per cent year-on-year to ₹78,656 crore, while debt associated with projects under construction surged 73 per cent to ₹24,317 crore. Net debt stood at 5.6 times run-rate EBITDA.
“Seventy-two per cent of our project loans are fixed-rate borrowings for medium- to long-term periods of three to five years. So, the rate-cycle effect does not happen for a very substantial portion of our loans,” a senior company executive told investors during an earnings call on Thursday. The company’s 25-year fixed-tariff power purchase agreements (PPAs) also provide revenue visibility, limiting the impact of short-term interest-rate movements on project returns, the executive said. As projects move from construction to operations, their credit ratings improve, enabling the company to refinance debt at lower rates.
Adani Green’s average interest cost declined to 8.9 per cent in September 2026 from 11.1 per cent in 2019, a reduction of more than 220 basis points despite fluctuations in the broader interest-rate cycle, according to the company’s investor presentation and management commentary. The executive said projects under construction typically receive ratings in the BBB- to A category, which can improve to the AA category once they become operational. This transition can lower borrowing costs by around 50 basis points, the executive added. The company cited AG 23L, a special purpose vehicle contributing nearly 15 per cent of its overall EBITDA, as an example of the benefits of improved credit ratings. Its rating has risen by seven notches over five years to AAA, bringing its interest cost down from around 10-11 per cent to 8.4 per cent, the executive said.
“The interest-rate impact is larger during construction; otherwise, it starts to taper off,” the executive said. Around 30 per cent of Adani Green’s portfolio is currently under construction, including battery storage projects. The company expects this share to decline to 10-20 per cent once its operational capacity reaches 30 GW, as more projects begin generating revenue. Adani Green had 20.8 GW of operational capacity as of September 2026 and is targeting 50 GW by 2030. It added 4,083 MW of capacity in the first half of FY27 and operationalised 3,081 MWh of battery energy storage capacity at Khavda during the September quarter, taking its installed storage capacity to 6,632 MWh.
Published on October 23, 2026
