Adani Energy Growth Faces Test as Project Pipeline Expands
Adani Energy Solutions Reports 145% Rise in Q2 Profit as Smart Metering and Power Projects Expand
Adani Energy Solutions Limited (AESL) reported a 145% year-on-year rise in consolidated profit after tax (PAT) to ₹1,364 crore for the July to September quarter of FY27, compared with ₹557 crore in the same period last year. Total income rose 51% to ₹10,239 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) reached ₹3,548 crore, up 67% from ₹2,126 crore a year earlier.
The results, announced on 22 October, reflect growth in power transmission, smart metering and the company’s energy solutions business. AESL also reported higher electricity sales in Mumbai and Mundra, alongside new transmission projects and a long-term power supply agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL).
For the six months ended September 2026, AESL recorded total income of ₹20,092 crore, up 46% from ₹13,793 crore in the corresponding period of FY26. EBITDA increased 62% to ₹6,726 crore, while PAT rose 137% to ₹2,600 crore from ₹1,096 crore.
Operational revenue for the quarter reached ₹7,167 crore, a rise of 51% from ₹4,740 crore. Operating EBITDA climbed 68% to ₹3,070 crore. The company reported that its transmission, distribution, smart metering and energy solutions operations contributed to the improvement.
Kandarp Patel, chief executive officer of Adani Energy Solutions, said: “AESL closed the first half of the fiscal year with strong financial and operational momentum, laying a robust foundation for future growth. We significantly expanded our growth pipeline by winning the strategic Vizag and Satara transmission assets, elevating our active order book to ~Rs 87,000 crore.
“Operationally, our Mumbai distribution business grew by ~11% in MUs sold, while our smart metering platform scaled its installation base to ~15 million meters. A significant 2.5 GW RTC power supply contract with MSEDCL reinforced AESL’s core competencies in multi-source energy aggregation and power supply optimisation for its customers.
“Backed by robust quarter-on-quarter performance across all business segments and strict financial prudence, we are well-positioned to convert this massive project pipeline into long-term stakeholder value.”
AESL’s transmission business remained a major source of earnings. The company reported operating revenue of ₹1,521 crore for the quarter, up 17% from ₹1,305 crore a year earlier. Operating EBITDA increased 15% to ₹1,394 crore. Average transmission system availability stood at 99.8% during Q2 FY27, while the total transmission network reached 29,739 circuit kilometres, compared with 26,705 circuit kilometres a year earlier.
During the first half, transmission capital expenditure rose to ₹5,542 crore from ₹3,343 crore, an increase of about 66%. AESL secured two projects, Vizag Power Transmission Limited and Satara Power Transmission Limited. Its transmission project pipeline under construction comprises 15 projects valued at approximately ₹87,000 crore. The company estimates that near-term transmission tenders could offer opportunities worth around ₹1.4 lakh crore.
Smart metering is another area of expansion. AESL reported cumulative installations of 14.82 million meters by the end of September, compared with 7.4 million a year earlier. Its order book stands at 24.6 million meters across 10 projects, with a stated revenue potential of ₹29,519 crore. The company reported Q2 smart metering operating revenue of ₹267 crore under Ind AS, up 129% year on year, while operating EBITDA rose 146% to ₹226 crore.
The expansion comes as India continues its national smart meter programme. The Ministry of Power launched the Revamped Distribution Sector Scheme in July 2021 to improve the financial health and operating performance of electricity distribution companies. Smart meters can provide more accurate consumption records and help utilities improve billing and payment collection. The pace of installation and the ability of utilities to use the new data effectively remain important to the programme’s results.
AESL’s distribution operations also recorded higher electricity sales. Adani Electricity Mumbai Limited (AEML) sold 2,930 million units in Q2 FY27, compared with 2,650 million units in the same quarter last year, an increase of about 11%. The company reported supply reliability of 99.99%. Its regulated asset base stood at ₹10,456 crore at the end of the first half, comprising ₹5,564 crore in equity and ₹4,892 crore in debt, up 11% year on year.
Distribution losses in AEML’s network were reported at 4.29% for H1 FY27. At Mundra, MPSEZ (Mundra) Utility Limited sold 460 million units during the quarter, up 26% from 364 million units a year earlier. The figures point to higher demand from industrial and commercial customers in the two service areas.
AESL’s energy solutions platform recorded operating revenue of ₹2,197 crore in Q2 FY27, compared with ₹201 crore in the same quarter last year. Operating EBITDA rose to ₹803 crore from ₹11 crore. The company also signed a 25-year power purchase agreement with MSEDCL to supply 2,500 megawatts of round-the-clock power. AESL said its supply arrangements include about 4.6 gigawatts across solar and wind and 3.5 gigawatt-hours of battery energy storage capacity. These resources are intended to serve commercial and industrial customers, data centres and utilities.
The company raised ₹3,500 crore through a qualified institutional placement (QIP) and reported primary and secondary equity investments from major investors. The funding comes as it prepares to execute its large project pipeline, which will require substantial spending on infrastructure.
AESL also reported an ESG score of 90 out of 100 in S&P Global’s latest assessment, compared with 81 previously and an industry average of 41. It said Intertek verified its Zero Waste to Landfill status, with more than 600,000 kilograms of waste diverted and a diversion rate above 99% across transmission and substation operations. AEML retained an A+ rating in the Consumer Service Rating of DISCOMs issued by the Rural Electrification Corporation.
The coming quarters will show how quickly AESL can turn its transmission projects, smart meter contracts and power supply agreement into completed infrastructure and steady earnings. The scale of its order book offers room for expansion, while timely construction, funding needs and reliable service will remain central to delivery.