India Ratings upgrades Adani Green Energy's long-term rating to AA

India Ratings raised AGEL's rating to AA with stable outlook, citing stronger debt profile, lower refinancing needs, and higher operating cash flows supporting repayments

India Ratings has upgraded Adani Green Energy Ltd’s (AGEL’s) long-term rating from “AA-” to “AA”, reflecting enhanced capacity for debt repayment. The outlook is stable.

 

The fund flow from operations generated by AGEL should be sufficient to meet debt repayment obligations even in case of market dislocations, thus lowering the need for constant refinancing, according to the rating agency.

 

Liquidity is supported by AGEL’s reduced refinancing requirement for upcoming maturities as its debt mix shifts towards amortising structures.

 

The company’s total repayment obligation is estimated at Rs 3,880 crore in FY26, of which Rs 2,070 crore is likely to be refinanced. Thereafter, repayments of Rs 2,550 crore in FY27 and Rs 2,800 crore in FY28 will not require refinancing.

 

 

The upgrade also takes into account underlying changes in the debt profile, with no debt at the holding company and a shift to project life-linked tenor structures in place of large bullet maturities. This change in debt structure also allows AGEL to lower its cost of debt.

 

Referring to the liquidity of the Adani Group entity, India Ratings said AGEL’s position is reinforced by its ability to secure debt for under-construction assets.

 

It undertakes capital expenditure under a revolving construction facility or project finance. Once the project is commissioned and operational, the company refinances the construction facility with longer-tenor project debt.

 

AGEL’s operating cash flow increased to Rs 8,360 crore in FY25 from Rs 7,710 crore in FY24, driven by an improvement in earnings before interest, taxes, depreciation, and amortisation (EBITDA), the rating agency said.