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New Delhi: Adani Energy Solutions Limited (AESL) has declared superb September quarter (Q2FY26) results. Income and profit have increased year by year in the second quarter of the current financial year. The special thing is that the company's transmission business and smart meter segment is moving fast. Brokerage firm ICICI Securities has maintained the BUY rating on shares.
Brokerage firm ICICI Securities has retained the BUY rating on AESL's stock. According to the report, the company's transmission and smart meter segment can take the company's earnings to new heights in the coming years. The firm has fixed the target price of the share at Rs 1127 based on the Sum-of-the-Parts (SoTP) valuation.
In the last one month, the company's shares have seen an increase of more than 9 percent. The stocks’ 52-week high is Rs 1090. Analysts believe that strong pipelines, frequent project commissioning and entry into new business will make AESL a major player in India's power infrastructure sector.
Adani Energy Solutions' income increased by two percent to Rs 6300 crore in the September quarter of FY26. The company's EBITDA (operating profit) jumped by 14% to Rs 1,950 crore, while the adjusted profit increased by 20 percent to Rs 530 million.
The company's underlying operating income and EBITDA increased by 8% and 10% respectively, which was possible due to increased income from new transmission projects and increased smart meter installations.
However, the long rains in Mumbai and the sale of the Dahanu plant last year had an impact on the distribution business.
AESL's transmission network is its strongest pillar. The company's execution pipeline has now reached Rs 60,000 crore, which is 3.5 times more than last year. In addition, the company is involved in the bidding process of about 1 lakh crore rupees.
The biggest project is Khavda-Olapad HVDC, the cost of which has been estimated at 18000 to 20000 crores and AESL becomes the L1 bidder. The company has completed three major transmission projects this year and plans to complete three more projects including the Mumbai HVDC by the next financial year.
AESL's grip on smart meter installations is getting stronger. The company has orders to install a total of 2.46 million meters, which has an EBITDA potential of about Rs 2,550 million.
In Q2FY26, the company installed 18 million meters, taking the total installed base to 74 million. AESL aims to install more than 1 crore smart meters by March 2026. In states like Tamil Nadu, Karnataka, Telangana and Madhya Pradesh, it is keeping an eye on the new tender and is hoping that it will maintain 22 percent market share.
The company is planning a capex of about Rs 17,000-18,000 million in FY26, in which Rs 11500 million will be spent on transmission, 4000 crore smart meters and 1,600 crore will be spent on distribution business.
At the same time, AESL is also focusing on its new business segments — C&I Power Solutions and District Cooling Systems. In the C&I segment, the company is currently working on a capacity of 717 MW and it is planned to increase it to 7000 MW in the next five years.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
