Adani Energy Solutions Ltd (ADANIENSOL) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator: Ladies and gentlemen, good day, and welcome to Q2 and H1 FY27 earnings conference call hosted by Adani Energy Solutions Limited. From AESL side, we have the following on the call as main speakers: Mr. Kandarp Patel - CEO, AESL; Mr. Ashok Jagathiya - CFO, AESL; Mr. Raj Kumar Jain - Business Head, Energy Solutions platform; Mr. Prashant Soni - Head Finance, AESL. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prashant Soni from AESL. Thank you, and over to you, Mr. Soni.
Prashant Soni (Adani Energy Solutions Ltd): Thank you. Thank you, and a very good day to everyone. I welcome you all to the Q2 and H1 FY27 earnings call of AESL. We hope you had an opportunity to review the earnings presentation and financial results that we shared on our website. To outline the flow of today's call, we will begin with the opening remarks from our CEO, Mr. Kandarp Patel, following which we will open the floor for Q&A. The call will conclude with closing remarks from CFO, Mr. Ashok Jagathiya. For those who wish to ask the question, we request you to start joining the question queue a little in advance to help us manage the Q&A efficiently. Thank you. And with that, I would like to hand over to Mr. Kandarp Patel for his opening remarks. Sir, over to you.
Kandarp Patel (Adani Energy Solutions Ltd): Hello, good morning, everyone. Thank you for joining Q2 FY27 call today. This quarter marks another important
Kandarp Patel (Adani Energy Solutions Ltd): milestone for AESL evolution. Our performance in this quarter demonstrate that AESL is now becoming a mature India's leading integrated infrastructure platform and utility. And it is supported by all our four business which is in a growth mode, that's transmission, distribution, smart metering, and energy solution. Our focus obviously remains on a building long-duration utility assets. Currently, we have asset base of about 83,000 crore and we have already locked in capex of more than 1 lakh crore which is and that we will be delivering in another 4 to 5 years, so asset will grow almost 1.3, 1.4 times from what we have today in next 5 years. In fact, since we have been focusing continuously on capex delivery on the ground, and we see now results coming up. The capex in this first half of the year is the all-time high. We have deployed about 7,850 crore of capex among all our businesses. As far as transmission is concerned, during this quarter, we added another two projects. One is at Vizag, Pendurthi and the second one is Satara. And with this two projects, our order book remains at about 87,000 crore. And as we said earlier, we have been focusing on those critical transmission assets where large renewable and consumption that we are integrating. So, this two project obviously is very, very important for development of Satara is important for development of PSP projects, and Pendurthi is for data centers that is coming up in in Vizag region. And we will continue to focus on those large and critical projects like HVDC and this kind of a project where we are enabling renewable integration into the grid and also enabling rapid consumption in in in our economy. As far as distribution is concerned, both at AEML and MUL, we have been continuing to deliver exceptional operational performance. Our distribution losses in Mumbai has reduced further to 4.29% in the first half. And this, despite the fact that consumption has also increased by more than 10%. And we also continue to focus on reliability, customer service and operational excellence as far as distribution is concerned. Smart metering, we have now delivered about 14.8 million meters so far and around 60% of our order book that we have delivered and balance portion, we wish to complete in another 12 to 14 months' time. As far as C&I and energy solution platform is concerned, we are steadily transitioning from incubation to scale now. During this quarter, the platform delivered revenue of over 2,000 crore and EBITDA of over 800 crore. And we already have a tie-up of 4 gigawatt of renewable and 3.5 gigawatt of base capacity. So, while we are tying up on a supply side, we have also now started tie up on a consumer side. So, we executed that 2,500 megawatt RE-RTC contract with MSEDCL. And we also expect to further scale up on both sides on a supply as well as consumer side significantly in in going forward.
Kandarp Patel (Adani Energy Solutions Ltd): 50%. EBIDTA also increasing close to 67% and PAT growing 145%. As we we made commitment, and we continue to focus on governance and energy ESR part. We are happy to say that now in SLP Global electric utility category, we are number one globally getting 90 out of 100 rank, whereas industry average is about 40. And we will continue to focus on those aspects going forward as well. On a funding and balance sheet side, significant portion of our debt is also fixed rate or hedged appropriately. So we don't expect much of the volatility due to foreign exchange or interest rate variation in our P&L or balance sheet. Overall, in all segments, be it transmission, distribution, smart metering or C&I, we see a great opportunities going forward. Those opportunities pipeline remains robust, and we are well positioned to take advantage of the opportunity available to us in all the segments. And we will continue to focus on besides ESG, as I said, on CapEx delivery. So, this is in a nutshell, and I hope you must have received all the details and material on our financials. So, I thank all of you, and now we'll be happy to take questions from all friends. Thank you.
Moderator: Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Manish Somaiya with Cantor. Please go ahead.
Manish Somaiya (Cantor): Good morning and congratulations on a strong quarter in first half. I did have a couple of questions. Maybe to kick it off, on IntelliSmart, when should we expect that transaction to close?
Kandarp Patel (Adani Energy Solutions Ltd): Thank you, Manish bhai, for your question. IntelliSmart, the approval from CCI is pending, and we expect this approval very soon. In fact, we had a couple of meetings with them, and they wanted a various information on on transactions as well as on the market. We have provided all those information. We also had a approval from all the utilities where IntelliSmart has a concessions. So, we also are required to take their approval. We have secured all those approvals, and we expect the CCI approval very soon, and once we have that CCI approval, we will complete that transaction immediately. So, we expect that to happen in next one month's time.
Manish Somaiya (Cantor): Okay, that that is super helpful. And then, on the legacy smart meter business, you had installations of about 1.3 million in the second quarter. You know, it did show that the quarter was a little bit of a slower deployment. Maybe, if you could just help us understand how we should think about the second-half deployment, and perhaps, what's really happening on the ground that might potentially speed up the deployment in the second half.
Kandarp Patel (Adani Energy Solutions Ltd): Yeah. So, yes, obviously, the the deployment on the first half was lower than even our expectation, and those reasons were mainly extraneous, but we are working on those, and those reasons are
Kandarp Patel (Adani Energy Solutions Ltd): obviously resistance from people for a smart meter where we have now ramped up our campaign to educate those customers. The second one was that few of the distribution companies wanted to focus on a specific type of smart meter installation. So point in case was that Maharashtra was expecting us to install mainly HT consumers, four meters, and once you target a very specific consumer, obviously your speed will reduce because you won't be able to capture that entire geography. And they were wanting to do it for a right reason because they wanted to complete that energy accounting, at least for real-time energy accounting for HT consumer. So we also supported them. But now that they have asked us to deploy all and every meter which is pending. So we expect the speed to will increase significantly. And similarly in Bihar, they wanted us to do the tagging of all the customers before we install that meter. And we also have completed those activity. Now in Bihar and Maharashtra where the pace was slow, we expect that to increase significantly.
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