Adani Energy Solutions (ADANIENS IN) – Q2FY27 Result Update – Energy solutions drives beat, valuations attractive – Upgrade to BUY
Published on 24 Oct 2026
ADANIENS adjusted Q2FY27 EBITDA was 6% ahead of our estimate. Revenue was INR ~101bn (+52.8% YoY) and adjusted EBITDA INR ~33bn (+73% YoY), including regulatory income. The beat was again led by the Energy Solutions Platform, with revenue of INR 22.0bn (vs INR 19bn QoQ) and EBIT of INR 8.0bn (vs INR6bn QoQ), ~30% of segment EBIT. We raise our FY28/29E EBITDA by ~6%/9%, driven by the Energy Solutions Platform, and upgrade the stock to BUY from HOLD with a SOTP-based TP of INR 1,526 (refer exhibit 6). After recent weakness (down 30% in the last 3 months), stock trades at reasonable valuation of 13x FY29E EV/EBITDA and modelled ~29% EBITDA CAGR over FY26-29E with energy solution platform contribution to consol EBITDA at 13-14% resulting in improved consolidated ROE to 15% in FY27E/28E vs 10% in FY26. Transmission visibility has improved in Q2FY27 : the U/C book rose to INR 872bn (from INR 718bn in Q1) after the Vizag and Satara wins, and FY27 capex guidance maintained and has incurred INR79bn in 1HFY27. Smart metering lagged, with the FY27 installation marginally lower at 8–9mn from ~10mn on slower ground execution (now in-line with our estimate), though the IntelliSmart deal is expected to close within a month.
