Adani Green Energy shares – Underperformance till now but may deliver higher returns in long term

Adani Green Energy’s share price is shooting through the roof today. This, after the company posted its September quarter result yesterday. At 11:45 a.m. 29^th October, 2025, the stock is up by 11.06%, trading at Rs 1,115.30. Nifty 50 index is up by 0.43% at this time.

Company added 2.4 GW capacity in the first six months of FY26

Adani Green Energy’s consolidated profit in the September quarter increased year-on-year (y-o-y) by 25% to Rs 515 crore. The company added 2.4 Giga Watt renewable energy capacity between April and September period of FY26. It is targeting to add another 5GW capacity in the next six months of FY26. It has targeted to achieve 50 GW capacity by 2030.

At the end of September quarter, Adani Green’s operational capacity stood at 16.7 GW. This is a year-on-year increase of 49%.

Demand for renewable energy may shoot up because of AI data centers

Adani Green operates solar power plants, wind power plants, and solar-wind hybrid power plants. Demand for renewable energy may shoot up in the medium and long term because of data centers. Data centers needed for supporting artificial intelligence (AI) require huge amount of electricity to operate and maintain. Amazon founder, Jeff Bezos, recently said that the power and water needs of data centers are so humongous that in future they may have to be set up in space.

TCS has announced that it will be setting up a 1 GW data center in India with an investment of $1 billion. Google has also announced that it will be setting up a data center in Vishakhapatnam in Andhra Pradesh. Adani Green may stand to gain in the long term with the coming up of these data centers.

Adani Green’s shares have underperformed Nifty 50 by more than 90% in the past 5 years

Year-to-date in 2025, Adani Green Energy has gained 6.58%. Nifty 50 index has gained 9.64% in this period. The stock has underperformed Nifty 50 index by more than 3% this year. In the last 5 years the stock has gained 30.23%. In the same period, Nifty 50 index has gained 123.60%. So the stock has underperformed the Nifty 50 index by almost 90% in the past 5 years.

Adani Green’s shares are currently trading at a price –to-earnings (P/E) ratio of around 110. That indicates that markets are expecting very high growth from the company in future.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE, Adani Green