Synopsis: Adani Energy Solutions and Adani Power may both belong to the Adani Group’s energy portfolio, but their businesses are very different. One builds and operates electricity transmission, distribution, smart metering and C&I power infrastructure, while the other generates thermal power.
Adani Energy Solutions and Adani Power both operate in the electricity sector, but they sit at different points of the power value chain. In very simple terms, Adani Power produces electricity, while Adani Energy Solutions helps move, distribute, manage and meter electricity.
Adani Power is mainly a power generation company. It owns large thermal power plants, generates electricity using coal, and sells that electricity to state distribution companies or through the short-term and merchant market. Its core business is linked to plant capacity, fuel availability, plant load factor, power demand and long-term power purchase agreements.
Adani Energy Solutions, on the other hand, is more of a power infrastructure and utility company. It does not primarily generate electricity like Adani Power. Its main job is to carry electricity through transmission lines, distribute electricity in Mumbai through Adani Electricity Mumbai, install smart meters, and build newer businesses such as commercial and industrial power supply.
This is the most important difference between the two. Adani Power earns by producing and selling power. Adani Energy Solutions earns by owning and operating the network that carries power from one place to another, distributes it to consumers, and manages metering infrastructure.
Adani Power: The Generation Business
Adani Power’s business is simpler to understand. It builds or acquires thermal power plants, runs them efficiently, and sells electricity under contracts. A large part of its capacity is tied up under long-term or medium-term PPAs, which means the buyer agrees to purchase power under a fixed framework for several years.
This makes PPAs very important for Adani Power. When capacity is tied up under PPAs, the company gets better visibility on revenue and cash flows. When capacity is sold in the merchant market, the company can benefit when power prices are high, but it also faces the risk of lower prices when demand is weak or renewable power supply is high.
That is why Adani Power is reducing its merchant exposure. In Q4FY26, 81 percent of sales volumes came from contracted PPAs, while 19 percent came from merchant or short-term sales. For FY26, the mix was 79 percent contracted and 21 percent merchant or short-term. The company has also said that 95 percent of its operating capacity is now tied up under long-term and medium-term PPAs.
The company’s future plan is also heavily linked to capacity expansion. From 18.15 GW of operating capacity, Adani Power is targeting 41.87 GW, with 23.72 GW of locked-in capacity across 13 projects by FY32. This includes large expansion plans at Korba, Raipur, Raigarh, Mahan, Kawai and other sites.
Adani Energy Solutions: The Network And Utility Business
Adani Energy Solutions has a broader and more diversified model. Its transmission business builds and operates high-voltage lines that move electricity across regions. Its distribution business, mainly through AEML in Mumbai, supplies power to end consumers. Its smart metering business installs meters that help utilities track usage, billing and collections more efficiently. The company is also building a C&I (Commercial & Industrial) business, which means supplying power to large commercial and industrial customers.
In FY26, the company had 27,949 circuit kilometres of transmission network and 1,23,175 MVA of transformation capacity. It also had a large under-construction order book of Rs. 71,779 crore. In distribution, AEML sold 10,584 million units in FY26 and reduced distribution losses to 4.21 percent from 4.77 percent in FY25. In smart metering, the company crossed 1 crore cumulative meters installed and had an order book of 24.6 million meters with revenue potential of Rs. 29,519 crore.
The company’s management also highlighted C&I as a future growth area. It said the business has nearly 5,000 MW of renewable capacity contracted and third-party consumers aggregating around 1,400 MW. Management said C&I can become one of the major growth drivers in the next year, especially with data centres coming up in India.
This means Adani Energy Solutions is not a single-line electricity company. It is a mix of transmission, distribution, smart metering and newer power supply opportunities. Its growth depends on capex, project commissioning, regulated returns, smart meter rollout and new customer additions.
How Did They Perform In Q4FY26?
Adani Power delivered a strong Q4FY26 despite a weak demand environment for most of the year. Continuing revenue rose to Rs. 15,059 crore from Rs. 14,522 crore in Q4FY25, while continuing EBITDA increased to Rs. 5,573 crore from Rs. 5,098 crore. Profit after tax jumped to Rs. 4,271 crore from Rs. 2,599 crore, helped by strong operating profitability and lower tax expenses.
Operationally, Adani Power’s Q4 PLF (Generation Performance) remained steady at 74 percent, while dispatch performance rose 3.2 percent year-on-year to 27.2 billion units. The company said prolonged monsoons and cooler temperatures had kept power demand subdued in FY26, but the Q4 performance still showed resilience due to availability, capacity and PPA tie-ups.
Adani Energy Solutions also posted steady Q4FY26 numbers. Operational revenue rose 6.9 percent year-on-year to Rs. 4,400 crore, EBITDA increased 5 percent to Rs. 2,372 crore, and adjusted PAT rose 28 percent to Rs. 723 crore. For the full year, operational revenue stood at Rs. 18,296 crore, EBITDA reached Rs. 8,726 crore and adjusted PAT stood at Rs. 2,393 crore.
The bigger point is that Q4 is not the full story for either company. For Adani Power, the key issue is how fast new capacity gets commissioned and how much of it gets tied up under good PPAs. For Adani Energy Solutions, the key issue is how quickly it can convert capex and order book into operating assets.
Future Plans And Growth Triggers
Adani Power’s growth plan is clear. It wants to expand capacity aggressively and move more of its portfolio into stable PPAs. The company has tied up 13.3 GW of new PPAs and has 95 percent of operating capacity under long-term and medium-term contracts. Management has guided for major capex, including around Rs. 25,000 crore in FY27 and around Rs. 33,000 crore in FY28, while upcoming projects like Korba and Mahan are expected to support future EBITDA growth.
The big trigger for Adani Power is capacity addition. Management said Korba Phase-II is expected to be commissioned during the current year, while Mahan Phase-II is also progressing. The company also sees opportunities in thermal power, hydro, international projects and even nuclear power, although nuclear plans are still at a preparatory stage and depend on government rules.
Adani Energy Solutions’ growth plan is more spread out. It is scaling transmission capex, distribution assets, smart meters and C&I. Management said FY27 capex could be around Rs. 21,000 crore to Rs. 22,000 crore, including about Rs. 15,500 crore in transmission, Rs. 2,350 crore in distribution and Rs. 3,900 crore in smart metering. For FY28, capex could be around Rs. 22,000 crore to Rs. 25,000 crore, led mainly by transmission.
The company also fully commissioned the Mumbai HVDC project in FY26, which management said is important for Mumbai transmission capacity and renewable power integration. It also said most assets are now AAA+ or AAA rated, helping reduce interest costs while capex is increasing.
Which One Looks Like The Better Buy?
Based only on the brokerage targets provided, Adani Energy Solutions appears to offer higher upside than Adani Power. Jefferies has maintained a “Buy” rating on Adani Energy Solutions and raised its target price to Rs. 1,665 from Rs. 1,170, implying around 18 percent upside. The brokerage’s positive view is based on strong earnings visibility, a large order book, rising capitalization, smart metering growth, transmission projects and valuation comfort.
For Adani Power, Jefferies raised its target price to Rs. 255 from Rs. 185, implying around 10.8 percent upside. The brokerage expects 23 percent EBITDA CAGR through FY26 to FY29, supported by capacity addition, better PPAs and improving profitability. It also highlighted that recent PPAs have been signed at better tariffs than earlier levels, which can support earnings from FY28 to FY30.
So, purely from a target-price upside perspective, Adani Energy Solutions has the edge. It also has a more diversified business model across transmission, distribution, smart meters and C&I. Its earnings are more linked to regulated and contracted infrastructure assets, which can give longer-term visibility as projects are capitalized.
However, Adani Power cannot be ignored. It is a more direct play on India’s base load power demand, thermal capacity shortage, better PPAs and rising electricity needs from industry, homes and data centres. Its growth can be sharper if capacity expansion stays on track and demand remains strong.
In short, Adani Energy Solutions looks more balanced and offers higher brokerage-implied upside, while Adani Power looks more like a higher operating leverage power generation story. Investors who prefer diversified utility infrastructure, Adani Energy Solutions may look stronger. For those who want direct exposure to thermal power generation and capacity expansion, Adani Power remains the more focused play.
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