Detailed Narrative
H1 FY26 Financial Performance Overview
Adani Energy Solutions reported a strong first half of FY26, with total income increasing by 16% year-on-year to ₹13,793 crores. Consolidated EBITDA grew by 13% to ₹4,144 crores, while consolidated PBT saw a 34% increase to ₹1,404 crores. Adjusted PAT, excluding a one-time📎 deferred tax reversal from the prior year, surged by 42% to ₹1,096 crores, demonstrating robust underlying business performance.
Transmission Business Growth and Pipeline
The company successfully commissioned three transmission projects in H1 FY26, including Khavda Phase-II, Part-A, Khavda Pooling Station, and Sangod transmission line. The transmission order pipeline stands at ₹60,000 crores, with an additional bidding opportunity of ₹80,000-90,000 crores expected in the next 1-1.5 years. The company aims to commission at least three more transmission projects in H2 FY26, valued over ₹12,000 crores, which are projected to add ₹1,700-1,800 crores in revenue.
Smart Metering Business Expansion
The smart metering business is gaining significant momentum, with 42.5 lakh meters installed in H1 FY26, bringing the total installed base to 73 lakh meters. The company targets to cross 1 crore meter installations by year-end. The smart meter order book comprises 2.46 crore meters with a revenue potential of ₹29,000 crores. Despite a Q2 slowdown due to monsoons, the company is ramping up installations to 30,000 per day, with H1 EBITDA from smart metering at ₹253 crores.
Capital Expenditure and Funding Strategy
Consolidated capex for H1 FY26 was ₹5,976 crores, a 1.4% increase over the previous year. The full-year capex target is ₹17,000-18,000 crores, with a significant ramp-up expected in H2, totaling ₹11,000-12,000 crores. This capex is projected to contribute ₹2,800 crores in annual run-rate EBITDA. The company continues to deleverage its Mumbai utility (AEML) through bond buybacks, including $44 million in the last quarter, and plans to refinance its 2026 bonds ahead of maturity with a mix of dollar and rupee bonds at sub-8% rates.
Distribution Business and Parallel Licensing
Adani Electricity Mumbai Limited (AEML) maintained its best-in-class distribution loss at 4.30% in H1 FY26. The company is actively pursuing parallel licensing opportunities in Navi Mumbai, Mundra, Ghaziabad, and Jewar, with regulatory processes for Navi Mumbai and Mundra completed. AESL plans a capex of ₹10,000 crores over five years for the Navi Mumbai license area, focusing on building its own network to ensure service quality and reliability.
Demand Trends and Operational Efficiency
Energy sales in Mumbai increased by 2% over the previous year, though overall electrical demand in India showed some sluggishness in October, primarily attributed to prolonged monsoon rains. The transmission business maintained a robust availability of 99.7%, earning incentive income of ₹59 crores in H1. The company is also developing its own training facility to address skilled manpower shortages for transmission line erection, aiming to train 1,200 people.