Renewable energy is India's future. But even....

Adani Green has become a renewable-energy giant, crossing 20.1 GW of operational capacity in Q1 FY27. Power-supply revenue rose 29% YoY to ₹4,280 crore, while EBITDA climbed 33% to ₹4,122 crore. On the surface: More MW. More generation. More revenue. More EBITDA. But look underneath. THE CAPITAL INTENSITY PROBLEM In FY26, AGEL spent approximately ₹30,365 crore on capex. At the same time, net debt including supplier credit increased about 41% to ₹91,252 crore, leaving net debt at roughly 5.7× run-rate EBITDA. That's the central bearish argument. Build capacity → Borrow money → Generate power → Wait years for returns. The business can produce extraordinary EBITDA margins — around 91% in FY26 — but high EBITDA margins don't automatically mean high free cash flow when capital expenditure and financing requirements remain enormous. And AGEL isn't slowing down. The company plans to add another 5 GW of renewable capacity and more than 10,000 MWh of BESS capacity by FY27. That means the capital cycle continues. More projects. More debt. More interest. More execution. Then comes another risk: POWER IS A LONG GAME Renewable assets depend on generation, transmission availability, tariffs, PPAs and project execution. If projects are delayed, cash flows are delayed. If financing costs rise, returns get squeezed. If generation underperforms, asset economics weaken. And if power prices or regulations change, the assumptions behind future projects can change too. AGEL's scale is its biggest strength. But scale also makes mistakes expensive. The company has already added 5,051 MW in FY26, taking its operational portfolio to 19.3 GW, demonstrating exceptional execution capability. The bearish question isn't whether AGEL can build. It clearly can.