The stock hit its fresh 52-week high of Rs 1,463.65 on the NSE on Tuesday and is currently trading above its 50-day and 200-day simple moving averages (SMAs) of Rs 1,070 and Rs 951, respectively, according to Trendlyne data.
AESL is a multidimensional company offering services in the energy domain including power transmission, distribution, smart metering, and cooling solutions. The largest private transmission company has a presence across 16 states in India.
The stock is displaying a strong bullish breakout phase, opines Kunal Kamble, Senior Technical Research Analyst at Bonanza. It has convincingly moved above the resistance of Rs 1,060 with rising volumes supporting the rally, he said, while highlighting the current market price of Rs 1,434 is higher than key EMAs (20/50/100/200), suggesting a strong uptrend.
Adani Energy Solutions reported a double-digit uptick in its revenue from operations in Q4FY26 with topline growing 17% year-on-year to Rs 7,443 crore. The consolidated profit after tax (PAT) rose 6% YoY growth in its consolidated net profit at Rs 684 crore in the fourth quarter.
Key projects such as the Mumbai HVDC, North Karanpura Transmission, and Khavda Phase II contributed to incremental revenue during the quarter. Total income, which includes EPC and service concession income, grew faster at 15%, reflecting higher capex execution and improved performance across segments.
The transmission segment continued to anchor performance, delivering a 7% YoY increase in operating revenue to Rs 1,286 crore, alongside a 6% rise in EBITDA. In contrast, the distribution business showed limited traction, with revenue holding steady at Rs 2,869 crore, while EBITDA slipped 4% YoY, indicating margin pressure. Overall, the company attributed its earnings resilience to robust momentum in transmission and smart metering, complemented by a stable—though subdued, showing in the distribution segment.Smart metering continued to emerge as a high-growth vertical, with revenue jumping sharply to Rs 215 crore from a low base, while EBITDA rose significantly, underscoring strong execution in this business.
Adani Group stocks: Returns snapshot
Adani Group stocks have delivered a mixed performance over the past three months, with power and green energy names leading the rally. Adani Power has emerged as the top gainer, surging 67% in the period and turning into a multibagger with 102% returns over the past one year.
Adani Green Energy also posted strong gains of 51%, while Adani Total Gas, Adani Enterprises, and Adani Ports and Special Economic Zone (APSEZ)advanced 23%, 21%, and 19%, respectively.
In contrast, cement and media-linked entities lagged behind, with Ambuja Cements and ACC declining 14% and 15%, respectively, while Sanghi Industries fell 21% and NDTV slipped 2%, highlighting a clear divergence in performance within the group.
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Should you buy?
Kamble sounds a caveat on purely technical terms as the RSI has breached above 75 signals overbought conditions, with chances of near-term consolidation. “Fresh entry should be avoided at current levels. It is better to buy on dips towards Rs 1,320-1,350 with stop loss at Rs 1,250. For momentum continuation, a breakout above Rs 1,460 can lead to targets of Rs 1,550–1,620. Existing holders should continue to hold with a trailing stop loss at Rs 1,300 as trend structure remains positive,” Kamble said.
ElaraCapital’s Rupesh Sankhe recommended investors to ‘Accumulate’ to stock from a long term view. He set the target at Rs 1,452, arguing the company is poised for robust growth across transmission, distribution, and smart meters. The stock has been downgraded from ‘Buy’ with a higher target price from Rs 1,169 earlier.
The ratings downgrade comes on the back of the recent rally.
“We value the regulated distribution and transmission assets on 3X FY28E P/BV. We ascribe 12X FY28E EV/EBITDA to its (TBCB) transmission assets and 12X FY28E EV/EBITDA to smart metering. We assign an option value of Rs 218 to the upcoming smart meters projects and an option value of Rs 200 to the opportunity from NEP transmission,” this analyst said.
Robust orderbook, rising market share and stronger capitalization guidance remain strong tailwinds, the analyst said.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)