Q4FY26 for Adani Energy Solutions was a mix of good and bad. Net profit was 5.7% higher than the year before at Rs t 684 crore, and revenue increased 16.8% to Rs 7,443 crore. But operating profit margins got noticeably smaller, as EBITDA fell 4.7% and the margin went down to 28.8%, showing they are having trouble with costs and the types of things they’re selling.
The company’s share price ended at Rs 1,361.60, which was 0.63% lower. Their total income was Rs 7,588 crore, a 15% increase from the previous year, and their profit after tax (adjusted) increased by 27.7% to Rs 723 crore. This doesn’t include a one-time tax adjustment of Rs 148 crore from the same period last year.
Q4FY26: Profit up, margins narrow
The three month period showed a good increase in total income, but profits were lower. EBITDA was Rs 2,145 crore, compared to Rs 2,251 crore a year earlier. The drop in margin to 28.8% from 35.3% suggests ongoing problems with running the business, even as the company gets bigger.
Here are the key Q4 metrics at a glance:
– Net profit: Rs 684 crore, up 5.7 percent
– Revenue from operations: Rs 7,443 crore, up 16.8 percent
– EBITDA: Rs 2,145 crore, down 4.7 percent
– Adjusted PAT: Rs 723 crore, up 27.7 percent
Full-year FY26 hits records
For the full financial year 2026, Adani Energy Solutions reported a record EBITDA of Rs 8,726 crore, up 13%. Net profit increased by 32% to Rs 2,393 crore and total income went up 15.9% to a record Rs 28,325 crore, all thanks to the way they operate and increased income from Service Concession Arrangements.
EBITDA from the core business increased by 12.7% to Rs 7,407 crore. Income from the core business grew 7.3% to Rs 18,296 crore for FY26 and 6.9% to Rs 4,400 crore in Q4FY26, helped by new transmission lines that have started working and increased income from smart meters.
Segment-wise annual revenue distribution underscores the diversified model:
– Transmission: Rs 9,823.88 crore
– Distribution: Rs 12,450.02 crore
– Smart Meter: Rs 828.25 crore
Transmission and smart metering drive growth
The improvements in how the business is run are mainly because of projects that became operational during the year: Khavda Phase-II Part-A, KPS-1, Sangod, North Karanpura Transmission (NKTL), and the AEIML Mumbai HVDC link. Growth in EBITDA from transmission lines was moderate because of when they were finished, but profits remained fairly stable.
The company has now installed over 10 million smart meters, a significant achievement in upgrading the power distribution system. They have orders for 24.6 million more smart meters, which could bring in Rs 29,519 crore, and there’s a chance for 103 million meters nationwide.
Capex, projects, and pipeline
The company spent Rs 14,232 crore on capital projects in FY26, up from Rs 11,444 crore in FY25. Five transmission projects were completed, including Mumbai’s advanced VSC-based HVDC project, the first of its kind in the world, which adds 1,000 MW to Mumbai’s ability to move electricity.
The transmission system was available 99.7% of the time, resulting in Rs 136 crore in extra income. The network now covers 27,949 kilometers of power lines, with a new project at the South Kalamb substation. They have Rs 71,779 crore worth of projects currently being built, and expect to get contracts for about Rs 1.5 lakh crore in the near future.
Distribution update and asset base
In Q4FY26, Mumbai used 2,508 million units of electricity, a 4% increase. Losses in the distribution system were 4.20% during the quarter, showing that the company is managing its operations consistently.
As of FY26, AEML’s Regulated Asset Base (the value of its assets) was Rs 10,521 crore, made up of Rs 5,488 crore of equity (ownership) and Rs 5,032 crore of debt (borrowed money). This is a 10.2% increase year-on-year. Management said that distribution, EPC (engineering, procurement and construction) and other parts of the business are all doing well.
What to watch next
Investors will be watching to see if profit margins improve as the benefits of the recently completed projects and increasing use of smart meters become clear. The consistent income from Service Concession Arrangements, the high reliability of the system and the large number of projects in the pipeline give a good outlook, but in the short term how quickly the company finishes projects and controls costs will be important for profits as they continue to grow.
