Thank you, and a very good day to everyone. A warm welcome to the Q1 earnings call for AESL.

We hope you had an opportunity to review the earnings presentation and financial results that we shared on our website. To outline the flow of today's call, we will begin with the opening remarks from our CEO, Mr.

Kandarp Patel, following which we will open the floor for Q&A session. The call will conclude with closing remarks from our CFO, Mr.

Ashok Jagetiya. For those who wish to ask questions, we request you to start joining the question queue a little in advance to help us manage the Q&A efficiently.

Thank you, and with that, I would like to hand over to Mr. Kandarp Patel for his opening statement.

Thank you.

Hello. Good day everyone.

Welcome, all of you, on this quarter one call. In this quarter, AESL has, in fact, now transitioned into a full-scale utility.

Far, AESL was getting a significant contribution from transmission, distribution, and smart metering. From this quarter, we have fully scaled up and operationalized our energy solution business, and with all these four business firing on all cylinders and with all our future growth locked in, now you will see those numbers and results consistently quarter-on-quarter.

Besides scaling up all these four business verticals, we continue to make sure that our execution discipline and capital discipline are maintained, even in this high-growth period, and thereby reducing our cost of capital and improve consistently our credit quality. This is going to be our focus going forward.

In quarter one, as you must have seen from the numbers, we have seen significant growth in transmission and energy solutions, and distribution and smart metering is growing at a stable pace. Today, AESL, with all these four business operating it as full scale, has become most diversified utility platform nearly with 28,000 circuit kilometer of transmission lines, a leading urban distribution utility serving Mundra and Mumbai, India's largest smart metering platform, and a rapidly scaling energy solution platform across emerging customer demand.

One significant thing is that we delivered a quarterly capex of about 3,400 close to the 3,500 100 crore of capex, and that is what we are focusing, and we will continue to focus that we continue to deploy all those locked-in opportunity on the ground and complete this project one by one. We have also now completed smart meter installation of 1.34 crore or 13.4 million meters cumulatively on the order book of 2.46 crore or 24.6 million.

In addition, you must have seen that news that we are acquiring IntelliSmart, and combined IntelliSmart and AESL will have a portfolio of about 4.7 crore or 47 million meters. This contract also has a provisions for natural growth of volume within the given contract.

We expect that volume to increase beyond 4.7. Now, the Energy Solution platform, which we were talking since last couple of quarters, has now transitioned to a full-scale business.

We were incubating that. We tied up about 5,000 MW of capacity on a supply side, and these are mainly green energy supply.

We are now also tying up with various consumer. We have about 350 MW of C&I customers.

We are also expecting a few long-term contracts very shortly, and thereby, we will keep on scaling up this business. In C&I business, essentially, there are two parts: one is where we are taking a position on the capacity on a long-term basis, we contract those capacity on a long term and take that position, and then we sell it in a market; and we also provide energy solutioning services to various consumer like our cement or port, where they have developed the capacity, and we are managing that solution.

There are two different segment in C&I business. We would want to have scale up both the businesses because our essential aim is to provide energy solution to any customer that is requiring solution.

Typically, those margins on those capacity where we are taking a position would be higher, whereas on the services side, we will be taking the service charges, and you will see this platform growing significantly going forward. Now, therefore, Q1 FY27 demonstrate that AEL AESL has arrived as a full-scale utility platform and with a structured growth opportunity, which is going to be a consistent one, and coupled with our execution record and with energy solution, we hope that we will continue to do better in terms of results and businesses.

We remain confident delivering sustained and compounding value for all stakeholders. I will stop here, and we will take all the questions, and we will try and answer all the questions and queries from the investors and analyst friends.

Yeah. Firstly, congratulations on a great set of results.

I just wanted to check, can you throw some color on the smart meter business, on the IntelliSmart acquisition in terms of whether a similar returns profile as your existing portfolio will be there? What are the smart meter balance tenders that are left over the next 3, 4 years by the central and state governments?

Balance portfolio is about 10 to 11 crore or 100 to 120 million. The remaining states are Tamil Nadu, Karnataka, Telangana, a part of Andhra, and there are few state where part quantum is also left out.

As far as IntelliSmart is concerned, we are before the CCI for approval, and once those all approvals are in place, then we will formally take over that entity. As far as return profile of IntelliSmart is concerned, more or less, it will be on the similar lines that we have because what we have done in last 2 years that we have also reduced our capex and opex utilizing our scale.

We will also have an advantage of that in the IntelliSmart volume as well. More or less profitability or those numbers would be very similar to what we have for AESL.

Okay. Thank you, sir.

Sir, on the energy solutions business longer-term strategy in terms of how much you would want to tie up and have an assured EBITDA per unit, let's say, and how much you think you might leave open, just so that we get a good sense on the sustainability on the operating EBITDA that the business has reported. Thank you.

Lavina, we will certainly would have a situation where most of the tied-up capacity on a purchase side has also tied up on a sale side. We would not want to have that kind of variability on our P&L.

To start with, we contracted this capacity, and now we hope to tie up the sale side very soon. In essentially long run, we would not want to have a barring a few percentage of capacity that will remain liquid, rest we will tie up on a both side.

Got it, sir. Thank you so much and all the best.

Thank you.

Hi, sir. Thanks.

Congratulations for a good set of number and thanks for the opportunity. Sir, on the C&I segment, where you said that there will be two type of businesses which we would be doing: one is managing solutions, where we'll have a service charge or a fixed spread.

What is the amount of fixed spread that we could generate on such type of business?

Sorry, can you repeat the question?

Yeah. On the C&I segment and the trading segment, we are envisaging two two type of business: one is the managing solution business, where we'll manage solution for a lot provide

a

solution as a Second is where

Yeah, where we take a position.

Then where you took position. Yeah.

What type of spread should we expect in both this type of business?

Currently, the spread, obviously, on the solutioning side or service side, it can't be seen as a spread, but it's basically a service revenue. Unit probably may not be that relevant, but currently, even the number of this quarter, it is about 3 paisa.

Whereas

on a contract that we will take a position, it will certainly be a much higher volume, but that will depend on a contract-to-contract basis. It will be difficult for me to put a specific number on those transactions.

Understood, sir. When we take position, because this would be long-term, say, 20 years.

Once if we say lock in a 3, 4 GW, and like this quarter, we have generated around 500-plus crore. Is it fair to assume that once we lock that in, that becomes a annuity business for the next 20 years?

Correct. Our objective would be that only.

It may not be the every time you may not have the contract tenure matching to matching 100%, but yes, we will endeavor to do that that most of the capacity is back-to-back locked up, and we don't create much of the volatility in our numbers.

You have some part which is logged in, which generates annuity type of revenue, and then you can have some open position which even in a bad market environment, it might at the max offset the annuity profit, but it gives us the upside that we can have substantial upside.

Correct. Essentially, we would try to convert those revenues into annuity kind of revenue with a some bit of open position, which we can take or optimize depending on the market condition.

There would be no capex which would be incurred by us by while generating this annuity type of revenue?

There may not be any direct capex, but we expect that some capex we might have to incur to enable those transactions. When I say enabling those transactions means creating those power infra, last-mile connectivity for consumer, or sometime even for a generator.

But

Understood. Right now, we are selling it

Yeah. Sorry.

Go ahead.

Sorry. Go ahead.

Sorry. Sorry.

Go ahead. Sorry.

Yeah. It is not capex-based business, but we might incur some capex for enabling those transactions.

Okay. Currently in the last quarter, we sold it towards an exchange, right?

There was no such facilitation which we are

We sold mainly we have about 350 MW of C&I customer. Rest we sold it on a exchange and also in a bilateral contract with the different utilities.

Understood. If you can share the tenure of the bilaterals that we have?

Sorry, come again.

If you can share the if you can share the maybe the price and the tenure of the bilaterals that we are having with the utilities, so that we So there are

Yeah, there are basket of contracts. Some some are from 1 month to 13 months, and even those prices are also very different because sometime we sell it as a, bundled power, sometime we sell it as individual.

Those price are ranging from ₹3 to ₹13 or ₹15 as well. Because now we also have a 3 3.5 MW 3,500 MWh of battery storage as well, and we are also utilizing that to create a different product and then sell in a market.

When we say we have battery, this is our investment or we have taken the battery capacity on a fixed charge from Adani Green?

We have taken like we have contracted wind and solar, we have also contracted battery storage on a long-term basis.

Understood.

On a fixed charge.

Perfect. On a fixed charge.

Understood. Perfect.

Thank you so much for that.

Thank you.

Yeah. Sir, thanks opportunity and congratulations on a good set of numbers.

Sir, regarding this Energy Solution platform,

Yeah. Is this like

Vishal. Go ahead.

Sir. Is this better now?

Yeah.

I was saying that 590 crore EBIT that we have made in the energy solution as a platform, is it possible to first break up within the energy solution services, what is the proportion in this and the contract that we have in terms of power, the back-to-back and in terms of megawatt, what could be the breakup between these two?

The breakup is about 570 crore is from the volume that where we have taken a position, where we have a long-term contract. The balance revenue is from power trading and power solution services activity.

Okay. This 570, that's a EBIT number that you mentioned, right, sir?

Yes.

Okay. Fine.

In terms of kilowatt-hour units or maybe some bit of a generation number, or probably not generation, but what kind of volume that we have done for this 590-odd or so 570-odd crore, will that be

We have done about 3,325 million units in that segment, and in the balance segment where we are providing services, we have done about 8,000 9,800 MUs. That, again, in that segment, volume is not important.

It is basically a services. Okay.

Okay. Is this fair statement to make that in terms of quarterly, we have done a pretty strong numbers, but going forward, are these more like take-and-pay sort of contract even when we're selling things, and this number is sustainable, or it depends or it's more of opportunistic given there has been delayed monsoon and then we get higher margin?

How exactly to look this particular number panning out for us?

Vishal, this is a very relevant and very important question. Obviously, this year, because of delayed monsoon, the demand was high, and the market prices were also high as compared to the last year.

If you're keeping your position 100% open, then obviously, all those variability will come into play. See, not only year-to-year variability, but there will also be quarter-to-quarter variability because the average rate in the market during summer period, obviously, would be higher as compared to the monsoon or winter.

Even within winter, in few months where irrigation demand will be very high, could that number could be a different. If you are keeping all those position open, then you will have those kind of variability.

What we are trying to achieve is that we will not want to keep that position open, and we will close it on both side without much of the time lag.

Okay. Okay.

Sure, sir. I think maybe one last thing.

In terms of back-to-back contract in this the MUs that we have done, what could be the share of back-to-back and what is more of a open and then we have got a high margin because of the summer?

Currently, out of that 3,300-odd million units, about 400 or 500 would be on a contract basis, which is with 350 MW of C&I customer. You will see most of the volume getting absorbed in a long-term sale contract very soon.

Our focus is to work on that, having done this long-term tie-up for purchase.

Sure, sir. Sure, sir.

I think this is helpful, sir. I'll come back in the queue.

Thank you, sir.

Thank you.

Just to slightly add further here, see, while we have the long-term contract tied up on our supply side, the purchase side, as Kandarp has mentioned, we have 350 MW. At the same time, there are long-term contracts which are many in very advanced stage, which will cover up the most of the capacities which we have signed up on the purchase side.

There are there is hardly a timing gap which we are currently seeing, where you are able to see a revenue which is coming from short-term tie-ups with the distribution utilities or from markets. However, it is clearly destined for a long-term offtake contracts also on the purchase side.

Okay. Okay.

Sure, sir. Sure, sir.

Okay. Okay.

Thank you so much, sir.

Hello. Good morning.

Am I audible, sir?

Yeah.

Thank you, sir, for the opportunity. Sir, my question is on the 13 billion units that we have the assurance that we have received from C&I, data center, and utilities.

What proportion of this is from data centers?

The data center volume today is very negligible. There is only one contract that we are doing servicing for about 20, 25 MW.

On a sale side, you will see a lot of long-term, substantial contract coming from those big customers and utilities. We are working constantly towards that having taken this position, and we will also continue to increase our position in purchase side, and we will accordingly start taking back-to-back or position on a purchase sale side as well.

Currently, is not significant. We expect to see significant volume in a time to come from data center segment.

Okay. Sir, just to follow up on that.

If you can share in terms of demand that is coming from data centers, what sort of power mix are they looking for? I'm asking this especially in context of their catering to their non-solar RE demand.

Raj, would you want to take this question?

Sure. Thank you, KP.

See, I think there is a large significant plans which you have seen from the group itself, and then, obviously, from a market perspective also, there is a significant capacity additions which is expected in the data center space. From the overall demand side, we are looking at a very robust pipeline, where for every gigawatt of IT loads, you're talking about 1.5 times of the consumption load.

Say, for 1.5 GW consumption load, we are talking about if we want to supply from renewables, 3.5 to 4 times of renewable capacity required, apart from significant storage. Now, as part of your second question, these guys vary based on their own mandates on the green side.

We have seen interest ranging from not being very finicky about how much green to people who really want to adopt a very high percentages of green in their power mix. It's a diverse market, and every customer has their own choices.

Okay. What sort of batteries because if we were to install batteries for non-solar RE and maybe 4, 5 hours of battery, then would that economics be favorable for the offtakers?

Yeah. See, the offtakers understand that for the kind of solutions they are asking, they would need different kind of mix.

It's a pretty mature market. From that perspective, if someone is looking for a significantly higher share of green, then he understands that he has to pay for the cost of that kind of a storage.

I think that is there in the understanding of all our consumers.

Sir. Just last one on here.

Going ahead, do you expect the data center demand mainly will be off-grid and on-site, or it can be on-grid supplied by discoms also? There are,

to our understanding, as we see the data center development in India, not many instances, I don't think I have heard any instances of off-grid data centers. All of them are coming mostly on grid scale and, in lot of cases, also on this national grid.

Sir. Thank you so much.

Hello, can you hear me, sir?

Yes.

Sir, I just have one question with respect to the Adani Energy Solution business. Can you just give a brief idea about what kind of business does energy solution platform cater to?

Can you just walk me through how does the cash flows from revenue to EBITDA? What are the main expenses with respect to the energy solution platform business?

Sure.

Raj, please go ahead.

Sure. Thank you.

That's a very very interesting question and would set the understanding of the business in a clear manner. As KP mentioned, there are two kinds of businesses which we are currently pursuing here.

One is a simple services business and a trading business, where to lot of companies, we provide simple services of managing their power loads and how do we bring in the optimization of their cost as well as whatever green content they may want. That is a business where volumes are very high, but the margins are supposed to be lower, which is what was the initial number of 3 paisa.

However, and this also includes lot of trading which is basically simply buying and selling in exchanges on behalf of the clients. The second business, which is a larger piece here and which is more an EBITDA generator, is the supply stack and the consumption stack.

Supply stack, as we have mentioned until now, that we have close to 5 GW of supplies which have been secured on take-or-pay basis from the generator. Now, that includes the internal generators as well as external generators, which are more like normal utility PPAs for those guys, and for us, we have to buy that power.

Similarly, we have, as was the query of one of the earlier querist, we have also tied up storage capacities of 3,500 MWh. These are again all take-or-pay firm contracts.

Against these contracts, we are sourcing multiple consumers. Those consumer categories are, as has been mentioned in our presentation, data centers, utilities in complex contracts, as well as the normal conventional C&I contracts, and as well as there is certain areas where we also try to optimize the cost of group companies' cost of power.

These are again long-term contracts on a take-or-pay basis. Between the two, because we are able to provide complex solution and manage the overall flow in a sustained and certain manner, we are able to have certain margins there.

Basically, my revenue is sale to those utilities, and then there is a cost of power which I am paying to the generators. That is my cost, the gap is something which we are able to earn as revenues.

As our CEO earlier mentioned, there is expected to be both some kind of a timing mismatch between the two because we try to tie up capacities in advance versus the consumption because that provides certainty to our consumers when they tie up with us. There is expected to be certain timing mismatches, sometimes on the slightly higher capacities tied up or on the purchase side, and sometimes even on the buy side, and the nature could also be different between the two, which provides us the opportunities to be able to trade those capacities in short-term markets, and we are able to garner some margins within that window as well.

This is what the business is all about. You have a revenue stack which is based on supplying on a long-term contracts to buyers, augmented by certain short-term revenues, and then cost which we are paying to our suppliers on a long-term basis.

On a capex side, we do provide certain last-mile infra to some of these consumers. Being a transmission company, it is natural to us that we can do that, and when we provide that transmission infra, that basically builds in as a capex to us, and there would be certain margins on that as well.

This is how the revenue, expense, and the capex and the margins are stacked up in this business. I hope I could make it clear.

Sir, correct me if I'm wrong. The second part of the business is basically you buy the power from outside and then supply it to your end-use customer.

It can be a group company or it can be non-group company as well, right?

You are 100% right. It depends on the attractiveness of my solution, which drives the consumer to be able to tie up.

You have signed long-term contracts to buy the power at a fixed price, right?

Yes, that's right.

Your cost is fixed. The way the EBITDA will move is if the power demand for the end user is high, that time, your margins will move towards upward.

During a non-power demand season, your margins with respect to this segment will have a dip.

Directionally, what I would want to clarify there is that, yes, I do tie up on a long-term basis where the rates are conventionally fixed. At the same time, on the buy side, the rates are fixed directionally for longer tenure.

That is where the spreads between the buy and sell are sustained. We take limited market exposure, and on that market exposure, we will have certain margins, which would also flow through the P&L.

If my understanding is right, only the buy side, you all have a fixed contract. On sell side, you can sell it in the open market as well, right?

There is no fixed contract. Yeah.

See, there is

Sorry.

There is no fixed contract on the selling side, right?

See, fundamentally, again, let me clarify. I'm not looking quarter-to-quarter outcomes and variations, okay?

As a business strategy, I am fixing up on the buy side for long term. I am also selling on the sell side on long term.

There would be temporary differences because we are talking about multiple contracts, and there would be differences in their timings, quantums, and the nature, which gives an opportunity where some of that can be in the short-term markets with various kind of clients, including exchanges, and that is where there is an additional revenue which will flow in. However, those numbers on a long-term basis would be minimal.

Understood, sir. Thank you so much.

Hi. Thank you for taking my question.

My questions are on the energy solutions business. Wanted to understand this 5 GW of tie-up that you have done for renewable power, how much of that is from your sister company and how much is it from other companies?

Roughly, 4,000 is from AGEL, rest is from third parties.

Understood. Could you please shed some light on how the price discovery is happening for this 4,000 MW that has been tied up?

Is it a tendering basis? Is it market-linked?

If you could share some details on that, please.

It is essentially a market-linked. We evaluate when we buy as to what are the options available with us in terms of quantum and pricing, and we decide based on that.

Understood. If I think from an Adani Green's perspective, why would it be more beneficial for them to go through Energy Solutions rather than directly tap the customer?

Put it other way, are you also competing then with Adani Green to sell to the same, let's say, data center or some other customer in the market?

No. The Adani Green don't sell to data center.

They create capacity and they tie up on a long-term basis, essentially with the utility, SECI, or some third-party customer. They don't provide solutioning part.

We are one of the customer of AGEL, they will sell it to discom, they will sell it to me as well. That is how it works.

Currently, they have a contract with SECI and distribution companies as well, and now they have a contract with me as well.

Understood. Is it fair to assume then almost all their entire C&I exposure will be through Energy Solutions entity and not directly?

Correct.

Understood. One last question I had is there is another contract with Maharashtra round-the-clock 2.5 GW power, which we see Adani Power has won, which involves sourcing power from Adani Green.

Just wanted to clarify if Adani Energy Solutions is also part of that contract in any shape or form, or is it only those two entities who are there, Green and Power?

Group-level, the solutioning is natural to AESL, we will certainly be a party to that contract.

Okay. The PPA signing with MSEDCL is with Adani Power and not AESL?

No, our

Adani Power participated in the bid, and LOI was issued in favor of Adani Power, and we had that understanding with Adani Power as well. Obviously, we might even buy some power to fulfill this solution from Adani Power.

Eventually, AESL will be a major participant in that contract.

Got it. Maybe I'll take it offline to get some more color on it.

Thank you. Those were my questions.

Hello. Hi, sir.

I hope I'm audible.

Hi, Aditya.

Hi, sir. Thanks for the opportunity.

My question pertains to the HVDC project pipeline that we have. These two projects that we have right now are the KPS1 and the Bhadla-Fatehpur.

Just wanted to check on the commissioning timelines over here for this particular project and also looking at the bid pipeline for the HVDC. What is the pipeline that you have right now for that?

Thanks, Aditya. See, this KPS HVDC would be somewhere in FY29, around December 29,

and

Rajasthan would be at the beginning of 29.

Understood, sir.

As far as pipeline is concerned, you must have seen all those NCT-approved detail and other things. We expect that every year, we would have an opportunity of about ₹1 lakh crore bidding combining that is a minimum, combining central as well as various state projects.

We expect that a lot of opportunity will now arise from various STU projects. You must have seen Maharashtra is very active now.

UP has started, Rajasthan has started. See, essentially what has happened in last 4, 5 years, lot of interstate line has been built to deliver power to the state.

Now state will have to augment their transmission capacity within the state to deliver and take it up to the end consumer. We see a lot of action on STU side as well.

Understood, sir. If I have to put it this way, what sort of inflows are you expecting if you have anything in mind from the STUs and the HVDC projects?

What would you be targeting on an annual basis for these two categories?

Aditya, we have been doing market share of about 25%,

and

we will at least continue that part from our side. Roughly about 20, 25,000 crore of capex addition every year.

As far as HVDC is concerned, there are two projects which are, in fact, one is under bidding, one will go in the bidding very shortly. We expect that HVDC project will keep on continuing because, fundamentally, when you have to deal with this kind of renewables and deliver over a longer distance, I think HVDC is the most appropriate technical solution.

We believe that HVDC volumes will continue. Now we see demand of HVDC project coming from a load center side as well.

Like last year, we commissioned that HVDC project in Mumbai, and that has helped Mumbai region per se immensely during this summer. Most of our cities are now witnessing a massive demand growth.

If they have to meet those demand growth, they will also have to augment transmission capacity around their city centers. Where you won't be able to put up those overhead lines, obviously, those kind of opportunity will also come from various cities, and we expect that that will gain a momentum now.

Right, sir. You did mention STUs, how do you see the visibility of the STUs in at least in the near term?

STU, I think annually, the volume would be about, to start with, about 20, 25,000 crore projects. That's the least that I expect from STU side.

On an annual basis?

On an annual basis.

Understood, sir. Thanks a lot.

Thank you so much, sir.

Hi, sir. Am I audible?

Yeah.

Sir, I just had one question. As you have given the EBITDA split for the Energy Solutions platform business, can you also give the revenue break up of the same in long term as well as trading?

Energy solution revenue split has already been given in our page number 12 of the result presentation.

The long-term PPA sales, we have clocked the revenue of ₹1,838 crore against the sale of 3,325 million units. Whatever in terms of power management services, we have managed 1,603 million units and clocked the revenue of ₹16 crore.

C&I merchant and power trading generations, we have clocked the revenue of ₹12 crore and managed the units just a second, of about 8,253 million MUs. All in all, 13,181 MUs we handled.

Essentially, the breakup is ₹1,800-odd crore coming from long-term PPA and balance about ₹30 crore coming from those services.

Got it, sir. Thank you.

Yeah. Hi, sir.

Thanks for the opportunity. Sir, first question is on the smart metering numbers that we have reported, right?

In the presentation, if we see operating revenue and EBITDA for this quarter and the same number for Q4 FY26, right? There is this quarter-on-quarter, some decline is there.

Just wanted to understand because the smart meter installation base would have gone up, right? Just wanted to understand is there some change in how do we recognize this revenue and EBITDA?

Let Prashant answer this, but just to clarify, the revenue from already commissioned meter has improved from last quarter, 68 to ₹161 crore. The reduction is on account of reduced capex, because this year, we could only install 12 lakh meters, and that is where the overall reduction that you see.

Mahesh, I hope I am audible. Hello?

Yes, sir, you are audible. Yeah.

See, as sir already mentioned, see, if you see the operating revenue, that has gone up, okay, from 68 to 161. For better understanding, what you can also do is you go to our press release where we have already provided operating EBITDA for the smart meter based on the what you see as a conventional method, okay?

This is more accounting treatment where you have to book the construction or capex as a expense as well as revenue, okay? That number you see is accounting treatment.

Otherwise, if you see the operating revenue, that is still on a higher side compared to the last quarter of previous year.

In presentation, there QoQ I see some decline, Kandarp Patel (CEO):

Yes. Mahesh, is that clear to you or

Yes, sir, I got it. Basically, I have to look at the press release numbers versus the presentation numbers of Q4, right?

Yes.

Essentially, what Prashant is saying, the revenue from commissioned meter, which is operating revenue, has increased to ₹161 crore from last quarter of ₹68 crore.

Correct. Got it.

Sir, second question is just wanted to understand the status of our parallel licenses that we had applied, right?

That matter is still pending with commission. There is no movement, and we believe that Maharashtra government has given a policy advice to commission to wait till the amendment in act or tariff policy, which central government is planning to do.

Once that is done, then we believe that it will move ahead.

Sir. Thank you so much.

Thanks for taking the question again. Just one small question.

On the Energy Solution trading business, which is managing solution and managing positions, what is the quantum that we are looking at over the next, maybe 3, 4 year in terms of gigawatt or gigawatt-hour either gigawatt or the units that we are trying to manage? Any target that we are looking for?

Raj, please go ahead.

Sure. If you look at our disclosure already in the presentation, we have mentioned that the market opportunity we believe will be able to encash is 7.5 GW-plus by 2030-31.

It's a grind which is there. We have a lot of data centers which are being installed, as a part within the group itself.

AEL itself has disclosed in the recent publications which they had on their website, the kind of pipeline they have on data centers. That's one key area.

Separately, we also have distribution companies, which are working right now in a manner where they are looking for not solar or wind or storage separately because they have seen lot of stress in those capacities coming on time because of various issues. They are now mixing some of that and looking for complex solutions to be given on a RTC manner, which is, again, something which is aligned to the strategy of this energy solution platform.

There are a few things which are developing on that side. Similarly, the C&I space, as we understand from various reports, is a burgeoning space with close to 50 GW-plus market by 2030-31.

That's a huge set of opportunity within that for us to tap in this particular portfolio. I think with a lot of these near-term things, we believe that we will be able to scale this business up as a large vertical within the Adani Energy Solutions Limited company.

Sorry to ask this again, but you said 7.5 GW, is that correct?

If you see our website, 7.5 our presentation has that 7.5 GW is the market opportunity we are targeting.

Yeah. Because the reason I ask this is because we have already secured 4 GW across solar, wind and 1 more GW across C&I so Okay.

Perfect.

Let me clarify. When we said that there are two parts of the opportunity.

One part of the opportunity is how do we tie up the generation side, and second is how do we tie up the consumption side. As I had answered to one of the queries earlier, every gigawatt of opportunity we tie up on the data center needs roughly 3.5 GW of renewable capacity to be available for that.

Is the case with any RTC tender, which any distribution or utility will bring in. So 5 GW tie-up on a RE basis is not huge in terms of MUs, okay?

These are RTC loads which we are looking to serve. From the market perspective, there's a huge space available for us both on the side of tying up capacities as well as on the generation side, as well as on the load to be serviced in a customized bespoke manner for our consumers.

Understood. So 7.5 GW what we are trying is RTC?

Broadly so. It will be a It's

7.5 GWh? No,

no. There is nothing like 7.5 GWh.

That is 7.5 GW we have mentioned as the capacity which is available in the market as a market potential, which we believe we can easily tap. It will have different kinds of consumer stack, as I have said.

The current stack easily is distribution companies as well as data centers and the conventional C&I consumers which can be tapped for this.

Okay. So 7.5 * 24 * 365 units billion units is what we would be targeting.

Is that the right way to think about it and then whatever capacity on the input side is required?

That is not the way you should interpret a number. It is going to be a mix.

Okay. Okay.

I'll take it offline. Good.

Thank you.

Thank you.

Yeah. Sir, thank you for the opportunity.

Sir, just wanted to get a sense on the right-of-way challenges that were there in the transmission side of things last year. Any sense you can share on where we are on that?

Yeah.

Yeah. Mohit, right-of-way challenge certainly are there on a ground, and it is a industry-specific issue.

We, as we have been mentioning, and so we deal with this problem very differently. We make sure that those ROW decisions are taken at a ground level, and we remain practical.

We don't 100% depend on a state machinery or administration support to clear the ROW. We work in parallel, and therefore, we have been able to show a little better effectiveness as far as managing ROW is concerned.

Second is that you must have seen most of our projects are concentrated in a region. Where we already have a good amount of presence, we are fully aware about what are the kind of challenges that we are going to face on the ground when we go to implement the project.

Therefore, we have ability to prepare ourselves better in advance and execute the work.

Got it, sir. Sir, and just second question was on incremental STU pipeline on transmission.

How would the payment mechanism work there compared to the central

It is identical one. The role that CTU plays in central in a payment mechanism, the same role is being played by STU.

They will collect revenue from all the distribution company. Like in Maharashtra, there are multiple distribution company.

Those distribution company is being built by STU on a monthly basis depending on their usage of the transmission network. All the distribution company pays to STU, and STU pays to all the transmission companies on the other side, which could be MSCTCL, us, there are multiple other players as well.

It is identical, but at the state level, that is at the central level.

Sir. Thank you so much, and wish you all the best.

Thank you.

Thank you everyone for taking time out and attending this call. Hope we are able to answer all your questions and queries.

If anything remains pending unanswered, we are happy to take it offline. Thank you.

Thank you, everyone.