Adani Energy Solutions Limited — Q1 FY27 earnings call

Call held 22 Jul 2026

Management summary

Adani Energy Solutions Limited reported Q1 FY27 results highlighting its successful transition to a full-scale utility with all four business verticals now operational. The company demonstrated strong project execution with a quarterly capex of ~INR3,500 crores, significantly expanding its smart metering and energy solutions capabilities. While facing some market-driven variability in energy solutions, management is focused on capital discipline and securing long-term contracts to ensure sustained growth and value creation.

Highlights

  • Transitioned to a full-scale utility with four core businesses (transmission, distribution, smart metering, energy solutions) now fully operational.

  • Achieved significant growth in transmission and energy solutions, with distribution and smart metering growing at a stable pace.

  • Deployed a substantial quarterly capex of approximately INR3,500 crores, demonstrating strong execution on project pipeline.

  • Expanded smart metering footprint significantly, reaching 1.34 crores installations and an order book of 2.46 crores, further bolstered by the IntelliSmart acquisition to 4.7 crores meters.

  • Successfully tied up ~5,000 megawatts of green energy supply capacity and ~350 megawatts of C&I customers for the Energy Solutions platform, with a market opportunity of 7.5 GW+ by 2031.

Concerns

  • Perceived quarter-on-quarter decline in smart metering operating revenue/EBITDA (Q1 FY27 vs Q4 FY26) due to accounting treatment, though actual operating revenue from commissioned meters increased from INR68 crores to INR161 crores.

  • Potential for P&L variability in the Energy Solutions business due to market prices and demand fluctuations (e.g., delayed monsoon), which management aims to mitigate by tying up sales to purchases.

Key financials

  1. Energy Solutions EBIT ₹590 Cr
  2. Energy Solutions Long-term PPA Revenue ₹1,838 Cr
  3. Smart Metering Operating Revenue ₹161 Cr
  4. Energy Solutions Services Revenue ₹30 Cr

What they filed

Q1 FY27: revenue up 42.4%, net profit up 129.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue6,184 5,830 6,375 6,819 6,596 +7%6,730 +15%7,443 +17%9,711 +42%
EBITDA1,715 1,661 2,040 1,811 1,955 +14%1,995 +20%2,145 +5%3,008 +66%
Net profit773 625 714 539 557 −28%574 −8%723 +1%1,237 +129%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Energy Solutions
    ₹590 Cr EBIT₹1,838 Cr Revenue (Position-taking)3,325 MUs Volume (Position-taking)₹30 Cr Revenue (Services/Trading)9,800 MUs Volume (Services/Trading)
  • Smart Metering
    ₹161 Cr Operating Revenue (commissioned meters)

Order book

high confidence

Total value

5,000 MW

as of 2026-06-30 quantified

Composition

Mix 2 products
  • Energy Solutions Supply Side Capacity 5,000 MW 100%
  • Smart Metering Order Book ₹2.46 Cr 0%

Share of order book by product, derived from disclosed amounts

Pipeline

other

Annual bidding opportunity for transmission projects (central + state)

The company has a diversified order book across smart metering and energy solutions, with a robust pipeline in transmission.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹3,500 Cr
    One significant thing is that we delivered a quarterly capex of about -- close to INR3,500 crores of capex.
  • M&A IntelliSmart Acquisition · Pending regulatory

    To expand smart metering portfolio to 4.7 crores meters and leverage scale for cost reduction.

    Expected similar return profile to AESL's existing smart metering business due to scale benefits.

    In addition, you must have seen the news that we are acquiring IntelliSmart. And combined IntelliSmart and AESL, we'll have a portfolio of about 4.7 crores or 47 million meters. As far as IntelliSmart is concerned, we have we are before the CCI for approval.

Guidance & targets

Capacity

  • Smart Metering Balance Tenders Capacity · next three, four years · Medium confidence 10-11 crores meters
    So balanced portfolio is about 10 crores to 11 crores or 100 million to 120 million. The remaining states are Tamil Nadu, Karnataka, Telangana, a part of Andhra, and there are a few states where part quantum is also left out.

    — Kandarp Patel

  • Energy Solutions Market Opportunity Capacity · by 2031 · High confidence 7.5 gigawatt+
    So, it's -- if you look at our disclosure already in the presentation, we have mentioned that the market opportunity we believe we'll be able to encash is 7.5 gigawatt plus by 2031.

    — Raj Kumar Jain

  • KPS HVDC Commissioning Capacity · FY29 · High confidence December 2029
    So, thanks, Aditya. See, this KPS HVDC would be somewhere in FY29, around December '29.

    — Kandarp Patel

  • Rajasthan HVDC Commissioning Capacity · 2029 · High confidence Beginning of 2029
    And Rajasthan would be at the beginning of '29.

    — Kandarp Patel

Capex

  • Annual Capex Addition (Transmission) Capex · annually · High confidence INR20,000-25,000 crores
    So roughly about INR20,000 crores, INR25,000 crores of capex addition every year.

    — Kandarp Patel

  • STU Projects Annual Volume Capex · annually · High confidence INR20,000-25,000 crores
    So, STU, I think annually, the volume would be about to start with about INR20,000 crores, INR25,000 crores projects. That is the least that I expect from STU side.

    — Kandarp Patel

Market Share

  • Transmission Market Share Market Share · High confidence 25%
    See, Aditya, we have been doing a market share of about 25%. And we will at least continue that part from our side.

    — Kandarp Patel

What to watch in Q2 FY27

Energy Solutions Sales Tie-up Progress

next quarter
Current Contracted supply capacity, sales side to be tied up soon.
Target Sales side tied up for most of the contracted capacity.

Why it matters

Reduces P&L variability and ensures sustained revenue from the Energy Solutions business.

So we would not want to have that kind of variability on our P&L. To start with, we contracted this capacity and now we hope to tie up the sales side very soon.

Risks & concerns

  • Energy Solutions P&L Variability

    medium

    Market prices and demand fluctuations (e.g., delayed monsoon) can lead to variability in P&L if positions are kept open. Management aims to mitigate this by tying up sales to purchases.

    Analyst acknowledged

  • Right-of-Way (ROW) Challenges in Transmission

    medium

    ROW challenges are an industry-specific issue for transmission projects. Management addresses this by working in parallel with state machinery and leveraging regional presence for better execution.

    Analyst acknowledged

  • Delay in Parallel Licenses Approval

    low

    The status of parallel licenses is pending with the commission, with no movement, as the Maharashtra government awaits a central government tariff policy amendment.

    Analyst acknowledged

Q&A highlights

8 direct
IntelliSmart Acquisition & Smart Metering Return Profile Direct
As far as return profile of IntelliSmart is concerned, more or less, it will be on a similar line that we have because what we have done in the last two years that we have also reduced our capex and opex utilizing our scale.

Clarifies the expected profitability and synergy benefits from the IntelliSmart acquisition, indicating a consistent return profile.

Asked by Lavina Quadros, Jefferies

Energy Solutions Business Model & Sustainability Direct
What we are trying to achieve is that we will not want to keep that position open, and we will close it on both sides without much of the time lag.

Addresses concerns about P&L variability in the Energy Solutions segment, outlining management's strategy to secure long-term, back-to-back contracts.

Asked by Vishal Periwal, PL Capital

Energy Solutions EBIT Breakup and Volume Direct
So the breakup is about 570 crores is from the volume that where we have taken a position, where we have a long-term contract. The balance revenue is from power trading and power solution services activity.

Provides a clear breakdown of the Q1 FY27 EBIT for the Energy Solutions segment, distinguishing between position-taking and service activities.

Asked by Vishal Periwal, PL Capital

Data Center Power Mix and Grid Connectivity Direct
All of them are coming mostly on grid scale and in a lot of cases, also on the national grid.

Clarifies the nature of power supply for data centers, indicating a focus on grid-connected solutions rather than off-grid, and the willingness of customers to pay for storage for higher green content.

Asked by Nirmal, Aditya Birla Sun Life AMC Limited

Adani Green's Role in AESL's C&I Supply Direct
No. So Adani Green don't sell to data center. They create capacity and they tie up on a long-term basis, essentially with the utility SECI or some third-party customer, but they don't provide solutioning part. So -- and we are one of the customer of AGEL.

Explains the symbiotic relationship between Adani Green and AESL, clarifying AESL's role in providing solutioning and serving as a customer for AGEL's capacity.

Asked by Nikhil Nigania, Bernstein

AESL's Participation in Maharashtra 2.5 GW Power Contract Direct
So, group level, the solutioning is neutral to AESL. So, we will certainly be a party to that contract.

Confirms AESL's involvement in a significant power contract won by Adani Power, indicating its strategic role in providing energy solutions at a group level.

Asked by Nikhil Nigania, Bernstein

HVDC Project Pipeline and STU Opportunities Direct
And we expect that every year, we would have an opportunity of about INR1 lakh crores bidding combining minimum -- that is a minimum combining central as well as various state projects.

Provides significant forward guidance on the scale of opportunities in the transmission sector, particularly for HVDC and State Transmission Utility (STU) projects.

Asked by Aditya Sahu, HDFC Securities

Smart Metering QoQ Revenue Decline Clarification Direct
So, see, as sir already mentioned, if you see the operating revenue, that has gone up, okay, from INR68 crores to INR161 crores. And for a better understanding, what you can also do is, you go to our press release where we have already provided operating EBITDA for the smart meter based on the -- what you see as a conventional method, okay?

Clarifies a potential misunderstanding regarding smart metering revenue trends, confirming an increase in operating revenue from commissioned meters despite perceived declines due to accounting treatments.

Asked by Mahesh Patil, ICICI Securities

2 min read 5 chapters

Detailed narrative

Q1 FY27 Performance and Business Transition

Adani Energy Solutions Limited has successfully transitioned into a full-scale utility, with all four business verticals—transmission, distribution, smart metering, and energy solutions—now fully operational. The company reported significant growth in its transmission and energy solutions segments during Q1 FY27, while distribution and smart metering maintained a stable growth trajectory. This diversified operational base is expected to drive consistent quarter-on-quarter results.

Energy Solutions Platform Scaling and Strategy

The Energy Solutions platform has been fully scaled up and operationalized, securing approximately 5,000 megawatts of supply capacity, primarily from green energy sources. The company has also tied up with around 350 megawatts of C&I customers, with expectations for more long-term contracts soon. The business operates on a two-pronged strategy: taking positions on capacity for higher margins and providing service-based solutions, with a focus on converting revenues into annuity-kind to minimize P&L volatility.

Smart Metering Business Expansion

Adani Energy Solutions has completed the installation of 1.34 crores (13.4 million) smart meters cumulatively, with an existing order book of 2.46 crores (24.6 million) meters. The ongoing acquisition of IntelliSmart, pending CCI approval, is set to significantly expand the company's smart metering portfolio to approximately 4.7 crores (47 million) meters. Management expects a similar return profile from IntelliSmart due to leveraging existing scale for capex and opex reduction, with remaining tenders for 10-11 crores meters in states like Tamil Nadu, Karnataka, and Telangana.

Transmission Sector Outlook and Capex Plans

The transmission business anticipates robust growth, with HVDC projects like KPS HVDC and Rajasthan HVDC expected to be commissioned around December 2029 and early 2029, respectively. The company foresees annual bidding opportunities of approximately INR1 lakh crores, combining central and state projects. Adani Energy Solutions aims to maintain its 25% market share in transmission, targeting annual capex additions of INR20,000-25,000 crores, with a minimum of INR20,000-25,000 crores expected from STU projects annually.

Capital Discipline and Execution Focus

The company demonstrated strong execution by deploying a quarterly capex of approximately INR3,500 crores in Q1 FY27, focusing on realizing logged-in opportunities. Management emphasized its commitment to execution discipline and capital discipline to consistently reduce the cost of capital and improve credit quality. While Right-of-Way challenges persist in transmission, the company employs parallel strategies and leverages its regional presence to mitigate these issues effectively.

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