Rs 18,000-crore capex to lift Adani Energy Solutions shares? More details

Shares of Adani Energy Solutions (AESL) are in news today as the Adani Group firm has confirmed plans to invest up to Rs 18,000 crore as capital expenditure in the fiscal year 2025-26, with Rs 6,000 crore already utilised across various ongoing projects.

Adani Energy Solutions shares ended 2.17% higher at Rs 986.05 on Friday. Market cap of the firm stood at Rs 1.18 lakh crore. Total 1.39 lakh shares changed hands amounting to a turnover of Rs 13.67 crore. 

The strategy was detailed by CEO Kandarp Patel during the company’s recent earnings call, emphasising a focus on transmission, distribution, and smart metering.

According to Patel, “For the full year, we will do about Rs 11,400 crore in transmission, Rs 1,600 crore in distribution and Rs 4,000 crore in smart metering. So, in smart metering, we’ll add about Rs 2,000 crore. In distribution, we’ll add about Rs 1,100 crore in the second quarter. And in transmission, we’ll add about Rs 8,000 crore in the second quarter.”

Of the Rs 6,000 crore already expended, Rs 3,350 crore has been allocated to transmission, Rs 700 crore to distribution, and Rs 2,000 crore to smart metering.

Patel elaborated that the company has earmarked Rs 10,000 crore in capital expenditure for the Navi Mumbai area alone, projected to be deployed over the next five years, translating to about Rs 2,000 crore per year for that region. In the remaining half of the fiscal year, AESL expects to capitalise approximately Rs 10,000 crore of capex.

The company aims to commission at least three projects, with a fourth potentially following soon. As stated, “So at least we will commission three projects. We are trying to get the fourth project also commissioned in the next quarter, but we’ll at least commission three projects which will add revenue of about Rs 1,700-1,800 crore,” Patel noted during the call. The overall capitalised expenditure of Rs 17,000-18,000 crore could contribute an estimated Rs 2,800 crore to EBITDA on an annualised run-rate basis.

AESL’s management believes these numbers will have a visible impact in the latter half of the year, projecting sustainable growth over the next three to four years given the robust order pipeline. As mentioned, “you will see those numbers flowing in the next half year on a run-rate basis.” This capital allocation is part of AESL’s strategy to strengthen its transmission and distribution infrastructure and expand its smart metering footprint. The continued investment underscores the company’s intent to meet growing demand and optimise operational efficiency across its key business segments.