Adani Energy Solutions Powers Ahead: Q2 & H1 FY26 Operational Update

Adani Energy Solutions Limited (AESL) has delivered a robust operational performance for the second quarter and first half of fiscal year 2026, showcasing strategic growth across its key segments: transmission, distribution, and smart metering. The company's consolidated total income for H1 FY26 stood at INR 13,793 crore, reflecting a 16% year-on-year growth. This performance was primarily driven by stable operations in transmission and distribution, coupled with an increasing contribution from the burgeoning smart metering business. The consolidated EBITDA for the half-year increased by 13% to INR 4,144 crore, while adjusted PAT saw a significant 42% rise to INR 1,096 crore, excluding one-time deferred tax reversals from the previous year.

The company's transmission business continues to be a cornerstone of its growth. AESL added 190 circuit kilometers (ckm) to its network in Q2 FY26, bringing the total transmission network length to 26,705 ckm. Operational availability remained robust at 99.63%, demonstrating high reliability. During the quarter, AESL secured four additional projects under the line and substation augmentation category on a cost-plus basis, contributing an incremental 4,000 MVA in capacity and INR 700 crore to the project value. This expanded the aggregate order book to INR 60,004 crore across 13 projects. The company successfully commissioned three transmission projects in H1 FY26, including Khavda Phase-II, Part-A, Khavda Pooling Station (KPS-1), and the Sangod transmission line, further solidifying its infrastructure footprint.

In the distribution segment, Adani Electricity Mumbai Limited (AEML) showcased exemplary performance. Distribution losses improved to a best-in-class 4.36% in Q2 FY26 and 4.30% for H1 FY26. Supply reliability (ASAI) remained at an impressive 99.999%. AEML's consumer base grew to 3.25 million, reflecting new customer additions. MPSEZ Utilities Limited (MUL) in Mundra demonstrated robust growth, with units sold increasing by 55% year-on-year to 364 million units in Q2 FY26, driven by strong industrial demand. The company's focus on consumer-centricity is evident, serving over 13 million consumers with a green power option and achieving a collection efficiency of 100.59% in AEML.

The smart metering business is rapidly scaling up. AESL secured a new contract for 18.36 lakh meters from AEML, with a revenue potential of INR 2,323 crore. This brings the total smart meter order book to 2.46 crore meters, representing an overall revenue potential of INR 29,519 crore. In Q2 FY26, AESL installed 18.2 lakh new meters, reaching a cumulative total of 73.7 lakh smart meters. The company is firmly on track to achieve 1 crore cumulative meters by the end of FY26, targeting a vast untapped market opportunity of 104 million smart meters across India. While the installation rate saw a sequential dip due to prolonged monsoons, management confirmed efforts to accelerate installations to 30,000 per day.

AESL's strategic initiatives extend beyond its core operations. The company is actively pursuing parallel licensing opportunities in distribution for Navi Mumbai, Mundra, and the Ghaziabad/Jewar district in Uttar Pradesh, with regulatory processes for Navi Mumbai and Mundra already complete. This expansion is projected to involve a capex of approximately INR 10,000 crore over five years for Navi Mumbai alone. Furthermore, AESL is making significant strides in cooling solutions, deploying India's largest district cooling facility in Mundra and implementing 88,000 tons of refrigeration capacity. The company received Letters of Intent from two third-party developers in H1 FY26, highlighting the humongous potential in this segment. The company's commitment to ESG is also notable, with an improved Sustainalytics ESG score and re-certification as Zero Waste to Landfill for 100% of its transmission operational sites.

Adani Energy Solutions Limited continues to demonstrate disciplined execution and strategic foresight. The company anticipates capitalizing INR 17,000-18,000 crore in capex for the full year, expected to generate INR 2,800 crore in annual run-rate EBITDA. With a robust transmission bidding pipeline of INR 80,000-90,000 crore over the next 1-1.5 years and a clear roadmap for smart metering and distribution expansion, AESL is well-positioned for sustained growth. The management's proactive approach to challenges like right-of-way and skilled manpower, coupled with strong capital management, reinforces investor confidence in its long-term vision to transform India's energy landscape.