Synopsis:
Adani Energy Solutions Ltd is in the focus after Cantor Fitzgerald has revised target prices, highlighting future performance.
Adani group’s stock is in the spotlight during today’s trade after analysts have revised target prices for the stock, drawing investor interest and adding momentum to the stock.
With the market capitalization of Rs. 98,601.28 crore, the shares of Adani Energy Solutions Ltd were trading at Rs. 820.50, up by 0.87 percent from its previous day’s close price of Rs. 813.70 per equity share.
What’s the news?
Cantor Fitzgerald has initiated coverage on Adani Energy Solutions with an Overweight rating and a revised target price of Rs. 1,048, down from Rs. 1,690 earlier, with an upside of 27.73 percent from CMP of Rs. 820.50.
The firm highlighted the company’s strong growth in regulated and contracted transmission businesses, rising revenue from smart-meter annuities, and improvements in distribution efficiency. It noted that revenue is expected to better reflect newly commissioned assets from Q2 onwards, with sector fundamentals remaining strong on the back of rising demand and the renewable energy transition.
The brokerage pointed to a transmission development pipeline worth Rs. 593.04 billion and a near-term tender pipeline of about Rs. 900 billion as key growth drivers, along with an expanding smart-metering annuity base that supports medium-term earnings visibility.
Going forward, focus areas include the pace of transmission capitalization, the momentum of smart-meter installations, and maintaining balance sheet discipline as assets shift from service concession recognition to generating operating cash flows.
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About the Company
Adani Energy Solutions Limited (AESL), part of the Adani Group, is India’s largest private integrated energy company with leadership in power transmission, distribution, smart metering, and innovative cooling solutions.
Guided by its philosophy of sustainable growth, AESL serves over 12 million consumers in Mumbai and Mundra SEZ, while maintaining its position as the country’s largest private transmission player and a key enabler of India’s energy ecosystem.
Financial Outlook
In Q1FY26, the company reported revenue of Rs. 6,819 crore, registering a 26.8 percent YoY growth from Rs. 5,379 crore and a 7.0 percent QoQ rise from Rs. 6,375 crore. Operating profit stood at Rs. 1,811 crore, up 9.7 percent YoY from Rs. 1,651 crore but down 11.2 percent QoQ from Rs. 2,040 crore, indicating margin pressures sequentially despite healthy annual growth.
Net profit surged to Rs. 539 crore in Q1FY26 compared to a net loss of Rs. 1,191 crore in Q1FY25, reflecting a sharp turnaround, though it declined 24.5 percent QoQ from profit of Rs. 714 crore in Q4FY25. The results highlight strong revenue momentum and YoY profitability recovery, with a sequential dip in margins and net earnings.
At the moment, the company’s P/E ratio is 41x slightly higher as compared to its industry P/E of 40.8x, and its ROE and ROCE are 13.6 percent and 10.2 percent, respectively, showing companies financial performance, whereas the D/E ratio of the company stands at 1.83.
Written by Akshay Sanghavi
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