India Ratings Upgrades Adani Green Energy to AA on Stronger Financials

Mumbai, September 17, 2025: Adani Green Energy Ltd (AGEL) has a big reason to cheer as India Ratings has upgraded the company’s ratings to “AA” from “AA-”, all thanks to a stellar financial performance and improved debt management. This rating is considered to be an indicator of a stable outlook. AGEL’s financial position has grown from strength to strength due to stronger cash flows, a balanced debt structure and improved liquidity.

Debt Profile Strengthens

A major improvement in the debt profile comes from the fact that there is no debt at the holding level. Moreover, the introduction of project life-linked repayment tenors has also led to an upgrade in the rankings. As a result, there is less dependency on large bullet maturities, which has considerably brought down the overall cost of borrowing.

As per the official records of India Ratings, AGEL’s repayment obligations stand at ₹3,880 crore in FY26, with refinancing needed for only ₹2,070 crore. The projected figures for FY27 and FY28 amount to ₹2,550 crore and ₹2,800 crore, respectively, which will be met without refinancing. The agency noted that this shift towards amortising debt structures significantly lowers refinancing risks.

Liquidity Position Improves

There is a significant improvement in liquidity owing to a drop in refinancing requirements. Additionally, the company is also capable of accessing project-level financing. Under its capital expenditure model, AGEL typically raises construction debt during the development phase, which is then refinanced with long-term project loans once the assets become operational. This approach has allowed the company to maintain steady cash flows while limiting exposure to short-term refinancing pressures.

The rating agency highlighted that fund flow from operations will be sufficient to cover repayments, even during periods of market uncertainty. This provides additional financial stability and cushions AGEL against external disruptions.

Operating Performance Gains

AGEL reported operating cash flow of ₹8,360 crore in FY25, compared to ₹7,710 crore in FY24. The improvement was driven by higher earnings before interest, taxes, depreciation, and amortisation (EBITDA), reflecting better operational efficiency and expanded capacity.

The company continues to strengthen its portfolio of renewable assets across India. India Ratings noted that AGEL’s ability to secure financing for under-construction projects reinforces its financial flexibility and positions it well for future growth.

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