'Buy' Adani Energy Shares Maintains ICICI Securities Post Q2 Results, Sees 22% Upside — Check Target Price

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ICICI Securities Report

Adani Energy Solutions Ltd. reported Q2 FY26 revenue of Rs 63 billion (+2% YoY). Ebitda came in at Rs 19.5 billion (+14% YoY) and adjusted profit was Rs 5.3 billion (+20% YoY). However, the underlying operating revenue/Ebitda came in at Rs 45 billion/Rs 18 billion, up 8%/10% YoY, owing to additional revenue from new transmission assets and increase in installed base of smart meters.

Distribution revenue was impacted by extended monsoons in Mumbai and divestment of Dahanu plant in Q2 FY25. Adani Energy Solutions’ execution pipeline remains strong; transmission execution pipeline at Rs 0.6 trillion (3.5x YoY).

The transmission bidding pipeline is estimated at Rs 1 trillion. This excludes the Khavda-Olpad HVDC project where AESL is L1 (estimated cost of Rs 180–200 billion).

It has orders of 24.6 million smart meters with Ebitda potential of Rs 25.5 billion; it has installed 1.8 million meters in Q2 (installed base at 7.4 million).

Retain Buy with an SoTP-based target price of Rs 1,127.

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