CareEdge Ratings on Monday upgraded Adani Green Energy’s rating to AA with a ‘Stable’ outlook from AA-. The upgrade reflects the company’s market leadership, robust operational profile, and strong financial position.
The rating covers bank facilities of Adani Green Energy Limited (AGEL), India’s largest renewable energy developer.
CareEdge noted AGEL’s market leadership and its ability to execute projects efficiently.
As of 30 June 2025, AGEL operated 15.8 GWAC of renewable energy assets, including 70 per cent solar, 13 per cent wind, and 17 per cent hybrid projects.
The company has an under-construction portfolio of ~15.1 GWAC, targeted for completion in the next 4–5 years.
CareEdge highlighted AGEL’s ability to develop projects in challenging locations, such as Khavda, Gujarat, where it currently operates 5.6 GW of AC.
AGEL aims to establish a cumulative 30 GWAC capacity in Khavda. The company’s operational performance remained strong, supported by high plant and grid availability, generation above design estimates, and a low collection period.
CareEdge said these factors translate into strong cash flows, healthy coverage indicators, and comfortable liquidity.
Strategic Partnerships and Long-Term PPAs
The rating also benefits from long-term power purchase agreements (PPAs) with central and state counterparties covering 83 per cent of the operational portfolio. Of the 13.1 GWAC tied-up capacity, 11.1 GWAC is with stronger counterparties, while 2.0 GWAC is exposed to state utilities.
Strategic partnership with TotalEnergies further supports AGEL’s growth. TotalEnergies holds a 20 per cent stake in AGEL and a 50 per cent stake in 4.5 GWAC joint ventures. The investment has provided growth capital for scaling operations.
CareEdge also noted improvement in AGEL’s capital structure after the Adani family infused ₹9,350 crore in FY25 and Q1 FY26. The funds were used for debt prepayment, partial repayment of related-party loans, and growth equity.
“The Stable outlook reflects our view that AGEL will scale up its portfolio on schedule, supported by long-term PPAs for the majority of its capacity,” CareEdge said.
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