Adani Energy to Invest Up to 18K Crore in Capex in FY26

Adani Energy Solutions Ltd (AESL), the power distribution arm of the Gautam Adani-led conglomerate, plans to allocate Rs 16,000 crore to Rs 18,000 crore in total capital expenditure for the financial year 2025-26 (FY26), according to CEO Kandarp Patel.

During the post-earnings conference call last week, he told analysts that the company will invest Rs 12,000-13,000 crore in transmission, Rs 4,000 crore in smart meters, and Rs 1,600 crore in distribution from the total earmarked capex. AESL closed FY25 with a capex of Rs 11,444 crore.

Adani Energy's top management also outlined its plans to bid for various tenders across India. They mentioned that around 110-120 million meters are yet to be tendered by various states, with significant tenders pending in Tamil Nadu, Telangana, Karnataka, Andhra Pradesh, and parts of Madhya Pradesh.

“There still exists an opportunity for 110-120 million smart meters from states which haven’t yet been bid out or have partially bid out. We will ensure we at least maintain our current market share of 22-23%,” Patel said. Currently, the company is installing 27,000 smart meters a day.

The company installed 3.13 million meters in FY25, with a target to reach 6-7 million meters in FY26, for a total of 10 million meters by the end of FY26. Under smart meters, the company has an existing order book of 22.8 million smart meters across five state discoms, with a revenue potential of over Rs 27,195 crore.

Patel mentioned that during the current financial year, the company expects to add 700,000 smart meters, bringing its installed base to 10 million by March 31, 2026.

In line with rising power demand, energy usage in Mumbai (AEML) increased by 6% year-on-year to 10,558 MUs, and in Mundra Utility (MUL), demand surged by 44% year-on-year to 948 MUs. Additionally, AEML’s distribution loss improved to 4.77% in FY25, down from 5.29% in FY24.

Patel said that Adani Energy Solutions has made strong progress in the transmission sector, securing seven transmission projects in FY25 with a combined project cost of Rs 4,399 crore. This brings its total transmission order book to Rs 5,994 crore.

In Q4FY25, the company added two new transmission projects: Navinal (Mundra) Phase I Part B1 and Mahan Transmission. Transmission bidding activity reached a record high of Rs 16,154 crore in FY25, with the company capturing a 28% market share. The company's near-term tender pipeline is robust, with approximately Rs 5,400 crore in upcoming opportunities.

“Going forward, we expect the states to also augment their transmission capacity to absorb the renewable power which the ISTS projects will bring. Maharashtra will need to invest Rs 1.5 lakh crore over the next 10 years in transmission, and many such projects are expected to come under the TBCB (tariff-based competitive bidding) route, which we will bid for,” Patel said.

The privatisation process for UP distribution areas is progressing. A formal bid document (RFP) is expected to be issued within a month, with strong engagement from the state and prospective bidders, the management noted.