This multibagger Adani Group stock is headed for up to 40% rally; here's why

Adani Green Energy shares target price: Domestic brokerage firms continue to remain positive on Adani Green Energy shares and see up to 40 per cent upside in this multibagger stock from Gautam Adani-led Adani Group. They are positive on Adani Green's strong financial and operational performance coupled with growth plans and solid execution.

Adani Green Energy posted a strong Q2FY26 performance, despite softer realizations and seasonal impact on CUFs. The company maintained its FY26 capacity addition target of 5 GW and remains on track to reach 30 GW by FY30. Brokerages stay positive on the back of robust project execution, stable long-term PPAs, and strong growth visibility.

Adani Green Energy reported a net profit of Rs 644 crore for the September 2025 quarter, clocking a 25 per cent growth on a year-on-year (YoY) basis. Its revenue from operations inched up marginally to Rs 3,008 crore in Q2FY26. Its Ebitda rose by 17 per cent YoY to Rs 2,603 crore, while margins stood at 86.5 per cent for the reported period.

Adani Green's consolidated Q2FY26 Ebitda rose 17 per cent YoY to Rs 2,600 crore, led by 49 per cent YoY uptick in operational capacity to 16.7GW. YoY growth in sale of power was slower at 34%, as CUFs were impacted by seasonality, besides the fall in grid availability, said Emkay Global Financial Services.

Book realization declined 3 per cent QoQ, on lower merchant tariffs, as solar/wind tariffs declined to Rs2.1/5.1 per kWh vs Rs 2.2/5.7. Net debt stood at Rs 79,900 crore as of Q2FY26-end, while H1FY26 capex was Rs 12,300 crore, with FY26/27 capex target at Rs 30,000/30,000-35,000 crore. Target of 30GW by FY30 is intact, it said.

The management reaffirmed its FY26 capacity addition guidance of 5GW, with 2.4GW already added in H1, while CUFs should improve by 100-200bps YoY as Khavda capacity ramps-up. We largely retain FY26-28E earnings, as gains from faster project commissioning and higher effective capacity—boosting power sales—offset any realization downsides," Emkay added with a 'buy' rating and a target price of Rs 1,500.

Shares of Adani Green Energy dropped more than 2 per cent to Rs 1064.30 on Thursday, with its total market capitalization slipping to Rs 1.72 lakh crore. The stock had settled at Rs 1,085.90 on Tuesday. The stock is down nearly 40 per cent from its 52-week high at Rs 1,733.85 hit a year ago. It has jumped 43 per cent from tis 52-week low at Rs 758 in March 2025.

Asit C Mehta Investment Interrmediates (ACMIIL) remains optimistic about Adani Green's long-term growth prospects, backed by its dominant position in India’s renewable power sector, strong project execution, and disciplined capacity expansion. With an operational base of 16.6 GW and a robust pipeline exceeding 34 GW, the company is well on track to achieve its 50 GW target by 2030, driven by rapid commissioning at the Khavda Renewable Energy Park and continued efficiency gains, said

A high share of long-term Power Purchase Agreements (PPAs), covering over 85% of capacity, provides stable cash flows, while the merchant and C&I portfolio offers upside flexibility. Supported by digital asset monitoring, sustainable operations, and vertical integration within the Adani Group, it remains a key enabler of India’s clean energy ambitions, it said.

"We project a revenue CAGR of 16.2 per cent over FY25-FY27E and, based on an EV/Ebitda multiple of 30 times on FY27E estimates, derive a target price of Rs 1,388, maintaining an 'ACCUMULATE' rating. This valuation reflects Adani Green's superior execution, expanding scale, and leadership in India’s renewable transformation," ACMIIL added.

Shares of Adani Green Energy have soared nearly 125 per cent from its lows at Rs 486 in February 2023, after the damning report by the US-based short-seller Hindenburg Research, which has now winded up its business. It has zoomed nearly 3,600 from its June 2018 levels around Rs 29. However, it scaled its all-time peak around Rs 2,900 in April 2022.