Adani Energy Solutions Q3 FY26 Performance Shows Real Power

Newzdaddy Business Updates

Adani Energy Solutions Q3 FY26 performance underlines strong strategy

Adani Energy Solutions Limited has reported a strong and steady performance for the third quarter and the first nine months of FY26, showing how India’s power infrastructure companies are continuing to grow even in a demanding economic and operational environment. The company’s results highlight a clear focus on execution, scale and long-term planning, which are becoming increasingly important as India’s energy needs rise year after year.

During Q3 FY26, AESL recorded its highest-ever quarterly EBITDA of Rs 2,210 crore, a rise of over 20 per cent compared to last year. This growth matters because EBITDA reflects the company’s core operating strength, before tax and other accounting adjustments. In simple terms, it shows that the business is earning more from its main activities like power transmission, distribution and smart metering. The adjusted profit after tax also grew by more than 30 per cent, which points to real improvement in performance rather than one-time gains.

The company’s total income for the quarter reached an all-time high of Rs 6,945 crore. This was supported by better performance across segments and higher income from Service Concession Arrangement assets, which usually increase when capital spending rises. In India’s regulated power sector, such income gives companies stable and predictable cash flows, helping them invest confidently in long-term projects.

For the nine months ending December 2025, the picture remains equally strong. Total income crossed Rs 20,700 crore, while EBITDA stood at Rs 6,354 crore, both the highest levels ever for AESL. Adjusted PAT growth of more than 34 per cent over nine months shows that the company has been able to turn rising revenues into higher profits, despite challenges such as higher costs and complex project execution.

One of the most important drivers behind this performance is capital expenditure. AESL invested over Rs 9,200 crore during the first nine months of FY26. In the power sector, capex is a sign of future growth. New lines, substations and meters may take time to generate returns, but once operational, they usually provide steady income for decades. The commissioning of four major transmission projects during this period strengthens AESL’s national footprint and improves power flow from renewable-rich regions like Khavda.

The smart metering business stands out as a key growth engine. AESL has already installed 92.5 lakh smart meters and is on track to cross one crore by the end of FY26. Smart meters are central to India’s power reforms because they help reduce losses, improve billing accuracy and give consumers better control over usage. With a country-wide opportunity of more than 100 million meters, this segment offers long-term revenue visibility and supports cleaner and more efficient power use.

Transmission remains the backbone of AESL’s operations. The company maintained system availability of nearly 100 per cent, which is crucial because higher availability leads to incentive income and reflects strong maintenance practices. India’s growing renewable capacity needs robust transmission networks, and AESL’s under-construction pipeline of nearly Rs 78,000 crore places it among the leaders in this space.

The distribution business, especially in Mumbai, continues to deliver reliable power with very low losses. Distribution losses of just over 4 per cent are among the best in the country, showing efficient operations and strong customer management. Even though units sold were slightly lower year-on-year, supply reliability remained close to 100 per cent, which is critical for a major urban centre.

From a financial stability point of view, the revision of the outlook to stable by Moody’s Ratings is significant. Credit ratings influence borrowing costs and investor confidence. A stable outlook suggests that the company’s cash flows, debt management and governance are viewed positively by global rating agencies.

AESL’s focus on environmental, social and governance standards is also gaining recognition. Improved ESG scores from global and domestic agencies place the company among better-performing utilities worldwide. In a sector often criticised for environmental impact, such progress helps attract long-term investors who value responsible growth.

Overall, AESL’s Q3 and 9M FY26 performance tells a clear story. Strong execution, disciplined capital spending and growth in future-ready segments like smart metering have helped the company deliver steady results. As India continues to expand its power infrastructure to support economic growth and renewable energy goals, companies with scale, operational strength and financial discipline are likely to play a central role, and AESL appears well-positioned on that path.