1. At a Glance
Adani Energy just posted a charged-up ₹539 Cr PAT in Q1 FY26, flexing a 71% YoY jump. Transmission biz strong, meters getting smarter (24 lakh installed), but no dividend to shock your wallet. P/E’s at 42, which means investors are either optimistic… or on Adani-grade steroids.
2. Introduction with Hook
If India’s energy infrastructure were a Bollywood film, Adani Energy Solutions would be the over-the-top villain who owns the grid, the meters, the power lines, and possibly your neighbour’s AC too.
- Sales: ₹6,819 Cr this quarter (+27% YoY)
- PAT: ₹539 Cr — despite a blackout of dividend payouts
While PSU power companies run on diesel, this one’s powered by spreadsheets and ambition.
3. Business Model (WTF Do They Even Do?)
AESL is not your typical power company. It’s:
- India’s Largest Private Transmission Company
- Distributor to Mumbai, Mundra SEZ
- Smart Meter Overlord (24 lakh+ meters and counting)
Also:
- Applied for licenses in Navi Mumbai, Kutch, and Western UP
- Dabbles in cooling solutions (yes, like A/Cs for buildings)
Basically, if electrons are moving, chances are Adani’s billing you for it.
4. Financials Overview
| Metric | Q1 FY26 | YoY Growth |
|---|---|---|
| Revenue | ₹6,819 Cr | +27% |
| EBITDA | ₹2,017 Cr | +24% |
| PAT | ₹539 Cr | +71% |
| OPM | 27% | Down from 32% |
“Margins are cooling faster than their smart meters can bill you. But hey, profit’s still electrifying.”
5. Valuation
Fair Value Range: ₹710 – ₹900
- P/E Method:
TTM PAT = ₹2,651 Cr
At 30x = ₹79,530 Cr → FV = ₹715
At 40x = ₹1,06,040 Cr → FV = ₹952 - P/B Method:
BV = ₹184, CMP/BV = 4.6x
Even at 3.8x, FV = ₹699
“If you’re buying this above ₹900, congrats—you’ve entered the elite club of people who also buy popcorn at multiplex prices.”
6. What’s Cooking – News, Triggers, Drama
- Q1 PAT up 71% YoY
- Acquired WRNES Talegaon Power Transmission Ltd
- Installed 24 lakh smart meters
- ₹8,373 Cr QIP fund monitoring report approved—no red flags, which is rare in the Adani universe
- P/E still hovering at ~43
“More projects, more meters, more acquisitions. Less dividends. More… mystique?”
7. Balance Sheet
| Item | Mar 2025 (₹ Cr) |
|---|---|
| Equity Capital | 1,201 |
| Reserves | 20,867 |
| Borrowings | 40,275 |
| Total Assets | 73,902 |
“Leverage? Oh yes. But in Adani world, that’s not a bug—it’s a feature.”
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹3,777 Cr | -₹4,699 Cr | ₹923 Cr | ₹2 Cr |
| FY24 | ₹6,038 Cr | -₹4,943 Cr | -₹543 Cr | ₹551 Cr |
| FY25 | ₹8,695 Cr | -₹15,222 Cr | ₹7,975 Cr | ₹1,448 Cr |
“Cash flows look like a juggling act—spend billions, raise billions, still end up smiling.”
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 12.8% |
| ROCE | 10.2% |
| P/E | 42.6x |
| Dividend Yield | 0.00% |
| Debt/Equity | ~1.8x |
“ROE is decent, but P/E suggests the market thinks this is the next TATA Power on Red Bull.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue | PAT |
|---|---|---|
| FY23 | ₹13,293 Cr | ₹1,281 Cr |
| FY24 | ₹16,607 Cr | ₹1,196 Cr |
| FY25 | ₹23,767 Cr | ₹922 Cr |
“TTM profit jumped to ₹2,651 Cr thanks to Q1 FY26 heroics. But FY25 wasn’t exactly a blockbuster.”
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E | ROE |
|---|---|---|---|---|
| Adani Energy | 25,208 | 2,651 | 42.6x | 12.8% |
| Torrent Power | 27,984 | 1,695 | 22.1x | 15.3% |
| Tata Power | 61,552 | 3,934 | 24.3x | 11.6% |
| CESC | 10,456 | 1,354 | 9.6x | 13.5% |
“Highest valuation, decent profit, decent ROE. It’s the flashy cousin with a sports car and EMIs.”
12. Miscellaneous – Shareholding, Promoters
- Promoters: 71.2% (up from 69.9%)
- FIIs: Declining to 15.85%
- DIIs: Now 6.89%, slow climb
- Retail: Over 5 lakh holders. That’s more than some political parties’ vote banks.
“Promoters increasing stake. DIIs tagging along. FIIs ghosting. Public? Watching the drama with popcorn.”
13. EduInvesting Verdict™
Adani Energy Solutions is building the grid of the future—but priced like it already owns the country’s switchboard. Stellar growth, margin compression, smart infra expansion, and zero dividend romance. This one’s a long-term infrastructure story… if you have the patience (and nerves).
More volts, less yield. But hey, it’s Adani—expect fireworks.
Metadata
Written by EduInvesting Team | 24 July 2025
Tags: Adani Energy Solutions, Power Transmission, Q1 FY26 Results, Smart Meters, EduInvesting Premium
