Synopsis:
Adani Energy Solutions (AESL) is back in focus after ICICI Securities has projected a 36 percent upside in the company, citing in-line performance and a strong execution pipeline for the future.
With a market capitalization of Rs 98,968 crore, the shares of Adani Energy Solutions Ltd are currently trading at Rs 824 per share, down by 39 percent from its 52-week high of Rs 1,347.90 per share. Over the past five years, the stock has delivered an impressive return of 250 percent.
ICICI Securities has assigned a Buy call on Adani Energy with a target price of Rs 1,127 per share, signalling an upside potential of 37 percent from its previous day’s current market price of Rs 824 per share.
The brokerage cited that the company had a fantastic start in Q1FY26, reporting a 27 percent year-on-year revenue increase to Rs 6,819 crore, while EBITDA climbed 10 percent YoY to reach Rs 1,811 crore. The net profit hit Rs 539 crore, bouncing back from losses the previous year, which were tied to the divestment of the Dahanu plant.
However, core operating revenue stayed flat at Rs 4,600 crore, as the benefits from new transmission assets were balanced out by reduced depreciation in older cost-plus assets. Distribution revenue also remained unchanged, impacted by the Dahanu divestment and an early monsoon that limited energy sales growth to just 1 percent YoY.
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It also mentioned that AESL installed 24 lakh smart meters in Q1, bringing the total to 55 lakhs, almost double the count from March 2025. Out of these, 51 lakh have already been commissioned. The company aims for over 1 crore installations by March 2026.
On the transmission side, it successfully commissioned three major projects worth Rs 2,300 crore in Q1, namely Khavda II-A, Khavda Pooling Station 1, and Sangod transmission, and has plans to roll out four more, including the crucial Mumbai HVDC, which is expected to push FY26 capitalisation to Rs 15,000 crore.
Finally, it said that AESL’s growth pipeline looks strong, with ongoing transmission projects valued at Rs 59,300 crore and a smart meter order book of 2.28 crore units. With the increasing digitalisation in power distribution, AESL is in a prime position to lead the smart metering revolution, supported by solid execution and operational efficiency. Notably, AESL was the lowest bidder in the now-cancelled tender for 8.2 million smart meters, highlighting its competitive edge and long-term EBITDA potential in this segment.
Adani Energy Solutions Limited and its subsidiaries are engaged in power generation, transmission, and distribution in India. It has three business segments: Transmission, Trading, and GTD (Generation, Transmission, Distribution). The company constructs and operates power transmission infrastructure and also engages in bullion and agro-commodity trading. It also installs optical ground wire fibres on transmission lines to provide telecom solutions to telecom operators and internet service providers.
Written by Satyajeet Mukherjee
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