Adani stock: Buy Adani Energy Solutions on robust execution pipeline, says ICICI Sec
Adani Energy: ICICI Securities said the company’s strong execution visibility, healthy order book, and rising smart meter installations reinforce its positive long-term outlook on AESL.
- Oct 29, 2025,
- Updated Oct 29, 2025 10:23 AM IST
ICICI Securities has retained its 'Buy' rating on Adani Energy Solutions Ltd (AESL) with an unchanged target price of Rs 1,127, following the company’s Q2FY26 results that reflected steady operational growth and strong project execution momentum.
The second-largest transmission player reported a 2 per cent year-on-year (YoY) increase in revenue and a 14 per cent rise in EBITDA, while adjusted profit grew 20 per cent YoY. On an underlying basis, operating revenue and Ebitda were up 8 per cent and 10 per cent, respectively, driven by contributions from new transmission assets and an expanded installed base of smart meters.
ICICI Securities said distribution revenue was constrained by extended monsoon conditions in Mumbai and the divestment of the Dahanu plant in Q2FY25, while transmission revenue grew 9 per cent YoY on account of new asset additions.
AESL deployed 1.8 million smart meters during the quarter, taking cumulative installations to 7.4 million, of which 6.7 million are already commissioned. The company is targeting over 10 million installations by March 2026. It also commissioned 190 circuit kilometres of transmission projects in Q2 and expects to capitalise projects worth about Rs 15,000 crore in FY26, backed by a planned capex of Rs 17,000–18,000 crore.
The execution and bidding pipelines remain robust, ICICI Securities said. It noted that transmission execution pipeline of Rs 60,000 crore is under implementation and 24.6 million smart meters with an Ebitda potential of Rs 2,550 crore for Adani Energy Solutions. The transmission bidding pipeline is estimated at around Rs 1 lakh crore, excluding the Khavda–Olpad HVDC project, where AESL is the lowest bidder (L1) with an estimated cost of Rs 18,000–20,000 crore.
"On account of slower trajectory of execution compared to earlier estimates and subdued smart meter bidding activity, we have revised our estimates downwards. Earnings increased on account of new assets and revenue was cut due to expectations of lower deprecation in older cost-plus assets. We maintain Buy while valuing the businesses on an SoTP-basis and arrive at a target price of Rs 1,127 (unchanged), the brokerage said.
Overall, a strong execution visibility, healthy order book, and rising smart meter installations reinforced ICICI Securities' positive long-term stance on AESL.
ICICI Securities has retained its 'Buy' rating on Adani Energy Solutions Ltd (AESL) with an unchanged target price of Rs 1,127, following the company’s Q2FY26 results that reflected steady operational growth and strong project execution momentum.
The second-largest transmission player reported a 2 per cent year-on-year (YoY) increase in revenue and a 14 per cent rise in EBITDA, while adjusted profit grew 20 per cent YoY. On an underlying basis, operating revenue and Ebitda were up 8 per cent and 10 per cent, respectively, driven by contributions from new transmission assets and an expanded installed base of smart meters.
ICICI Securities said distribution revenue was constrained by extended monsoon conditions in Mumbai and the divestment of the Dahanu plant in Q2FY25, while transmission revenue grew 9 per cent YoY on account of new asset additions.
AESL deployed 1.8 million smart meters during the quarter, taking cumulative installations to 7.4 million, of which 6.7 million are already commissioned. The company is targeting over 10 million installations by March 2026. It also commissioned 190 circuit kilometres of transmission projects in Q2 and expects to capitalise projects worth about Rs 15,000 crore in FY26, backed by a planned capex of Rs 17,000–18,000 crore.
The execution and bidding pipelines remain robust, ICICI Securities said. It noted that transmission execution pipeline of Rs 60,000 crore is under implementation and 24.6 million smart meters with an Ebitda potential of Rs 2,550 crore for Adani Energy Solutions. The transmission bidding pipeline is estimated at around Rs 1 lakh crore, excluding the Khavda–Olpad HVDC project, where AESL is the lowest bidder (L1) with an estimated cost of Rs 18,000–20,000 crore.
"On account of slower trajectory of execution compared to earlier estimates and subdued smart meter bidding activity, we have revised our estimates downwards. Earnings increased on account of new assets and revenue was cut due to expectations of lower deprecation in older cost-plus assets. We maintain Buy while valuing the businesses on an SoTP-basis and arrive at a target price of Rs 1,127 (unchanged), the brokerage said.
Overall, a strong execution visibility, healthy order book, and rising smart meter installations reinforced ICICI Securities' positive long-term stance on AESL.