Smart meter biz to boost Adani Energy’s Ebitda

Smart metering business will help Adani Energy Solutions (AESL) boost its earnings before interest, depreciation and amortisation (Ebitda) said rating agencies and analysts tracking the company. With smart meters, the company can monitor and predict power consumption pattern over micro geographies and hence manage retail distribution better. 

AESL has a 17% market share in the segment with 23 million meters.

Rating firm Fitch expects that the Ebitda contribution from smart metering business to reach above 25% in FY26. It was nil in FY24 and 15% in FY25, considering the fast cash conversion cycle.

ALSO READMacrotech posts record quarterly pre-sales

“Cash generation starts once 5% of contracted meter capacity or 25,000 meters whichever is earlier, has been installed,” Fitch said . Its cash flow is exposed to India’s weak state-owned power distribution entities, although direct debit facilities for consumer bill payments to distribution utilities facilitate the recovery of dues, it added. 

AESL spokesperson did not respond to the mail on the subject stating the company is in a silent period ahead of its earnings. The government has set a target of 250 million smart meters by 2030. AESL’s experience in operating Mumbai discom has led it to emerge as a key player in this programme, securing an order book of 23 million till February 2025, Elara Capital said.

The installation of each meter needs an upfront capital investment of `5,800. During the 90-month agreement term, the company is likely to generate revenue of `12,000 per meter. The company is set to sustain an Ebitda margin of 85% in this vertical, Elara said.

Given that AESL is executing smart metering projects of about 23 million meters, that is around `27,200 crore (in value), about 4.5 million meters should be added by end FY25 and FY26 target is 10 million meters, of which 7 million is from existing contract and balance from new wins, Jefferies said.

ALSO READSC ruling: Coal India requires to pay Rs 38,000 crore to mineral-rich states

Tata Power is also executing smart metres. Recently, Tata Power Delhi Distribution  partnered with Probus Smart Things  to boost smart metering technology through the adoption of a Universal Network Interface Card

(NIC) with Bluetooth-enabled communication.

Power distribution companies (discoms) could generate an additional revenue of Rs 4 lakh crore over the next seven years by installing smart meters across the country’,

 » Read More

Related Articles

Last DA hike under 7th Pay Commission in July to be bigger than last one — New inflation data raises hopes

DA Hike for July-December 2025: Central government employees and pensioners are hopeful that the last dearness allowance (DA) revision in the 7th Pay Commission will be better than the last one announced for the January-June cycle 2025. The government hiked DA by 2% for the first half of the current calendar year. At present, the

Man Industries to raise Rs 300 crore via preferential issue

Man Industries will raise Rs 300 crore through a preferential allotment of convertible warrants and equity shares. The company has scheduled an Extraordinary General Meeting (EGM) on June 25 to get the necessary approvals from investors. ALSO READVodafone Idea not out of woods yet: Can the latest fund raising spur a revival? As per the

Volatile Tuesday: Sensex ends down 600 points, Nifty slips below 24,550; Adani Group stocks, power, finance see sharp cut

The Indian benchmark indices, Sensex and Nifty, ended Tuesday’s session with sharp losses after a subdued start. The Sensex closed at 80,737.51, falling 636.24 points or 0.78%, while the Nifty slipped 174.10 points or 0.70% to settle at 24,542.50. The Nifty Bank index also declined, closing at 55,599.95, down by 0.54%. Here are 5 key

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Last DA hike under 7th Pay Commission in July to be bigger than last one — New inflation data raises hopes

DA Hike for July-December 2025: Central government employees and pensioners are hopeful that the last dearness allowance (DA) revision in the 7th Pay Commission will be better than the last one announced for the January-June cycle 2025. The government hiked DA by 2% for the first half of the current calendar year. At present, the

Man Industries to raise Rs 300 crore via preferential issue

Man Industries will raise Rs 300 crore through a preferential allotment of convertible warrants and equity shares. The company has scheduled an Extraordinary General Meeting (EGM) on June 25 to get the necessary approvals from investors. ALSO READVodafone Idea not out of woods yet: Can the latest fund raising spur a revival? As per the

Volatile Tuesday: Sensex ends down 600 points, Nifty slips below 24,550; Adani Group stocks, power, finance see sharp cut

The Indian benchmark indices, Sensex and Nifty, ended Tuesday’s session with sharp losses after a subdued start. The Sensex closed at 80,737.51, falling 636.24 points or 0.78%, while the Nifty slipped 174.10 points or 0.70% to settle at 24,542.50. The Nifty Bank index also declined, closing at 55,599.95, down by 0.54%. Here are 5 key

ITR filing for AY2025-26 begins for THESE taxpayers: Over 54K income tax returns filed in 3 days

Income tax returns (ITRs) for AY 2025-26 (financial year 2024-25) finally started, with almost a two-month delay, on May 30, 2025. The Central Board of Direct Taxes (CBDT) on May 30 released two Excel-based utilities for ITR-1 and ITR-4 filers. Usually, the government makes online and offline ITR utilities available in the second or third

How can 50% Trump tariff on steel and aluminium impact India? A look at key factors to watch

US President Donald Trump increased the tariffs on steel and aluminium, and the increased 50 percent tariffs would be effective from June 4. The increase in tariffs on steel and aluminium could have a major impact on Indian companies, as India exports about $4.6 billion worth of iron, steel, and aluminium products every year to