Thank you, Ryan. Thank you and very good day to everyone.

A warm welcome to the Q4 FY26 earnings call from 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.

The call will conclude with closing remarks from CFO, Mr. Kunjal Mehta.

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.

Over to you, sir.

Good morning, everyone, and warm welcome to all investor and analyst friends on this call for Q4 and FY26 of Adani Energy Solutions. You must have received all the material in terms of our accounts and financial performance and also operational performance.

I would like to highlight few points that are very distinguished point we probably may not have been emerged out very clearly from a finance. Obviously, this year, besides many other project, we have commissioned that Mumbai HVDC project, which is not only regulatory asset-based project, RAB-based project, but it is also very, very important for Mumbai transmission capacity augmentation.

It will also help AEML in integrating more and more renewable for our distribution company. The another significant milestone that we could achieve this year was deployment of smart meter on the ground.

While we anticipated or we projected that we will be doing about 70 lakh meter this financial year, we surpassed that target, and we ended up installing about 83 lakh meter on the ground. That is probably the highest number that any operator has achieved not only in India, but probably also on a global basis.

While we continue to do the all this project execution on the ground, there is a significant shift or change that is happening at AESL level. You must have noted that the CapEx at AEML, consolidated CapEx, transmission, distribution, smart metering has increased significantly over a period of time.

We are now reached to close to ₹15,000 crore CapEx. We will continue to improve with CapEx and reach about ₹20,000 crore CapEx this year.

While we are improving CapEx, you also must have noted that there is a significant improvement that is happening on a credit rating side. Now, most of our assets are AAA+ or AAA, and there is a significant improvement in credit rating while we are scaling up the CapEx.

Usually, it becomes even challenging to maintain the credit rating while you are significantly stepping up a CapEx, but we have done it otherwise. We have improved the credit rating, and consequently, our interest cost is also going down.

Now even in the challenging time, volatile time, if you're in a position to improve credit rating and reduce your interest cost, that's a significant achievement from AESL side, and that would mean that incremental return for shareholders. Now, similarly, with HVDC commissioning and the regulatory asset based CapEx that we continue to do at AEML, now when we took that AEML, the RAB was about ₹5,400 crore.

Today, you must have seen that it has reached to ₹10,500-plus crore. Similarly, in transmission as well, the asset, RAB-based asset was about ₹10,000 crore.

Now we have added ₹7,000 crore of HVDC, and we will continue to make sure that proportion of regulatory asset base and competitive asset base remains healthy. That is driving our growth and cash generation.

With this, we have been able to do the refinancing of our $500 million bonds. That we refinance from Apollo, who is US insurance investors.

Now that gives confidence that even during this challenging geopolitical situation, we have been able to leverage our financial and operational strength and do the refinancing. Similarly, on a smart metering, we will continue to scale up our operation.

We think that smart metering business is not limited to our contractual period, but it is a perpetual one given the industry structure. We believe that this opportunity is going to continue even when those existing concession expires, maybe in terms of extension or new bidding opportunity.

With the capabilities that we have created, we certainly are in a much better footing to take advantage of future opportunities. Similarly, on a transmission side as well, this year we have improved the market share.

We have reached to now almost 29% of the project that went into bidding, and there are about ₹150,000 crore projects already identified for the bidding. Simultaneously, as I mentioned, we are scaling up our capability in deploying CapEx on the ground, and we will continue to do that.

With a improved interest cost and with the improved capability of deploying CapEx, that will give us an opportunity to capture larger amount of opportunity, transmission opportunity in the market. On operational side as well, we have been doing consistently well.

This year as well, the O&M availability has been 99.7%. Similarly, on a transmission side as well, distribution side as well, we have been consistently been able to reduce our distribution losses.

All in all, the distribution loss has already reached to 4 4.2%. In fact, we started with 8.5%, and we reached to this level.

The significant thing that is going to happen from growth side besides transmission and smart metering will be C&I segment. We have started that operation.

We are now closely about 5,000 MW of renewable capacity contracted. We are already having about a dozens of third-party consumers of about aggregating of about 1,400 MW capacity.

It will give us a great lever in capturing that market, which has a huge potential, including those data centers coming up in India. All in all, the C&I will also become a one of the major growth driver in the next year, and we will have a detailed presentation on C&I once we complete next financial year and have this call again somewhere in May next year.

We will lay out what are the kind of activity that we have been able to do it in C&I. All in all, in all our segments that we operate, whether it is transmission, distribution, smart meter, or C&I, we see a great potential there, a great opportunity.

Since we are improving capability of CapEx deployment and it's a discipline in capital management and CapEx deployment, we will continue to capture those opportunities. With this, I will hand it over to Kunjal for— No, I think we can now start the questions from the analysts or the investors.

Hi. Good afternoon, sir.

Thanks for the opportunity. My first question is, sir, can you help us with your expectation for CapEx in FY27 and FY28 for three businesses separately?

Sure. We will have about ₹22,000 crore of CapEx next year, of which transmission would be about ₹15,500, distribution about ₹2,350, smart metering about ₹3,900.

These are the numbers. We'll be around ₹21,000 between ₹21,000 to ₹22,000.

This is for FY27, right, sir? Is it possible to share the FY28, or is not possible as of now?

No, it is possible, but that number would be a little approximate. It will be around 23,000

₹23,000.

Of that, transmission would be about 20 ₹20,000, distribution again would be about ₹2,000, and smart metering, given the order book, we are not assuming the additional one, but given the order book, it will be ₹1,500, and whatever the additional order that will come will get added.

Understood, sir.

Somewhere between ₹22,000 to ₹25,000.

Understood, sir. My second question is, sir, and is it possible to share the expectation for capitalization or commissioning in FY27 and FY28?

Can just please, sir, help us understand whether you have included the Mumbai HVDC completely in FY26? Is that a right understanding?

Mumbai commissioned in FY26 only in the last month. Completely.

Yeah, 100%.

100%, we appreciate.

The capitalization number in FY27 would be about ₹21,000, ₹21,000, ₹22,000. In FY28, it could be about ₹13,000.

Thereafter, the capitalization will improve especially in transmission because those HVDC project that will start getting commissioned from FY29.

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

Thank you. Thank you.

Sir, thank you for the opportunity. I have a question on the balance sheet leverage.

Sir, if you look at our cash flow for the year FY26, we have a operating cash flow of 10,000 almost ₹11,000 crore, and we are having CapEx of 14,000 ₹431 crore in this. Effectively, our free cash flow negative ₹7,500 crore.

What is your view on the balance sheet leverage, where we are comfortable? Can you guide us on that front, sir?

That would be helpful for us.

That's from an operating cash flow. You would understand is that most of our assets, we generally finance it in the ratio of 70 to 30.

Only the equity portion is funded through the internal accruals. Balance is tied up to the debt.

From that positions, we are fully comfortable to meet all our existing CapEx requirements in transmission, smart meter, and even distribution.

Sir, thank you so much. Sir, can you help me what is the capitalization for FY26?

If you can also break it up between transmission, what is this in transmission?

So 26 is about ₹15,000, ₹15,300. Transmission is ₹10,260, distribution ₹1,511, and smart metering 3,556.

Sure. Sir, also one accounting thing is what would be a CWIP be in a normal accounting term at the end of FY26 be?

Overall console CWIP?

Between the SCA assets and the normal conventional assets, if you look at the financials, the current CWIP is around ₹2,053 crore, which is for the non-SCA assets. We are currently having SCA assets of about, I'll just give the numbers.

Because now the accounting has changed, it's become a bit confusing. Yeah.

SCA assets is currently around ₹6,200, and the CWIP is around ₹2,500.

Right. Sir, broadly, ₹8,000 crore of CWIP.

Sir, just trying to combine the math. You're guiding for a capitalization of about ₹15,000 crore in transmission in next year, FY27.

What we generally see is what is CWIP is at the end of the year probably gets capitalized at the end of the next year, the typical cycle in transmission. Your guidance is much higher.

For example, for your transmission, guidance is about ₹15,000 crore next year, capitalization guidance. Assuming all this CWIP is for transmission, that's about ₹8,000 crore.

I'm just trying to reconcile the math.

There would be a CapEx which will be incurred during the current financial year as well, which will also get translated into capitalization. Just to give you a perspective, especially in transmission assets, what's happened is that certain types of transformers or certain types of substations are generally procured during the fag end of the asset, and then that gets capitalized immediately.

This is exactly what happened in case if you note in HVDC project as well. It is just at the last period when you procure heavy equipments, which gets capitalized during that financial year, and which does not generally form part of CWIP or your

SCA. Dhruv, next year also, means in the current year, we plan to do a transmission CapEx of about 15 to ₹16,000 and ₹8,000 of this CWIP.

Out of this total block, we plan to capitalize about 1400 ₹14,500 to ₹15,000.

Sure. Perfect.

Sir, two macro-related questions is in some of the government documents, the transmission committee meetings, what we're seeing is they've started to talk about batteries, the cost, the higher cost of transmission, particularly it seems the HVDC lines, and they've started to compare it to batteries and all those. How should we see this?

Is it the cost becoming a challenge, or the integration becoming a challenge, or why the thought? Just trying to understand how are we seeing this.

No, obviously, that debate is going on at policy level as to how much of transmission capacity that country should add, because it also has a cost implication, especially for renewable project. The debate is that should we push as a sector installation of more co-located BESS so that transmission cost would be optimized.

See, what is happening is that that's a one leg of transmission, but whatever electricity is generated, that also has to get distributed and taken to the last mile to the end consumer. Now, in future, what we see, while the interstate transmission line will continue to get crystallized and come into bidding, but we expect to see a lot more activity from a state side because all those transmission corridor which are created or which are being created for taking renewable energy to load center, now those investments are required to be made at a state level to take it to last customer.

We see a lot of opportunity coming from state side as well. You must have seen in last year, there are few utilities or states who has already started bidding for multiple projects like Maharashtra, Rajasthan, Uttar Pradesh, and even Karnataka.

We see a lot of action coming from those states as well.

Basically, just to understand this well, a larger portion of the ISTS evacuation is done. Now it is more about optimization, and the activity to a larger extent shifts towards the intrastate network.

No, I'm not saying that it is already done.

They will also continue.

If we as a country, we are in a position to install BESS at a massive scale, then probably that quantum might come down to a certain extent. It is not completely done.

Sure. That way.

Got it. Sir, last thing, on the C&I, you mentioned about 5 GW you have tied up and the data center-led demand that you can cater.

Just trying to understand, it seems state governments are looking at giving distribution licenses to this large hyperscalers. How does it position us in that thing?

Can they still come to you for that round-the-clock power, or they do it themselves, or just trying to understand our positioning then if they get that. No,

certainly, even if they become a distribution licensee, they will have to source power. Because their requirement of power will be very, very peculiar, that is where we come in, especially from power infra side as well as from supply side.

Now we having got a capacity of solar, wind, as well as BESS with us, we are in a position to offer that kind of a solution to whether it is a customer or deemed distribution licensee given to a customer. Essentially, it remains a customer.

Okay. This 5 GW that you have tied up, you have freezed this capacity for yourself, and then you find your customers?

For example, 1.4 you have already found and the remaining you will find it now?

Correct.

Correct. Correct.

Sure, sir. Great.

Helpful to understand more on the C&I as we share more.

Great.

Thank you so much, everyone. Yeah.

Thank you.

Good morning, and a couple of questions. The first one is on smart metering.

The installation rate was quite impressive in the fourth quarter. I was hoping you could help us understand how we should think about 2027.

Also, when I look at the book of business that you currently have, which is around 24.6 million, if you could just help us get a feel for you'll have an opportunity to do more tenders and when do you expect for that number to meaningfully increase?

Manish, next year probably we'll be doing about minimum about 1 crore meters. Having done 83 lakh meter in the current year, we are confident that we'll be able to install another 1 crore meter in the current financial year.

As far as next opportunity is concerned, you must have seen when we started, the concessions were about 2.3 crore. Now we have reached to 2.5.

Essentially, there are two ways of getting additional concessions here. One is that in existing contract itself, it has swelled to 2.5 from 2.3.

The balance opportunity which remains in the market is about 9 to 10 crore meter. There are a few states who are awaiting their approval from central government under RDSS.

Those states are Karnataka, Tamil Nadu. Tamil Nadu already has a approval.

Now they have to come out with a bidding process. Probably they will come out once the re-elections are over.

The opportunity remains are Tamil Nadu, Karnataka whole state, Telangana whole state, Andhra Pradesh part, Gujarat part, and MP part. These are the opportunities which are still pending in the market.

That's super helpful. Then on the distribution side, we bet it was down about 14%, volumes were up, losses obviously improved.

Maybe I was just hoping to get some color from you as to how we should think about distribution in fiscal '27 from a financial measure.

We will continue to have that similar amount of CapEx in distribution. See, distribution, what is happening is that in AEML, we continue to harden the asset.

We continue to add about 1,500 to ₹2,000 crore CapEx every year. We are also making sure that our tariff remains the same, almost at the same level.

That we have been able to do, and we will continue to do by improving operational efficiency. Effectively, what we are doing is that all efficiency gains are transferred for an investor for incremental return because we continue to add that RAB.

It's a win-win for customer as well as shareholders. Shareholders' returns are improving, but customer tariff are remaining same, and service levels are also improving significantly.

That's the reason why AEML has been rated number one distribution company in the country since last four years now. Then

just focusing on transmission, I think you talked about the Mumbai HVDC is coming online fully. If you could just help us quantify the EBITDA run-rate contribution from some of the projects that have come on in fiscal '26 into fiscal '27, and then just related question to that, the tendering opportunity that you mentioned of ₹1.5 trillion, how should we think about the win rate as we model out?

Sorry, Manish, how should we think about? Win rate.

In terms of the win rate for the tendering opportunities that you have.

Yeah.

In terms of historical percentage.

Manish, in fact, we were about 20, 25%. We have improved this year to close to 30%.

We will continue to maintain that market share between 25% to 30%. While we can also increase market share, but, as I mentioned, we will make sure that we remain disciplined both in terms of capital management as well as CapEx deployment.

That is the area where we don't want to compromise. We will limit ourselves to 25% to 30%, and that will also be converted into amount.

It will be 40, ₹50-odd thousand crore of new opportunity for us in a transmission itself.

Manish, to the first question, this year, the capitalization which has happened for transmission on fully run-rate basis, we will be able to add another ₹1,600 crore of EBITDA, around 1,600, by those commissioning of existing the projects which has been commissioned in this financial year. The 1,600 is a revenue number.

Okay. Then just maybe for Kunjal, last question in terms of leverage with CapEx going higher, are we still comfortable with the 4 to 4.5 times, or should we expect that to inch a little bit higher?

No, we'll continue to maintain that leverage in the ratio of around 4.5 to 4.7.

Okay. Great.

Thank you so much, and good luck in '27.

Yeah. Good morning, and thanks for the opportunity once again.

My question is on the Mumbai HVDC, which you commissioned. How to expect to book revenues in the FY27?

Will it be at a lower project cost, in the sense it will be booked at provisional tariff, or it will be booked at the full project cost? No.

Mohit,

as this is a RAB-based project, and once the tariff is approved by the regulator, you are entitled to start billing to the regulator. Currently, the number is ₹1,300-odd crore, which is the full-year tariff from the Mumbai HVDC project, which we will start accruing from next financial.

Understood, sir. My second question, sir, of course, was regarding HVDC Pole 2 of Mumbai.

We understand that, of course, the state transmission committees had approved it, right, and recommended it to the Empowered Committee of state. Have you heard anything on that, and is it fair to expect the HVDC Pole 2 to start working from this fiscal?

As far as HVDC Pole 2 is concerned, the evaluation at MERC and STU level is going on. We feel that Mumbai will certainly require additional transmission capacity.

We can't commit currently because that's still under the evaluation at MERC and STU level.

Understood, sir. My second question is, sir, can you help us the progress on the two HVDC projects which you are working on right now in terms of percentage completion?

Could you also address the ROW challenges if you are facing any?

As far as Fatehpur-Bhadla HVDC is concerned, the construction has already begun both at a substation and line level. We haven't faced any significant ROW challenge as far as that project is concerned.

As far as Khavda-Olpad is concerned, we have finalized all the contract, but the construction has yet not started. It will start.

Khavda land is now already under the possession. Land at Olpad, we expect to get possession from Power Grid in maybe a month's time.

Once we have that, we will start construction at both the places. The preparatory work at Khavda has already started because that land is already in possession.

We have already submitted those proposals for environment and forest clearances because that will also become a significant part. We have already started applying for ROW permission.

Those compensation orders from state government. Currently, it's progressing as per plan.

You will see a lot of action on ground on both the project in the current year.

Is it possible to share the percentage completion for Fatehpur-Bhadla, how much percentage completed till date?

I don't have that number ready-made, but we will send that.

Uh-huh, sir. Is it fair to understand most of the CapEx will happen in FY27 and FY28 for Fatehpur-Bhadla?

Significant CapEx will start from current year.

Understood, sir. My last question is, sir, is it possible to share the margin profile for the trading business, especially on the 1.5 GW?

When we expect the 1.5 GW to start contributing to the top line?

The 1.5 GW that we have already tied up, the margins are in excess of 50 paisa per unit. Rest, we are still working.

Once we tie up that capacity either on a medium-term or a long-term contract, then those number will get crystallized. Currently, we are operating on a merchant market, and that's depend on a market condition, which is varying on a day-to-day basis.

Is it right to say that margin profile currently is lower, and it will improve once we start selling it to the long-term C&I market?

I would not say it is lower, but you will get more certainty once you have a contract.

Understood, sir. Thank you, sir.

This is very helpful. Thank you.

Hi, thanks for the opportunity. Just had a small bookkeeping question.

Your operational EBITDA for your smart meters business, nine months FY26 in the presentation showed about ₹466 crore, and for FY26 full year, it's showing as ₹452 crore. Though for the fourth quarter, it's showing at about ₹180 crore.

Has there been some kind of restatement in your operational EBITDA, and if you could quantify that for the past three quarters, what would have changed in those numbers?

No, just that the operating EBITDA is purely a function of the number of meters that gets installed. From that perspective, every quarter that number will keep on increasing.

There is no restatement as such. It's just that we show both the numbers in our financials, the Ind AS numbers as well as the non-Ind AS numbers.

Right, I'm referring to the non-Ind AS numbers itself. Your operational EBITDA in the nine-month of FY26 totally was ₹466 crore, but your total full year FY26 is ₹452 crore.

The fourth quarter wasn't a loss, right? Fourth quarter itself was ₹180 crore of operational EBITDA.

That's what I'm understanding. This then this number implies only about ₹270 crore in nine-month FY26 versus ₹470 crore that you mentioned in your nine-month presentation.

That's that's the kind of discrepancy I'm asking about, if you could share, clarify that.

No, my operating EBITDA for the full year comes to around ₹593 crore for smart meter business, and for the Q4, it is ₹214 crore.

I'm referring to the non-Ind AS numbers, that's where I'm seeing the discrepancy. That's why.

I'll have to check that as to from where you are getting nine-month number.

It's in your presentation, the nine-month presentation, slide 10.

We can take it offline.

That's okay. My next question is on this ₹1.5 trillion tender pipeline.

Is this entirely an opportunity in the next 12 months, or if you could give what the 12-month pipeline number would be? So

12 months would be about 80 to ₹80,000 to ₹100,000 crore, depending on how bidding process proceeds. We expect that bids about 80 to 80,000 to ₹100,000 crore will get finalized.

Got it. Could you give what this 12-month pipeline would have been at the same time last year?

Has it increased?

It has almost remained same.

Remained the same. Okay.

Just last, a clarification on the SCA assets that you mentioned, this ₹6,200 crore of SCA assets, that would be, accounting-wise, part of your gross block number, right, and the 25 billion, ₹2,500 crore you mentioned would be part of CWIP. This is beyond what is your reported number.

Did that understand me correct?

No, SCA gets reported separately as under nonfinancial assets.

Right, so that's the number you mentioned, ₹6,200 crore. That would be already the operational asset, and ₹2,500 crore is yet to be operationalized, right?

Is that understanding correct? These are both part of your other financial assets, but this would be the breakup for the SCA assets on the smart meter side.

One is contracted assets, and one is SCA asset. Once the asset gets commissioned, that forms part of your contracted assets.

Once it is under construction, it forms part of your SCA asset. Both are part of nonfinancial assets.

Sure. Could you give that number that in your other financial assets right now, how much is already the contracted asset, and how much is under construction?

6,200 and 7,000.

6,200 and 7,000.

Correct.

Okay. Got it.

Thank you so much, sir. Appreciate the clarifications.

Hi, thanks for the opportunity. First question is on the intrastate opportunity.

What do you think annually what's the pipeline and what kind of bidding number that we are looking at?

Intrastate would be around 30 to ₹40,000 crore collectively, all states together, annually.

Okay. Sir,

Hello? Yes, sir.

Sir,

my second question is on the Mumbai HVDC project. We mentioned that we commissioned it fully in FY26.

Is it possible to share the date? Was it a single date, or the different elements were commissioned at different point of time?

It was a single date. We commissioned from 15th March.

Okay. Sir, the cost remained as ₹7,000 crore, right, for tariff and everything?

No additional cost or tariff is being claimed here?

So 7,000 is the cost of completing that project.

Sir. Thank you.

Hi, sir. I have a question regarding the smart meters installed.

How much is the number for the last year smart meters?

80 80,000 No, no. Last year, we installed 82.29 lakh smart meter in '26.

Okay. Sir, your media release, page 3, it says we have deployed 1 crore smart meters.

It is all aggregate till today. Yeah.

It is all aggregate till today. Last year when we began, there was about 31 lakh smart meter which was installed.

In the current year, we installed about this 82.29 lakh meter. The aggregate is that number.

Okay. Thank you.

Yeah. Hi, Kandarp, and hi, Kunjal.

One broad question. Given the fact that the opportunity on transmission now clearly seems to have widened, and it is also reflected in our CapEx program, our distribution assets are doing a steady progress and helped by addition of new RAB assets, and that our smart meter is a high-growth opportunity, at least for some length of time, and maybe at some stage, C&I will kick in, in that backdrop, if I'm focusing on operating profits, that is profits before adding any other income, our profits for a 4-year period have remained range-bound between 4 to ₹4,500 crore each year between financial year '19-20 up to 20 to 2023.

In that 4-year period, it has been in a range of 4 to ₹4,500 crore. Then clearly we made a break in the subsequent years, approaching closer to 6,000, then in '25, 7,000, and now '26, about 8,000.

While definitely there is a progress made in last 3 years, but at what stage I think more correctly reflective of opportunity and our own preparedness and strength in the area where we see far more accelerated growth in our operating profits. From ₹8,000 crore for the last year operating profit, at what stage do we see doubling of that and at what time period we think it will triple?

Thank you, Bharat, for this question. This year last year, the consolidated number was ₹8,726.

As as See, our our business, other than C&I, is all CapEx-based business. The moment we capitalize, we add that profitability.

As we discussed, the CapEx and capitalization plan for coming year, that will directly translate to addition of EBITDA. Next year, given the capitalization plan, we expect that number could be around ₹11,500.

Bharat, as generally, as management, we would not give guidance on the EBITDA numbers. As we mentioned is that there's a significant capitalization which is going to happen during the next two years itself.

If you consider that during this financial year, we have not added any revenue numbers from the Mumbai HVDC here, which is a significant increase when the full-year numbers will kick in in FY26. From that perspective, and if you consider the locked-in portfolio by the end of four years when all these projects would get fully commissioned, we're at least looking three times the size of the current EBITDA trajectory that we have.

Sorry, three times in what time frame?

Once all the existing transmission projects gets completed in the next 36 to 40 months.

I see. In 3 to 4 years' time, what is operating profit of about ₹8,000 crore and EBITDA of a little less than ₹9,000 crore, ₹8,700-odd EBITDA, we are saying it should triple in 3 to 4 years' time.

Yeah. Because all these projects have the locked-in tariff which has been indicated.

All these projects on a run-rate basis will start then ticking all these numbers that we have mentioned. All of

that takes into account some amount of additional smart meter contracts that you make it, or based on the current contracts only that you are estimating?

Based on the current smart meter contracts of 2.46 crore meters.

All right. Which means, essentially, that what is about 8,000 operating profit and less than 9,000, 8,700-odd EBITDA, should be in the corridor of 25 to 27,000 in 3 to 4 years' time.

I'm just saying is that all the tariff numbers would get sticked in. I would not want to put a number today on the EBITDA margins, because we generally do not give a guidance on the EBITDAs on the investors.

I'm saying is that all the transmission projects would get completed, and that itself would translate to two to three times of the numbers of the current numbers.

Okay. Kunjal, I appreciate you being very coy about the guidance and because these are predictable assets, predictable timelines of execution, and we know what are the rate of returns that we're to earn on that.

There is a fair degree of settled clarity as to what the numbers should be out. Essentially—

This is exactly what I mean is that, sir, that 72,000 of the under-construction pipeline would translate to an additional tariff of ₹10,000-odd crore once this entire project gets completed. That the distribution business will have currently 2,500 EBITDA, which will translate to close to 3,000, 3,200 numbers.

Smart meter business will also start generating 2,400 to ₹3,000-odd crore of EBITDA trajectory. That's the guidance which we've been giving to everybody, and we'll continue to give that.

Okay. I appreciate.

I just wanted to basically hear and understand that finally a range-bound kind of a corridor in which we were there for a length of time, clearly, last 3 years have been a improved progress, but tear-away progress is what I was looking forward to. I believe now this is the phase which is commencing for that tear-away growth.

Right? Correct, sir.

Correct.

Okay. Is the picture more sedate after this 3 to 4 years corridor is over, or given the longevity of the transmission opportunity and other things which will play out like you talked about C&I and hopefully distribution game may open up, would we say that the pace of our expansion, Kandarp, would continue thereafter as well?

Obviously, Bharat, we would like to continue that way. You are spot on.

See, currently, it is a transmission which is contributing to growth. It could be C&I after some time.

Then it could be a distribution after some time. The other one that we are incubating is district cooling.

Probably that will also start picking up in 4, 5 years' time. We'll all continue to have that aspiration of growing, but with a financial discipline and execution discipline as well.

Right. One last thing, Kandarp, for district cooling opportunity, I believe we are doing something in Gandhinagar, but overall, where large new clusters are coming about of development across the country, are we not looking at tying up opportunity at the early stage and figuring out a solution while those large mega clusters are being developed anywhere in the country?

No, I think, Bharat, that is where we are working very actively. In fact, we have just got a concession, I mentioned in last call as well.

We got a concession from one of the cluster development happening in Chennai. Now we are also talking to various state government.

We see a great opportunity there. It may not be as sizeable today, but going forward, Bharat, we think that it is going to be a big one.

Okay. Fantastic.

Thanks. Hearty congratulations.

I think probably the most exciting phase of this opportunity probably, as I see it, is begun.

Perfect. Thank you, Bharat.

Thank you.

Thank you for taking my question, sir. Sir, I have two small questions on the transmission bottlenecks.

Just wanted to understand to what extent do you see the revised compensation scheme, especially after the latest revision, positively impact in resolving the ROW issues this financial year? Is it just the compensation that is impacting ROW issues, or there are other issues as well?

ROW, there are two kind of ROW. One is where you require permission, essentially it is like a forest clearance, or if you are encountering any wildlife sanctuary, then those clearances.

There is a set process around it, and we have also completely structured that particular processes in a way that we now know very clearly as to when are we going to get, and our team is fully aligned to the process or the requirement of the process for getting those approvals. The second part is ROW from the general public where there is a ownership of the land from farmers or individual.

There, those government policies come into play. Many a time, we see that despite having a collector order for compensation as per the government policy, few of the individuals or group of the individuals will still create a problem.

Even now all the governments, state governments as well as central government, is very serious about this particular problem, and they are also trying to systematically sort this out. We have also seen now police protection being utilized very frequently for getting ROW.

These challenges are there on the ground, but we also see that timely action from various government authorities as well to sort those issues out.

Okay. Do you see the revised compensation impacting positively this financial year?

Revised compensation, if it is revised by government and we have to pay that additional compensation, we are neutral to it because that gets covered into change in law. I don't see it is getting revised significantly anytime soon.

No, sir. I meant the new amendments that are there, now you need to have a committee, the market review committee is there.

Whether do you think these new amendments will help in resolving these issues? That's what I'm trying to understand, especially this financial year.

No, it is it is already there. It is not new one.

The last year last to last year when Government of India notified that policy and when all states started notifying their respective policy, they had this provision. In fact, they are called DLVC committee.

They assess what is the market rate prevailing in that particular area and decides compensation based on that. That also gives a flexibility.

Sometime it happens that in a particular area, your ready reckoner or jantri rate is low, but market price is high. There, those committee's intervention becomes very, very useful.

It certainly helps us.

Sir. Thank you for the response.

Hi. Any equipment that is being sourced from China or you plan to source from China, which is in the short supply in India?

Vishal, we can't source equipment from China if we are—

At least on behalf your EPC suppliers and equipment contractors on behalf of Adani Transmission?

No, so as per conditions of the bid, we can't use any equipment manufactured in China if it is to TBCB. We don't envisage any such import from China for our TBCB projects.

Sure.

Perfect. Thank you, sir.

That was very helpful. One question for Kunjal—

Just to add one thing on a supply side, the kind of challenges that we were facing as a sector in the country is easing out. In fact, a lot of new capacity is being added as far as GIS, transformers, reactors are concerned.

All those OEM manufacturers has also started manufacturing quite a good amount of component in HVDC as well. GE's and Hitachi's of the world has invested in India in their manufacturing capacities.

We see this supply-related issues getting eased out very soon, and in fact, it has eased out to a great extent. We had a very distinct advantage.

Even in difficult period, we were not really facing that challenge because usually we buy through strategic procurement, and we have that kind of relationship, and we order those equipment well in advance so that we don't face those challenges of equipment getting delivered delay. In fact, no project of AESL got delayed because of delay in equipment delivery.

That is heartening to hear, sir. Thank you.

Yeah. Just one more thing, Kunjal.

The borrowing level, I think for the last year, in aggregate was I think about less than ₹50,000 crore. 4 years down the line, what kind of borrowing level do you envisage?

Sir, I don't have an absolute number about 4 years borrowing level, but we have been always giving a guidance that our net leverage would be in the range of 4.5 to 4.7 times. We will continue to maintain that, and that financial discipline we will continue to maintain to ensure that we always get the highest rating for all our transmission projects.

From that perspective, we will ensure that our leverage is always in check to ensure that we have the highest ratings overall, sir.

Kunjal, if this is going to be high-growth phase for our profits as projects are kicking, therefore, if we assume the same 4.5 to 4.7, 4.7 times, then it will appear that our borrowings also would go to 125 to ₹150,000 crore, which I think based on the early cash flows and other things, I doubt, or given the CapEx requirement, that our borrowing level will be hitting that kind of a number.

Sir, I'll walk you through separately about the entire borrowings programs for the next 4, 5 years, especially at the end of 4 years, separately.

Bharat, two thing is certain that we are not breaching that number, 4.5 to 4.6. Second thing is also certain that we have locked in CapEx of ₹77,000 crore.

In the 4-year period.

Yes. Yes.

Yeah. That's what I understand.

Only, Kandarpbhai, given that kind of a pace of about 20-odd thousand a year of CapEx, I would assume that borrowing probably will not rise at the same level, but I'll separately work on that with Kunjal.

Perfect. Thank you, sir.

Yeah. Thank you.

Now I would just like to thank each one of you who participated in the call. In case we have not been able to answer or clarify to anyone, happy to take any of your queries separately.

Thank you all.