Adani Energy Solutions Limited (ADANIENSOL) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Adani Energy Solutions Ltd. Q1-F527 Earnings Conference Call. From the AESL side, we have the following on the call as main speakers. Mr. Kandal Patel, CEO AESL. Mr. Ashok Chagetia, CFO AESL. Mr. Rajkumar Jain, Head Energy Solutions Platform. Mr. Prashant Soni, Head Finance AESL. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve the risk and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on your text on phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prashant Soni from AES Health. Thank you, and over to you, Mr. Son.

Thank you. Thank you and a very good day to everyone. A warm welcome to the Q1 Earnings call for EASN. We hope you had an opportunity to review the Earnings presentation and financial results that we shared on our website. To outline the flow of today's call, we will begin with the opening remarks from our CEO, Mr. Kandar Patel, following which we will open the flow for Q&A session. The call will conclude with closing remarks from our CFO, Mr. Ashok Jagetia. For those who wish to ask questions, we request you to start joining the question queue a little in advance to help us manage the Q&A efficiently. Thank you, and with that, I would like to hand over to Mr. Kandar Patel for his opening statement. Thank you.

Hello, good day, everyone. Welcome, all of you, on this Quarter 1 Q's. In this quarter, AESL has, in fact, now transitioned into a full-scale utility. So far, we were, AESL was getting a significant contribution from transmission, distribution, and smart metering. From this quarter, we have fully scaled up and operationalized our energy solution business. And with all these four business firing on all cylinders and with all our future growth logged in, Now, you will see those numbers and results consistently in quarter on quarter. Besides scaling up all these four business vertical, we continue to make sure that our execution discipline and capital discipline are maintained, even in this high growth period. And thereby reducing our cost of capital and improve consistently our credit quality. So this is going to be our focus going forward. In quarter one, as you must have seen from the numbers, we have seen significant growth in transmission and energy solutions, and distribution and smart metering is growing at a stable pace. Today, AESL, with all these four business operating it as full scale, has become most diversified utility platform, nearly with 28,000 circuit kilometer of transmission lines, leading urban distribution utilities serving Mundra and Mumbai. India's largest smart metering platform and rapidly scaling energy solution platform across emerging customer demand. One significant thing is that we delivered a quarterly capex of about 3,400, close to the 35,100 crowd of capex. And that is what we are focusing, and we will continue to focus, that we continue to deploy all those logged-in opportunities on the ground and complete these projects one by one. We have also now completed smart meter installation of 13.4 million meters cumulatively. On the order book of 2.46 crore or 24.6 million. In addition, you must have seen the news that we are acquiring IntelliSmart, and combined IntelliSmart and AESL will have a portfolio of about 4.7 crore or 47 million meters, and this contract also has No, no, no. Provisions for natural growth of volume within the given contract. So we expect that volume to increase beyond 4.7. Now, the energy solution platform, which we were talking since last couple of quarters has now transitioned to a full-scale business. We were incubating that. So we tied up about 5,000 MW of capacity on a supply side, and these are mainly green energy supply, and we are now also tying up with various consumers. We have about 350 MW of C&I customers. We are also expecting a few long-term contracts very shortly. And thereby, we will keep on scaling up this business. So in C&I business, essentially, there are two parts. One is where we are taking a position on the capacity on a long-term basis. So we contract those capacity on a long-term and take that position and then we sell it in a market. And we also provide energy solution services to various consumers. Like our cement or port, where they have developed the capacity and we are managing their solution. So there are two different segments in C&I business. So we continue to, we would want to have scale up both the businesses because our essential aim is to provide energy solution to the Any customer that is requiring solution. So typically, those margins on those capacity where we are taking a position would be higher. Whereas on the services side, we will be taking the service charges. And you will see this platform growing significantly going forward. Now, that was... Q1 FY27 demonstrates that AESL has arrived as a full-scale utility platform and with a structured growth opportunity, which is going to be a consistent one, and coupled with our execution record and with energy solution. We hope that we will continue to do better in terms of results and businesses. So, we remain confident in delivering sustained and compounding value for all stakeholders. I will stop here, and we will take all the questions, and we will try and answer all the questions.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Laveena Cottrose. Jeff, please, please go ahead.

Yeah, so firstly, congratulations on a great set of results. I just wanted to check, can you throw some color on the smart meter business, on the IntelliSmart acquisition in terms of whether a similar returns profile as your existing portfolio will be there? And what are the smart meter balance tenders that are left over the next three, four years by the central and state governments?

So the balance portfolio is about 10 to 11 crore or 100 to 120 million. The remaining states are Tamil Nadu, Karnataka, Telangana, a part of Andhra, and there are a few states where part quantum is also left out. As far as IntelliSmart is concerned, we have, we are before the CCI for approval, and once those all approvals are in place, then we will formally take over that entity. And as far as the written profile of IntelliSmart is concerned, More or less, it will be on the similar lines that we have because what we have done in last two years that we have also reduced our capex and opex utilizing our scale. So we will also have advantage of that in the IntelliSmart volume as well. So more or less profitability or those numbers would be very similar to what we have for AESL.

Okay, thank you, sir. And so on the energy solutions business, longer term strategy in terms of how much you would want to tie up and have an assured EBITDA per unit, let's say, and how much you think you might leave open, just so that we get a good sense on the sustainability on the operating EBITDA that the business has.

So, Laveena, we will certainly would have a situation where most of the tied up capacity on a purchase side has also tied up on a sales side. So, we would not want to have that kind of variability on our P&L. To start with, we contacted this capacity and now we hope to tie up the sales side very soon. So once we have done that, so in essentially long run, we would not want to have a, barring a few percentage of capacity that will remain liquid. Rest, we will tie up on both sides.

Got it, sir. Thank you so much and all the best.

Thank you. Thank you. A reminder to all the participants that you map a star and one to ask a question. Next question comes from the line of Ashish with MLP. Please go ahead.

Hi, sir. Thanks. Congratulations on the set of numbers. Thanks for the opportunity. Sir, on the CNI segment, you said that there will be two types of businesses which we would be doing. One is managing solutions where we have a service charge or a fixed spread. So what is the amount of fixed spread that we could generate on such type of business?

Swarik, can you repeat the question?

Yeah, so on the CMI segment, on the trading segment, we are messaging two types of business. One is the managing solution business, where we manage solution for...

Yeah, where we take a position.

And an evaluative position, yeah. So what type of spread should we expect in both this type of business?

So, currently, you know, the spread, obviously, on the solutioning side, service side, it can't be seen as a spread, but it's basically a service revenue. So, unit probably may not be that relevant, but currently, even the number of this quarter, it is about three paisa. Whereas on a contract that we will take a position, it will certainly be a much higher volume, but that will depend on a contract to contract basis. It will be difficult for me to put a specific number on those transactions.

Understood. And when we take position, like, you know, because this would be long-term, say, 20 years, so once if we, say, lock in a 3-4 gigawatt, and like this quarter we are generated around 500 plus crore, so is it fair to assume that once we lock that in, that becomes an end-duty business for the next 20 years?

Correct. So our objective would be that only. It may not be, every time you may not have the contract tenure matching to matching 100 percentage, but yes, we will endeavor to do that, then most of the capacity is back-to-back locked up, and we don't create much of the volatility in our numbers.

And so you will have some part which is logged in which generates a new type of revenue and then you can have some open position which even in a worse, even in a bad market environment, it might at the max offset the annuity profit, but it is an upside that, you know, we can have substantial upside. Correct.

Essentially, we would try to convert those revenues into annuity kind of revenue with some bit of open position, which we can take or optimize depending on the market condition.

And there would be no CAPEX which would be incurred by us while generating this annuity type of revenue?

So there may not be any direct CAPEX, but we expect that some CAPEX we might have to incur to enable those transactions. When I say enabling those transactions means creating those power infra, last mile connectivity for consumer, or sometimes even for a generator. Yeah, so it is not capex-based business, but we might incur some capex for enabling those transactions.

Okay, and currently in the last quarter, we sold it towards an exchange, right? I mean, there was no such facilitation.

Yeah, so we sold mainly, we have about 350 MW of C&I customer, raised we sold it on an exchange and also in a bilateral contract with the different utilities.

That's good. And if you can share the tenure of the molecules that we have. If you can share the, maybe the price and the tenure of the bilaterals that we are having.

Yes, there are baskets of contracts, some are from 1 month to 13 months, and even those prices are also very different, because sometimes we sell it as bundled power, sometimes we sell it as individual, so those prices are ranging from 3 rupees to 13 or 15 rupees as well. Because now we also have 3.5 MWh, 3,500 MWh of battery storage as well, and we are also utilizing that to, you know, create a different product and then sell in a market.

And when we say we have vetted, this is our investment, or we have taken the vetted capacity on a fixed charge from Rani Green.

We have taken, like, we have contracted wind and solar. We have also contracted battery storage on a long-term basis, on a big side.

Perfect. Understood. Perfect. Thank you so much for that.

Thank you. Thank you. Next question comes on the line of Bishal Penwal with PL Capital. Please go ahead.

Yes, sir. Thanks, sir. Opportunity and my congratulations on a good setup from us. Sir, regarding this analysis solution platform, can you- Mr. Perival, sorry for interrupting.

Your voice is breaking. Can you come in the range of talk and can you speak a little louder too? Thank you.

Yeah, is this better now?

Yes, sir.

Is this better now?

Yeah, sorry.

So, I was saying that 590 euro EBIT that we have made in the energy solution as a platform, is it possible to first like break up between the energy solution services? What is the proportion in this and the contract that we have in terms of power, the back-to-back and in terms of megawatts? So, what could be the breakup between these two?

So, the breakup is about 570 crore is from the volume that where we have taken a position, where we have a long-term contract. The balance revenue is from power trading and power solution services activity.

Okay. So, this 570, that's an epic number that you mentioned, right, sir?

Yes.

Okay, fine. And in terms of kilowatt units or maybe like, you know, some bit of generation number, probably not generation, but what kind of volume that we have done for this 570 odd crore, will that be handy with you?

We have done about 3,325 million units in that segment and in the balance segment where we are. Providing services, we have done about 9,800 mules, but that, again, in that segment, volume is not important. It is basically a service.

Okay, okay. And then, is this fair statement to make that in terms of quarterly, we have done pretty strong numbers, but going forward, are these like more like take and pay sort of contract even when you're selling things and this number is sustainable or it depends or it's more of opportunistic given like there has been delayed monsoon and then we get high margins. So, how exactly to look at this particular number pegging out for us?

Mr. Vishal, this is a very relevant and very important question. Obviously, this year, because of delayed monsoon, the demand was high, and the market prices were also high as compared to the last year. And if you are keeping your position 100% open, Then, obviously, all those variability will come into play. See, not only year-to-year variability, but there will also be quarter-to-quarter variability. Because the average rate in the market during summer period, obviously, would be higher as compared to the monsoon or winter. And even within winter, in few months, where irrigation demand will be very high, that number could be a difference. So, if you are keeping all those positions open, then you will have those kind of variability. What we are trying to achieve is that we will not want to keep that position open, and we will close it on both sides without much of the time left.

Okay, okay. Sure, sir. I think maybe one last thing. So, in terms of back-to-back contract in this MUs that we have done, what could be the share of back-to-back and what is more of an open and then we have got a high margin?

Yeah, currently out of the 3300 odd million units, about... 400 or 500 would be on a contract basis, which is with 350 megawatt of C&I customers, but you will see most of the volume getting absorbed in a long-term sale contract very soon. So our focus is to work on that, having done this long-term tie-up for purchase.

Sure, sir. I think this is helpful, sir. I'll come back to Nikki. Thank you, sir. Thank you.

Just to slightly add further here, while we have the long-term contracts tied up on our supply side, the purchase side, as Kandab has mentioned, we have 350 megawatt. At the same time, there are long-term contracts which are in very advanced stage, which will cover up most of the capacities which we have signed up on the purchase side. So, there is hardly a timing gap which we are currently seeing where you are able to see a revenue which is coming from short-term tie-ups with the distribution utilities or from markets. However, it is clearly destined for a long-term off-take contract also on the purchase side.

Okay, okay. Sure, sir. Sure, sir. Okay. Thank you so much, sir.

Thank you. A reminder to all the participants, that is my best star and one to ask a question. Next question comes on the line of Nirmal with Atitya Purna Sun Life AMC Limited. Please.

Hello, good morning. Am I audible, sir? Thank you, sir, for the opportunity. Sir, my question is on the 13 billion units that we have, the assurance that you have received from CNDI data center and utilities. So, what proportion of this is from data centers?

So, the data center volume today is very negligible. There is only one contract that we are doing servicing for about 20-25 megawatt. But on a sales side, you will see a lot of long-term substantial contract coming from those big customers and utilities. So we are working constantly towards that, having taken this position, and we will also continue to increase our position in purchase side, and we will accordingly start taking back-to-back or But currently, it is not significant, and we expect to see significant volume in time to come from data center segment.

Okay, so just to follow up on that, so if you can share in terms of demand that is coming from data centers, what sort of power mix are they looking for? I'm asking this especially in context of their catering to their non-solar demand.

Raj, would you want to take this question?

Yeah, sure. Sure. Thank you, KP. So, see, I think there's a large significant plans which you have seen from the group itself, and then obviously from a market perspective also, there's a significant capacity additions which is expected in the data center space. So, from the overall demand side, we are looking at a very robust pipeline, Where for every gigawatt of IT loads, we are talking about one and a half times of the consumption load, and say for one and a half gigawatt of consumption load, we are talking about, if we want to supply from renewables, three and a half to four times of renewable capacity required, apart from significant storage. Now, as part of your second question, these guys vary based on their own mandates on the green side. We have seen interest ranging from not being very finicky about how much green to people who really want to adopt a very high percentages of green in their power mix. So it's a diverse market, and every customer has their own choices.

Okay, so catering, what sort of batteries, because if we were to install batteries for non-solar hours, and maybe 4-5 hours of battery, then would that economics be favorable for the optakers?

Yeah, so, see, the offtakers understand that for the kind of solutions they are asking, they would need different kind of mix. So, it's a pretty mature market. So, from that perspective, if someone is looking for a significantly higher share of green, then he understands that he has to pay for the cost of that kind of a storage. So, I think that is there in the understanding of all of our consumers.

Okay, so last on here, so going ahead, do you expect the data center demand mainly will be off-grid and on-site, or it can be on-grid, supplied by DISCOMS also?

To our understanding, as we see the data center development in India, not... Many instances or not, I don't think I have heard any instances of off-grid data centers. All of them are coming mostly on grid scale and in a lot of cases also on the national grid.

Okay, sir. Thank you so much.

Thank you. A reminder to all the participants that it may be a star and want to ask a question. Next question comes on the line of Raman KB with Sequent Investments. Please go ahead.

Hello, can you hear me, sir? So, I just have one question with respect to the Adani Energy Solution business. So, can you just give a brief idea about what kind of business does an energy solution platform cater to? And can you just walk me through how does the revenue, like the cash flows from revenue to EBITDA? EBITDA, like what are the main expenses for with respect to the energy solution platform business? Sure.

Yeah, sure.

Thank you. So, that's a very interesting question and would set the understanding of the business in a clear manner. So, as KP mentioned, there are two kinds of businesses which we are currently pursuing here. One is a simple services business and a trading business, where to a lot of companies, we provide simple services of managing their power loads, and how do we bring in the optimization of their cost, as well as whatever green content they may want. That is a business where volumes are very high, but the margins are supposed to be lower, which is what was the initial number of 3 paisa. However, and this also includes a lot of trading, which is basically simply buying and selling in exchanges on behalf of the clients. The second business, which is a larger piece here and which is more an EBITDA generator, is the supply stack and the consumption stack. So supply stack, as we have mentioned until now, that we have close to 5 gigawatt of supplies, which have been secured. On take or pay basis from the generator. Now, that includes the internal generators as well as external generators, which are more like normal utility PPAs for those guys. And for us, we have to buy that power. Similarly, we have, as was the query of one of the earlier queries, we have also tied up storage capacities of 3,500 megawatt hours. So these are, again, all take-or-pay firm contracts. Against these contracts, we are sourcing multiple consumers. Those consumer categories are, as has been mentioned in our presentation, data centers, utilities in complex contracts, as well as the normal conventional C&I contracts. And as well as there is certain areas where we also try to optimize the cost of group companies, cost of power. So these are, again, long-term contracts on a take-off pay basis. Between the two, because we are able to provide complex solution and manage the overall flow in a sustained and certain manner, we are able to have certain margins there. So basically, my revenue is sale to those utilities. Then there is a cost of power which I am paying to the generator. So that is my cost. So the gap is something which we are able to earn as revenues. As our CEO earlier mentioned, there is expected to be both some kind of a time mismatch between the two because we try to tie up capacities in advance versus the consumption because that provides certainty to our consumers when they tie up with us. So, there is expected to be certain. So certain timing mismatches, sometimes on the slightly higher capacities tied up or on the purchase side and sometimes even on the buy side. And the nature could also be different between the two, which provides us the opportunities to be able to trade those capacities in short-term markets and we are able to garner some margins within that window as well. So this is what the business is all about. So you have a revenue stack, which is based on... Supplying on a long-term contract to buyers, augmented by certain short-term revenues, and then cost which we are paying to our suppliers on a long-term basis. On a CAPEX side, we do provide certain... And last minute infra to some of these consumers, being a transmission company, it is natural to us that we can do that. And when we provide the transmission infra, that basically builds in as a capex to us, and there would be certain margins on that as well. So this is how the revenue expense in the capex and the margins are stacked up in this business. I hope I could make it clear.

Sir, correct me if I'm wrong, the second part of the business is basically you buy the power from Oxford and then supply it to your end-use customer. It can be a group company or it can be non-group company as well, right?

You're 100% right. It depends on the attractiveness of my solution, which is what drives the consumer to be able to tie up.

And you have signed long-term contracts to buy the power at a fixed price, right? Yes, right. So your cost is fixed. The only way the EBITDA will move is if the power demand for the end user is high, that time your margins will move towards upward, and during the non-power demand season, your margins with respect to this segment will have a dip.

So, what I would want to clarify there is that, yes, I have to tie up on a long-term basis where the rates are conventionally fixed. At the same time, on the buy side, the rates are fixed for directionally for longer tenner. So, where the spreads between the buy and sell are sustained, we take limited market exposure, and on that market exposure, we will have certain margins which would also flow through the P&L.

So, if my understanding is, right, only the buy side, you have a fixed contract. On sell side, you can sell it in the open market as well, right? Yeah, see, I think there is no fixed contract on the selling side, right?

There is no, there is no, see, fundamentally, again, let me clarify. I'm not looking quarter to quarter outcomes and variations, okay? As a business strategy, I am fixing up on the buy side for long term. I am also selling on the sell side on long term. There would be temporary differences because we are talking about multiple contracts, and there would be differences in their timings, quantums, and the nature, which gives an opportunity where some of that can be in the short-term markets with various kinds of clients, including exchanges, and that is where there is an additional revenue which will flow in. However, those numbers on a long-term basis would be minimal. Understood, sir. Thank you.

Thank you so much. Thank you. Next question comes from the line of Nikhil Ngania with Bernstein. Please go ahead.

Hi. Thank you for taking my question. My questions are on the energy solutions business. So, I want you to understand despite the words of Tayyip that you have done for renewable power, how much of that is from your sister company and how much is it from other companies?

So roughly 4,000 is from AEL, rest is from third parties.

Understood. And could you please shed some light on how the price discovery is happening for this 4,000 megawatt that has been tied up? Is it a tendering basis? Is it market length? If you could share some details on that, please.

It is essentially a market length. So we evaluate when we buy as to what are the options available with us in terms of quantum and pricing, and we decide based on that.

Understood. And if I think from an Anani Green's perspective, Why would it be more beneficial for them to go through energy solutions rather than directly tap the customer? Or are you also, put it other way, are you also competing then with Adani Green to sell to the same, let's say, data center or some other customer in the market?

No, so the Adani Green don't sell to data centers. They create capacity and they tie up on a long-term basis, essentially with a utility, Seiki or some third-party customer, but they don't provide solutioning part. And we are one of the customers of AGEL, so they will sell it to Discom, they will sell it to me as well. And that is how it works. So, currently, they have a contract with Seiki and distribution companies as well, and now they have a contract with me as well.

Understood. So, is it fair to assume that almost all, their entire CNA exposure will be through energy solutions entity, but not directly? Understood. And one last question I had is, there is another contract with Maharashtra around the clock 2.5 gigawatt power, which we see Adani Power has won, which involves sourcing power from Adani Green. Just wanted to clarify, Adani Energy Solutions is also part of that contract in any shape or form, or is it only those two entities who are there, Green and Power?

So, group level, the solutioning is natural to AESL, so we will certainly be a party to that contract.

Okay, but the PPA signing with NECDSL is with Adani Power and not AESL.

So, Adani Power participated in the bid, and LOI was issued in favor of Adani Power, and we had that understanding with Adani Power as well. So, obviously, we might even buy some power to fulfill this solution from Adani Power, but eventually, AESL will have, We'll be a major participant in that contract.

Okay, maybe I'll take it offline to get some more color on it. Thank you. Those were my questions.

Thank you. Next question comes from the line of Anuj Wadiye with Investec Capital Services, India Pervet Ltd. Please cover it. Mr. Upadhyay, please go ahead with your question. Mr. Pardee, please unmute yourself and go ahead with the question. Since there is no reply from the line on Mr. Pardee, we'll move to the next. The next question comes from the line of Atitya Sahu with HTSC Securities. Please go ahead.

Hello. Hi, sir. I hope I'm out of here.

Hi. Hi, Aditya. I thank you for the opportunity.

My question pertains to the HVDC, you know, the pipeline that we have. The two projects that we have right now, the KPS1 and the Badla for the book. I just wanted to check on the decommissioning timelines over here for this particular project, and also looking at the bid pipeline for the HVDC. What would be, what is the bid pipeline that you know you have right now for that today?

So, thanks, Aditya. See, this KPS-HVDC would be somewhere in FY29, around December 29, and Rajasthan would be at the beginning of 29.

Understood. Understood.

And as far as pipeline is concerned, you must have seen all those NCT approved projects and other things. So we expect that every year we would have an opportunity of about 1 lakh crore bidding, combining, minimum, that is a minimum, combining central as well as various state projects. And we expect that a lot of opportunity will now arise from various STU projects. You must have seen Maharashtra is very active now. Rajasthan, U.P. has started. Rajasthan has started. See, essentially, what has happened in the last four or five years, a lot of interstate line has been built to deliver power to the state. Now, state will have to augment their transmission capacity within the state to deliver and take it up to the end consumer. So, we see a lot of action on STU side as well.

Understood. So, if I have to put in this way, what sort of, you know, influence are you expecting, like, if you have anything in mind from the HTUs and the HVDC projects, like, what would you be targeting on an annual basis for these two categories?

See, Aditya, we have been doing market share of about 25 percentage, and we will at least continue that part from our side, so roughly about 20-25,000 crore of capex addition every year. And as far as HVDC is concerned, there are two projects which are, in fact, one is under billing, one will go billing very shortly, and we expect that HVDC project will keep on continuing, because fundamentally, when you have to deal with this kind of renewables and deliver over a longer distance, I think HVDC is the most appropriate technical solution. So, we believe that HVDC volumes will continue, and now we see demand of HVDC project coming from a load center side as well. So, like last year, we commissioned that HVDC project in Mumbai, and that has helped by the region, per se, immensely during this summer. And most of our cities are now, you know, they are witnessing a massive demand growth, and if they have to meet those demand growth, they will also have to augment transmission capacity around their city centers, and where, you know, you won't be able to put up those overhead lines. So, obviously, those kind of opportunities will also come from various cities, and we expect that that will gain a momentum now.

Thanks, sir. You did mention STUs. So, how do you see that visibility on the STUs, at least in the near term?

So, STU, I think, annually, the volume would be about, to start with, about 20,000, 25,000 crore projects. That is the least that I expect from STU side.

On an annual basis?

On an annual basis.

Understood, sir. Thanks, sir. Thank you so much, sir. Thank you.

Thank you. Next question comes to the line of Prash and Parmar. Jeffries, please.

Hi, sir. Am I audible? Sir, I just had one question. So, as you have given the EBITDA split for the energy solutions platform business, can you also give the revenue breakup of the same? In long term as well as trading?

The energy solution revenue split has already been given in our page number 12 of the result presentation.

No, no, you say it. I like to begin. So, I mean, the long-term BPA sales, we o'clocked the revenue of 1838 crore against the sale of 3325 million units. And whatever, in terms of power management services, we have managed 1,603 million units and clogged the revenue of 16 crore. And CNI merchant and power trading generations, we have clogged the revenue of 12 crore and managed the units, just a second, of about 8,253 million MUs. So, all in all, 13 181MUs we handle.

So essentially, the breakup is 1800 odd crores coming from long-term BPA and balance about 30 crores coming from those services.

Next question comes from the line of Mahesh Patil with ICSA Securities. Please go.

Yeah. Hi, sir. Thanks for the opportunity. So, our first question is on the smart metering numbers that we have reported, right? So, in the presentation, if we see operating revenue and EBITDA for this quarter, and the same number for Q4FY26, right? So, there is this quarter or quarter, some decline is there. So, just wanted to understand because the… Thank you. Smart meter base, installation base would have gone over it. So, just wanted to understand, is there some change in how do we recognize this revenue and debitter?

So, let Prasant answer this, but just to clarify, the revenue from already commission meter has improved from last quarter 68 to 160 WC. The reduction is on account of reduced capex, because this year we could also install 12 lakh meters, and that is where the overall reduction that we used to.

So, Mahesh, I hope I am audible. Hello.

Yes, and you are already there.

So, see, as I already mentioned, see, if you see the operating revenue that has gone up, okay, from 68 to 161, and for a better understanding, what you can also do is you go to our press release, where we have already provided operating EBITDA for the smart meter based on the, you know, what you see as a conventional method, okay, this is more accounting treatment, where you have to book the construction or CAPEX as a expense as well as revenue, okay. Okay, so that number you see is, you know, accounting treatment. Otherwise, if you see the operating revenue, that is still on the higher side compared to the last quarter. of previous year.

Presentation. So there QOQ, I see some decline, so. Yes.

Mayer, is that clear to you?

Yes, sir, I got it. So, basically, I have to look at the press release numbers versus the presentation numbers of Q2, right?

Yes, yes, yes. So, essentially, what Prasant is saying, the revenue from commission meter, which is operating revenue, has increased to 165 crores from last quarter of 68 crores.

Correct. Got it. Got it. And sir, second question is on our, just wanting to understand the status of our parallel licenses that you had applied.

So that matter is still pending with commission. There is no movement. And we believe that the state Maharashtra government has given a policy advice to commission. To wait till the amendment in the act or the policy which the central government is planning to do. Once that is done, then we believe that it will move ahead. Okay.

Thank you. Next question comes from the line of Anuj Upadhyay with Investec Capital Services, India Private Limited. Please go back. Mr. Padier, please go ahead. Mr. Padhyay, please unmute yourself and go ahead. Since there is no reply from the line of Mr. Padhyay, we'll move to the next. That is from the line of Ashish with MLP. Please go ahead.

Thanks for taking the question again. Just one small question. On the energy solution or trading business, which is managing solutions and managing positions, what is the quantum rate that we are looking at over the next maybe three, four years in terms of gigawatt or gigawatt are the units that we are trying to manage and any target that we are looking for?

Rad, please go ahead.

Yeah, sure. So, if you look at our disclosure already in the presentation, we have mentioned that the market opportunity, we believe, will be able to encash is 7.5 gigawatt plus by 2030-31, and it's a grind which is there. Here we have a lot of... Data centers which are being installed, as you know, within the group itself, AEL itself has disclosed in the recent publications which they had on their website, the kind of pipeline they have on data centers, and that's one key area. Yeah. Separately, we also have distribution companies which are working right now in a manner where they are looking for not solar or wind or... So, they are now mixing some of that and looking for complex solutions to be given on an RTC manner, which is, again, something which is aligned to the strategy of this energy solution platform, and so there are a few things which are developing on that side. Similarly, the CNI space, as we understand from various reports, is a burgeoning space with close to 50 gigawatt plus market by 2030-31. So that's a huge set of opportunity within that for us to tap in this particular portfolio. So I think... With a lot of these near-term things, we believe that we will be able to scale up, scale this business up as a large vertical within the Adani Energy Solutions Limited company.

And sorry to ask this again, but you said 7.5 gigawatt, is that correct?

If you see our website, the publication we have, our presentation has that 7.5 gigawatt, is the market opportunity we are targeting.

Yeah, because the reason I asked this is because we have already secured 4 giga morts across solar wind and 1 more giga morts of energy across CNI.

Okay, perfect. So, let me clarify. So, when we said that there are two parts of the opportunity. Secondly, one part of the opportunity is, or one, Part of the opportunity is how do we tie up the generation side and second is how do we tie up the consumption side. So as I had answered to one of the queries earlier, every gigawatt of opportunity we tie up on the data center needs roughly three and a half gigawatt of renewable capacity to be available for that. So is the case with any RTC tender, which any distribution or utility will bring in. So 5 gigawatt tie-up on a RE basis is... Not huge in terms of MUs, okay. And these are RTC loads which we are looking to serve. So from the market perspective, there's a huge space available for us, both on the side of tying up capacities, as well as on the transmission side, as well as on the load to be serviced in a customized bespoke manner for our consumers.

So 7.5 gigawatt we are trying is ITC.

Yeah, broadly.

So 7.5 gigawatt R.

No, no. There is nothing but 7.5 gigawatt hour. That is 7.5 gigawatt as the capacity which is available in the market, as a market potential which we believe we can easily tap. So, it will have different kinds of consumer stack. As I have said, the current stack easily is distribution companies as well as data centers and the conventional C&I, consumers which can be tacked for this.

Okay, so 7.5 into 24 into 365 units, billion units is what we would be targeting. Is that the right way to think about it? And then, you know, whatever capacity on the input side is required.

That is not the way you should interpret a number. It is going to be a mix.

Thank you, everybody.

Thank you. A reminder to all the participants at Umar Press star and one to ask a question. The next question comes from the line of Mohit Pandey with City, please go ahead.

Yeah, sir, thank you for the opportunity. I just wanted to get a sense on the right-of-way challenges that were there in the transmission side of things last year. So, any sense you can share on where we are on that?

Yeah, so, Mohit, right-of-way challenges certainly are rare on the ground, and it is an industry-specific issue, but we, as we have been mentioning, and So, we deal with this problem very differently. We make sure that those ROW decisions are taken at a ground level, and we remain practical. So, we don't 100% depend on state machinery or administration support to clear the ROW. So we work in parallel, and therefore we have been able to show a little better effectiveness as far as managing ROW is concerned. And second is that you must have seen most of our projects are concentrated in the region and where we already have a good amount of pleasure. So we are fully aware about what are the kind of challenges that we are going to face on the ground when we go to implement the project. And therefore, we have the ability to prepare ourselves better in advance and execute the work.

I've got it, sir. And this second question was on incremental STU pipeline on transmission. How would the payment mechanism work there, compared to the central?

So, it is identical one. The role that the CTU plays in central or project in a payment mechanism, the same role plays is being played by STU. So, they will collect revenue from all the distribution companies, like in Maharashtra. So, there are multiple distribution companies. The distribution company is being built by STU on a monthly basis, depending on their usage of the transmission network. Now, all the distribution company pays to STU and STU pays to all the transmission companies on the other side, which could be MST, CLS, there are multiple other players as well. So, it is identical, but at the state level, that is at the sector level.

Okay, sir. Thank you so much, and I wish you all the best.

Thank you. Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of question and answer session. And now I'll hand the conference over to Mr. Ashok Jagetia for closing comments.

Thank you, everyone, for taking time out and attending this call. Hope we are able to answer all your questions and queries. If anything remains pending and answered, we are happy to take it offline. Thank you.

Thank you. On behalf of Adani Energy Solutions Limited, that concludes this conference. Thank you for joining us. You may now disconnect.