Adani Energy Solutions Ltd (AESL), India’s leading electricity transmission and distribution company, has achieved a record order book of Rs 54,700 crore, more than tripling its work orders since the start of the fiscal year in April 2024. In the October-December 2024 quarter, AESL secured two major transmission projects in Rajasthan, worth a combined Rs 28,455 crore. These include the Bhadla-Fatehpur HVDC project, valued at Rs 25,000 crore, marking the company’s largest contract to date.
With these wins, AESL’s market share in tariff-based competitive bidding (TBCB) orders increased from 17% in the second quarter to 24%. The company’s current order book is now the largest among private-sector transmission firms in India.
During the same quarter, AESL added over 1,000 circuit kilometers (cKM) to its transmission network, bringing its total to 26,485 cKM and a transformation capacity of 84,286 MVA. This reflects significant growth from December 2023, when these figures were 20,422 cKM and 54,661 MVA.
In power distribution, AESL serves more than 3 million customers in the Mumbai metropolitan area and Mundra SEZ. Electricity sales in Mumbai grew 3% year-on-year to 2.57 billion units, while Mundra saw a 30% increase, reaching 236 million units. The company has also applied for distribution licenses in Navi Mumbai, Kutch, and the Ghaziabad-Jewar-Bulandshahr regions.
AESL is targeting the commissioning of Rs 27,300 crore worth of projects by October 2026. Analysts at Jefferies project a 16% revenue compound annual growth rate (CAGR) and a 62% profit CAGR for AESL between FY24 and FY27, supported by growth in both transmission and distribution.
In the smart metering segment, AESL emerged as the lowest bidder in Tamil Nadu’s canceled tender for 8.2 million meters and plans to participate in the rebidding. The company aims to install 4.5 million smart meters by FY25 and 10 million by FY26, with 7 million meters coming from its existing contracts.
AESL is also refining its capital and debt management strategies, focusing on long-tenure bonds and aligning debt terms with asset lifespans to mitigate interest rate volatility. Vendor agreements and land studies are being leveraged for faster project execution.
Jefferies cautions that risks to AESL’s growth include potential challenges in managing interest rates and maintaining its market share. However, the company’s strong order book and strategic initiatives position it for continued expansion.
Adani Energy Solutions, a key arm of the Adani Group, is a leading player in India’s energy sector, focused on developing and operating integrated power transmission and distribution networks. The company plays a critical role in strengthening the nation’s energy infrastructure by delivering reliable, sustainable, and affordable energy solutions.
With a commitment to innovation, Adani Energy Solutions integrates advanced technologies and renewable energy sources to enhance grid efficiency and support India’s transition to clean energy. Its expansive portfolio includes high-capacity transmission lines, smart grid projects, and renewable energy integration, aligning with the government’s vision of achieving energy security and sustainability. Through its forward-looking approach, Adani Energy Solutions is powering the nation’s economic growth while contributing to global efforts to combat climate change.
