JM Financial initiated coverage on Adani Energy Solutions with a ‘Buy’ rating and a target price of Rs 1,199. This implies an upside of 18.5% from the current market price.
Driven by structural shifts in the energy mix (higher share of Renewable Energy) and rising electricity demand, India’s power transmission sector is entering a sustained multi-year growth phase. JM Financial believes that Adani Energy Solutions is well placed to capitalise on this opportunity. Here is a list of factors the brokerage thinks will lead the company’s growth:
Dominant leadership in India’s power transmission sector
The Adani Group company is India’s largest private-sector power transmission company, holding a 41.5% share of private operational transmission capacity as of FY24.
The company has demonstrated robust project execution and operational excellence, maintaining a high system availability of 99.7%. This leadership is further solidified by its unique experience in executing complex projects, such as being the only private player to execute three High Voltage Direct Current (HVDC) projects in India.
Alignment with India’s massive T&D growth story
India’s power transmission sector is entering a multi-year growth phase, with an estimated Rs 4.86 lakh crore investment planned between FY26 and FY31. This expansion is driven by the need to integrate 500GW of renewable energy by 2030 and meet a projected peak demand of 351GW by FY31.
The brokerage sees Adani Energy Solutions as a primary beneficiary of this “unlocking” of the national grid.
Robust order book and high-margin revenue visibility
The company possesses a large transmission order book of Rs 77,800 crore, which is 28% market share of industry tenders. With projects worth Rs 1.3 lakh crore currently under execution, Adani Energy Solutions is expected to nearly double its transmission revenue from Rs 4,700 crore in FY25 to Rs 9,300 crore by FY28. These projects typically operate at an industry-leading EBITDA margin of 90–92%.
“The company’s transmission order book stands at Rs 77,800 crore (28% market share) and is poised to grow given an opportunity pipeline of Rs 4.86 lakh crore,” said the report.
Early-mover advantage in smart metering
Adani Energy Solutions has rapidly scaled its smart metering business, securing contracts for 24.6 million meters, representing a 17% market share. This segment offers significant revenue potential of Rs 29,500 crore over ten-year contract periods.
The company has shown aggressive execution, with monthly installation rates jumping from 156,000 in the first 9nine months of FY25 to 680,000 in 9MFY26.
Stable cash flows from distribution and asset base growth
The company’s distribution operations in Mumbai and Mundra serve as stable, regulated cash-generating assets with a combined Regulated Asset Base (RAB) of Rs 9,600 crore. JM Financial highlights that this segment is well-positioned for steady growth, supported by a guided annual capex of Rs 1,500 crore in Mumbai, which continues to drive expansion in regulated equity and earnings.
Adani Energy Solutions share price
The share price of Adani Energy Solutions has fallen 7% in the last five trading sessions. The stock has remained unchanged in the past one month and has given a return of more than 27% in the last six months. Adani Energy Solutions’ share price has raised investors’ wealth by 49% over the previous one year.
Adani Energy Solutions Q3FY26
For the third quarter of the current financial year, the company posted a fall of 8.2% year on year (YoY) net profit to Rs 574 crore. “This was on account of a positive impact of deferred tax of Rs 185 crore last year in Q3FY25, which has to be adjusted for a like-for-like comparison,” said the company in an exchange release. Adjusted profit after tax rose 30.4% YoY to Rs 574 crore
The revenue from operations surged 15.42% YoY to Rs 6,729.65 crore in the reporting quarter, compared to Rs 5,830.26 crore in the same quarter of the previous year.