Shares of Adani Energy Solutions Ltd (formerly Adani Transmission Ltd) saw a notable recovery on Monday, rising over 4% from an intraday low of Rs 1,208.50 to Rs 1,260.25. This surge follows a strong performance in the September 2026 quarter, which has led several prominent brokerages to upgrade their ratings and issue bullish new target prices for the energy infrastructure firm.
Strong Q2 2026 Results Drive Optimism
Adani Energy Solutions reported a substantial 147.75% year-on-year (YoY) increase in net profit, reaching Rs 1,322.85 crore for the quarter ended September 2026. Revenue also climbed significantly by 52.75% to Rs 10,075.54 crore, while EBITDA improved by 35.5% to Rs 3,101.5 crore. The company's EBITDA margin expanded by 400 basis points to 30.7% during the period.
The transmission business contributed Rs 1,700 crore in revenue, up 17% YoY, with capital expenditure nearly doubling to Rs 3,500 crore. The distribution business posted an operating EBITDA of Rs 600 crore, a 23% YoY rise, and the smart metering business saw its EBITDA jump 145% to Rs 226 crore. Power Pulse Trading Solutions recorded Rs 2,000 crore in revenue and Rs 800 crore in EBITDA.
Analysts Upgrade Ratings, Set New Targets
Following these impressive results, analysts have turned increasingly positive on Adani Energy Solutions stock, despite it trading significantly below its all-time high from four years ago.
Jefferies Maintains 'Buy' Rating
Jefferies noted that Adani Energy Solutions' September quarter EBITDA was 19% higher than anticipated, largely due to a robust performance in the trading business. While the brokerage raised its FY27 EBITDA estimate by 6%, it slightly trimmed FY28-FY30 estimates due to lower capitalisation guidance for transmission and smart metering. Despite these adjustments, Jefferies maintains a 'buy' rating with a target price of Rs 1,980, projecting a 25% EBITDA compound annual growth rate (CAGR) from FY26-FY30.
ICICI Securities Upgrades to 'Buy'
ICICI Securities highlighted the strong Q2FY27 performance, driven by growth in operating EBITDA and profit. The energy solutions segment, particularly with the Mumbai high-voltage direct current (HVDC) project, is expected to be a key growth driver. The brokerage upgraded the stock to 'buy' with a target price of Rs 1,600, noting the improved transmission order book of Rs 87,200 crore and new power supply contracts.
Elara Capital Moves to 'Buy'
Elara Capital upgraded Adani Energy Solutions from 'accumulate' to 'buy', revising its earnings estimates upwards for FY27, FY28, and FY29 due to contributions from the energy solutions platform. The brokerage adjusted its target price slightly to Rs 1,747 from Rs 1,823, factoring in various valuation methodologies for regulated assets and upcoming opportunities.
PL Capital Upgrades to 'Buy'
PL Capital also upgraded the stock from 'hold' to 'buy', setting a target price of Rs 1,526. The firm raised its FY28 and FY29 EBITDA estimates by 6% and 9% respectively, attributing this to the energy solutions platform's growth and finding the stock's current valuation of 13 times FY29 estimated EV/EBITDA reasonable after its recent weakness.