Adani Green Energy is looking to invest Rs 2 trillion by 2030 to achieve its goal of 50 GW capacity, and is targeting earnings before interest, taxes, depreciation and amortisation (Ebitda) of Rs 50,000 crore by the same year.
“If you look at Rs 80-90 lakh per MW, we are looking at Ebitda of Rs 50,000 crore,” said Sagar Adani, executive director at Adani Green. The company achieved an Ebitda of Rs 10,462 crore in FY24.
He said the company has tied up both equity and debt for the capacity addition plans.
“We do not need third party fund infusion. We have a peak debt requirement of $6 billion, but we have already tied up for $7 billion debt from foreign lenders and domestic financial institutions,” Adani said.
He said the company has tied up for foreign debt of $3-4 billion, and remaining from domestic sources. “We need to make sure we need to refinance debt every 18 months once the project gets executed,” Adani added.
About 75% of the company’s financing comes from debt, while the remaining 25% comes from equity, which includes internal accruals, cash flows from the projects, infusion from promoters and partners.
All foreign debt is fully hedged, according to Adani. “ We are working on building a strong domestic bond market. Currently, projects are depedent on international markets. We want to take them to domestic markets.”
He said Adani Green Energy is bidding for “those renewable projects which meet our internal rates of return and till we don’t have clarity on that, we are not going ahead with the project”. All projects currently have internal rates of return in the high teens, he said.
Adani Green is also getting into pumped-storage hydropower (PSH) facility, and plans to set up PSH capacity of 5 GW in the next five years. About 80% of capacity addition will be in solar and 20% in wind.
Adani Green Energy’s stock ended at Rs 1,794 on Tuesday, over 1% lower than Monday’s close.
