Adani Green Energy's record carries a qualified audit opinion in FY23 and an audit-trail exception in FY26. Revenue depends materially on litigation: ₹1,077 crore from a single tariff dispute awaits a Supreme Court ruling. The group repeatedly used short-term borrowings for long-term subsidiary funding, with ₹8,384 crore deployed for such purposes in FY26 alone. Consolidated net debt stands at 9.4 times EBITDA, and off-balance-sheet arrangements mask the full extent of economic debt.
Key findings
- Revenue of ₹1,077 crore rests on a Supreme Court tariff ruling
Major- Cumulative revenue recognised from tariff disputes with TANGEDCO reached ₹1,077 crore by 31 March 2026, while the matter remains pending in the Supreme Court. Across all counterparties, cumulative disputed-tariff revenue exceeds ₹1,200 crore, and ₹107 crore from the AGEUPL dispute with Uttar Pradesh Power Corporation has been unrealised since October 2022. The auditor identifies revenue recognition and recoverability of related receivables as a Key Audit Matter, an area needing the most judgement, because customers withhold payments for reasons including reduced tariff and excess energy injection. - Short-term borrowings of ₹8,384 crore funded long-term subsidiary investments in FY26 alone
Major- The standalone auditor reported under CARO clause (ix)(d) that the Company used short-term borrowings of ₹8,384 crore for long-term purposes in FY26, mainly towards investments and loans to subsidiaries. Consolidated net debt to EBITDA stood at 9.4 times and interest coverage fell to 1.31 times in FY26. The standalone company had loans from subsidiaries of ₹7,753 crore where contractual terms were modified to extend the loan term by five years, and this amount is scheduled to fall due in the next financial year. - Promoter perpetual debt of ₹749 crore is classified as equity, while supplier finance payables were reclassified out of borrowings
Major- The Group issued Unsecured Perpetual Debt to Adani Properties Private Limited carrying cumulative distributions at 11.00% p.a., classified as equity under Ind AS 32, keeping ₹749 crore outside reported borrowings as of FY2025-26. The standalone company reclassified supplier finance arrangement trade payables of ₹2,105 crore from Current Borrowings to a separate line under financial liabilities in FY2025-26. The Group's consolidated lease liabilities carry a weighted average incremental borrowing rate of 9.50% to 10.50%, with leasehold land including 19,000 hectares at Khavda, yet only ₹3,067 crore of lease liabilities appear on the balance sheet. - Directors face concluded and ongoing regulatory actions across multiple jurisdictions
Major- On 15 May 2026, Gautam S. Adani and Sagar R. Adani consented to entry of final judgment in the SEC civil complaint, agreeing to pay civil penalties of USD 6.00 million and USD 12.00 million respectively. On 18 May 2026, the US DOJ filed a motion seeking dismissal with prejudice of the criminal indictment against the same directors and Vneet S. Jaain. The company also received a show-cause notice from SEBI relating to the validity of a Peer Review Certificate of one joint auditor, which remains pending as of the FY2024-25 reporting period. - Standalone impairment provisions on subsidiary investments rose sharply to ₹202 crore in FY26
Minor- The Company recognised an exceptional impairment provision of ₹202 crore in FY26 on investments and loans in subsidiaries and step-down subsidiaries, up from ₹46 crore in FY25. The standalone impairment provision on investments in perpetual debt of subsidiaries rose to ₹149 crore as at 31 March 2026 from ₹118 crore a year earlier. The Group disposed of its Vietnam investment in Phuoc Minh Renewables Pte. Ltd. under a Share Purchase Agreement dated 22 January 2025 and recognised a loss of ₹81 crore as an exceptional item in FY2024-25.
What to watch
- Supreme Court final hearing and outcome on the TANGEDCO differential tariff dispute (₹1,077 crore cumulative revenue recognised as of 31 March 2026).
- Maturity of ₹7,753 crore in loans from subsidiaries falling due in FY2026-27 after the five-year extension of contractual terms.
Bottom line: This is a disclosed and audited record where the audit opinion has been clean in five of the last six years, but the structure carries concentrated risk. Revenue depends on litigation outcomes, short-term borrowings repeatedly fund long-term subsidiary investments, and promoter perpetual debt of ₹749 crore is classified as equity while supplier finance payables were reclassified out of borrowings. Read the receivables line and the debt covenants with that in mind, and watch whether the Supreme Court tariff rulings and the US court orders provide resolution.