Adani Energy Solutions

Fitch Ratings has changed the outlook for Adani Energy Solutions Limited (AESL) and Adani Electricity Mumbai Limited (AEML) to stable from negative while confirming their long-term Issuer Default Rating (IDR) at 'BBB-'. This rating action affects both entities within the Adani Energy Solutions group.

Adani Energy Solutions Limited reported total income of INR 13,793 crores for the first half, marking 16% growth over the previous year. Consolidated EBITDA increased 13% to INR 4,144 crores, while consolidated PBT grew 34% to INR 1,404 crores. The company successfully commissioned three transmission projects during the first half: Khavda Phase-II Part-A, Khavda Pooling Station, and Sangod transmission line. The company has a transmission order pipeline of INR 60,000 crores and smart meter order book of 2.46 crores with revenue potential of INR 29,000 crores. Smart meter installations reached 73 lakh meters with 42.5 lakh meters installed in the first half alone. The company plans to capitalize INR 17,000-18,000 crores of capex for the full year, expected to contribute INR 2,800 crores of EBITDA on an annual run-rate basis. AEML Mumbai utility reported distribution losses of 4.30%, described as best in class. The company bought back $44 million of USD bonds during the quarter as part of deleveraging efforts. Management expects to commission at least three transmission projects worth over INR 12,000 crores in the second half.

Adani Energy Solutions has outlined plans to achieve EBITDA of ₹38,000-40,000 crores by FY27 through a capital expenditure of ₹55,000 crores. The investment will focus on smart grids, green transmission infrastructure, and Mumbai distribution operations. The company is targeting integration of 50GW renewable energy capacity as part of its expansion strategy.