(AGEL) is accelerating its battery energy storage system (BESS) expansion with planned investments of around ₹15,000 crore, as part of a broader FY27 capital expenditure programme pegged at approximately ₹45,000 crore, reflecting a sharp scale-up in integrated renewable and storage infrastructure.
A large share of the current build-out is concentrated at the company’s flagship renewable energy complex in Khavda, Gujarat, which has rapidly emerged as one of the world’s largest renewable-plus-storage hubs. At the same time, Rajasthan is being positioned as a major next frontier for BESS deployment, strengthening AGEL’s multi-state storage footprint.
Executive Director Sagar Adani on Friday said that the company has already added 1.4 GW of battery capacity at Khavda over the past year and is on track to cross 3 GWh of installed storage capacity in the coming days. At that scale, he noted, AGEL would account for nearly half of India’s operational battery storage capacity. Adani told investors that Rajasthan will play a key role in the next phase of expansion, stating, “We will be having BESS projects in Rajasthan going forward,” signalling a structured pipeline of storage projects beyond Gujarat.
The company is using large-scale battery systems to address transmission constraints in renewable-rich regions, enabling solar power generated during the day to be stored and dispatched during evening peak demand hours. This model is increasingly central to improving grid utilisation and unlocking higher value from renewable assets. “We expect to commission more than 10 GWh of battery storage this year,” Sagar Adani said, underscoring the pace of execution across its storage portfolio.
Overall, AGEL’s FY27 capex of around ₹45,000 crore includes approximately ₹15,000 crore earmarked for BESS, highlighting the growing capital intensity of battery-led renewable expansion and the company’s ambition to build utility-scale storage across multiple renewable corridors.
Q4 profit up 34%
On Friday AGEL reported a 34 per cent year-on-year rise in consolidated net profit at ₹514 crore for the March quarter, even as it booked exceptional charges, including a write-off related to its project exit.
The arm of the Adani Group recorded a ₹52-crore write-off during the quarter related to the withdrawal from a 434 MW wind power project in Mannar and Pooneryn in Sri Lanka, part of a series of one-off items that weighed on its full-year profitability.
Revenue growth during the quarter remained steady, with total income rising 14 per cent to ₹3,727 crore, while revenue from power supply increased 16 per cent to ₹3,094 crore, reflecting higher generation and improved plant performance. For the full year FY26, however, the company’s net profit declined marginally by 0.7 per cent to ₹1,987 crore, despite total income rising 11 per cent to ₹13,819 crore.
Costs, exits and damages
The muted annual performance was impacted by multiple exceptional items, including refinancing costs, project exits and liquidated damages. These included the Sri Lanka project write-off, ₹24 crore in liquidated damages paid for exiting a power purchase agreement, and ₹178 crore in one-time refinancing costs linked to prepayment of borrowings across subsidiaries.
Despite the drag from one-off items, the company’s core business remained robust, supported by rising generation, capacity additions and improved plant performance. sales during the year rose sharply, increasing 34 per cent year-on-year to 37,567 million units, supported by significant capacity additions and strong operational execution.
The company added 5.1 GW of greenfield renewable energy capacity in FY26, taking its total operational portfolio to 19.3 GW, among the highest annual capacity additions globally outside China. Much of this expansion came from projects commissioned in resource-rich regions such as Khavda in Gujarat and Rajasthan.
On the storage front, the company installed 1,376 MWh of battery energy storage systems (BESS) capacity at Khavda, one of the largest single-location deployments globally. It is also progressing on its pumped hydro storage project in Andhra Pradesh.