Adani Energy Solutions is currently valued at $18.5 billion, with expectations of a 20% revenue growth.

24 Sep 2024

Adani Energy Solutions Ltd (AESL), a power transmission utility of the Adani Group, is valued at $18.5 billion. A report from Cantor Fitzgerald projects a robust growth trajectory, forecasting a 29% compounded annual growth rate (CAGR) in pre-tax profits over the next three years and a 20% CAGR in total revenue from FY24 to FY27.

AESL boasts a diversified portfolio, including transmission and distribution assets, along with a smart metering business. The firm is expected to significantly outpace its peers in revenue and EBITDA growth due to ongoing projects and a substantial smart meter backlog.

With India’s energy demand set to increase as more homes connect to the grid, AESL is well-positioned to benefit from the country's expanding electrification infrastructure. Following a successful capital raise, the company is adequately funded to support its growth across all segments, trading at a 60% discount compared to peers. In FY24, its transmission business represented 28.4% of revenue, while distribution made up 71.6%.