Facing transmission constraints that led to curtailment of power, (AGEL) has not only slowed renewable capacity additions, but has also taken an estimated ₹1,200–1,500 crore hit to EBITA in FY26.
AGEL indicated that while curtailment resulted in an immediate EBITA hit of around ₹500 crore, the broader impact — when benchmarked against expected merchant power tariffs going forward — could be significantly higher, taking the total loss to ₹1,200–1,500 crore.
“We have lost about ₹500 crore of EBITA in the past year on account of curtailment. If you look at the rates at which we are looking at contracting our merchant capacities going forward versus the realisation that we had in the past year, the loss will be in the range of ₹800 crore to ₹1,000 crore. So we would have lost somewhere in the range of ₹1,200-1,500 crore of EBITA in the past year, which we do not expect to happen going forward in the coming year and the year after that,” Sagar Adani told investors on Friday evening.
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The losses were driven by the inability to evacuate electricity due to inadequate transmission infrastructure, resulting in renewable power being curtailed and going unsold. “The power that is curtailed today, goes waste. So when you put up a battery storage capacity, you use otherwise wasted power, which today has zero economic value, into BESS, making the cost of it very low and hence for a limited time perspective the margins are significantly high,” he said.
In response, the company is moderating its expansion pace despite having higher execution capability. “ AGEL has both the financial flexibility and the organisational capability to execute 7-8 GW in a given year. We are stopping our execution at 4.5-5 GW looking at the transmission and evacuation constraints. We do not want to repeat the mistake of the past year going forward,” Adani said.
As a mitigation strategy, AGEL is accelerating investments in battery energy storage systems (BESS), which can store excess generation and release it during peak demand hours. “We expect to commission more than 10 GW/hour in this coming year. This is a very substantial battery addition that AGEL is in the process of executing,” he added.