Jefferies Maintains 'Buy' on Adani Energy Solutions, Cites Strong Earnings Growth and Sector Expansion

Jefferies has reaffirmed its positive outlook on Adani Energy Solutions, maintaining a 'Buy' recommendation with a price target of Rs 1,100 per share. The brokerage expects the company to achieve sustained earnings growth over the next three years, projecting a 30% compound annual growth rate (CAGR) in EBITDA and a significant increase in net profit.

Adani Energy Solutions' recent quarterly performance showed improved profitability, with transmission margins exceeding expectations. The company's capital expenditure guidance for FY26 remains unchanged at Rs 1.6–1.8 lakh crore, with Rs 60,000 crore already invested. Its transmission capitalization target of Rs 1.5 lakh crore is also on track.

Financials indicate strong growth, with adjusted profit after tax rising 48% year-on-year in Q2 FY26. Revenue from transmission grew 3% and contributed substantially to overall revenue and EBITDA. Consolidated EBITDA margins improved to 29.6%, reflecting better cost control and project execution efficiency. Jefferies forecasts revenue to grow 33% in FY26, followed by 12-15% annually.

Impact This news has a significant positive impact on Adani Energy Solutions, reinforcing investor confidence and potentially driving stock price appreciation. The confirmation of strong growth prospects and sector tailwinds makes it an attractive investment. Rating: 8/10.

Terms Used: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operational profitability. CAGR: Compound Annual Growth Rate. It represents the average annual growth rate of an investment over a specified period longer than one year. EV/EBITDA: Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a valuation multiple used to compare companies within the same sector. PAT: Profit After Tax. It is the net profit of a company after all expenses and taxes have been deducted.