Adani Energy Solutions Limited has delivered strong financial and operational performance for the quarter and nine months ended December 31, 2025. The company, India's largest private transmission, distribution, and smart metering company, reported robust growth across all business segments with total income rising 16.2% year-on-year.

Financial Performance Overview

The company's consolidated financial results demonstrate consistent growth momentum across key metrics:

The total income growth was driven by stable operating performance across business segments and higher Service Concession Agreement (SCA) income. Operational revenue growth of 5.3% in 9M FY26 was supported by contributions from recently operationalized transmission assets including MP-II, Khavda Ph-II-A, KPS-1, Sangod, and NKTL, along with smart meter contributions.

Segment-wise Business Performance

Transmission Business

The transmission segment maintained strong operational parameters with average system availability exceeding 99.7%. The robust line availability generated incentive income of ₹33.00 crores in Q3 FY26, reflecting superior operations and maintenance practices.

During the quarter, the company fully commissioned the North Karanpura Transmission Line (NKTL) project and operationalized 299 circuit kilometers. With the KPS III (Khavda South Olpad) HVDC project win in Q3, the aggregate transmission under construction pipeline reached ₹77,787 crores across 13 projects.

Distribution Operations

The distribution business, comprising AEML Mumbai and MUL Mundra operations, recorded steady performance with AEML's total units sold at 2,487 MUs in Q3 FY26 compared to 2,574 MUs in Q3 FY25. The distribution loss in AEML network was maintained at one of the lowest levels at 4.03% in Q3 FY26.

AEML's Regulated Asset Base (RAB) stands at ₹9,342 crores as of Q3 FY26, comprising equity of ₹5,088 crores and debt of ₹4,254 crores, recording 22% year-on-year growth.

Smart Metering Excellence

The smart metering segment achieved remarkable growth, with the company installing 92.5 lakh smart meters cumulatively as of 9M FY26, representing the highest installation count in the country by any player. Based on current installation pace, the company expects to surpass its guidance of 1 crore cumulative meters by end of FY26.

The under-implementation pipeline comprises 24.6 million smart meters across ten projects with revenue potential exceeding ₹29,519 crores.

Leadership Commentary and Outlook

CEO Kandarp Patel highlighted the company's strong execution capabilities, stating the achievement of commissioning four transmission projects during the current financial year and reaching the benchmark daily installation rate for smart meters. The company expects substantial increases in asset capitalization programs across all core segments and anticipates strong momentum in bidding activity in the short to medium term.

ESG Recognition and Awards

Adani Energy Solutions received multiple recognitions for its sustainability and innovation efforts. The company's CSA score from S&P Global improved to 80/100 from 73/100, placing it among the top 9 percentile of 244 global electric utilities. NSE Sustainability Ratings & Analytics Limited awarded the company a consolidated ESG Rating of 71 for FY2025. Additionally, the smart metering business was recognized as Runners-Up in the Ramkrishna Bajaj National Quality Award for its AI-ML powered meter validation tool, while AEML won the SAP ACE Special Jury Recognition Award 2025 in The Disruptor Customer Experience Management category.

Adani Energy Solutions Limited has filed its quarterly monitoring agency report for Q3FY26, detailing the utilization of ₹8,373.10 crore raised through its Qualified Institutional Placement (QIP) in August 2024. The report, submitted to BSE and NSE on January 22, 2026, provides comprehensive insights into fund deployment and project progress.

QIP Fund Utilization Overview

The monitoring report prepared by CARE Ratings Limited shows substantial progress in fund utilization across designated objectives. The company has deployed the majority of QIP proceeds, with only a minimal amount pending deployment.

*₹37,739.86 pending for smart meter projects

Fund Reallocation Between Projects

The report highlights a significant reallocation of funds between two primary objectives, which received board approval in Q1FY26. The reallocation was necessitated by increased capital expenditure requirements in the transmission sector.

Project Implementation Progress

The transmission systems project has achieved complete fund utilization, reflecting the company's focus on expanding its power transmission infrastructure. For smart meter installations, ₹62.48 crore was deployed during Q3FY26, with the remaining ₹37,739.86 approved for utilization in Q4FY26.

The company successfully completed debt repayment objectives, utilizing the entire allocated ₹2,420.00 crore for repaying outstanding borrowings of AESL and its subsidiaries. General corporate purposes also saw complete fund deployment during the reporting period.

Monitoring Agency Assessment

CARE Ratings Limited, serving as the monitoring agency, confirmed that while there was deviation from original objects exceeding 10%, proper board approval was obtained for fund reallocation. The agency verified that all government and statutory approvals related to project objectives have been secured.

Key monitoring observations include:

• All utilization aligns with offer document disclosures post-reallocation
• No material deviations affecting investor decision-making
• Proper documentation and certification processes followed
• No delays in transmission system implementation

Compliance and Governance

The report demonstrates adherence to SEBI regulations, with the Audit Committee reviewing both the monitoring agency report and deviation statements. The company maintained transparency by providing detailed explanations for fund reallocation and obtaining requisite approvals.

The monitoring agency noted that during Q2FY26, the company transferred issue proceeds from the monitoring account to fixed deposits and subsequently to current accounts for utilization, requiring reliance on management declarations and CA certificates for fund tracking.

Future Deployment Plans

The Board of Directors and Audit Committee approved the utilization of the remaining ₹37,739.86 for smart meter projects during Q4FY26, ensuring complete deployment of QIP proceeds within the fiscal year. This final deployment will mark the successful completion of all stated objectives from the original placement document.