Crisil Upgrades Adani Green Restricted Group 1's Outlook to 'Positive'

By siliconindia  |  Thursday, 06 February 2025, 02:11:56 PM IST

Crisil Upgrades Adani Green Restricted Group 1's Outlook to 'Positive'
The long-term bank facilities and the non-convertible debentures of Adani Green Restricted Group 1 (AGEL RG1) have been assigned a positive outlook by Crisil Ratings after revising its rating from 'stable' with the same 'Crisil AA+' level. This rating reflects good revenue visibility due to consistent performance as well as on-time refinancing.
Three special purpose vehicles of AGEL RG1-Adani Green Energy UP Ltd, Prayatna Developers Private Limited, and Parampujya Solar Energy Private Limited-are doing a good job financially, as indicated by Crisil. Power generation from the group has consistently been more than the P90 levels. The fiscal 2024 and calendar year 2024 showed better-than-expected plant load factors. It is expected that the performance will be sustained in the future and, therefore, debt servicing would remain comfortable.
Rating agency stated that AGEL RG1 enjoys excellent revenue visibility through long-term power purchase agreements at healthy tariffs. The group is exposed to inherent risks in its operations pertaining to the solar-energy assets and risks of fluctuations in foreign exchange, however, its financial profile remains healthy. Crisil underlined a healthy debt service coverage ratio over the tenure of the 18-year US senior secured notes supported by a six-month debt service reserve account without recourse to project assets.
In its latest financial performance, Adani Green Energy (AGEL) reported an 85% year-on-year increase in consolidated net profit for Q3 FY25 at Rs 474 crore compared to Rs 256 crore in the same quarter last year. The company's operational renewable energy (RE) capacity increased by 37% YoY to 11.6 GW, maintaining its position as India's largest renewable energy provider. In CY24, AGEL contributed 15% of the nation's utility-scale solar installations and 12% of wind installations.
Amit Singh, CEO of Adani Green Energy, highlighted ongoing projects, such as the largest RE plant in Khavda, Gujarat, and large-scale plants in Rajasthan, which is supported by wellaligned transmission planning.

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