Scaling Infrastructure Through Intelligence

Actions Taken in FY 2025-26

During the year, we strengthened our safety culture through leadership engagement, capability building, and disciplined execution across projects and operations. Higher safety observations and near-miss reporting, along with timely closure of corrective actions, reflect stronger ownership and leadership presence at sites.

Governance Leadership and Risk Management

• Expanded Visible Felt Leadership and structured safety reviews
• Reinforced ISO 45001 through audits
• Updated HIRA and JSA for critical activities
• Strengthened Permit to Work and LOTO controls

Operational Excellence Across People Partners and Digital Systems

• Strengthened contractor prequalification and onboarding
• Standardised safety practices across EPC partners
• Conducted targeted training on key risk areas
• Deployed ePTW digital LOTO AI PPE monitoring drones and sensors

Occupational Health Preparedness and Continuous Improvement

• Conducted medical surveillance and wellness programmes
• Strengthened emergency preparedness and mock drills
• Embedded root cause analysis into SOPs

Way Forward

Short Term

• Achieve 100% ISO 45001 recertification across sites
• Expand digital PTW/LOTO coverage and real-time leading safety indicators
• Introduce structured contractor safety passport and simulator-based training

Medium Term

• Establish an integrated digital safety ecosystem with predictive analytics
• Strengthen contractor capability maturity assessment
• Deploy wearables and advanced occupational health analytics

Long Term

• Transition towards a High Reliability Organisation (HRO) model
• Leverage automation, robotics and design stage safety analytics to eliminate high risk exposure
• Embed a ‘Culture of Care’ across leadership and workforce

Actions Taken in FY 2025-26

Board and Governance

• 25% women directors and 50% independent directors
• Strengthened Corporate Responsibility Committee with an additional independent director

Embedding ESG into Core Strategy

• Integrated ESG into product design, supply chain, capital allocation, risk frameworks and policy advocacy
• Revised ESG policies to strengthen integration across processes

Resource Stewardship

• Maintained Water Positive and zero waste to landfill status
• Renewable energy share in Mumbai reached to 65.92%*
• Carried-out Water Risk Assessment & rainwater harvesting feasibility study and implemented water metering across all sites

Stakeholder Engagement and Transparency

• Strengthened engagement and disclosure of ESG goals and progress
• Improved S&P Global ESG score to 81 from 73; ranked in top decile of global utilities

Frameworks and Recognition

• Adopted IFRS S1 and S2 for disclosures
• Continued inclusion in FTSE4Good with ESG score of 4.4

Way Forward

Short Term

• Increasing renewable energy share to 60%
• Maintain Single Use Plastic Free, Water Positive & Zero waste to Land fill Certification for all operational sites
• Zero Fatalities
• Reduce T&D losses as per plan
• GHG Emission reduction as per plan
  • Scope 1+2 Reduction
  • Scope 3 reduction
• Water intensity reduction

Long Term

• Maintain zero operational fatalities
• Increasing renewable energy share to 70%
• Maintain Single Use Plastic Free, Water Positive & Zero waste to Land fill Certification for all operational sites
• Reduce T&D losses as per plan
• GHG Emission reduction as per plan
  • Scope 1+2 Reduction
  • Scope 3 reduction
• Water intensity reduction

Read more about our ESG goals and achievements on Pg. 150

Actions Taken in FY 2025-26

• Institutionalised execution discipline through PMAG with standardised governance, milestone tracking and risk oversight
• Managing ₹ 71,779 crore transmission pipelines through phased execution, schedule monitoring and stakeholder coordination
• Ensured capital discipline through a defined risk–reward investment framework aligned to regulated returns
• Strengthened delivery through tighter cost controls, improved vendor oversight and cross-project learnings

Way Forward

Short Term

• Accelerate execution of the under-construction portfolio through tighter schedule controls and resolution of right-of-way and statutory clearances
• Further strengthen PMAG-led assurance mechanisms and digital project monitoring tools

Medium Term

• Scale up execution capabilities to support a growing transmission opportunity pipeline
• Enhance standardisation, modularisation and vendor ecosystem depth to improve capital efficiency

Long Term

• Build a resilient, scalable transmission platform anchored in disciplined capital allocation, predictable returns and execution excellence
• Sustain leadership position in regulated transmission through consistent portfolio renewal and operational maturity

Actions Taken in FY 2025-26

• Capex of ₹ 1,883 crore has been funded completely through internal accruals

Way Forward

Short Term

• Planned upgrades across budget automation, image and thermal analytics, CRM, GenAI Customer Care Center (CCC), and Smart Pillars implementation

Medium Term

• Target end-to-end integration of WMS, CLPS, ROW and KRONOS for faster execution and compliance
• Planned rollout of an enterprise-wide application platform

Long Term

• Advanced Metering Infrastructure to provide for two-way communication system
• Optimisation of network design

Actions Taken in FY 2025-26

• Migrated the in-house teams from a monthly salaried model to an SLA-driven per-meter compensation model with performance incentives
• Onboarded O&M agencies at Circle / Division level
• Secured AMISP project under AEML

Way Forward

Short Term

• Onboarding major vendors under the EPC model to streamline project execution and enhance delivery efficiency
• Implementation of AI/ML-based automated consumer indexing

Medium Term

• Development and deployment of Agentic AI based use cases for Digitisation of business operation and monitoring optimisation.

Actions Taken in FY 2025-26

• Operated a diversified portfolio of 20,023 ckm lines and 49,400 MVA capacity
• Expanded order book to ₹ 71,779 crore with two new projects, strengthening revenue visibility
• Commissioned four transmission lines, enhancing network capability
• Delivered EBITDA margin of 92% through high availability and cost discipline
• Sustained stable operations of key assets, including HVDC and 765 kV projects

Way Forward

Short Term

• Maintain high availability through predictive maintenance, digital monitoring and reliability initiatives
• Ensure timely commissioning and integration of ongoing projects

Medium Term

• Scale asset base through disciplined commissioning and portfolio additions
• Enhance efficiency through standardisation, automation and data-led asset management

Long Term

• Strengthen leadership with a resilient, high-availability portfolio
• Leverage advanced analytics to drive reliability, efficiency and stakeholder value

Actions Taken in FY 2025-26

• Installed 257 Class-A power quality meters across 33/11 kV DSS
• Deployed sheath current monitoring across key EHV cable sections
• Installed 12 PMUs for real-time grid visibility and stability
• Implemented URJA and Kartavya apps to improve field efficiency

Way Forward

Short Term

• Expand insulation coating across 11 kV busbars and accessories
• Implement IIT-Ropar recommendations for vulnerable EHV joints
• Roll out smart meter-based street light operations
• Scale abnormality detection across LT and street light networks
• Expand image analytics for proactive network monitoring

Medium Term

• Intend to expand smart meter-based abnormality detection to cover entire LT and street light networks.

Long Term

• Enhance and digitise stakeholder engagement and awareness initiatives to promote responsible electricity usage and reduce losses

Actions Taken in FY 2025-26

• Delivered EBITDA margins of 78% in the smart metering segment
• Maintaining industry-leading daily smart meter installation run rate
• Migrated the in-house teams from a monthly salaried model to an SLA driven per meter compensation model with performance incentives

Way Forward

Short Term

• Maintain steady progress across ongoing projects
• Achieve SLA targets as per RFP requirements
• Strengthen O&M for reliability and service quality

Medium Term

• Expand Partner-led execution for faster delivery
• Implement AI / ML, agentic AI-based use cases for enhancing DISCOM efficiency

Long Term

• Deploy home automation systems to enhance efficiency, safety and energy management

Actions Taken in FY 2025-26

• Maintained investment grade ratings (BBB-/Baa3)
• Executed liability management through senior notes buyback
• Strengthened funding diversification and balance sheet discipline
• Delivered >99% network availability, supporting incentive realisation
• Shifted to SLA-linked per meter compensation with performance incentives

Way Forward

Short Term

• Maintain strong liquidity and predictable cash flows
• Ensure DSCR above 1.1-1.2x
• Sustain >98% availability to secure fixed charges

Medium Term

• Maintain strong DSCR and liquidity
• Sustain >99% availability
• Balance capital structure and counterparty risk
• Drive efficient O&M costs

Long Term

• Achieve regulated returns of around 15.5%
• Ensure lifecycle asset management and capex discipline
• Maintain low O&M costs with availability-linked incentives
• Optimise capital structure with adequate equity cushion
• Sustain strong collection efficiency and liquidity

Actions Taken in FY 2025-26

• During the financial year AEML has repaid QIA sub-debt of USD 84 million (₹ 599 crore)

Way Forward

Short Term

• Tighten Financial Controls & Monitoring
• Reduce finance costs through loan repayment
• Strengthen receivables management

Medium Term

• Maintain and improve credit ratings
• Build Stable and Predictable Earnings
• Working Capital Normalisation
• Strengthen Financial Governance & Risk Resilience

Long Term

• Disciplined Long-Term Capital Allocation
• Improve asset-hardening through capitalisation
• Digital & Capability-Led Transformation

Actions Taken in FY 2025-26

• Strengthened liquidity through working capital Facility ensuring steady cash inflows and improved working capital efficiency.
• Refinancing of working capital through securitisation to enhance the debt profile and improve overall cash flow management.
• Investment grade ratings AA-.

Way Forward

Short Term

• Maintain steady progress across projects and meet SLA targets
• Onboard key partners to improve execution
• Secure new AMISP contracts
• Upskill technicians and strengthen onboarding processes

Medium Term

• Onboarding of key O&M partners for efficient field operations and partner development

Long Term

• Implementation of Home automation system to enable monitoring, control, and automation for improved convenience, safety, and energy efficiency

Actions Taken During FY 2025–26

• Strengthened the Integrated Management System with successful ISO re-certifications and zero non-conformities.
• Business Process Re-engineering through As-Is/To-Be mapping for critical processes across the value chain, embedding Gen AI, RPA & automation.
• Scaled workplace excellence through Adani Workplace Management Systems (AWMS)/5S deployment across 48 sites,
• Promoted innovation and capability building through Knowledge Mall replication, cross-BU collaboration and external recognition

Way forward

Short Term

• Strengthen BE Maturity framework across Adani Energy Solutions.
• Strengthen governance through standardisation of SOPs, and integration workflows
• Upgrade sites through AWMS–5S accreditation ladder, targeting >80% zone wise scores
• Continue structured capability building through Lean Six Sigma, ABEM assessors and ISO auditors.

Medium Term

• Achieve Advanced Maturity Level across the Adani Energy Solutions businesses.
• Embed strategy deployment and Balanced Scorecard across all functions
• Complete end to end digital integration across BD, Projects and O&M, with predictive maintenance, drone based inspections and digital twins
• Scale metaverse based learning and multi skilled workforce development

Long Term

• Institutionalise a self sustaining Business Excellence culture across Adani Energy Solutions
• Position Adani Energy Solutions as a global benchmark in O&M reliability, workplace excellence, digital transformation and safety leadership
• Aspire for global excellence recognitions such as EFQM, Deming Prize and international Business Excellence awards

Actions Taken in FY 2025-26

• Introduced GenAI-based customer service across chat, email and voice channels
• Deployed asset health indexing for proactive maintenance of transmission assets
• Improved demand scheduling through analytics-based forecasting
• Implemented mobile app-based quality inspections for better site visibility and tracking
• Deployed automation bots across key functions to enhance efficiency and productivity
• Achieved 89% e-payment penetration in Mumbai distribution

Way Forward

Short Term

• Digitalise O&M and project activities to improve efficiency
• Establish a single source of truth for better data consistency and decisions
• Expand AI adoption and sensorisation

Medium Term

• Digitalise Cooling Solutions operations to improve efficiency
• Deploy AI-led solutions in engineering design

Long Term

• Launch mobile app for Cooling Solutions customers
• Drive agentic automation across high-impact areas

Actions Taken in FY 2025-26

• Strengthened leadership continuity and governance through an experienced Board and management team
• Advanced workforce structure to improve agility, accountability and decision-making
• Progressed future-ready workforce models including GCCs, PLPBC and strategic partnerships
• Strengthened succession planning aligned with long-term business needs
• Enhanced technical capability, including plans for a dedicated training facility
• Scaled digital HR and talent analytics for competency assessment and workforce planning

Way Forward

Short Term

• Complete succession planning and strengthen successor readiness
• Operationalise workforce partnership models
• Accelerate capability building through structured learning

Medium Term

• Build scalable workforce models (GCCs, PLPBC and strategic partner models as extensions of the internal workforce) supported by digital learning, internal centres of excellence and future-skill pipelines
• Strengthen leadership development and internal mobility

Long Term

• Establish a future-ready talent ecosystem to support growth and new business models
• Sustain high capability, engagement and leadership continuity