Adani Energy Solutions posts record growth in Q1 FY25 with 47% revenue surge

Adani Energy Solutions Limited (AESL) has unveiled its impressive financial results for Q1 FY25, showcasing significant growth in revenue, operational EBITDA, and adjusted PAT. The company’s revenue from operations surged by 47% year-on-year (YoY) to reach ₹5,379 crore, driven by increased energy demand and contributions from newly commissioned transmission assets. The operational EBITDA rose by 29.7% YoY to ₹1,628 crore, while the adjusted PAT saw a remarkable 73% increase, reaching ₹315 crore.

Exceptional Financial Performance Highlights

Adani Energy Solutions has reported a robust performance for Q1 FY25, with substantial increases in key financial metrics. The company’s revenue from operations soared to ₹5,379 crore, reflecting a 47% YoY growth, largely attributed to the successful commissioning of new transmission lines and a boost in energy consumption. The operational EBITDA for the quarter climbed to ₹1,628 crore, marking a 29.7% increase from the previous year. Adjusted PAT also saw a notable rise of 73%, reaching ₹315 crore.

Impact of Dahanu Thermal Plant Divestment

In alignment with its Environmental, Social, and Governance (ESG) commitments, AESL has decided to divest the Dahanu thermal power plant. This move resulted in an exceptional item of ₹1,506 crore, as per Ind AS 105. The company’s financial results for the quarter have been adjusted to account for this one-time item. Despite this adjustment, the company’s performance remains strong, with significant growth in revenue and EBITDA.

Leadership in Energy Transition and ESG

AESL continues to lead India’s energy transition story through the development of large-scale green energy corridor projects and smart metering initiatives. The company has secured 22.8 million smart meters, maintaining its leadership position in upcoming bids. Furthermore, AESL’s distribution business has achieved a noteworthy 37% renewable energy penetration in Mumbai, demonstrating its commitment to sustainable energy practices.

Expansion and Growth in Transmission Projects

The company’s transmission segment has expanded significantly, with new projects adding to its pipeline and an order book totaling ₹17,000 crore. During the quarter, AESL completed the acquisition of Mahan Sipat transmission assets, adding 673 circuit kilometers (ckm) to its operational network. The company’s transmission system boasts an impressive 99.7% availability, and energy demand in Adani Electricity Mumbai (AEML) increased by 8% YoY.

Positive ESG Developments

AESL’s dedication to ESG principles has been recognized with an upgraded ESG score in the FTSE4Good Index, now at 4.4. This upgrade reflects the company’s ongoing efforts to reduce environmental impact and promote sustainable practices.

Expert Insight

Anil Sardana, Managing Director of Adani Energy Solutions, emphasized the company’s commitment to driving energy transition and infrastructure development. Sardana highlighted the importance of the company’s initiatives in renewable energy and smart metering, underscoring the strategic focus on market opportunities and sustainability.

Financial Metrics and Growth Overview

The financial highlights for Q1 FY25 include:

• Revenue: ₹5,379 crore, up 47% YoY
• Operational EBITDA: ₹1,628 crore, up 29.7% YoY
• Adjusted PAT: ₹315 crore, up 73% YoY
• Total EBITDA: ₹1,762 crore, including an exceptional item adjustment of ₹1,506 crore