Adani Energy Solutions (ADANIENSOL) Q2 26/27 earnings summary

Executive summary

• Four businesses—transmission, distribution, smart metering and energy solutions—are in growth mode, backed by an asset base of ~₹83,000 crore and >₹1 lakh crore of committed capex over 4–5 years.

• Record H1 capex reached ~₹7,850 crore; management expects the asset base to grow 1.3x–1.4x over five years.

• Q2 transmission availability was 99.75%, AEML supply reliability was 99.999%, and transmission wins lifted the order book to ₹87,222 crore across 15 projects.

• Strategy centers on long-duration utility assets, disciplined execution and more long-term supply and consumer contracts to limit market-driven earnings volatility.

Financial highlights

• Q2 consolidated revenue from operations was ₹10,075.54 crore and PAT after deferred-asset adjustments was ₹1,363.92 crore; H1 revenue was ₹19,786.62 crore and PAT was ₹2,600.48 crore.

• Q2 consolidated PAT before deferred assets recoverable/adjustable was ₹3,041.40 crore; a ₹1,677.48 crore adjustment brought reported PAT to ₹1,363.92 crore.

• Consolidated operating margin rose to 33.59% from 29.65% YoY, while net profit margin increased to 13.32% from 8.23%.

• Energy solutions platform quarterly revenue exceeded ₹2,000 crore and EBITDA exceeded ₹800 crore; H1 energy sales revenue was ~₹3,800 crore, including ₹3,688 crore from long-term sales.

• Standalone Q2 total income was ₹1,088.60 crore versus ₹970.91 crore YoY; PAT was ₹57.29 crore versus ₹101.35 crore.

Outlook and guidance

• FY27 transmission capex is expected at ₹14,000 crore, including ₹8,000–9,000 crore in H2; FY28 capex is projected at ₹18,000–19,000 crore.

• Transmission capitalization is expected at ₹8,000–9,000 crore in FY27 and ~₹10,000 crore in FY28, with a larger step-up after FY28 as HVDC projects commission.

• FY27 smart-meter installation target is 8–9 million, including 4–4.5 million in H2; deployment is expected to accelerate as earlier constraints ease.

• Energy-solutions consumer-side tie-ups target 7–8 GW over 3–4 years; ~4.0 GW of solar and wind supply tie-ups and ~3.5 GWh of BESS support the platform.

• Transmission capitalization outlook was retained, with Gujarat right-of-way constraints expected to ease and construction conditions to improve in H2.