Thank you, Danish. Good evening.

On behalf of ICICI Securities, I welcome you all to the Q3 and 9-Month FY26 Earnings Conference Call of Adani Green Energy. We have with us senior management on the call.

We'll start with a brief remark on the results, followed by Q&A. I would now hand over the call to Viral, Head, Investor Relations, for the introduction of the management and the opening remarks.

Over to you, Viral.

Thank you, Mohit. Good afternoon, everyone.

We are pleased to present the results for 9-Month FY26. Welcome all the participants to our earnings call.

I hope you would have had the chance to go through our earnings presentation. We have with us Mr.

Ashish Khanna, the CEO of the company. We have Mr.

Saurabh Shah, CFO; Mr. Raj Kumar Jain, Head of Business Development.

Without wasting any further time, I would like to now hand over the call to Mr. Ashish Khanna for opening remarks, which will be followed by Q&A.

Thank you.

Thanks, Viral. Good afternoon, everyone.

I am delighted to share Adani Green Energy's robust operational and financial performance for the first nine months of fiscal year 2026, underscoring our relentless growth trajectory and industry leadership. Our energy sales surged by an impressive 37% year-on-year, reaching 27.6 billion units.

This robust growth is a direct result of significant greenfield capacity additions and strong plant performance. Our operational renewable energy capacity expanded by 48% year-on-year to 17.2 gigawatts, reinforcing our leadership as India's largest and fastest-growing pure-play renewable energy company and putting us firmly on course to achieve 50 gigawatt target by 2030.

In calendar year '25, we added 5.6 gigawatt of greenfield capacity, which represents nearly 14% of countrywide solar and wind capacity addition.

Our landmark Khavda project, the world's largest renewable energy installation, continues to advance at an accelerated pace, with an operational portfolio now standing at 7.7 gigawatt of solar, wind, and hybrid assets. We are now on track for deployment of one of the world's largest single-location battery energy storage project in coming months.

Our hydro pump storage project on Chitravathi river in Andhra Pradesh is also on track. Our industry-leading financial results further reflect our operational excellence.

Revenue from power supply increased by 25% year-on-year to Rs 8,508 crore, while EBITDA grew by 24% to Rs 7,921 crore, achieving an EBITDA margin of 91.5%. These results are powered by advanced technologies and digitized operations, leveraging sophisticated data analytics, machine learning, and artificial intelligence for real-time monitoring, enabling superior operational performance.

Adani Green Energy's commitment to sustainability and responsible business practices continues to be recognized globally. We have been named world's number one green utility in the 2025 Global Top 100 Green Utilities ranking by Energy Intelligence.

AGEL is top sustainability performer in power generation sector for second consecutive year in NSE sustainability ratings. As we look ahead, we remain steadfast in our commitment to India's energy transition by enabling large-scale adoption of affordable clean energy.

Adani Green Energy is powering sustainable growth for India and the world. Thank you.

You can now open the lines for questions and answers.

Good evening, sir. Thanks for the opportunity.

My first question is grid availability has been low since the last two quarters. How much of it has impacted generation for solar, wind, and hybrid as well?

What would have been the generation if, say, the availability was 100%?

Abhinav, it's a good question. Yes, grid availability has been impacting us, not because of any other reasons, but because of the schedules are not being met and there has been delays in a grid augmentation which is happening.

We were expecting in the last quarter some 2 to 3 gigawatt of augmentation, which has not taken place. However, having said that, as we speak, in this month itself, there has been augmentation of 1 gigawatt, which is helping us, and there is no grid curtailment as well as Rajasthan is concerned on that account.

At Khavda, the challenge remained. We were expecting it to be there in the last quarter that the augmentation will take place.

However, as we see in the coming month itself and in this quarter, we are expecting 2 to 3 gigawatt of augmentations from Khavda itself for evacuation of power. I think there would be a further augmentation at the end of the March by another 1 gigawatt of the lines which we are closely monitoring as well as their schedules are concerned.

Yes, because of the seasonality and certain ROW issues, there has been delays in the last quarter by agencies who are executing this grid augmentation. We do expect things to improve in near future.

Thank you, sir. That was helpful.

My second question is we are selling about 46% on merchant, how much of it was infirm power and when can we expect that to be sold on PPA?

On the merchant aspect, first of all, let us appreciate a fact that the infirm power on overall basis of returns is an add-on to what our expectations on return on day one. By nature, whatever we earn on it is in addition to what we have envisaged on the return parts.

The second aspect is that, yes, our strategy has been to maintain around 20% of merchant, and I think some of it and most of it is also being utilized once the PPA are going to be operationalized. In the current context, it has started already coming in and we do expect in the coming year itself more than 1 to 2 gigawatt of it, which is possible.

Having said that, some of it we are also going to utilize in the coming year for our input power for our battery storage, which we have already announced, and that's going to be a big take on that part too. Got it.

Final question would be as per looking at a current capacity of 17.2 gigawatt, what would be our run rate EBITDA? Right.

Can you repeat?

As per our operational capacity of about 17.2 gigawatt, what would be our run rate EBITDA?

For FY26, we are projecting a run rate EBITDA of Rs 17,000 crore, including other income of about Rs 1,000 crore. Our run rate EBITDA from our power supply revenue would be about Rs 16,000 crore.

Understood. Thank you and all the best.

Hello, sir. Sir, my first question is I'm failing to understand why is the revenue going down despite our capacity is increasing?

As of September end, we had 16.7 gigawatt, which is operational. Ideally, the entire thing should have been come into revenue in the December quarter, right?

When I just divide the revenue with the operational capacity, it is less than 0.65 lakh per megawatt. What am I missing here?

Is there some one-off or there is something which is missing? Bhavik,

you have observed it right. I think it is not missing.

It is the seasonality. There are certain things which has not helped in the last quarter, and this capacity has been augmented.

Most important of it is the seasonality impact, which is there. As you would have otherwise also is aware of that the wind, for that matter, has been particularly low in this last quarter compared to whatever we have been considering as such.

Coupled with it, the curtailment impact, which we just shared across to an extent, has also not helped the cause in overall per se. Of course, the market pricing for the merchant power has also been subdued in the last quarter.

However, having said that, in this particular quarter, as this year has begun, we are looking at a better market pricing as well as the merchant power is concerned.

I think the curtailment, as I shared with you, are also going to reduce substantially with this addition and augmentation of the grid. We do expect better things in this particular quarter.

Your observation is very right. Because of these factors, there has been a dip as well as the revenue realization is concerned.

Right, sir. Just can you also throw some light on the curtailment part?

Why we didn't have this issue in the last quarter and why is it coming up now in this quarter? How much is the gap in terms of, say, evacuation which you are having?

Will it in the next year continue to be there? Okay.

You see, the curtailment was always there. It was not that if there was no impact of the curtailment in the last quarter.

One of the things which helped us in the last quarter is, if you look around, that the wind has been a predominant source of our revenues, which has been much better, as in that particular quarter. Wind generally comes on a timing where the curtailment is much less.

It impacts solar to a large extent than to the wind part of it. It was not that the curtailment was not there in the last quarter.

In this particular quarter, we have been seeing that what was supposed to become in this particular quarter, which we were expecting, has been now delayed by two months and weeks, for that matter.

That is why we have seen a much adverse impact in this last quarter compared to a quarter before. Like I said, we are expecting relatively better as this quarter ends on the curtailment part.

Right. Sir, regarding our interest cost, which has shot up, how much of it is on account of, say, the currency depreciation which we are having and how much will be our actual interest cost if that depreciation would not have been there?

See, we don't have any impact of depreciation of rupee because we are fully hedged in terms of principal as well as interest. Whatever is the mark-to-market that gets generated on interest rate or currency depreciation gets benefited out of the hedge benefit that we get.

As such, the interest, whatever the interest cost is, is mainly because of the capacity addition that has come up in the last quarter or in the last nine months. That is the interest cost that we are paying.

There is no impact of rupee depreciation on this.

Understood. Sir, do you have any guidance for the current year and the next year in terms of revenue and capex both?

In terms of revenue and in terms of capex, capex, I'll take first. We are looking at capex which will be higher than what we have done this year or what we will be doing this year by the end of Q4 because we are looking to grow the capacity by FY30 to 50 gigawatt.

On that line, the capex will be continued to be in the range, which is we have said, about 35 to 40,000 crore of capex that we will do for the next year. Revenue, as such, our run rate EBITDA, as I said, would be in the range of 16,000 crore for power sales, and in terms of overall EBITDA would be 17,000 crore.

The revenue in that sense, at 92% of EBITDA margin that we keep, it will be in that same range of 18, 19,000 for this year as a run rate EBITDA. For actual numbers for next year, if you look at the actual revenue per se, it would be in the range of about 17 to 18,000 crore for next year.

Understood, sir. Understood.

Thank you so much. All the best.

Hi, everyone. This is Shweta here on behalf of Manish from Cantor.

My first question is on revenue realization. We see in the presentation that grid availability is down again this quarter, and we wanted to understand what are the factors that are impacting the grid availability, especially for solar.

Shweta, let me reiterate what I've said. Predominantly, our expansion is coming at two places, if you look.

One is Rajasthan, other is Khavda. At both these places, there has been an impact on the grid availability per se for our new projects.

As I said, in Rajasthan, we have been impacted, but however, in this particular month, 1,000 megawatt has now been released, and there is no curtailment on that. In Khavda, the curtailment remains, and we were expecting this 2 to 3 gigawatt, which we are envisaging now, to come in the last quarter itself.

Now since there has been a delay as well as the grid enhancement is concerned, that is the impact which has taken place in the last quarter. We also expect that additional 1 gigawatt may be coming by the end of this quarter for evacuation from Khavda.

In nutshell, what we were expecting of this 2 to 3 gigawatt in the last quarter is what has now been delayed and is now going to come in this particular quarter in the coming weeks.

That's very helpful. Another question on revenue was, were there any meaningful changes in tariff mix for the quarter that impacted the revenue per unit of sales?

No, I think there was no tariff mix per se, but since the merchant power pricing has been subdued in the last quarter, you would see that the revenue is not in line with what has been there in the past as such. There's no change in the tariff mix per se.

The market has gone down in the last quarter, which all of us has experienced.

Understood. One more question on the profitability.

We just wanted to understand the breakdown of the margin, and also how should we think about steady-state sort of operating and maintenance cost per megawatt, especially as the portfolio scales? This is the power supply margin.

From the perspective of solar, the O&M cost that we take is about 3.5 to 4 lakh rupees per megawatt, and in terms of wind, it is 6 and a 6 to 6.5 lakhs per megawatt. Shweta, let me add on this.

You will appreciate the fact that as we are growing, we have some assets which are of a very small in nature. Obviously, when you average it out, those assets have relatively higher maintenance cost.

Now, since we are expanding in areas like Khavda and Rajasthan, which has a larger capacity, especially in Rajasthan, where we are growing 30 gigawatt at a single location, these costs, on an overall basis, are also going to reduce as and when we keep on growing our capacities in Khavda.

Right. No, thank you for the colour, and again, congrats on a great quarter.

Thank you.

Thank you.

Hi, thank you for taking my question. My first question is on wind.

We understand the context on solar. When we calculate wind PLFs, we see them down as well.

Would you attribute that largely to wind speeds or again to grid curtailment issues?

No, no, no, it's absolutely wind speed. Nikhil, it is wind speed, and that's not only for us, but you can look around.

The wind speed, particularly in region like Khavda, has been the sole factor for our lower PLF at Khavda.

Perfect, appreciate the colour. The second question I had is, sorry.

Up here

in the H1, we have seen much, much better wind speeds than what we have experienced in the past. However, in the Q3, because of this seasonal change, we have seen a dip.

We hope that things are going to recover on this, but our operational capabilities are the best as of now. We remain the best there.

It's only because of the wind speed which has impacted our PLF, or in our terms, we call it CUF.

Perfect. The second question I had was these grid constraints are beyond our control, commissioning of transmission lines.

Do we see a risk that next year we would be able to do 5, 6 gigawatt again addition or do you think that should not be a challenge?

If you look at it, while I agree with you that our grid augmentation is not in our scope, we are very professional as well as bringing our power to the pooling stations, to the substations at the grid level. Having said that, the plants which we have seen of augmenting predominantly from Khavda, we do expect another 10 gigawatt to be added in the next year.

That is a big plus. While the expectations or the current forecasting is that it will be added by end of this calendar year itself, but we are keeping a very close monitoring on it.

The other factor which is going to help us, is huge deployment of battery storage at Khavda.

Solar power going as an input to this and then making us realize much better revenue from that stored power, battery storage, as we have already declared, by the end of this financial year, we are going to commission India's largest, for that extent world's largest, at a single location battery storage project. We also intend to enhance the capacities, maybe more than two times of what we have currently in this financial year, in the coming year.

There is a great arbitrage which is available with us for infusing this power, solar power, co-located with the battery storage and then taking full advantage of the peak power pricing from the storage price. It is a win-win from both sides and that will also help us to mitigate the risk of grid curtailments.

Perfect. The third question I had was specifically on a regulation.

We saw CERC release a draft regulation on DSM mechanism tightening. While your battery plans, of course, add or solve for that, do you see that coming in in some form or another, tighter DSM norms for wind and solar?

Yeah. Nikhil, it's Raj.

I think, yes, there is an intention from CERC to make it tighter. Industry has made multiple representations that how it is not necessarily suitable for renewable sector where a lot of it is based on what weather is there or what God gives us.

Similar thing which is there for thermal cannot be a ultimate hold for renewables. However, as you have pointed out, for me, as I am augmenting storage at these locations, for me, this is not a challenge, rather it's a business case for me for ensuring that I am able to capitalize on it.

We are not necessarily concerned about this particular regulation too much.

Appreciate the colour. One last question from my side.

We see government come up with these norms on virtual PPAs. You guys have the largest land bank and grid connectivity.

Do you plan to participate in those opportunities as well in the C&I space?

We keep our options open, Nikhil, but it all depends on the profitability on each and every aspect when we go out for these PPAs. We keep our options open on all the opportunities which come.

Great. Those are my questions.

Thanks for answering them.

Thanks for the opportunity. My first question is how much battery capacity you are putting up, and what is the tentative timeline for setting it up?

Mohit, we have already I think shared across that in this particular financial year, we are going to commission 3.3 gigawatt-hour of capacity, battery 3.5, to be precise. Like we said that we do expect, and we are aiming to add, more than twice of it in the coming year.

As and when it is finalized, we will share with you.

Sir, do we really continue to maintain this merchant capacity for the medium term, what you're having right now? Is that a fair assessment?

Mohit, we obviously take a very opportunistic view on this. As Ashish has mentioned, this helps me in my arbitrage opportunity on storage.

This merchant capacity would be able to feed our storage plants in Khavda, and I'll be able to take the better pricing in the evening peak markets with this. There's a significant flexibility.

Obviously, we always keep our options open to deploy this in PPAs where I'm able to make reasonable return and see this flexibility giving me the highest shareholder value.

If, Mohit, I can add on what Raj is saying, you'll appreciate the fact that paramount importance for us is to go at a scale and build projects at a scale which has the least cost from all parameters, which gives us the accessibility as well as the advantage of extracting maximum returns from those assets.

As Khavda is a case where we are building things at a scale, and then having build-up things at a scale, you have the option of co-locating battery storage and other options, too. There is lots of options available with us provided the returns are more than the threshold which we have and which is also reflected from our results.

Understood. My second question is, sir, I think, of course, you addressed the curtailment issue.

If I can ask in a different way, are you seeing any curtailment in existing long-term GNA? I'm believing that most of the curtailment is coming in temporary GNA, right?

Is it possible to define the impact under long-term GNAs, and is there any compensation for this curtailment under the long-term GNA? That's the question.

Mohit, we are not experiencing any curtailment on a long-term GNA. It is not right on me then to further dwell on that question.

We are not facing any challenges on the long-term GNA.

Understood, sir. My last question, sir, of course, the government has announced that they're looking to cancel this 40 gigawatt of solar PPA.

I do think that our exposure is very less. Can you please quantify our exposure and has there been any discussion further, and have you heard anything on that front?

Yeah.

If you look at, Mohit, our exposure is not very high in the 42, and I do believe that this news about canceling the PPAs, let's see where it happens. I think on one side, we do believe that there would be, by canceling of these LOAs, there would be connectivity released in the system.

On the other side, we all have bid with a certain return expectation and are committed for that price. While I leave it on to the judgment of those organizations which has signed the LOAs with us, but our overall exposure on the type of LOAs you are saying is very, very small.

Understood, sir. Thank you and all the best.

Thank you.

Hi, thank you for the opportunity. I just had a question regarding our raw material costs.

Now that we've seen silver prices really going up, what could be the impact in terms of if you could quantify how much silver contributes to our total cost and how do we really plan on hedging from the same in terms of where the tariff has already been fixed, but the project is yet to be set up completely? Pradyumna,

if you look at it, I think there is always, at the end of the day, these are commodities which will keep on going up and down. When we make a business case, we don't take into consideration the lowest cost of commodities.

We take a very conservative view on the cost of commodities. If I now go deep into it, the commodities which we are buying, of course, if you look at 60% of a solar capex on a project is the module price.

We have the advantage in future to have our own module production. In some way, we have mitigated the risk of a supply as well as the costing part of it.

Similarly, if you look at from a wind turbine, majority of the cost comes from a wind turbine in case of wind projects.

There too, we have our group company manufacturing the India's largest 5.2 megawatt machines and even going for other types, too. To a large extent, we have this price risk being mitigated in future.

Like I shared with you, when we make a business model, we never go by the most aggressive pricing as well as the commodities are concerned. Our returns expectation remains, and let me also reassure to you that most of projects where we are going ahead, we also tie up the things well in advance so that the contracts are maintained and we have a certainty of the items which we need for those particular projects.

Okay. Can you just quantify silver usually what percentage of total cost it contributes in a solar project for us?

Can you just repeat your question? I missed you in between.

How much contribution does silver have in our total cost in a solar project?

If you see, on a largely basis, the module is 55% plus minus 5% on the overall project. In a module, my understanding is that it is between 15% to 22% as well as the silver is concerned.

On overall basis, it's not going to make or break the life of the module part is concerned. Yes, these recent increases in the silver and otherwise do impact it on a short-term basis.

These are commodities, and whenever we make a business model, like I said, we are very sensitive about what can happen to the commodities rather than being very aggressive about it. Sir,

just to follow up here, usually, what's the target timeline for us? The timeline between the tariffs being decided and our equipments being ordered, the cost for the equipments being decided, usually, what's the time lag between these two things?

Actually, I'm not sure whether I have understood your question well, but let me reply you what I have understood in the process. Pradyumna, if you see, if we are adding 5.6 gigawatt, say, in 12 months, we have virtually 450 to 500 megawatt has been added on it.

One of the advantage of having such an amazing speed and a scale of working is that we are impacted less by the commodity variations. If you are executing a project in 18 months, then the vagaries of commodities generally impact you a lot.

Since we are very fast in our project execution, and then more importantly, after execution, taking the revenues out from it so that our revenues come early, that is not the case. I have understood your question in a manner that are we really adversely impacted in a project execution because of these commodity?

Yes, we all are impacted, but since our project execution speed is phenomenally high, and we don't have a typical 18 months period for even 500 megawatt, we completed in a 1 month's time on an average, if you see across, the impact is much, much less.

Actually, my question was what's the time lag between when we are able to fix the tariff for our project versus when we place the order for those equipments, what's the time lag between that? Because that would decide the kind of risk in terms of commodity price volatility we are exposed to, right?

That's what I was trying to understand.

The way we work is that whenever we have a project in place, first of all, we are very clear that that project, where is the land and where is the evacuation of the same. Once we have those elements in place, then it is a matter of a project execution.

Now if I tell you the project execution time, our philosophy is that the balance of systems, because if look around, as I said, 55% to 60% is a module pricing, we complete the balance of the system very quickly. We get the modules in place, and with our high speed of execution, then we do actually get the revenues out in a quickest time.

If you ask me on an average, like I'm sharing with you, if we are executing 500 megawatt of commissioning, we are deploying 500 megawatt also modules in a month's time. On an average, if you see, or 450 megawatt of module.

The time period is very short in this particular process. It is very difficult to answer your question in a manner that if I go out to get land, if I then start the whole process and then go out for a transmission line and ROW issues, I have one period in place.

Since I already have Khavda with us where I have a land in place, I have a infrastructure in place, I can quickly add on to the transmission line and only thing which matters is how quickly I can execute the project, our timelines are very different.

All right, understood. Thank you.

Hi. Thanks for the opportunity.

Sir, can you just quantify your merchant realization when it comes to both solar and wind for the quarter and comparable quarter for the previous year?

During the current quarter, our solar merchant realization was 2.20 per unit, and for the last quarter, it was for Q3 '25, it was 2.82 rupees per megawatt per unit. For the wind, it was around 3.5 rupees for this quarter, while it was 4.15 for last.

Let us also add that there is a RECs on the top of it.

Fine. Fine, sir.

That's it from my side.

Thank you, Anuj.

Thank you for the opportunity. My question is how strategic will the battery and the pump storage be in the Adani Green's portfolio the next 4 to 5 years?

Kalpit, very strategic. Very, very strategic, if that is what can satisfy you.

We are going to deploy, operationalize, and take full advantage of it. We are also having the advantage of an input solar available with us at a time where we can co-locate the batteries as well as the solar projects.

The pumped storage, we have already announced. We are on track, and in this particular quarter, too, we have announced that our Chitravathi project is on track to come in this calendar year itself, and the work among the other projects is also at a very big pace.

We do believe that renewable power from a stand-alone solar is going to shift towards a point of a RTC power where more and more organizations and including the government will look towards a certainty of this power during the peak time or as a round-the-clock power.

Our strategy towards investment and expertise in this particular way will be a differentiator between us and others in this industry. Of course, as we work at a scale which is unprecedented in this country, for that matter.

Okay. Okay.

Sir, as you mentioned that in the next year around we are planning to capex approximately 35 to 40,000 cr, and approximately 16,000 cr will be our recurring earnings like EBITDA and all. For the remaining capex, how are we planning?

Are we going through debt raising or what are we planning actually?

See, for us, we are constantly into the debt raising phase because of the under-construction projects that we have. A lot of debt is already sanctioned for the next year's phasing also because we continue to raise debt at a pace where for the next 9 months to 1 year horizon, the debt is already available with us for the next set of requirements.

From that aspect, the sanctions of about 9 months are already there in with us.

Okay. Understood.

Sir, currently, we are already having the net debt of 76,000 cr, and we had about 9 months of area where we can fulfill our requirements leading to repayments and interest payments, right? What is the next expected peak of net debt level?

From an operating debt-to-EBITDA, run rate EBITDA, we are at 4.6. From a overall debt-to-run-rate EBITDA, we are at about 5.6 levels.

We see that it is more or less in this same range that we will move along in the next set of 2 to 3 years till we reach the 50 gigawatt capacity.

Okay. Understood.

That's from my side. Thank you.

Yeah. Am I audible, sir?

Yeah. Thank you for giving opportunity.

You said that before setting up the facilities, you look at the evacuation issues and you start the BOS activities very fast. That is fine.

Again, you are saying that now due to the grid availability issues, the evacuation is not possible and curtailments are actually creating issues so far as revenue is concerned. My question: where is the gap that is coming from that understanding of the facilities of the evacuation and setting up the facilities?

What is lagging because ultimately it is creating stress on the balance sheet so far as the debt-to-EBITDA, net debt that is concerned, that is mounting, number one. Number two is that what is the plan of battery storage in the Khavda area

in terms of capacity of the solar to battery storage in terms of banking of the power? Lastly, in terms of EPC, we have seen that now recently your framework has changed and you have changed [giving assignments?]

to outsiders. What is the intent of that, whether it is a strategic shift to expedite the work and, or to reduce the cost?

Surya, can you be silent on that part, Surya? There's a lot of background noise coming.

Thank you so much. On the evacuation part, like we said that there is a gap and there is a delay which has impacted us.

That is there. You will also appreciate a fact that say the evacuation of 2 to 3 gigawatt which we were expecting in the last quarter, you can't build a 2 to 3 gigawatt on one day when the evacuation will come.

We have to time it up. We have to time it up on this factor.

You will appreciate a fact that what we are saying 2 to 3 gigawatt in Adani's framework is virtually twice or more than twice by a normal or a top renewable company. We do things at a scale.

Since we are talking in gigawatt terms and not in megawatt terms, we have to start the work well in advance and take advantage of that on the day the evacuation comes, we should be ready for it. Any 3 gigawatt, even with our best in the industry scale of 400 to 500 megawatt a month, basically will take 6 to 6 months plus or 7 months if we are timing it up after the evacuation has come.

We have to time it up and there will be always a challenge of on the day it comes how much we can evacuate and how much we cannot, which is work in progress. Second point, there is a quarter shift, which we shared with you, which has definitely impacted us in this process.

That has been an impact in the last quarter and we are not hiding it from anyone. It is a impact on us which you're not liking, but we are hoping that in this particular quarter, things will pan out as we are seeing.

Regarding your question on the battery storage, we have already said that 3.5 gigawatt-hour of a battery storage is what we are committed to commission in this coming quarter or in this financial year. Like we said, we are hoping while the numbers are still being worked out, but our expectation is that we will do more than twice of it in the coming financial year as well as the battery storage is concerned.

In nutshell, this battery storage will act as absorbing the power which otherwise would have been curtailed on a short-term basis because on a long term, we keep on mapping when and how the power is going to be evacuated. There will be always a challenge on a short-term basis.

We cannot take that point away from the business we are in infrastructure. Regarding your question on EPC, yes, we are best and we continue to remain the best.

We realize that for the scale at which we are going to go for, we do need other contractors, too, at a scale which can work with us. Frankly speaking, we don't call them contractors, we call them partners who will co-develop these projects with us as partners and take it forward.

We have a road map of 30 gigawatt in the next 4 years per se. I think it is important that we take advantage of all the best resources which are available in this country to build these projects.

Ultimately, by 2030, we are going to be 50 gigawatt and we need all of the best resources which are available in the country to help and support us on that particular cause while we remain steadfast. Our performance till date has shown that it is not because of any other reason, but to augment what we can do to enhance our capacity addition build.

Storage facilities, will it be designed for two hours or four hours?

You have to appreciate a fact that it is not a design criteria per se, but yes, we are conscious of the fact that it can be extended from that standpoint. Even if you have three hours, you can evacuate the power to two hours or four hours depending on that particular frame.

Two to three hours is what is the generic there, and you can extend it.

You are saying irrespective of the evacuation challenges, installations of solar will continue?

We are saying that evacuation is a challenge on a short-term basis. We are timing it up so that we install our solar projects in line with what is coming on a long-term basis.

However, to mitigate the risk on a short-term basis, battery storage will come very handy in mitigating those risks. I hope I am clear on our statement on this account.

Okay. Secondly, sir, finally, you said roughly 11% of the project cost is silver related, and which has seen as a very tremendous rise of late.

My question is that whether some of this IPPs which were stopped and where the discoms were not showing interest due to the subdued tariff, will it so some kind of spike in interest because then the cost of project will also go up, so as the tariff may also have some sort of upward trajectory movement maybe in short term? Will it spike interest and even it will impact the merchant tariff in our case?

I think if there is a shortage of power, it will improve the merchant tariff in our case, for sure. Having said that, I think we have to look for when you are signing up 25-year PPA, it has to be win-win for both the parties.

I don't think so that discom was just holding it up because of the pricing part. Again, this 42 gigawatt was bid without any backup as well as the offtakers are concerned.

I think that's a challenge in the whole system. You first bid the project, you get a price, and then you go to the offtakers for that particular price.

A silver pricing which is a critical component in a module to change the whole dynamics, I'm not very sure that's the right way to put it across.

Thank you, sir.

Yeah. Hi, sir.

Thanks again for the opportunity. Just a final question on overall industry.

We're seeing a slowdown this year compared to the past two years in terms of tendering. What are your views on tendering within the renewables for the next couple of years?

You're talking from our standpoint or from industry standpoint?

Overall industry standpoint.

I think in the industry, there has been a realization that, like has been said in this call itself, that there are 42 gigawatt of LOAs, but not translated into PPAs and PSAs. I think there is a backlog out there.

Like to believe that it is not a matter of a one particular way. When we talk of renewable, we should look holistically taking into consideration the storage, taking into consideration wind, taking into consideration solar which can be utilized for a input to storage, whether it is pumped storage or it is battery storage.

I think it is important that we look at the whole thing very holistically.

I also do believe that, rather than the central grid to be utilized, the state grid can be utilized and tenders can come from a state, too, where they have connectivities on the STU levels, which can be connected and which will not be impacted on that frame. I think there are many aspects which are very dynamic in nature today as well as ALMM is concerned, which is going to come up, as well as this untied capacity is concerned, as well as new evacuation capacities are concerned.

In any case, there are commodity pricing which is going to impact the tariff per se on a short-term basis. When you look at renewable per se, I would suggest that we should look into holistic manner on a long-term basis for a solution which is good for the buyer as well as for the seller, in this particular case developer as well as the procurer.

I think a stage has come where the peak power tenders, the RTC tenders, we will see more of them rather than a pure-play solar tenders per se.

Thanks for that colour. Thank you.

Thank you for the follow-up, sir. Sorry, just beating around my previous question a little more.

You spoke about having a 12 months timeline between a project being actually commercialized. Silver prices during this time have actually gone 3x and again, silver for our projects is around 10, 11% of the total cost.

What does it really do to our IRRs of these projects, right? These are anyway 15, 16% IRR projects.

How do we really deal with it? Is there a way to pass on these prices?

Because otherwise the IRR really takes a hit, right? A 3x increase in a commodity contributing 10% of the cost increases our total project cost by quite a bit.

I don't know why you are saying we are not answering it very clearly. Let me answer it very clearly, and if you're not clear, do say it rather than a subsequent question.

What we have said is we, when we bid the project, always take into consideration the vagaries of commodities. We have bid these projects long time back, not at the current stage itself.

At any stage, we have a clarity on what can go with the commodities because it remains a commodity. To the extent we can hedge it's one matter, but we take that into consideration on our return expectation.

That is why you will appreciate a fact that whenever you see the tenders being bid and all those factors, you will not find us at a certain level which people question as well as the tariffs are concerned.

We are very, very conservative in our costing. We are very focused on our return expectation.

When we bid the project, that is the time we are going to buy that particular element. Today, well, the silver has gone up, but in the past, the silver was not that up.

In future, too, there is no guarantee that silver will remain at this particular level, which will further impact the module pricing. Again I am saying, at the time when we are buying it, we look at it.

At the time when we are bidding, we are overly conservative on our commodity pricing, particularly in this field because these are primarily commodities per se. If you buy at a higher rate, yes, ideologically, the returns should be impacted.

Since we are conservative on that particular cause, it is still a very different and a decent level of returns which this project gives to us.

Sir, I understand that we'll be conservative in the pricing, but at the same time, we wouldn't have accounted for a 3x increase in silver, right, during this period. No one would have, right?

My sense is modules are amongst the last equipments to be ordered. Just before the project is being completed is when modules are really ordered, right?

Then how do we really account for such project?

Yeah. Let me answer you on one part.

I will also then ask Raj to further help you. Somehow, I think I am not getting that clear to you.

The fact remains that if you are in the industry, then around four years back, there was certain module pricing. Sometime back, if you look at, the cell price at that particular time, or the module prices a year and a half back, was even less than the cell pricing which was quoted a few years back.

You do take advantage of those situations, too, when the prices go dramatically down. However, like I said, these are projects where you make profits.

At a particular time when the commodity goes up, there is always a dent on the returns. However, if you are conservative at that particular time, you make a better returns.

If you are conservative at the time of bidding per se and your returns expectations are higher than the normal, you also make a decent return on that, too, from a industry standpoint. Raj, you like to add on to this?

No.

I think, Ashish, you have been very clear. Again, just to bring it to the light, recent module prices which you saw in the last year were the lowest in the history of module pricing.

Obviously, in case of our portfolio, we have almost all our bids which are at a price where we have factored in much higher module prices, as well as built in relevant risk framework where we had discounted them with those potential vagaries in the various factors, whether it is modules or other considerations. Yes, obviously, if the module prices go up, it will increase the cost for the developers, including for us, but it is a question whether you have factored it.

If people have gone very aggressive based on last year prices and they have won something, they may face certain issues.

That is not the case with Adani.

Understood. My last question is if you could just tell us how much increase in module prices are you seeing currently on a YoY basis compared to same time last year?

What were the prices then and what are the prices now that you're seeing?

It's around 10% which we are seeing. You have to appreciate a fact, do you have a long-term relationship with the suppliers?

At what scale one is buying? What is the relationship with those particular suppliers which you have?

Which country you are buying from? What are the capacities which are available there at that particular time?

It's not an apple-to-apple comparison per se. There are things which changes across.

We have been seeing a increase in the recent past of around 10%, but at the end of the day, they are commodity. They can go up and down in that manner.

All right,

thank you so much.

Some people are even reporting slightly more, but that's up to the individual company when and how they buy it.

I really appreciate all those who have participated in the call and are being closely monitoring our organization. I think it is the most exciting times for us.

There has been challenges which we openly and transparently have been sharing with you with respect to the transmission line constraints, the augmentation which was expected to come on that delay, there has been subdued market pricing as well as the solar price is concerned, and of course, the weather has not helped us. These are very seasonal in nature.

I think on the overall industry part, we have to give it a longer time frame than a quarter on that. The fact remains that the EBITDA margin remain the highest in the industry and the cost remains lowest.

Our expansion is going on.

We are very excited about our storage solutions which we are adding at a great scale, which I said is further going to de-risk some of the challenges which we have been facing with respect to pricing as well as with respect to evacuation constraint. It's a very exciting time for us.

Q4, we are very excited to further add up and then reach the commitment of an extension in this particular year, which we have already committed. We are very excited to reach that.

Of course, Adani Green will remain as number one renewable company in this country from all aspects. Thank you once again for joining this call and of course organizing it.

Thank you very much ICICI Securities for helping organize the call, and thank you all the investors and analysts for joining this call. Please feel free to reach out to us for any further questions.

Thank you.