Adani Energy Solutions Limited (AESL) has ambitious plans for the upcoming fiscal year, with a capital expenditure (capex) target set between ₹16,000 and ₹18,000 crore for FY26. During a recent post-earnings discussion, CEO Kandarp Patel outlined the company’s strategic investments aimed at enhancing its infrastructure and services.
Planned Investments for Growth
AESL has earmarked significant funding across various sectors:
- Transmission: ₹12,000-13,000 crore
- Smart Meters: ₹4,000 crore
- Distribution: ₹1,600 crore
This follows a notable capex of ₹11,444 crore in the previous fiscal year (FY25), reflecting AESL’s commitment to expanding its operations.
Robust Transmission Pipeline
Patel emphasized that the company’s transmission project pipeline is exceptionally strong, boasting ₹54,000 crore in Inter-State Transmission System (ISTS) projects currently in the bidding phase. He mentioned the necessity for states, particularly Maharashtra, to enhance their transmission capabilities to accommodate the renewable energy that these ISTS projects will facilitate.
"Maharashtra will require an investment of ₹1.5 lakh crore over the next decade in transmission infrastructure, with many projects expected to follow the Tariff-Based Competitive Bidding (TBCB) model, which we will actively bid on," Patel stated.
Bidding Success in FY25
In FY25, AESL benefited from unprecedented bidding activity in the transmission sector, totaling ₹1.62 lakh crore. The company secured a 28% market share by winning seven projects valued at ₹44,000 crore.
Revenue Growth from Ongoing Projects
Patel shared that the 15 projects currently under implementation are projected to boost the company’s annual revenue by ₹8,260 crore upon completion over the next 2-4 years. For FY26, AESL aims to deliver seven key projects, including the vital Mumbai HVDC project, with an estimated capex of ₹15,000 crore.
Focus on Distribution and Smart Metering
In the distribution sector, where AESL operates in Mumbai and Mundra, the company plans to engage in Uttar Pradesh’s discom privatization initiative, with bidding expected to commence soon. Additionally, AESL is exploring licensing opportunities in the Navi Mumbai area.
When it comes to smart meters, AESL boasts a robust order book of 22.8 million smart meters across five state distribution companies, with a potential revenue of over ₹27,195 crore. The company plans to add 700,000 smart meters within this fiscal year, aiming for a total of 10 million installed units by March 31, 2026.
Patel noted, "There remains a substantial opportunity for an additional 110-120 million smart meters in states that have yet to fully bid out or are partially bid out. We are committed to maintaining our current market share of 22-23%."
Daily Installation Milestones
Currently, AESL leads the market by installing 27,000 smart meters daily, the highest rate among competitors. This ambitious growth trajectory positions AESL well for future challenges and opportunities within the energy sector.
For more insights on energy investments, check out our detailed analysis of the renewable energy market and related technologies.
