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ADANIGREEN: Future Multiple Expansion Will Likely Outpace Slowing Profit Margins

Rising Borrowing Costs And Grid Delays Will Erode Margins

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ADANIGREEN
AnalystLowTarget
Not Invested
Published 08 Jun 2025

Update shared on 12 Dec 2025

Fair value Increased 4.28%
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AnalystLowTarget's Fair Value
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1Y
-13.2%
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2.2%

Analysts have raised their price target for Adani Green Energy from ₹792.00 to approximately ₹825.89, citing expectations of stronger revenue growth despite lower projected profit margins and a higher future price to earnings multiple.

What's in the News

  • TotalEnergies is reportedly preparing to sell up to a 6 percent stake in Adani Green Energy, potentially raising about INR 102,000 million from the divestment at current market value (M&A rumors and discussions).
  • The potential stake sale follows TotalEnergies' earlier statement that it would not expand its green energy partnership with Adani, even as it maintains that Adani Green remains a strong and growing company (M&A rumors and discussions).
  • Adani Green Energy plans to invest about INR 15,000 million in Assam to build two pumped storage plants with a combined 2,700 MW capacity, as part of a wider Adani Group investment push in the Northeast (Business expansions).
  • Adani Green has received a Letter of Award for 500 MW of energy storage capacity that will be served from the new pumped storage plants in Assam, supporting its 50 GW renewable energy roadmap by 2030 (Business expansions).
  • The Adani Group announced its first large Battery Energy Storage Systems project of 1,126 MW / 3,530 MWh, to be implemented under an integrated platform spanning generation, transmission and distribution (Product related announcements).

Valuation Changes

  • Fair Value: Raised modestly from ₹792.00 to about ₹825.89, which implies a slightly higher intrinsic valuation for Adani Green Energy.
  • Discount Rate: Edged up marginally from 14.73 percent to about 14.75 percent, which indicates a slightly higher required return or perceived risk.
  • Revenue Growth: Increased from roughly 22.06 percent to about 23.93 percent, which reflects expectations of stronger top line expansion.
  • Net Profit Margin: Reduced significantly from about 23.46 percent to roughly 17.79 percent, which points to lower anticipated profitability on future revenues.
  • Future P/E: Risen sharply from about 31.63x to approximately 45.86x, which suggests a meaningfully higher valuation multiple applied to projected earnings.

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