Sure. Thanks, Renju.

Just to add, we also have Mr. Kapil Sharma, the Business Head for Transmission Business, also with us.

Thank you, everyone, for attending the call. Good day and warm welcome to the quarter three earnings call.

I just hope you got a chance to go through the earnings material which we uploaded on the website and the exchange. Just to very quickly explain the flow of the call: so we will start with an opening statement from the CEO, followed by Q&A, and then a closing remark from the CFO.

Let me now hand over the call to KP Sir for opening remarks. Thank you.

Thank you all investors and analyst friends for joining this call. These are very exciting times for AESL.

We have now delivered another strong performance in the last quarter. The adjusted PAT growth, if we take into account the one-time impact of before tax of 185 crore last year in quarter three, the adjusted PAT growth is 30%.

Not only in financial terms, but in terms of CapEx performance as well as OpEx performance, company has done significantly well. In the first nine months, we have commissioned three transmission projects: NKTL, Khavda Phase 2 Part A and Khavda pooling station, and Sangod transmission project.

In coming months, we are on track to commission another three projects. One of them is landmark HVDC project, where almost entire project work is completed.

The testing and commissioning is going on. The other projects that will get commissioned soon are Khavda Phase 3 A, which is Halvad project, and WRSR project.

Besides commissioning of a good number of projects in coming times, we have also won another HVDC project, which is KPS3 Khavda South Olpad project. Now with this another HVDC project, our project pipeline has reached to about 78,000 crore.

On a smart metering side, we have been doing in line with what we anticipated and projected. In the current quarter, we have installed meters close to 19 lakh, and now we have reached to about aggregate meter installed count of about 92 lakh.

By the time we close this year, we will certainly cross 1 crore meter installation. On capital management side as well, you must have noted that Moody's has revised rating and improved from negative to stable for two of our subsidiaries: Adani Transmission Step-One Limited and Adani Energy Adani Electricity Mumbai.

As far as operational performance is concerned, we continue to have excellent availability, which is over 99.7%, and which has resulted to incentive income of 33 crore as well. As far as distribution is concerned, because of weather pattern in this year, the sales had not grown as compared to the last year, but on an operational front, we continue to do excellent work.

Now T&D losses are around 4%, to be precise it is 4.03%, which is significant achievement looking to the fact that we continue to improve this particular parameter. As far as consumer services and other things are going, we have been doing fairly well there.

In fact, the collection has remained close to more than in fact 100% collection efficiency, and we have now collecting more than 85% of payment through e-payments. We already talked about smart meter, where we have already installed 19 lakh meter and reached to 93 close to 93 lakh installation.

The pipeline also remains strong, about 100 100 million meter are yet to be bid out. We expect to continue to maintain our market share, and we will add that pipeline in the metering business as well.

As far as C&I business, there are a lot of activity going on, and in fact we feel that this is going to be one of the major growth driver besides transmission and smart metering. We have now reached to aggregate load of about 700 MW, serving about 14 consumers.

That was at the end of December. The current count is 31 consumers and load of about 1,300 MW, we are rapidly growing there, and you will see a lot of action on C&I front.

As far as cooling business is concerned, we continue to create the market for cooling business. You are aware that we are already putting up India's largest district cooling facility of 40,000 metric ton tons of refrigeration at Mundra.

As far as financial is concerned, you must have noted those numbers. Income has grown by 16%, and consolidated EBITDA has also now reached to 2,200 quarterly, which is growth of 21%.

The consolidated PBT has also rose by 43%, and has reached to 800 crore level. Now what is most important thing that is going to happen that as far as transmission and smart metering and C&I business is concerned, there is a strong pipeline and opportunity pool available in the market.

We'll continue to add that, but at the same time, the kind of effort that we are putting in execution, you have seen that result in smart metering side. In next year, we expect to add massive capitalization in transmission as well, and with those, in fact, we are poised to add about seven projects in next financial year, capitalize seven projects, the gross block of those projects will be close to about 24,000, 25,000 crore.

That will give a massive jump to the EBITDA and profitability of the company. I think this is very exciting time for AESL, and we look forward to hearing from all of you from time to time.

Kunjal, over to you.

With these remarks, I now request any questions that anyone would have. We're happy to take questions from the investors.

good morning, sir, and thanks for the opportunity. Sir, my questions are more on the industry side.

Of course, we haven't seen too much of traction in the smart meter order book, right? I think whatever you have won was from the last year.

Do you think in the next 12 to 18 months that there will be some more opportunity from the smart meter side?

Mohit, thank you so much. As always, you are the opening batsman.

As far as smart meter bidding is concerned, there are few states where bidding is yet to happen or yet to conclude. One is Tamil Nadu.

That bidding happened, but I think they will reinvite the bid. There are a few other states like Karnataka, Telangana.

They initially were not got the DPR approved under RDSS. I believe those states have now filed the DPR with MOP, and on receipt of that approval, they will also come out with bidding.

We expect that significant action we will see in smart metering bidding in next couple of quarters.

Understood. On the transmission side, of course we have done phenomenally well in this fiscal.

I think we added 40,000, 50,000 crore worth of new transmission projects. My question is more about the future.

How do you think about the next 12 to 18 months? It seems like the transmission bids have slowed down.

Do you think, in your opinion, that we can do at least 60,000, 70,000 crore additional bidding in the next 12 months?

Mohit, the project that has been approved by NCT and various state STUs, if you add all those projects, it crosses 1 lakh crore bidding opportunity. Conservatively, we think that bidding for at least 70,000, 80,000 crore will happen in next 12 months.

Understood.

The last question from my side, sir: why this Mumbai HVDC line, we were guided earlier that it will get commissioning by Q2. It hasn't happened.

What is the new tentative commissioning date?

All the work is completed there. Testing and commissioning is going on, we expect that to get commissioned in another 30 to 45 days.

Anything which caused the delay, sir? Anything

specific? There were two major HDD that we had to do on that Vasai Creek, and there were some working permission-related issue, because of which it got delayed.

There is also 4 km of stretch of cabling that is to be done in Aarey Colony. There we took little more time because that rain get prolonged, and we have to make very, very focused effort there that while we do that cabling work, we don't damage any ecosystem.

Because of that prolonged rain in Mumbai, it got little late. Both the terminal are ready.

Now the terminal testing and commissions are going on, and the last patch of cabling is also getting ready.

Understood, sir. Thank you and all the best, sir.

Thank you.

Thank you so much. My first question is on your KPS3 HVDC.

What is the cost that you are now penciling for this Khavda-Olpad project?

Project cost?

Yeah.

That will be about close to 19,000 crore.

19,000 crore. On the Bhadla-Fatehpur HVDC, sir, what is the stage of execution there?

All the contracts have been awarded. Entire line route survey has been done.

The necessary application for forest and wildlife has also been submitted. In fact, forest clearance for Rajasthan portion has in fact progressed significantly, and PSC 1 committee has already given approval.

Construction at Bhadla site has already began. Most of the basic engineering has been done, and now you will see a lot of progress in terms of execution on the ground.

All the preparatory work has been completed. We are finding some challenges in land acquisition for Fatehpur, but we expect to complete that also in one month's time.

Significant work has been done there. More than 200 acre has already been acquired.

It's still due by July '29, right? Land acquisition challenges can still be surpassed.

Can you still do it by July '29, or you think it could be delayed? Easily, easily.

Yeah.

Because entire engineering and other thing has been done. The contract is also in place, we will now very soon mobilize the resources, and we'll start construction there.

You have four projects due for completion this calendar year, right: Khavda 4, Jamnagar, Navinal, and Pune 3. Are these all four on track?

Navinal got little delayed because the issuance of transmission license from CERC got delayed. We already commenced the work, and foundation for half of the line has been done.

In absence of that license, we were not getting 164 approval. Now that we will get that, but given the progress, even though it is late from original schedule, but we expect it to complete it in a current year.

As far as Jamnagar project is concerned, there we are acquiring the substation land, which is government land, so that process is going on. We already started working on the transmission line.

Those RoW order under government policy is under process, and we expect those orders to come out in 1 month to 1.5 months for entire region. With those orders, we'll commence the execution work as well.

Jamnagar project has also, as of now, is delayed by 1 to 1.5 months as compared to the original schedule. We'll catch up once we have this government approvals.

Okay. Can you just give me the revised timeline for all these four, if you can?

You are talking of Jamnagar and Navinal?

The four due this year, right? Khavda 4 is also due, I guess, right?

Yeah. Jamnagar and Navinal, both will get complete in last quarter of this year.

Okay.

Khavda 4A will be one element will be in the second quarter, another element will be in third quarter.

Okay. Rest in the first quarter.

The Pune 3, that's also due for this year, right?

Pune 3 also will be in the last quarter.

Last quarter of this calendar year?

Next calendar.

Okay. In 2027?

Next year. Next financial year, not calendar year.

Oh, next financial year. More like Feb, March.

Okay. That's helpful.

Thank you so much. Lastly, I've been noticing your smart meter execution has picked up.

Anything that has changed from policy support side, or anything that you are doing to pick up pace there?

We have been making all those effort in picking up that execution rate. We are installing about 25,000 meters a day.

We keep on getting those challenges on a ground, but now having installed so much of meter and with this kind of exposure, our team has been able to do a vigorous work on the ground.

That's very helpful. Thank you so much and all the best.

Thank you.

Hi, sir. Thank you for taking my question.

I have a first question. We are hearing about this policy relaxation on the Chinese side in some sectors.

I think most recently, there has been some news about the thermal power side. I just wanted to check: is there anything that we can benefit from, and is there any positive benefit on the transmission side specifically that can come to us on going forward basis?

Gaurav, if that happens, obviously it will help because that will increase our options for equipment sourcing. Even if it is not done, we are not affected because we have that kind of strategic relationship with all our major OEMs.

We have been doing all these project, and so far with restriction on Chinese players, and we have be getting all the supplies at a right time and at a appropriate pricing. Obviously, it will be a incremental advantage, but even if it doesn't happen, we are not affected.

Sir, as of now, is there anything where we are positively getting the benefit, or nothing has happened so far?

Come again, sorry?

I was just asking: is there any benefit that we have started getting as of now, or that restriction still stays, sir?

No, it is still there. There were news items which we came across that government is planning to relax it.

We don't know the exact contour of it, but if that happens, then obviously it will increase options for us.

Understood, sir. Sir, second question was specifically about, if you look on the transmission side, we are seeing lower tendering.

First half was slow, we expected third quarter to pick up, I think there is some pick-up. On the execution side also, as you mentioned, there has been some delays.

I think we are hearing in the other developer also there is some delays. Is there something structurally which is hampering both on the tendering side and the execution side?

How do you think about it? Because year on year, if you look at from last year to this year, there have been both sides significant lower-end.

I'm just wondering how do you look at both on the tendering and execution side?

Gaurav, the challenges in execution is known to all of us. Essentially, those are relating to equipment supply, or manpower availability, or RoW.

This year, the additional challenge that we faced, especially us, because our mainly concentration of project execution is in Mundra around Khavda and in Gujarat, and also in Maharashtra, where rain continued for quite some time. It was abnormal, it continued up to almost Diwali period.

That has affected our execution. As far as manpower availability is concerned, what we have done is that now the stringing manpower was a most critical one.

In fact, in last six months, we have set up our own training facility at Godda, where it's a catchment area for people who works on a tower erection, and that facility is up and running. Now we will be having 200 people trained available to us from this month.

Every quarter, we will have about 400 to 500 people available to us in the stringing, which we will provide to our EPC partner for execution. With this kind of endeavor, we expect that significant progress will happen on execution side.

Another challenge which remains is RoW, and therefore I mentioned that in Jamnagar and in most of the project what we are trying to do is while we start the project, but we focus more on getting those RoW orders from collector, compensation-related order from collector, so that becomes a benchmark for us for negotiation with a farmers. With all this effort, we expect to see a lot of progress in this quarter as far as CapEx is concerned, and in next quarter because that also will be a working season.

You'll see a lot of action on that front.

Sir, just your perspective on the tendering side as well, there seems to be, year on year, there is a drop. How do you think about that, sir?

As I said earlier, we expect that about 80,000 crore of bidding will happen combined together, state as well as center. That 80,000 crore is also a significant number, and if we even continue to maintain our market share, we will have a significant opportunity there.

Got it, sir. Got it, sir.

Thank you. Thank you, sir.

Thank you.

Thanks for the opportunity. My first question is to better understand the phase-out of capitalization of your works in hand.

Of the 780 billion rupees works in hand, would it be right to say that roughly 400 billion is non-HVDC, and how is the capitalization spread over FY26, '27, and '28 for this? You can correct the numbers,

please. Sure.

Based on the timelines which we just mentioned, the Mumbai HVDC and the NKTL project, the NKTL which just got completed around 10,000-odd crores of capitalization, will get completed in the next two months itself, which will give an addition tariff of around 1,600-odd crores. We expect the additional one, especially the Khavda Phase 3, that is the Halvad project, and the WRSR projects, that will get commissioned in the next three to five months period, which will lead to an additional capitalization of close to 4,800-odd crores.

Then all the three projects which Kandarp mentioned will lead to an additional capitalization of 10,000-odd crores by the end of the next financial year. All put together, we have 10,000 in the next one or two months, 5,000-odd in the next four to five months, and the balance 10,000 coming up by the end of next financial year.

FY27 end.

Correct.

What is the visibility right now for FY28 as well on the non-HVDC side?

I don't have the immediate visibility of FY28, that would be too far right now. This is something which we have immediately on the end.

Sure, sir. My second question is in relation to the two large HVDC projects that you are executing.

Broadly, what would be the CapEx phase-out as you complete these projects by 2029, 2030 or so? Broad CapEx phase-out.

Roughly the CapEx in transmission per year, on an average, there could be a variation year to year, but for next five year, it would be in the range of about 18,000 to 20,000 crore. This is

including everything, your HVDC, non-HVDC, everything?

Correct.

Specifically for HVDC

On a later years, it might go up as we add new transmission project in our kitty, but even the project pipeline currently, it will be about 18,000 to 20,000.

Okay. Specifically for your HVDC projects, would it be fair to say that in the first two years of execution, less than 25% of the CapEx will get incurred, and bulk of it will be in the latter part?

Yes.

Okay. My last question, if you can also shed some light on the phase-out of the next HVDC project awards, which is likely, say, till end of FY27, to name the projects and the potential size that you are looking at?

New HVDC projects likely to come up in FY27. There are few HVDC project under bidding pipeline, and we certainly would be participating in those bid sincerely.

Any specific bids that you are aware of that you can just share with us?

There is one project, HVDC project from Barmer HVDC, which comes up to Maharashtra, South Karan, that we expect to come in the bidding process.

Can that get awarded by June, or will it be, maybe in the second half of CY26?

I think that it will be done in the first quarter of the next year.

That is great. Thank you so much.

Hi, this is Shweta here from Cantor on behalf of Manish. Congrats again on another strong quarter.

I have two questions from me. The first one is on the debt stack.

We've had multiple bond buybacks in the years earlier and sort of wanted to understand, given the surplus cash for this year, what is the prioritized use? Is it going to be further bond buybacks, or is it going to be more CapEx?

Also, given the scale of transmission and the smart metering ramp-up, what leverage ceiling should we sort of look at that would essentially force a reconsideration on equity, because you've discussed this before that you've said there's going to be no fundraising plans via equity. I think this is my first question, and then we'll get into the other one.

Hi. You're right.

The company did bond buybacks, and we did bond buybacks in our Electricity Mumbai distribution company. We did a bond buyback of $120 million last year, followed by a bond buyback of $70 million $90 million $95 million up to the nine months that we did.

We did a one buyback of $50 million, and then we again followed it up with a buyback of $45 million. AEML distribution business, because of the surplus that it is generating, and as we have guided, we will continue to delever that company after meeting all its CapEx and its OpEx requirements.

That company has roughly a CapEx of around 1,500 to 1,600-odd crores. After meeting that CapEx, the company still have that surplus, which we will use to delever the balance sheet.

At the right times, we will continue to do the bond buybacks in that organization. As far as the consolidated debt profile of the company concerned, we have always guided that we would be in the range of around 4 to 4.5 times based on our CapEx cycles, but it would be in that guided range always.

Understood. Also, given the progress in the newer verticals, can you reshare the margin structure, especially for the C&I business, sort of the expected growth and the capital intensity to scale the vertical, and what are the timelines you're targeting for this business?

Especially C&I and district cooling business, like you see in a smart meter, which is the margin as compared to the conventional transmission and distribution business, there are very high margins in smart metering. We expect similar kind of margin structures both in district cooling as well as C&I business.

In fact, C&I business would be very interesting one, where we won't have any CapEx to do, but despite the fact that because of our solutioning capability, the margins would be in significantly high, of the order of 75-plus paisa per unit, and that will be a massive segment where we are also very excited.

Thank you. Thank you for sharing that.

I have to ask this question especially on data centers. You've mentioned there's a lot of potential for AESL, especially with the group's tie-ups.

Sort of what indicators should we be tracking for AESL?

Data centers, in fact, we bring great amount of value when we deal with a data center because the two thing where they find it difficult not only in India, but across the globe is getting the power infra or connectivity and also a power supply. Now AESL having presence in both, we are in a position to offer them end-to-end solution.

This kind of approach has been well appreciated. In fact, we have been in discussion with multiple players, big players who are planning to enter into India in a massive way.

It's going to be a very exciting one, especially C&I, coupled with our capability of delivering that power infra as well.

Thank you. Thank you, and congrats again on a great quarter.

Thank you.

Thanks for the opportunity, sir. My question is around how are we going to fund the future CapEx?

Are we going to raise the debt, or it will be funded through internal accruals? How it will be done?

Sure. I'll split that as is the business divisions that we have.

In AEML, as I just told, that business whatever CapEx that is there is being funded through its internal accruals. Is the case with respect to the smart meter business.

Smart meter business has a low gestation period, and because of that, it is able to fund its own CapEx. In fact, what we are actually doing is that securitizing the receivables of smart meter based on the meters that we have installed.

We are securitizing that meters, and that is funding more internal accruals for my transmission projects. In case of transmission business, we generally lever these assets up to 70, 75% at the inception, and then once the asset gets completed, we again launch it into the bond markets.

We try to lever it further up to 80, 85% once the asset gets operational. Based on that and based on the internal accruals and the fund flows that the company is generating, we do not envisage any further equity borrowing which is required to fund all our under-construction projects that we currently have.

Are we looking at funding through bonds or?

We look for our debt funding. Once the asset gets operational, we continue to look various options, which includes domestic bonds, which includes bonds in the international markets, as well as bonds in the capital markets across.

Yes, we look at, but only after the asset gets completed.

Also sometime for refinance.

Of course refinancing, yes.

Okay. Thank you, sir.

Sir, thanks for the opportunity. Sir, in terms of tendering this particular year, can you give some color how has been in the last three-odd quarters of FY26?

In terms of NCT cost, out of that, how much we could have won this year?

This year, so far, we had up to 60,000-odd crores worth of tendering which happened. This is again based on the NCT cost estimates.

As the actual cost estimates project-to-project differs. For example, HVDC specially, right?

The numbers are elevated in terms of actual cost. Far, I think what we are seeing is close to 80,000-odd crores worth of bidding should conclude by end of this year.

Again, which is a large number.

Right. Out of that 60,000 crore you mentioned, we could have won how much, I think?

We've got two projects. One is the HVDC, which is as per NCT about 12,000-odd crores, and one more project, which is the Talegaon, which is about 1,600-odd crores.

So 13,600-odd crores in terms of NCT cost, which broadly gives us a market share of about 18, 20%.

Okay. The escalation which you mentioned, I think the NCT is 12,000 for HVDC, which you have recently won.

In this call only, you mentioned probably the cost could be in the range of 18, 20,000. The escalation that you mentioned, it is pertaining to that only, right?

Correct, correct, correct.

Got it. Second is in terms of tendering, you did mention 1 lakh crore probably opportunity of 80,000.

Are all these ISTS project, or any opportunity are you seeing in the state also?

No, no, there are state projects as well, especially from state like Maharashtra, Karnataka, and Rajasthan.

Okay. When you mention we'll see these opportunity in couple of months, probably things will move to financial year '27 also, 80,000 that you mentioned, right, sir?

Or within this year, next two months, we are seeing? No, in the

next 12 to 15 months, you will see almost 80 to 80,000 to 1 lakh crore of bidding.

Okay. Maybe harping on the same, which you might have answered.

The tendering this particular year was slow. I know we are maintained market share, and then that is what is required from AESL.

At a sector level, sir, what could have been the reason for the same? Or maybe last year there were a lot of one-offs and bump-up year was there?

How you see things on the ground?

I think every year, on a steady-state basis, we will have about 80 to 90,000. Suddenly one year, because there was a backlog and they wanted to finish it off quickly, it bumped up.

This year, it got little slowed down because there were certain transmission projects that they wanted to reevaluate, depending on the change in the generation and demand profile in the country. On a steady-state basis, we believe that it will be about 80, 90,000 bidding that will happen every year.

Because now the state sector has also started opening up. As I mentioned, three states are already very, very active in TBCB, and we expect many other state like UP, Bihar, Assam, Tamil Nadu, Gujarat, those are also expected to come in TBCB.

Okay. As of now, in this 80,000 crore, which states are active where we are looking for?

Rajasthan, Karnataka, and Maharashtra.

Okay. Sure, sir.

In fact,

in Maharashtra, in last six months, at least seven to eight projects got under a bidding.

Okay. Has there been any outcome, or?

They have been awarded. They have been awarded now.

Okay.

Okay. Sure, sir, that's all from my side.

Thank you.

Hi, thanks for the opportunity. I have two questions.

Firstly is regarding the refinancing of your US dollar bonds. Would the company consider more of a onshore as an option or offshore?

What are the considerations that the company will look at? Looking at this from more of a currency perspective, and also there's a headline say on Adani as well.

Probably from the corporate governance side could be some negative sentiment. How would the company approach this?

Thank you.

No, sure. What we generally focus is that we keep our options open, whether it is offshore or onshore, and at the right time, we look to refinance our bonds.

The options are always open, whether it is offshore or onshore. Our focus is always to ensure that our bonds are always rated investment grade, whether it is offshore and onshore.

As you would see is that in onshore markets, most of our projects have AA+ and AAA ratings, and similarly in the offshore markets, our bonds have sovereign ratings. Our focus is to ensure that we get the highest ratings, and based on that, and based on the market conditions, we would tap either the onshore market or offshore market for our refinancing of the existing bonds that we have.

For the US dollar bonds coming due this year, when will the company consider come out of the plan for going offshore or onshore? Because I think it's in August.

We are working towards that, and we would refinance that at least in the next two to three months and complete the refinancing.

Thank you. That's very helpful.

Another question is probably on the ESG side. Would like to know how does the company assess the risk with your supply chain partners, especially labor practices and maybe environmental compliance?

Thank you.

We are very much working with our vendors, especially the EPC vendors, and we ensure that they follow all the governance, especially the safety practices that we follow, and also comply with our own ESG standards that the Adani Group as well as the AESL as a company is following. From our vendor ecosystem, we ensure that all our vendors are also in compliance with the ESG standards that we have set for us as well as for the Adani Group.

Just to add to the vendor ecosystem part, typically across the value chain, our focus is to tie up with Tier 1, Tier 2 suppliers, to ensure that we have last mile or the traceability element is there in terms of the best governance as well as labor practices at the respective vendors also.

On effort, you must have seen that is translating into our continuous ESG rating, whether it is international or domestic one.

Thank you. Thank you.

That's very helpful.

Hi, thanks. Could you talk a bit more on leverage as to what would be currently and what should be the leverage in the next couple of years?

By March of '27, where should the total debt be? What portion of this is financed by US dollar-denominated bonds?

Thanks.

Sure. Our total net debt currently, as we speak, is 38,000-odd crores, of which 48,000 is gross debt, and we have cash balance of 9,600-odd crores.

Out of the 48,000 47,000 of gross debts we have, we have roughly 9,700 of the US dollar bonds in Adani Electricity Mumbai and 10,500-odd crores of bonds in the transmission business. Around 25,000-odd crores of dollar bonds in 47,000 of the debt that we just mentioned.

Our leverage currently is 4.3, which was 4.4 in September based on the published results. Currently, we are at 4.3 based on the trailing 12 months basis.

We will continue to maintain that always.

No.

you bought back some bonds, right?

Correct, correct.

FYTD, what has been the total purchase of bonds that you have done?

In this financial year, we did a bond buyback of $95 million. 50 we did in Q1, and 45 we did in Q2.

Okay. What would be the total debt by March of '27?

It would be in this range itself. The net debt would be in the range of 38,000 to 40,000-odd crores.

Because we have the natural amortization of the repayment, which is also happeningCheck parallelly.

Yeah. Okay.

By March 2027, with this say, 30,000 crores of incremental CapEx that you will do, 25,000, 30,000 crores, net debt, you are saying, will still remain at 40,000 crores? Is that what you're saying?

It is the capitalization which will happen. The CapEx has been done on a progressively basis every year.

It is what I spoke was the capitalization part.

Agreed. If I assume, say, 20,000 crores worth of CapEx that you will do for the next financial year, say, and 5, 8,000 crores of CapEx that you might do in fourth quarter, assuming that is where, even if I assume 25,000 crores more of CapEx that you would

That would also translate to additional earnings because of the capitalization which will happen, right?

Sure. Sure.

Sorry to harp on this, but so by March of '27, you are saying your net debt would still be flattish?

Correct, correct.

Okay.

I can walk you through the numbers, but it's not going to

Take that offline,

yeah.

Yeah. Sorry, last question is: of this 25,000 crores of odd of bonds, what is the maturity that is coming about in the next two years?

The immediate one which is coming up is the $500 million bond, which is in August '27, which I told you we are going to refinance in the next one to two months itself. The balance have all dated maturities, like the AEML bonds is maturing in 2030, 2031.

Our average debt maturity profile of the dollar bonds as well as the INR bond market is currently 7.9 years.

After the August '27, the next maturity would come up in '30 of this 25,000 crores-odd bonds? '29.

The next is in '29, and the two AEML bond is in 2030 and 2031.

Okay. This is helpful.

Thank you.

Hi, sir. Thanks for the opportunity.

Just want to ask you on your CapEx and capitalization. Starting with CapEx, last quarter, you had guided for transmission about 114 to 115 billion rupees, distribution 16 billion, and smart meters 40 billion for this year.

Are you on track for that kind of CapEx this year? Are you maintaining that guidance?

We did CapEx of 9,294 till 9 months. By the end of this financial year, we would be in the range of around 15,000-odd crores once the entire CapEx has been completed for transmission, smart meter, and distribution.

This is a slight downward revision from last time. Is there any particular segment where this revision is coming?

Is it from the transmission side or smart meter side? Would you be able to quantify that?

Some of the projects got spilled over by one or two months in the next financial year. That's the reason why the 12,000-odd crores just about 1,000-odd crores, we had guided the market to around 16,000.

We are currently looking at around 14,500 to 15,000-odd crores.

The downward is mainly in transmission.

Got that. Secondly on capitalization, I guess similarly last quarter, you had mentioned that in the second half, we're expecting about 120 billion of capitalization in the transmission segment.

Now you've mentioned it's about 100 billion. There's been a slight downward revision there as well.

That again, I'm guessing, is because of the deferment of projects. Just want to understand this breakup that you mentioned of 100 billion in AEML and the NKTL.

AEML, my understanding is that it's a 70 billion rupee project, and NKTL, as per your previous release, was a 965 crore project. Is that the right number?

What is adding up to the 100 billion that you expect?

You are right. 965 NKTL is the correct number.

Okay. That means the balance that we're expecting this in the fourth quarter of FY26 would be the Mumbai HVDC of 70 billion, and the NKTL has already happened as of December, or is that going to happen in 4Q?

It has already happened. Just happened in December.

Yeah.

Understood. Then, earlier in the call, you mentioned this 240, 250 billion total.

That would be including 4Q as well as FY27, right, of seven projects to be commissioned?

Correct, correct, correct.

Got it. Understood.

Thank you so much.

Hi, sir. Thanks for the opportunity.

Sir, one thing on the smart metering: we had given a guidance or a target to reach around 6 crore over the coming two years. Currently, we have a pipeline with installation in the range of 2.5 CR.

Any target by when can we reach to this 6 crore number?

The 6 crore was we were talking about that number of couple of years back. Unfortunately, in the last entire financial year, there was no significant bidding opportunity came up.

As I explained you, there were many states who initially never wanted to become a part of RDSS. They didn't come out with a bidding.

Now most of them have submitted their proposal to Ministry of Power, and we expect that bidding to happen in next year. We will if not reach to 6 crore, but we will at least maintain our market share, meaning thereby we would have about 5 crore of meter concession.

Okay.

What's also important is that the CapEx or the capitalization got translated into the transmission project, because at that point in time, our under-construction pipeline was just around 15,000-odd crores, which is now close to 80,000-odd crores. That was a bigger shift which happened when we were talking about 6 crore meters, if we were referring to that period.

In fact, that is the biggest advantage that AESL has of a diversity in businesses. Like many other similar player in transmission doesn't have that kind of diversity.

We could utilize opportunity in transmission to compensate that was not happening in smart metering.

Got it, sir. Sir, in one of the earlier answer which you responded to someone's query, you mentioned that the smart metering segment would be self-funded through the internal accruals.

Say a run rate of around 1 crore installation or slightly higher by the end of the current fiscal, and my sense is our annual revenue on a per-meter basis comes in the range of 600-odd crores, so that 1,600 rupees, sorry. That should fetch you a cumulative revenue somewhere in the range of 600 crores on a per-annum basis, just on an installation of 1 crore meter.

By going or reaching a number 2.5 CR, which probably we are targeting by the end of next fiscal, that number would probably go up somewhere in the range of close to 3.5, 4,000 crore. Correct me if I'm wrong, sir.

By this mean, can you just help me in understanding the economics, how the incremental CapEx in the smart metering space would be self-funded?

No, what I was saying is that we would not be doing debt funding into it. We would be securitizing those receivables itself.

The 600-odd crores is over the next seven seven years. I would use the securitization of the receivables itself to fund the new meters which are going to come up.

I don't have to fund it through the accruals of the transmission business to fund smart meter business, and based on that securitization of the receivables, I would be more than sufficient to fund whatever growth which is there in smart meter business or the existing projects of 2.25 crore meters that I have.

Okay. Got it.

Got it, sir. Thanks for the clearance.

That's it from me.

Thank you for the opportunity. I had a question on our nine-month EBITDA bridge.

If I look at the SCA addition to the EBITDA, the jump in the smart meter is understandable, but can you elaborate on the transmission side as well? Because it has also seen a 300 crore jump.

How do we read into this?

The transmission business has grown generally because of the operationalization of three or four projects that got completed, especially the Khavda 1, the KPS1, and the Sangod 1, resulting in the additional revenues. Distribution business gave the steady state of 1,200-odd crores for the nine-month period.

From that basis, the largest part is coming from the operationalization of the new transmission projects which are getting completed.

Sir, could I say that the SCA margin that we accrue, or the SCA EBITDA if it jumps, could that be a leading indicator for our operating EBITDA as well going forward?

SCA EBITDA does not lead to increase in the operating EBITDA. The operating EBITDA largely comes from as the transmission project gets completed, that forms part of my operational revenue and the operational EBITDA.

The CapEx that I do will give an indication of the SCA margin that we put out in the income statement.

Okay. Thank you.

That's it from my side. One more, sir: I think if you're aware that sometime back in December, the CEA had come out with a proposal of some critical items.

There was a list of some 16 items in which there were HVDC assemblies which were imported largely. Are you facing some challenges as per getting the procurement for HVDC valve assemblies?

No, we are not facing any challenge. In fact, for the recent HVDC project that we have won, which is Khavda-Olpad, we have already finalized and closed the contract with OEM.

Okay. That would be a foreign OEM?

Yeah.

Okay.

We have closed that contract with GE. We have been able to agree with them for a schedule which is far more aggressive than completion schedule given in the bit timeline.

Okay. Thank you, sir.

That should be from my side.

I take this opportunity to thank all the participants who participated into the call, and due to paucity of time, if we're not able to answer any of your questions, and if you need additional clarifications, we are just a phone call away. Just would like to end our comment with that: we are now at a strong pedigree of completing our projects, especially the Mumbai HVDC and the four projects that we just mentioned.

Based on that, we are looking to have a capitalization of at least 25,000-odd crores in the next 12 to 15 months. That is something which is very important as far as the transmission business concerns, and the smart meter pipeline, where we've already completed the installation of close to 92 lakh meters and looking to complete the balance meters in the next 12 months or so.

Both our transmission and smart meter business continue to have strong degree of revenue translation, which will happen in the next 12 to 15 months. Thank you all.

Thank you for participating.