Adani Energy Solutions Gets 'Buy' From Mirae Asset With 25% Potential Upside— Key Reasons

Mirae Asset has initiated coverage on Adani Energy Solutions Ltd., with a 'buy' rating and target price of Rs 990, on the back of strategic investments, strong execution and steady cashflow.

The brokerage noted that the transmission business, strong market position bring a positive growth outlook on the company as it also has a massive under-construction transmission pipeline.

The transmission order book currently stands at Rs 590 billion, which is expected to more than triple its existing asset base in next 4 to 5 years. The company has successfully secured major projects, most notably, the HVDC Bhadla-Fatehpur project worth Rs 250 billion earning the player the highest market share in private transoms.

The analyst also noted that the company's distribution arm generates a steady predictable returns on Regulated Asset Base with a pass-through of O&M costs. The Adani Energy also has a track record of delivering best-in-class efficiency metrics with distribution loss capped at 4.77%, outperforming Indian regulatory benchmarks while maintaining service availability.

The company is also strategically expanding in new markets, applying for parallel distribution licenses. The Indian private discoms also stand to gain from the privatisation of the state-owned loss making discoms. With the upcoming privatisation of two UP discoms, Adani Energy stands to be a strong contender to benefit. The company has also applied for parallel licensing at three locations out of which Navi Mumbai has finally started to gain steam.

Adani Energy has been an execution front runner in Indian smart metering sector, according to the brokerage, as the company secured contract for 22.8 million meters across 9 projects. It installed 55.5 lakh smart meters of which 24 lakh were installed in the first quarter of financial year 2026, and plans to install a total of 10 million meters by financial year 2026. The company currently deploys 25,000 to 27,000 meters per day, outperforming all other market players combined.

The smart meter opportunity remains large with up to 100 million meters still to be deployed nationwide. The company's execution capabilities, paired with tech solution, distribution knowledge synergies create a distinctive competitive advantage, according to the brokerage.

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