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What happened
Adani Energy Solutions (AESL) has revealed plans for a substantial capital expenditure of up to Rs 18,000 crore in FY26, with Rs 6,000 crore already allocated to various projects. CEO Kandarp Patel detailed that the investment will primarily target transmission, distribution, and smart metering, with Rs 11,400 crore earmarked for transmission, Rs 1,600 crore for distribution, and Rs 4,000 crore for smart metering initiatives. The company anticipates commissioning at least three projects in the upcoming quarter, which are expected to generate approximately Rs 1,700-1,800 crore in revenue. AESL's strategic focus on infrastructure development is expected to yield an annual EBITDA run-rate of Rs 2,800 crore, with growth projected for the next several years based on their order pipeline.
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Key insights
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Significant Infrastructure Investment
AESL's Rs 18,000 crore capex reflects a strong commitment to infrastructure.
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2
Focus on Smart Metering
A substantial portion of the capex is dedicated to smart metering technology.
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3
Revenue Growth Potential
The planned projects are expected to significantly boost revenue.
Takeaways
Adani Energy Solutions' ambitious capital expenditure plan underscores its commitment to enhancing energy infrastructure, which is crucial for supporting future growth and operational efficiency.