Ahmedabad: Adani Energy Solutions Ltd (AESL) reported a 25 percent sequential decline in consolidated net profit for the quarter ended June 30, 2025, at Rs 539 crore, down from Rs 714 crore in the previous quarter. However, the bottom line showed a strong recovery from a net loss of Rs 1,191 crore in the year-ago quarter, when the company had booked an exceptional loss of Rs 1,506 crore.
Despite consolidated revenue from operations rising 7 percent quarter-on-quarter (QoQ) to Rs 6,819 crore, EBITDA margin dropped sharply to 26.6 percent in Q1 FY26 from 32 percent in Q4 FY25. Total expenses rose nearly 8 percent sequentially to Rs 5,864 crore, mainly due to higher construction and operating costs in the distribution and transmission businesses.
Profit before exceptional items and tax stood at Rs 658 crore in Q1, down 32 percent QoQ from Rs 974 crore in Q4. The company also recorded a negative regulatory deferral of Rs 504 crore in Q1 versus Rs 211 crore in the previous quarter, further weighing on profit.
On a standalone basis, AESL posted a 15 percent year-on-year (YoY) increase in net profit at Rs 218 crore in Q1 FY26, up from Rs 190 crore in Q1 FY25. Revenue from operations grew 21 percent YoY to Rs 951 crore. Operating margin for the standalone business improved to 55.4 percent from 52.4 percent a year ago, while net profit margin stood at 20.5 percent, marginally lower than 22 percent in Q1 FY25.
The transmission segment remained the primary contributor to operating profit, with earnings before interest and tax (EBIT) of Rs 927 crore. The distribution business delivered EBIT of Rs 303 crore, while trading EBIT remained weak at Rs 17 crore.
The distribution business (mainly Adani Electricity Mumbai) saw a 15.6 percent YoY rise in revenue to Rs 3,360 crore. The trading business revenue dropped 44.5 percent YoY to Rs 210 crore.
AESL’s net worth stood at Rs 22,524 crore as of June 30, 2025, while total borrowings rose to Rs 41,697 crore. The company’s debt-equity ratio remained stable at 1.77 times. EBITDA interest coverage ratio fell to 1.74 in Q1 FY26 from 2.18 in Q4 FY25, reflecting increased finance cost and margin compression.
Operating margin declined to 26.6 percent in Q1 from 30.7 percent a year ago. Net profit margin improved to 7.67 percent from -21.7 percent in Q1 FY25.
In a statement, the company said it remains committed to investing in smart metering, transmission expansion, and clean energy integration. “We are progressing well toward our long-term goals with a diversified portfolio and robust regulatory frameworks supporting stable cash flows,” it stated.
AESL added 400 circuit kilometers to its transmission network in the quarter and is actively participating in bidding for new TBCB (tariff-based competitive bidding) projects. The company also highlighted its growing smart metering portfolio of 27 million meters and reiterated its target of reaching 40 million meters.
