Adani Green Energy Limited (ADANIGREEN) Earnings Call Transcript & Summary

Hi, good afternoon, everyone. Welcome to Q1 FY '26 Earnings Call of Adani Green Energy Limited hosted by Macquarie. Without any further delay, I will hand over the mic to Mr. Viral Raval, Head of Investor Relations, to start the proceedings. Viral, over to you.

Thank you, Baiju. Very good afternoon to everyone. Thank you for joining us for the earnings call of Q1 FY '26 today. We have with us Mr. Ashish Khanna, he's the CEO. We have Mr. Saurabh Shah, CFO. We also have Mr. Raj Kumar Jain, Head of Business Development. I will now hand over to Mr. Ashish Khanna for a brief opening remark, which will be followed by Q&A. Thank you.

Thank you, Viral. Good afternoon, everyone. I'm excited to share the outstanding operational and financial performance of Adani Green Energy for the first quarter of fiscal year 2026. India has achieved 50% installed nonfossil fuel energy capacity in its power mix 5 years ahead of 2030 target. This highlights India's effective climate action, strong policy momentum and robust private sector execution, surpassing a historic milestone of 15 gigawatt operational renewable energy capacity and Adani Energy Green is proud to have helped in accelerating the transition to clean energy. In Q1 FY '26, we added 1.6 gigawatt of greenfield renewable capacity, totaling 4.9 gigawatt in the past year, a record achievement for India's renewable energy sector. With this 45% year-on-year increase, our operational capacity now stands at 15.8 gigawatt. This not only demonstrates our best-in-class project execution capabilities, but also reaffirms our position in India as India's largest renewable energy company. A major highlight has been our continued progress in developing the world's largest renewable energy plant of 30 gigawatt at Khavda, Gujarat. As of June 2025, our operational capacity at Khavda stands at 5.6 gigawatt of solar, wind and hybrid energy portfolios. Backed by robust capacity addition, Adani Green Energy achieved a record growth of 42% in its energy sales on a year-on-year basis, reaching 10.5 billion units in the quarter. Coming to the financial performance. Our revenue from power supply increased by 31% year-on-year to INR 3,312 crores, and EBITDA rose by 31% to INR 3,108 crores, delivering industry best EBITDA margin of 92.8%. Cash profit surged by 25% to INR 1,744 crores. These exceptional results are a testament of our robust business model, exemplary project execution capabilities, consistent operational excellence with the deployment of advanced renewable energy technologies and digital solutions across our portfolio. Our operational excellence was recently recognized with the CII Performance Excellence Awards 2025 for some of our plants. Our strategic selection of resource-rich states like Khavda in Gujarat and other sites in Rajasthan have also helped in delivering strong operational performance. At Adani Green Energy, we are committed to environmental and social causes while upholding the highest governance standards. The company has earned the top spot in FTSE Russell's ESG scores in the global alternative electricity subsector as well as earned recognition from Reuters Global Energy Transition Awards 2025 held in New York. The company is also ranked 1st in Indian power sector by NSE Sustainability Ratings and CRISIL ESG ratings in the latest ESG assessment. With a comprehensive capital management framework, we ensure that our growth is fully funded for our 50 gigawatt target by 2030, while upholding strict credit discipline. In conclusion, Adani Green Energy remains steadfast in its commitment towards accelerating India's clean energy transition by consistently delivering affordable clean energy for all its -- with all its focus on execution at unprecedented scale and speed, operational excellence and best-in-class governance. Thank you.

[Operator Instructions] We'll take the first question from Mohit Kumar.

Congratulations on a very good quarter. Sir, my first question is on the gross block. Is it possible to share the gross block and run rate EBITDA of the 15.8 gigawatt capacity?

So current -- so the current gross block of the company is INR 89,000 crores approximately. And the run rate EBITDA for the Q1, it is about INR 13,600 crores and on a yearly basis, it will be about INR 17,000 crores.

INR 17,000 crores for 15.8 gigawatt capacity, am I right?

Yes.

Yes.

Understood, sir. My second question is, sir, is it possible to say the capacity commission in value term in Q1 FY '26? If I remember the number correctly, I think you've installed 1.6 gigawatt, correct?

1.6 gigawatt. Yes.

For the current quarter, yes, we did 1.6 gigawatt.

And is it possible to share the capacity commission in terms of value rupees crore if...

Are you meaning revenue or you mean...

No, no, in terms of the...

CapEx. Okay. So the CapEx -- see, generally, our CapEx is in the range of -- for the solar, it is always INR 4.5 crores; for wind, it is INR 6.5 crores. So the current CapEx for the current year booking was about INR 6,500-odd crores.

For the current quarter. Understood. My one clarification on the accounting side. The associate income, I think we've booked in this quarter of INR 111 crores.

Yes.

This is primarily due to Mundra Technology, that's solar manufacturing.

So it's Mundra Solar Energy Limited, where we have 25% stake within that company. So whatever that profit they generate, we get a 25% share of the same thing.

But that's the only thing which is driving the associate income, right?

It's only that. So this is the 2 gigawatt manufacturing capacity, which was set up under the PPA -- which was basically linked to manufacturing.

But that's the only thing, right? There's nothing else, correct?

Yes. Only thing, yes.

My last question, sir, I think we have given the target of 5 gigawatt in this fiscal. And I think if I'm not wrong, I think next year, we're also expecting 5 gigawatt, right? Given the fact that the -- most of the capacity are coming in Khavda, do you see any transmission challenges, which are coming up, which are causing some challenges in commissioning these capacities?

It's valid point, Mohit. I think it is very difficult to tie both the things, your capacities with the transmission capacities. There will be always some lag of weeks or months in that process. Having said that, in the current context, yes, there is a little bit of a challenge coming from Khavda evacuation. However, having said that, it's hardly less than 5% of our EBITDA margins, as we speak. We are very closely monitoring and supporting, to a large extent, how these evacuation from Khavda is coming out. And we do believe that this fiscal year and much before that, there will be enough evacuation for us to evacuate everything. So we don't foresee a big challenge in the coming quarters. But yes, few weeks here and there can always be an overlap in this process. Good part is that if you look at in the Q2, most of what is going to be evacuated will be wind more than the solar. And hence, that daytime challenge is also mitigated from that standpoint.

We will take the next question from Siddhant K.

Sir, my first question is regarding the solar CUF, capacity utilization. In this quarter, we were close to 28%. But in the earlier presentations, we had mentioned that it was 32% in the Khavda region. So the lower CUF this quarter is due to the early monsoon?

No, I think, you see, Khavda has the distinction of one of the best traditions possible. And so our CUF there is always high. As and when the proportion of Khavda in the overall portfolio is going to increase, we will appreciate more and more CUF coming on the higher side in our overall portfolio. So currently, since it's only 1/3 of it, you will find that it is much lower than the Khavda.

Okay. Sir, for the full year projection, what should be the solar CUF be, like what will be the range?

I think it will more or less same with a few percentage points above it because our Khavda -- more and more capacities are going to come out there. So we will have all the increasing side.

So on a conservative basis, it's fair to assume 28%, like overall...

Of course. Of course.

And sir, my second question is regarding the merchant price, like what is the average merchant price that we sold for the quarter?

On the solar side, our average is 2.2, but the wind has been nominally good 5.7 on the wind.

How is this trajectory going forward because the merchant price has down a lot from the solar side? So what is the trend that we are seeing for the upcoming quarters?

Sorry, there is some question coming up, sorry, can you repeat your question?

Yes. So like the trend for the solar merchant prices have gone down sharply. So going forward, like what are we projecting or how is the trend moving forward for the next 2, 3 quarters? Will it stay around 2, 2.5 or are we seeing any uptick?

See, it is -- the merchant prices are always very volatile. We are not in the market of predicting the prices which comes across. Having said that, our strategy is very clear. Almost all our capacities, majority are on the PPA front. And so -- and the other advantage which we have is that if we have some merchant capacities which are primarily coming because we are ahead of our PPAs and we are selling that capacity as a merchant, so that becomes an add-on to our overall financial model. So that's an advantage to us. But to be frank to you to predict how the prices will pan out in future, it is very -- it remains volatile. We do expect last year, it has improved in the later part of the day. There have been pre-monsoon this time, which had impacted certain solar prices. And then because of Operation Sindoor, too, there has been certain curtailment, which we have experienced. But like I said, this is too small a window to then predict how the year will pan out on this. But we remain steadfast in our strategy towards investing more on -- or building more on the PPA part and when our capacities come early, sell them on the merchant because that becomes an add-on.

Right. And sir, going forward, sir, like we have 3.5 gigawatt of like approximate target for this year. So when can we expect like in Q2 and Q3?

See, we are on track, if you see on a 5 gigawatt one, we have already done around 1/3, which is expected from the next 3 quarters. So if you ask me, we are very, very on track for this particular capacity. You will be there with us after 3 months, and we will share with you what we have added in the next Q2.

Sure, sir. Sir, just a clarity on the ISTS waiver part. Sir, what -- how exactly does this affect us being a renewable generator? And this -- like will we increase the tariff prices because of this?

Difficult to say. We are not in the market of forecasting tariffs per se. All of us were aware of the fact that this particular ISTS is going on -- is going to be off from the 1st of July. And I think we all have built our strategies based on that particular part. And ISTS has not gone off full. It still remains -- 75% remains, only 25% has gone off on this. So we don't foresee a major change in the market pricing in near future, let's see how it pans out in the longer-term. Raj, do you want to add something?

Yes, sure. I think what's important is we have built certain capacities which was part of our merchant portfolio until June. So there -- obviously, there is a higher advantages of those capacities. So we could secure that for our portfolio. As Ashish mentioned, the taper down is in a time-bound manner of 3 years, where today the taper down is by 25%. So there would be some more merchant capacities we are adding now. So these are valued in the market better than the capacities, which will come later. So we have that advantage. That advantage is realized when we do contracts with the parties because ultimately, they are supposed to pay the cost. So you will see some of those -- these capacities getting advantage in the market.

Right, sir. And sir, just the line item on the sales of equipment. So what exactly are we selling in this?

So see, from -- for the sale of equipments that we do, it is mainly from the -- from a stand-alone perspective, it is a sale to the various subsidiaries that are there. And on a consol basis, it is more to do with certain group companies where we are doing certain projects for them on that behalf, there are certain kinds of sales that happens to them, but that is not having any major margin or any impact on the P&L as such, yes.

We'll take the next question from Sabri Hazarika.

Yes, congratulations on good set of numbers. So I have 2 questions. Firstly, this merchant and from that is mostly wind only, right? I mean the sale of power of, say, around 2,000 million units, so that is mostly wind or what would be the segregation like?

Okay. It's a mix of solar and wind both and it is also pre-COD power for some of our PPAs. So what we do is, obviously, there are transmission connectivity deadlines. We commission the projects much ahead of that and see that our returns in those particular projects are enhanced because of this early commissioning of projects, which are not necessarily baked in when we do the bidding. So we are adding that much value. So there is revenue coming from those projects, plus we have pure-play merchant projects where we have multiple optionalities for future, there is revenue to that. So it's predominantly solar, if you ask me, because the ratio of projects, which has a COD later is they have significantly baked into this number. On an overall merchant strategy, yes, you are right that it is tilting towards more wind projects actually taking the shape of merchant revenue in proportions more.

Okay. And regarding your wind, I think the CUFS also like probably one of the best. So how are you seeing the wind cycle currently around Khavda? Do you think that we would be at a higher level compared to what it has been for the past 1 year, 1.5 years?

Sabri, it is very difficult to predict wind, like this time, we have seen, if you look at it from an India standpoint, we have witnessed that the wind at Rajasthan was at a lower level than the wind at Khavda now. And since we have the better machines and 5.2 megawatt capacities, which are the largest in the country, of course, our CUF has been the best 1 can imagine on this. So we do foresee, and we do expect that the forthcoming wind is going to help us, but if you are asking us to predict the wind, then it is difficult for us. But yes, and the wind will come, our CUF will remain the best as they have been showcased in the last quarter.

Right. So second question is on your other expenditures. So there has been some reclassification. I think the foreign exchange part, I think you've clubbed in one of the expense head. So this INR 300 crore is basically -- what could be the adjustment? Is it foreign exchange or something else is also there?

So where are you seeing that adjustment, Sabri, if you can just guide me, I'll be able to then answer you?

I think -- I mean you have that foreign exchange gain and loss, I think, which is part of finance costs, right?

Yes, so -- see, there are 2 parts to it. There is a foreign exchange gain-loss, which is either shown in the part of other income, which is there as a gain in this quarter, a very small number. In case of the finance cost, that foreign exchange is basically the hedging cost that we paid plus whatever the ERD that we have to value the loans which are there as ECBs in terms of those valuation -- fair valuation that we do at the end of the quarter, whatever the unrealized gain-loss that occurs is also part of the finance cost in the case.

So the representation basically has changed to make it very clear, whatever is attributable to finance cost is now part of the finance cost only.

Right. Got it. And this increase in other expenditure is basically because of increase in capacity and increase in...

Yes, yes. So that's proportionately based on the O&M expense that goes up because of the capacity increase and various other expenses, which are part of the capacity is rising due to that.

Right. Secondly, I mean we have this -- we are amidst this high monsoon season, but have we seen any kind of like not -- have seen any kind of similar experience that we faced last year or we are like much better off this time?

I don't know what -- what you means we are much better or similar experience. Yes, we have seen monsoon in the past, and monsoon is again here today. It has its own, I would say, impact, especially on Khavda, may not be to the same extent that our Rajasthan sites. We are well prepared, much better prepared this time from the monsoon -- for the monsoon. But yes, it is still going on. So I would like to be there in the next call for you to actually share with you how better we were place this time. It also depends on the fury of the monsoon, it's impact on it. Still early days. But yes, to reassure you, we were and we are much better placed this time from the lessons which we have over the last time, especially in Khavda.

Just to add. So last time, if you remember, across India, the monsoon had extended by about a month-or-so. This time, we'll have to see what happens. But I mean, normally these occurrences don't happen, but let's see what happens.

But from our side, we are better prepared. Let me reassure you on that part.

We'll take the next question from Mahesh Patil.

Yes. Sir, my first question is on the growth of energy sales, if we see that is around 42% in this quarter Y-o-Y. However, the revenue growth is around 30%. So just wanted to understand -- and since we have sold, I think, more than 40% in merchant market. So is this because -- solely because of that, the lower merchant prices?

Yes, predominately, you can attribute it to it.

So as we earlier said, so merchant prices are fairly volatile. And it is basically part of the business case when you talk about pure-play merchant. So we have 2 parts. 50% of it basically pure-play merchant and 50% is infirm revenue. So the infirm revenue, where we have sold on merchant markets, it is basically the pre-COD revenue, before commercial operation date. So that entire revenue is incremental to whatever basically we were going to earn under a PPA of 25 years. So it is basically an incremental to the return that we were going to make on PPA otherwise. Second part, the merchant revenues, as I said, it is volatile. Q1, it has been less because of the monsoon arriving early and possibly the things could change in the later quarters. So it is always volatile. So you can't really attribute something. Second part, also the PPAs, the new PPAs that we are implementing. Gradually, over the many years, the tariffs have gone down, and that is because of the technology evolution and CapEx going down. So the return expectations on the PPAs remain the same, but the tariff trajectory is down and the CapEx is also down. So these are the combination of reasons because of which it appears so. But from a return expectation standpoint, we're not really compromising anywhere.

And if I can add on, Viral. Since the merchant rates for the wind are much better and this is a time for a better winds in India, we do expect that in this particular quarter with more and more wind going into the merchant with a higher rate, the proportion will be much better.

So just to again quote. Merchant wind side, the tariff is almost 5.7, which is a good tariff, I would say.

And sorry, just add more and especially with our CUF, things will be much better.

Got it. Sir, my second question is on the -- because of this early monsoon onset and since there was the solar overcapacity. So was there any back-down due to the grid during -- particularly during the peak solar hours that we have faced in this quarter?

Yes, we did mention earlier, too, there have been certain backdowns with respect to grid evacuation, especially some reason. But at the current level, it is less than the 5% of our EBITDA margins as such. And I think we had a detailed discussion or explanation on how the evacuation capacities are going to come and how we are mapping them and monitoring them so closely in that particular manner. And like I said, since in this particular quarter, the solar would be relatively less and the wind would be high. We do believe -- and because of the timings of the wind, which are generally more in the evening hours and in the morning hours, we don't expect that much impact on the wind part of it and solar in any case, would be lesser than the last year.

So I'll just add one more thing, Mahesh, this is the way transmission works in India when our capacity is given transmission connectivity it is given with 5, 6 elements. So suppose in Khavda we are asking for connectivity it will be given us -- given to us for say 1,500, 2,000 or 3,000 megawatts with certain elements. We are supposed to build the capacity of that much capacity by that date, okay? So one fine day, everything is available, and prior to that, some lesser amount of evacuation is available. So that's the nature of transmission. Now that would obviously mean that I will set up the capacities prior to that period in a gradual pace. And I may see certain kind of lesser capacity available in the system than what would be required for the overall number. And that is the reason you see this 2 to 3 months plus/minus happening and some kind of curtailment or grid limitation coming in. But that's the nature of the way industry works, especially for people who want to finish things prior to their dates. So that's how it may happen. Sometimes we are lucky and the systems has some redundant capacities which allows us to push an entire thing even though the full transmission has not come in. So these are the things which we plan much ahead, and we know what's happening, what's happening on each element and what kind of evacuation we will see. So we know what is happening and we try to see that our capacities are aligned in a manner where we do not see big risk in this.

And just to clarify, this is primarily basically pertaining to merchant and infirm not with respect to your regular PPAs.

And again, let me reassure that the way we are monitoring it, it is not a matter of years or things like that. The capacities are coming, and we are closely monitoring. It's a matter of weeks or months, nothing more than that.

Okay, sir. Got it. And sir, one more question on the bidding strategy and the pipeline. So do you see any major tenders like the 5 gigawatt from Maharashtra last year? Anything in the pipeline? And what would be our bidding strategy going forward, since we already have, I think, close to 33 gigawatt of locked in capacity?

Yes. So obviously, we look at -- continuously look at what are the evolving opportunities in the market. The Maharashtra one was a great tender for us to win, and we could get that as part of our PPA pipeline or under construction projects. It adds significant value to what we have in our portfolio. We would continue to look at opportunities where we can get that additional delta or alpha for our stakeholders. That has remained our strategy. If you see all the projects which we have won in the last few months or quarters are actually significantly value-accretive in terms of what tariffs which we have got and the way we are trying to them to execute. So we continuously look at that, and we are there in market for certain projects where we make this additional delta.

And if I may add? So -- on this, what Raj is saying. You see, if you look at our overall target of 50 gigawatt and if we map our current portfolio, so we don't need to be very hungry and go very aggressive on the tenders. We choose the tenders, which gives us the predictable and better returns. On our overall scheme of things, we are currently, as you know, is 15.8 gigs. On our operations, we have more or less 16 gigs on under execution right now and the recent tenders, which we have won is another 5 gigawatt out there. So if you look at it with the overall portfolio and our target of 50 gigawatts, we have to be selective where we get the decent returns as per our benchmark. And more importantly than execute in a manner which gives us the return which are required for it. So it's not only just winning. It is also the matter that you win, then you execute and then you get the returns and that's our overall strategy for it. And that's why we are not desperate. We pick where we feel is the best place for us.

Got it, sir. Sir, one last question. Out of this, around 33 gigawatt of locked in capacity that we have, what is the capacity that is tied up under PPA if you have that number?

Yes. We have -- so in the 33, -- no, but I talked about 36.5 in total is coming across. So more than that, 31.5 is what is currently with the PPA. So if you total, what I've told you, it will go total to around like 36.5. Like I said, 31.5 of it is under PPA.

And remaining is for merchant purpose, right?

Remaining is for the merchant purpose, which can go under PPAs with the C&I segment, too.

Okay. And sir, this [indiscernible] Total JV, how much capacity is operational and how much is in pipeline right now?

So total 4.5 gigawatt PPA we have. And out of that, roughly 4 gigawatt is operational right now in the JV.

We'll take the next question from Puneet Gulati.

My first question is, we are not seeing you in the FDRE market. You're there in wind, solar hybrid. Is there anything we should read into that?

No. I think we just said that we are very selective in what we do. And we want to see tenders where we know that the tie-ups would happen, and we would make returns better than what market is making. So all of those are the considerations where we choose what we -- where we want to be. We are in some FDRE tenders where the storage is there. So it depends on the tender to tender. But yes, we have our own strategy about participating and winning some tenders.

And also any thoughts about adding battery to your currently merchant capacity?

Yes. Puneet, we are evaluating all options right now. We have a strategy in place. You will hear from us about it. I don't think so this is a platform for us to declare our overall strategy. But yes, we are very seriously looking towards it. We have plans towards it. At a very appropriate time, you will also hear in the overall context of it. But please be reassured on that part, we are Adanis, we do things at a scale and at a level and at a time, which is most appropriate for us from a return standpoint.

Understood. And lastly, you talked about revenue from early commissioning of projects. Our understanding was that thing was now done away, you can't early commission. Is there some projects for which there have been some exemptions?

So it really depends on the PPAs and how the -- when are we actually commissioning and what are the conditions of such commissioning when we are commissioning them. So I think that's what I was alluding to you earlier is that if my transmission elements are still not there, commissioning capacities, then there are certain cases where I am able to do this pre-COD power. Obviously, it is dependent on the buying party how they look at it, how would they -- what kind of conditions they want to put up for that purchase. So it depends on PPA to PPA. What we are telling you is that we have significant capacities which -- where we have been able to achieve this and where we are supplying that power on a pre-COD basis, including in some cases to the PPA counterparty also. In both the cases, obviously, it adds revenue to the already bid out number or bid out returns, which we had. So it's an additional earning which we are able to.

So Puneet, there is no debar on this, if I can if I add on it. PPA has certain situations under which you cancel, but you're right, it is not by default that you can sell it on merchant. You have to take certain approvals by both the parties, but it's a part of the agreement, and you follow those procedures, take the requisite approvals and then do -- one can, not only us, but anyone can sell that.

And this is only where your transmission is not up?

Predominantly, yes.

And if you can explain me the mechanics, sir, how does that work? If transmission is not up, how are you able to sell on the ISTS merchant?

I think, Puneet, we can take this up separately how the regulations and rules are and how the PPA construct is separately, probably not at for this particular call. We can take it up separately, yes? a

Sure. Okay. That's fine.

We'll take the next question from Siddharth K.

Sir, can you tell us what is the gross debt levels for the quarter? And what was the borrowing cost?

So the gross debt for -- as on 30th June is INR 78,000 crores. And the borrowing cost is generally -- currently, the range is 9.1% to 9.2% for us.

And for the full year, are we expecting it to come down?

No, gross debt will not come down for sure in terms of the capacity additions that -- the borrowing cost, yes, we are looking to refinance certain portion of our assets. So from that aspect, we will keep on looking at it from that perspective. See, as such, because we keep on adding new construction also, so it will not be coming down very drastically. But yes, we keep on evaluating and looking at how refinancing takes place and thereby, reduce the cost to whatever extent we can from the existing operating projects.

It was 9.1%, right, for the quarter.

Yes.

Sir, regarding the merchant price, you mentioned it was INR 2.2 for solar and INR 5.7 for the wind. What was the prices last quarter?

This is for the last quarter. The actual realization...

For Q1. No, no, he's asking -- so see, what happens is that wind merchant prices generally for Q3 and Q4 are generally a bit lower. So it was in the range of about INR 4.7-or-something in wind. And for solar, it was near to INR 3 per.

It was above INR 3 in the Q4 of last year. And so that's where I think it's more seasonal, and you would -- you need to see full year trends before making view around how the prices would be. Obviously, we continuously monitor what are the demand and supply sources for the power as well as how weather patterns are emerging. But at the same time, it is something which is volatile. And that's part of the business strategy when we say that we want to do certain capacity on the merchant side.

And let me add on this I think we should not be looking at these prices on a quarterly basis because there is a strategic intent for the whole year. We will definitely rely that India's requirement of power, renewable power, it has an own cycles of pluses and minuses on it. So why the solar was a bit higher in the last quarter and why it is coming? It is pretty obvious that you have more solar, which will be generated in this particular quarter, which will not be the case in the future quarters, too. So while your question is valid, but you will appreciate that one look at it as a margin with respect to solar and wind, one has to look at it for the whole year on an average rather than on a very specific period of time.

We'll take the next question from Anuj Upadhyay.

Sir, could you just elaborate on the 2 PSP projects in the Andhra Pradesh, which has been canceled at Kurukutti and Karrivalasa PSP project? And would this cancellation have any kind of an impact on our targeted 5 gigawatt of PSP addition by FY '30-'31?

So that does not -- to be very clear that does not impact our 5 gigawatt of PSP additions. We have significantly more pipelines in terms of the opportunities, which -- for which we look at execution even beyond FY '30 as well as upsides to our current plan of 5 gigawatt. We evaluate multiple capacities, and that's how something will come in and something will go out based on various scenarios.

Just to add. So from our side, we have only declared 12, 15 megawatt of PSP, which is for UPPCL, which is what we have won. And we have also announced 500 megawatts where we began construction in Andhra Pradesh. So there are multiple evaluations which keep on happening. So we, I think you have to take it into consideration only when we announce it and when we have reached a particular stage on that.

Okay. Fine. But only thing is, see, this 5 gigawatt of the other potentials, definitely, is on card, but it's only the timeline, which I'm worried about. So...

I think, Anuj, let me be very clear, the 5 gigawatt which we have announced and we made it very clear last time also that when we announced the capacity, those are derisked from all these considerations, okay? So those projects which we have announced are completely identified. They have made their own progress, whether it is in terms of approvals, land rights, et cetera, et cetera. So nothing of that is impacted.

Fair point, sir. So those 5 gigawatt will come by '30-'31 kind of a timeline.

Yes. There is no change in any of that. Yes.

Great. Great, sir. And secondly, sir, are we seeing any kind of labor issues in terms of execution? We have been hearing across other players as well where labor availability is a concern, whether is on the EPC front for the IPP level or evacuation on the transmission side. So are we facing similar kind of an issue at Khavda as well? And if yes, what measures are we taking to address it?

Thanks, Anuj. I think you have to appreciate the fact that when you are -- when someone has an aspiration to grow at this level and build a project like Khavda, the good part is that for us and as well as for the labor you have next 5-year horizon available with them. Important factor if you look at it is this transition from 1 project to the other. It's not that the labor is not available in this country. So if -- like what we have done is that we have created infrastructure for them, our labor colony is the best equipped. We have created infrastructure. We are giving them the facilities and they don't have to move on from X to Y. Typically, in a solar plant, if you look at the challenge is that you build that solar plant in 9 months' time. And then again, they have to move from X to Y area. The best part about a place like Khavda is that we are there for next 5 years for 30 gigawatt. Having created that infrastructure, having giving them the facilities, I would really request and suggest, please come to Khavda and look at the way we are supporting and facilitating this labor to stay, to play having the best food for them and all the other infrastructure which we have created for them. I think having the run rate, having -- we don't even call our contractors, contractors, we call them partners. So taking care of the partners, who are then taking care of the labor and we are ensuring that their medical facilities, their -- what they are eating, where they are working, all of them have been really above par from any other competitor or what you see in a solar segment in this country. And that's why I think we have been able to achieve what others take a year to build to do it in a quarter. And I think the contribution and goes primarily to the people who are working there, our team, our partners and predominantly the labor, plus the way we are taking care of the tools and technology for them, which makes their lives much better when they are utilizing those automated tools while they are working out there. So there is a lot which we are doing at the current intent. And I think there is a lot more which we intend to do as we grow further at that particular area. But that's one of the reason of what we have been able to achieve so far is because of taking care of our labor with the intent and the content that I shared with you.

The last one, I just want to check on how the DCR cell efficiencies are working on? We are also hearing from many other IPPs or developers that the DCR cells are not up to the mark in terms of the efficiency, which is we see across the imported cells. So would higher implementation of the DCRs going ahead would have any kind of an impact on the targeted efficiency of the generation which we have set aside for our projects?

It think see, it's a question -- currently, we don't have those in our portfolio what we are generating right now, especially in Khavda and whatever we are executing. So it's a hypothetical question for us. But believe me, from a group where we are the focus which is given on quality, I personally will not subscribe to this fact that the DCR products will be anywhere lower in their performance than anyone else. You may say that our cost of DCR mainly on the higher side. But for me to comment that the performance will be on the lower side, I will not personally subscribe to it with my past experience. But having said that, in the current context, we don't have that experience. So not right on my part to comment on it.

[Operator Instructions] We'll take the next question from Siddharth K.

First of all, congratulations on a great set of numbers. Sir, while going through the earnings presentation, I saw the wind CUF, which was at 42.3%, which is a very strong number. So was it because of the early onset of monsoon because in monsoon, we usually see higher CUF? And also, the plant availability factor was at 95.5%. So this CUF of 42.3% was it factoring the plant availability factor or it's the total number, like -- is it total CUF?

Yes. So I think it is -- first of all, I would not say that CUF at Khavda has been only because of the early restatement of monsoon. I think like we have been saying, and I also made it clear at our opening statement, that these sites were chosen, and we are very happy for what we have chosen to be, where we are building, what we are building. And what is coming out is the predictable model, which is now coming as a reality. As far as your firm question about availability to the CUF is concerned yes, CUF do take into consideration the availability factor in place, and that's where we are. You also have to appreciate the fact that in Q1, the availability also goes slow because you have a 6-month maintenance schedule for many of our turbines. These are the new turbines and you have those predictable schedule to as well as preventive maintenance is concerned, which also impacts the overall availability in that particular quarter. We have to be ready for the high wind seasons per se.

Okay. So if this is adjusted -- this CUF adjusted for the availability factor, then the overall like net CUF would be much higher than this?

So yes, it is adjusted for the availability factor. See, what Ashish was telling is ahead of the monsoon season, all wind turbines in the country has a practice of being overhauled so that they work on a much better basis in the real wind season, which comes in the monsoons. That's where you will see that availability in this period is slightly lower because it has a monsoon thing. Second, even the best benchmarks in case of wind because it is a moving equipment, so turbines have an availability factor of 96-odd percent or 96.5% odd percent for the full year because these are moving things and needs more maintenance than solar plant where availability can be as good as what you've seen in our thing, which is around 100%. So that's what the thing is, yes, mathematically, if you had not taken any maintenance or a key kind of shut down, yes, the number could have been higher.

So just to end, sir, I'll have a couple of questions from my end. First is on BESS, and I know you talked about it, but I just wanted to understand how you are thinking about this from a 5-year perspective, especially when there are other players who are quite aggressive on that front?

As we told you, we have a strategy in place. And like I said, it's not a 50-meter run that we are making it across. For us, renewable is a long-term perspective. We are very closely, we have looked into the technologies, we have moved into -- we are much better placed than most of the competitors if you see across with our capacity that across India, with the way we -- our plants are performing. And I'm only saying, hold on yourself, there is a strategy in place, there is a plan in place. And like I told you, at Adani, we do it at a speed and a scale which is unprecedented. We should be in a position to share with you in some time of it.

Understood, sir. Secondly, I wanted to know your thoughts on renewable energy demand from data centers. And just wanted to understand how discussions are going on with these players, especially MNCs and what kind of contracts you're getting into? And what kind of growth runway you see in that area?

Yes, sure. So that's a pretty interesting market. And with the way data is being now posted in India, for India's consumption as well as the new AI demand as well as the focus of some of these data centers to actually have green power, it's a significant opportunity for us. And that's where you see in our overall mix for FY '30, we have said that 25% of our capacities would be seeing some of these kind of markets. So it's pretty much part of our focus area as a potential source of offtake. And there is a keen interest from the -- some of these data centers.

Right, sir. And the contract should be long-term? Or do they prefer to procure on spot basis?

So it depends on the buyer and the seller, a lot of these guys want to do a 10-year contract or a 15-year contract because that's kind of a visibility they see in their own industry. Obviously, the risk-adjusted value which comes to both the sites needs to reflect that, and that's what happens in some of these contracts. So spot market is obviously then there's nothing as a contract. They will secure some short supplies. We are there in that market as well. The pricing reflects the tenure in that case. So all of that is something which is a trade of a B2B market. So I think as a company, we are ready to take that exposure, and that's where we are saying that 25% of the capacity will be available in the merchant exposure, C&I, CFDs or mixed hybrid contracts.

Sure, sir. Understood. Very helpful. Sir, last question from -- we have in the chatbox. Says, can you please comment on the quarterly swings in the NCI line? How much of the NCI capacity is yet to be commissioned, and any timelines for the same?

So see, out of 4,500 capacity with Total as a joint venture, about 4,000-odd capacity has already been commissioned and another 500 is in pipeline will be commissioned by next 6 months to 1 year. So after that, that swing from that perspective should be minimal except for the distributions and other things that...

Just to make it clear, see, the way a renewable profile works is that your profits will keep on increasing as you go towards end of the project life because your interest cost usually is higher and it keeps on reducing, so that trend will be followed. But other than that, the 4.5-gigawatt portfolio that we have under the JV, that will have basically a stable kind of a EBITDA, at least, as I said, PAT will keep on changing.

Thank you, sir. That would be it. Over to you for any closing remarks.

No, I think it's -- thank you, everyone. Really appreciate your interest in our organization and the support which you have been providing to us. I think we're very happy with what we have achieved in Q1, and I think the team is committed to take it further on our overall target, which we have shared with you about 5 gigawatt. We are on track of it with the predictable returns from our side. Thank you so much for joining us.

Thank you very much. Feel free to touch-base with us for any further questions. Thank you, Baiju and Macquarie team for organizing this call. Thank you.