AESL Scales Up Growth Engine with Record Smart Meter Deployment, HVDC Commissioning and Rising Capex: CEO Kandarp Patel

AESL Scales Up Growth Engine with Record Smart Meter Deployment, HVDC Commissioning and Rising Capex: CEO Kandarp Patel

- AESL Deploys Record 83 Lakh Smart Meters, Targets Rs. 20,000 Crore Capex in FY27

The Electrical Post

MR. KANDARP PATEL – CHIEF EXECUTIVE OFFICER, Adani Energy Solutions Limited (AESL), while addressing the Q4 FY26 conference call, highlighted a year marked by major infrastructure milestones, accelerated capital deployment, strengthening financial metrics and expanding opportunities across transmission, distribution, smart metering and commercial and industrial (C&I) energy solutions.

AESL, part of the Adani portfolio, is a multidimensional organization with presence in various facets of the energy domain, namely power transmission, distribution, smart metering, and cooling solutions. AESL is the country’s largest private transmission company, with a presence across 16 states of India and a cumulative transmission network of more than 26,600 ckm and 93,200 MVA transformation capacity. In its distribution business, AESL serves more than 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ. AESL is ramping up its smart metering business and is on course to become India’s leading smart metering integrator with an order book of over 22.8 million meters.

Patel said one of the most significant achievements during the year was the commissioning of the Mumbai HVDC project, which not only represents a regulatory asset base (RAB)-linked project but also plays a crucial role in augmenting Mumbai's transmission capacity. He noted that the project will support Adani Electricity Mumbai Limited (AEML) in integrating a higher share of renewable power into its distribution network.

Another key milestone for AESL during the year was the rapid deployment of smart meters. The company had initially targeted installation of around 70 lakh smart meters during the financial year but exceeded expectations by deploying approximately 83 lakh meters on the ground. Patel described this as possibly the highest number of smart meter installations achieved by any operator not only in India but also globally.

Alongside project execution, AESL has witnessed a significant transformation in its capital expenditure profile. Patel pointed out that consolidated capex across transmission, distribution and smart metering businesses has increased substantially over the years, reaching nearly Rs. 15,000 crore. He stated that the company intends to further enhance capex deployment and target around Rs. 20,000 crore in investments during the current year.

Despite this aggressive investment strategy, AESL has simultaneously strengthened its financial standing. Patel emphasized that most of the company's assets now carry AAA+ or AAA credit ratings, reflecting a significant improvement in credit quality even while scaling up capital expenditure.

He observed that maintaining or improving credit ratings becomes increasingly challenging during periods of substantial capex expansion, yet AESL has managed to achieve the opposite by strengthening its ratings profile. The improvement in credit ratings has also translated into lower borrowing costs, enabling the company to reduce interest expenses despite prevailing market volatility and geopolitical uncertainties.

According to Patel, the reduction in financing costs coupled with operational strength enhances shareholder returns and demonstrates AESL's ability to maintain financial discipline while pursuing growth opportunities.

Patel also highlighted the expansion of the company's regulatory asset base. When AEML was acquired, its RAB stood at approximately Rs. 5,400 crore, which has now grown to over Rs. 10,500 crore. Similarly, AESL's transmission portfolio previously comprised around Rs. 10,000 crore of RAB-based assets, to which an additional Rs. 7,000 crore has been added through the HVDC project.

He stated that the company remains committed to maintaining a balanced mix between regulatory asset-based and competitive assets, a strategy that continues to support growth and strengthen cash generation capabilities.

AESL has also successfully refinanced its $500 million bond through Apollo, a U.S.-based insurance investor. Patel said the refinancing demonstrates the company's ability to leverage its operational and financial strengths even amid a challenging global geopolitical environment.

On the smart metering business, Patel expressed confidence in the long-term opportunity presented by the segment. He believes the business extends beyond the current contractual periods and represents a perpetual opportunity due to the evolving structure of the power distribution industry.

According to him, AESL's experience and capabilities in smart meter deployment place the company in a stronger position to capitalize on future opportunities, whether through contract extensions or fresh bidding opportunities.

Patel further noted that AESL has improved its market share in the transmission sector and currently commands nearly 29% of projects that have gone into bidding. With around Rs. 1.5 lakh crore worth of transmission projects already identified for bidding, the company sees substantial opportunities ahead.

He emphasized that AESL is continuously enhancing its ability to deploy capital efficiently on the ground. Combined with lower interest costs and improved execution capabilities, this positions the company to capture a larger share of transmission opportunities in the coming years.

Operationally, the company continues to deliver strong performance. Patel said operation and maintenance availability remained at an impressive 99.7% during the year. In the distribution segment, AESL has consistently reduced network losses, bringing overall distribution losses down to 4.2%, compared with 8.5% when the company began its transformation journey.

Looking ahead, Patel identified the commercial and industrial (C&I) segment as another major growth driver for AESL. The company has already initiated operations in this space and currently has nearly 5,000 MW of renewable energy capacity under contract.

AESL also serves dozens of third-party consumers with an aggregate capacity of approximately 1,400 MW. Patel believes this provides a strong platform to capitalize on India's growing C&I renewable energy market, including demand emerging from the rapidly expanding data centre sector.

He indicated that C&I is expected to become a significant contributor to AESL's growth trajectory over the next year, adding that the company plans to provide a detailed overview of its progress in this segment during the next annual conference call.

Summing up the outlook, Patel said AESL sees substantial opportunities across all its operating segments, including transmission, distribution, smart metering and C&I solutions. Supported by enhanced capex deployment capabilities, disciplined capital management and improved execution strength, the company remains focused on capturing these opportunities and sustaining long-term growth.
 

Published at : Sep 27, 2026 07:29 AM (IST)

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