Adani Energy Solutions (ADANIENSOL) Q2 24/25 earnings summary

Executive summary

• Strong Q2 performance with all business segments—transmission, distribution, and smart metering—showing significant growth; new C&I power solution business to contribute from next quarter.

• Board approved unaudited standalone and consolidated results for the quarter and half year ended 30 September 2024.

• Largest-ever QIP in India's power sector completed, raising INR 8,373 crore and increasing paid-up equity capital.

• Regulatory and legal matters from the short seller report and SEBI show-cause notices continue, but management sees no material consequences; peer review issue resolved.

• Divestment of Dahanu Thermal Power Plant by Adani Electricity Mumbai Limited for INR 815 crore, advancing ESG goals.

Financial highlights

• Q2 consolidated revenue from operations: INR 6,183.70 crore, up from INR 3,673.87 crore in Q2 FY24; standalone revenue: INR 468.17 crore.

• Q2 consolidated net profit: INR 773.39 crore, compared to a net loss of INR 1,190.66 crore in Q2 FY24; standalone net profit: INR 179.67 crore.

• Q2 EBITDA up 31% to INR 1,891 crore; PAT rose to INR 727 crore.

• Cash profit reached INR 1,026 crore, reflecting robust operational and financial discipline.

• Consolidated operating margin for Q2 FY25: 27.74%; net profit margin: 12.16%.

Outlook and guidance

• FY25 CapEx expected to be at least INR 10,000 crore, with EBITDA growth projected above 15%.

• Smart metering under-construction pipeline stands at 22.8 million meters across nine contracts; installations targeted at 50-52 lakh by year-end.

• Transmission remains the primary focus, with INR 85,000 crore in bidding opportunities over the next 6-7 months.

• Renewable power share in Mumbai circle at 39% as of September 2024, targeting 60% by FY27.

• Management expects continued compliance with applicable laws and regulations, with no material impact from ongoing regulatory matters.