Adani Energy Solutions Limited (AESL) has reported a robust financial performance for the first half, with significant growth in revenue and profitability. The company also outlined ambitious expansion plans across its business segments.

Financial Highlights

AESL reported a total income of INR 13,793 crores for the first half, marking a 16% growth over the previous year. The company's consolidated EBITDA increased by 13% to INR 4,144 crores, while consolidated Profit Before Tax (PBT) grew by 34% to INR 1,404 crores.

Operational Achievements

The company successfully commissioned three transmission projects during the first half:

1. Khavda Phase-II Part-A
2. Khavda Pooling Station
3. Sangod transmission line

AESL's Mumbai utility, Adani Electricity Mumbai Limited (AEML), continued to demonstrate operational excellence with distribution losses at 4.30% for the first half.

Smart Meter Business

The smart meter segment showed significant progress:

• Total installations reached 73 lakh meters
• 42.5 lakh meters installed in the first half
• Smart meter order book of 2.46 crore meters
• Revenue potential of INR 29,000 crores from the order book

Future Plans and Capex

AESL has outlined an ambitious capex plan:

The company expects this capex to contribute approximately INR 2,800 crores to EBITDA on an annual run-rate basis.

Transmission Business Outlook

• Current order pipeline of INR 60,000 crores
• Plans to commission at least three transmission projects worth over INR 12,000 crores in the second half

Deleveraging Efforts

As part of its deleveraging strategy, AESL bought back $44 million of USD bonds during the quarter.

Management Commentary

Kandarp Patel, CEO of AESL, stated, "We currently have about INR 60,000 crores of order pipeline for transmission projects. Similarly, we have a total revenue upwards of INR 27,000 crores and INR 14,000 crores of capex in smart metering business."

He added, "We will capitalize about INR 17,000 to INR 18,000 crores of capex, which will contribute about INR 2,800 crores of EBITDA on an annual run-rate basis."

Adani Energy Solutions Limited continues to demonstrate strong growth across its business segments, with a clear focus on expanding its transmission, distribution, and smart metering capabilities. The company's substantial capex plans and robust order pipeline indicate a positive outlook for future growth and profitability.

Adani Energy Solutions Limited (AESL), a key player in India's power transmission and distribution sector, has reported strong financial results for the second quarter and first half of fiscal year 2026, showcasing substantial growth across its business segments. The company has also announced ambitious plans for future expansion.

Financial Highlights

AESL's consolidated total income for H1 FY26 surged by 16.4% year-on-year to ₹13,793.00 crore, while Q2 FY26 saw a 6.4% increase to ₹6,767.00 crore. The company's operational revenue grew by 4.2% to ₹9,138.00 crore in H1 FY26 and by 7.6% to ₹4,539.00 crore in Q2 FY26.

Notably, AESL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) demonstrated robust growth:

• H1 FY26 EBITDA: Up 13.4% YoY to ₹4,144.00 crore
• Q2 FY26 EBITDA: Increased 12.4% YoY to ₹2,126.00 crore

The company's Profit Before Tax (PBT) showed significant improvement:

• H1 FY26 PBT: Grew 34.1% YoY to ₹1,404.00 crore
• Q2 FY26 PBT: Rose 25.4% YoY to ₹745.00 crore

Adjusted Profit After Tax (PAT) for H1 FY26 surged by 41.6% to ₹1,096.00 crore, while Q2 FY26 saw a 21.2% increase to ₹557.00 crore.

Operational Performance

AESL's transmission business maintained a robust system availability of 99.63% in Q2 FY26. The company's transmission network expanded to 26,705 circuit kilometers, with a transformation capacity of 97,236 MVA.

In the distribution segment, Adani Electricity Mumbai Limited (AEML) reported improved operational metrics:

• Distribution loss reduced to 4.36% in Q2 FY26 from 4.85% in Q2 FY25
• Units sold increased by 2% YoY to 2,650 million units in Q2 FY26

Smart Metering Progress

AESL has made significant strides in its smart metering business:

• Installed 42.4 lakh new meters in H1 FY26
• Cumulative installations reached 73.7 lakh meters
• On track to surpass 1 crore cumulative smart meters by the end of FY26

Capital Expenditure and Future Outlook

The company has ramped up its capital expenditure, with H1 FY26 capex increasing by 1.36 times to ₹5,976.00 crore compared to ₹4,400.00 crore in H1 FY25.

AESL's aggregate transmission under-construction pipeline stands at ₹60,004.00 crore, reflecting strong growth potential. The company anticipates a significant increase in capex roll-out across all core segments and expects strong momentum in bid activity for the rest of the year.

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. This investment will focus on smart grids, green transmission infrastructure, and Mumbai distribution operations. As part of its expansion strategy, the company is targeting integration of 50GW renewable energy capacity.

Kandarp Patel, CEO of Adani Energy Solutions, stated, "We are pleased to report another strong quarter. The effective on-ground execution & focused O&M is enabling consistent progress on the project capex growth and taking us a step closer towards the completion of our locked-in projects across our business segments."

Market Opportunities

AESL sees substantial growth opportunities in the sector, driven by focused energy transition backed by regulatory stability and reforms. The near-term tendering pipeline in the transmission sector remains solid at approximately ₹96,000.00 crore.

In the smart metering segment, the untapped country-wide market opportunity stands at 104 million meters, presenting significant growth potential for AESL.

Conclusion

Adani Energy Solutions Limited's strong performance in Q2 and H1 FY26 underscores its robust business model and strategic positioning in India's evolving energy landscape. With its expanding asset portfolio, growing smart metering business, and substantial pipeline of projects, coupled with its ambitious ₹55,000 crore investment plan, AESL appears well-positioned to capitalize on the opportunities in India's power transmission and distribution sector and achieve its targeted EBITDA growth by FY27.