ADANIENSOL - Adani Energy Sol

📊 NSE: ADANIENSOL 🏢 Power Generation And Supply 📅 Last Updated: 12/13/2025 17:49

💰 Financial Performance

Revenue Growth by Segment

Consolidated Total Income grew 16.4% YoY to INR 13,793 Cr in 1H FY26. Segment-wise for Q2 FY26: Transmission revenue grew 9.0% to INR 1,305 Cr; Distribution revenue grew 3.5% to INR 3,118 Cr; Smart Metering revenue surged from INR 8 Cr to INR 182 Cr; Trading and Others revenue declined to INR 291 Cr from INR 624 Cr.

Geographic Revenue Split

Primary operations are concentrated in India, with the Distribution segment specifically serving the Mumbai (AEML) and Mundra (MUL) regions. Mumbai energy sales grew 2% YoY in 1H FY26 despite a prolonged monsoon.

Profitability Margins

Adjusted PAT for 1H FY26 grew 41.6% YoY to INR 1,096 Cr. PBT for 1H FY26 increased by 34.1% to INR 1,404 Cr, driven by strong operational performance and flat depreciation costs.

EBITDA Margin

Consolidated EBITDA grew 13.4% YoY to INR 4,144 Cr in 1H FY26. Transmission segment maintains a best-in-class EBITDA margin of 93% (up from 92% YoY). Smart Metering EBITDA margin improved to 85% in Q2 FY26 compared to 79% in Q2 FY25.

Capital Expenditure

Planned capex includes INR 14,000 Cr for the smart metering business and INR 1,600-1,800 Cr annually for the distribution segment. Three transmission projects worth over INR 12,000 Cr are scheduled for commissioning in 2H FY26.

Credit Rating & Borrowing

The company maintains a strong business risk profile with healthy financial flexibility. Net Debt to EBITDA stands at 4.4x. The company has actively deleveraged AEML through GMTN bond buybacks totaling over $213.5 million across multiple tranches.

⚙️ Operational Drivers

Raw Materials

Key inputs include transmission towers, conductors, and electronic components for smart meters (approx. 60-70% of project costs), though specific material cost percentages are not disclosed in available documents.

Import Sources

Sourcing is primarily domestic for transmission infrastructure, with smart meter components sourced globally to meet the ~74 lakh meter installation requirement.

Key Suppliers

O&M services are provided by Adani Infrastructure Management Services Ltd, leveraging economies of scale to maintain 99.7% line availability.

Capacity Expansion

Operational transmission projects increased from 26 to 30 by the end of FY25. The company has a locked-in order pipeline of INR 60,000 Cr in transmission and ~74 lakh smart meters already installed, the highest in India.

Raw Material Costs

Not explicitly disclosed as a percentage of revenue; however, O&M efficiency and in-house management helped maintain a 93% EBITDA margin in transmission.

Manufacturing Efficiency

Transmission line availability of 99.7% and industry-leading daily run-rates for smart meter installations indicate high operational efficiency.

Logistics & Distribution

Distribution segment revenue reached INR 6,478 Cr in 1H FY26, with a focus on maintenance capex that is capitalized immediately to ensure grid reliability.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be driven by the commissioning of three major transmission projects (>INR 12,000 Cr) in 2H FY26, a massive INR 60,000 Cr transmission bid pipeline, and the execution of a INR 27,000 Cr smart metering revenue backlog with expected levered IRRs of 20-25%.

Products & Services

Electricity transmission services, retail electricity distribution, smart meter installation and data management, and C&I power solutions.

Brand Portfolio

Adani Energy Solutions (AESL), Adani Electricity Mumbai Limited (AEML), Mundra Utilities Limited (MUL).

New Products/Services

Expansion into Smart Metering as a core segment, contributing INR 253 Cr EBITDA in 1H FY26 with an 86% margin profile.

Market Expansion

Targeting new geographies for distribution and smart metering to increase the current 18-19% order market share and 23-24% installation market share.

Market Share & Ranking

Largest private transmission and distribution company in India; #1 in smart meter installations with ~74 lakh meters.

Strategic Alliances

Joint Venture with EdgeConnex for Data Centers; partnership with Adani Infrastructure Management Services Ltd for O&M.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Energy Transition' and 'Digitalization' via smart grids. AESL is positioned as a leader with the largest private transmission network and highest smart meter installation count in India.

Competitive Landscape

Competes with PSU players and other private utilities, but maintains a 23-24% installation market share in smart meters.

Competitive Moat

Durable advantages include a 99.7% operational availability (moat of reliability), the lowest distribution losses in India (4.3%), and a massive integrated infrastructure portfolio that is difficult for competitors to replicate at scale.