Adani Energy Solutions Ltd. (AESL), part of the Adani Group and a key player in India’s power transmission and distribution sector, announced its Q2 FY2026 (July–September 2025) financial results on October 27, 2025. The company reported steady growth in revenue and EBITDA, driven by efficient operations, higher EPC income, and the ongoing expansion of its transmission network across India.
However, net profit declined year-on-year, primarily due to higher finance costs and increased operating expenses. Despite this, AESL continues to strengthen its presence in India’s power infrastructure segment, supported by a robust project pipeline and strategic investments in renewable integration and smart grid initiatives.
In this article, we’ll break down Adani Energy Solutions’ Q2 FY2026 results, highlighting key financial metrics, project updates, and management outlook for the coming quarters.
Key Highlights
| Metric | Q2 FY26 | Q2 FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹6,595 crore | ₹6,183 crore | +6.7% |
| Net Profit (PAT) | ₹534 crore | ₹675 crore | -21.0% |
| EBITDA | ₹2,289.4 crore | ₹1,786.8 crore | +28.1% |
| EPS | ₹4.80 (approx.) | ₹6.00 (approx.) | -20% |
Highlights:
- Revenue grew on the back of network expansion and EPC project execution.
- EBITDA margins improved to 34.7%, indicating strong operational leverage.
- PAT declined due to higher interest expenses from recent debt-funded expansion projects.
Management Commentary
The management highlighted that AESL’s growth was driven by its robust order book, new project commissioning, and smart metering rollouts, which are key to India’s digital power infrastructure.
“Our performance in Q2 FY26 underscores Adani Energy Solutions’ ability to deliver stable and predictable earnings despite macroeconomic challenges. With continued investments in green transmission, smart metering, and grid modernization, we are well-positioned to drive India’s energy transition,” said a company spokesperson.
The company remains focused on maintaining a balanced capital structure and strengthening its cash flow generation through efficient operations.
Segment Performance
1. Transmission Business
- Added 190 circuit kilometers (ckm) of network in Q2 FY26, expanding total operational capacity to 26,705 ckm.
- Commissioned major projects like Sangod Transmission (STSL) and Khavda Phase-II Part-A.
- Order Book: ₹60,004 crore, with ₹700 crore of new contracts won during the quarter.
2. Distribution Business
- Achieved record collection efficiency of 100.59%, up from 99.8% in Q2 FY25.
- Energy sales in Mundra Utility Ltd. surged 55% YoY to 364 million units (MUs), supported by industrial demand recovery.
3. Smart Metering
- Installed 1.82 million new smart meters, taking the total to 7.37 million.
- On track to achieve 10 million installations by FY26-end, backed by a ₹2,323 crore rollout project.
Financial and Strategic Highlights
- Debt Management: Repurchased $44.66 million worth of bonds (from its $300 million 2031 issuance), reflecting commitment to deleveraging.
- EBITDA Margin: Improved to 34.7% from 28.9% last year.
- Capex: Continued investments in green corridors and transmission lines, with a ₹54,000 crore pipeline of upcoming tenders.
Market Reaction
AESL’s shares closed marginally lower at ₹945.05 on October 27, 2025, amid broader market weakness. Despite the decline in net profit, investors remained optimistic due to revenue growth, EBITDA margin expansion, and long-term project visibility
Per Comparison
Compared to peers like Power Grid Corporation of India (PGCIL) and Tata Power, Adani Energy Solutions continues to demonstrate faster network expansion and higher operational margins. However, its higher leverage and interest costs remain a short-term headwind relative to its competitors’ balance sheets.
Future Outlook
AESL’s growth outlook remains positive, supported by:
- Expanding transmission footprint and regulated returns.
- Rapid scaling of smart metering and digital grid initiatives.
- India’s strong focus on renewable energy evacuation and infrastructure expansion.
- Company guidance indicates 20% EBITDA growth across Adani Group businesses by FY26, with AESL as a key contributor.
FAQs
Q1. What was Adani Energy Solutions’ net profit in Q2 FY26?
The company reported a net profit of ₹534 crore, down 21% YoY from ₹675 crore.
Q2. Did Adani Energy Solutions beat market expectations?
Yes. The company’s revenue and EBITDA surpassed expectations, though net profit declined due to higher finance costs.
Q3. How did Adani Energy Solutions’ margins perform?
EBITDA margin improved to 34.7%, up from 28.9% last year, highlighting better cost efficiency and higher operational income.
Q4. What is AESL’s focus for FY26?
AESL aims to expand its smart metering business, enhance transmission network capacity, and pursue debt optimization to improve profitability.
Conclusion
Adani Energy Solutions’ Q2 FY26 performance reflects a mix of top-line growth, operational strength, and financial discipline. While profitability faced temporary pressure from finance costs, the company’s strong project pipeline, efficient operations, and strategic investments in green energy infrastructure position it for sustained growth in the coming quarters.
Sources: Adani Energy Solutions Investor Presentation
