Adani Energy Solutions (ADANIENSOL) Q4 25/26 earnings summary

Executive summary

• Commissioned the Mumbai HVDC project, enhancing transmission capacity and grid resilience, and achieved record smart meter installations, surpassing targets with 82.29 lakh meters in FY26.

• Operational revenue for FY26 rose 7.3% YoY to Rs 18,296 crore, with EBITDA reaching a record Rs 8,726 crore, up 12.7% YoY, led by transmission and smart metering growth.

• Adjusted PAT increased 32% YoY to Rs 2,393 crore, supported by EBITDA expansion and moderate depreciation.

• Significant CapEx increase, reaching INR 15,000 crore in FY26, with plans to further scale up and a CapEx pipeline of INR 77,000 crore locked in for the next four years.

• Improved credit ratings to AAA/AAA+, reducing interest costs despite higher CapEx, and refinanced $500 million bond with Apollo.

Financial highlights

• Operating cash flow for FY26 was nearly INR 11,000 crore; CapEx stood at INR 14,431 crore.

• Free cash flow was negative INR 7,500 crore due to high CapEx.

• FY26 capitalization: INR 15,300 crore (Transmission: INR 10,260 crore, Distribution: INR 1,511 crore, Smart metering: INR 3,556 crore).

• EBITDA for FY26 reached INR 8,726 crore, with expectations to grow to INR 11,500 crore in FY27.

• Net debt increased to Rs 39,268 crore in FY26, with net debt to EBITDA at 4.5x.

Outlook and guidance

• FY27 CapEx guidance: INR 21,000–22,000 crore (Transmission: INR 15,500 crore, Distribution: INR 2,350 crore, Smart metering: INR 3,900 crore).

• FY28 CapEx expected at INR 23,000 crore (Transmission: INR 20,000 crore, Distribution: INR 2,000 crore, Smart metering: INR 1,500 crore, with potential upside from new orders).

• Capitalization guidance: INR 21,000–22,000 crore in FY27, INR 13,000 crore in FY28.

• EBITDA projected to triple in 3–4 years as new projects are commissioned.

• Untapped market opportunity for smart meters stands at 103 million units, positioning for future growth.