Adani Green shares fall 4%; Jefferies stays Buy, JM retains Add

Adani Green Energy shares fell 4% to Rs 1,211 on the BSE on Thursday, October 22, after the renewable power producer reported a 15% year-on-year increase in consolidated net profit for Q2FY27. The Economic Times Markets reported quarterly profit of Rs 673 crore, against Rs 583 crore a year earlier, with revenue from operations rising 39% to Rs 4,520 crore.

The price is a reported market snapshot, not a live quote. The account does not establish a specific reason for the sell-off.

New projects lift power-supply earnings

Revenue from the company’s core power-supply business rose 45% to Rs 4,019 crore from Rs 2,776 crore a year earlier. Commissioning of solar, wind and hybrid projects supported that increase, according to the report.

Power-supply EBITDA—earnings before interest, tax, depreciation and amortisation—rose 51% to Rs 3,835 crore from Rs 2,543 crore. The report carries differing power-supply EBITDA margin figures in its results account and brokerage discussion; those figures cannot be reconciled from the information reported.

Jefferies: demand, Khavda and storage support Buy call

Jefferies retained its Buy rating earlier in October, with a target price of Rs 1,695. That assessment preceded the latest results and should not be read as a fresh post-earnings recommendation. The brokerage cited reasonable valuations following a 22% decline from the stock’s peak.

Its investment case rests on rising electricity demand, better utilisation at the Khavda project and expansion in battery energy storage. Jefferies valued the stock at about 20 times one-year forward enterprise value to EBITDA, against its projection of 30% annual compound EBITDA growth between FY26 and FY30. These are brokerage estimates, not achieved outcomes.

The report put installed battery storage capacity at 6.6 GWh, with plans to exceed 10 GWh by the end of FY27. Jefferies saw scope for stronger demand to accelerate storage expansion and potentially lift generation-capacity additions above its forecast of 6.5–6.8 GW annually during FY28–FY30.

The brokerage also identified a possible continuation of El Niño conditions into 2027 as a demand catalyst through higher temperatures and electricity shortages. That remains a scenario in its investment assessment, rather than an established weather outcome.

JM Financial: Add rating, but transmission remains a constraint

JM Financial retained its Add rating and Rs 1,374 target price after results it considered broadly consistent with expectations. Its assessment highlighted transmission-line delays affecting grid availability.

Solar grid availability fell to 78.9% in H1FY27 from 89% a year earlier, while wind availability declined to 93.7% from 97.4%. Hybrid availability, however, improved to 94.5% from 89%, making the operational picture mixed rather than uniformly weaker.

Adani Green incurred capital expenditure of Rs 16,000 crore in H1FY27 alongside debt drawdowns of Rs 13,700 crore, according to the report. The expansion figures sit alongside the grid constraints in assessing how quickly new assets can contribute to operations.

The ratings and target prices are the respective brokerages’ views, not BharatVox investment recommendations.