Adani Energy Solutions (AESL) has announced the purchase of smart metering company IntelliSmart Infrastructure for Rs 3,050 crore. At first glance, this deal may seem expensive, because the valuation of the company is much higher than its annual turnover, but considering the rapidly growing smart meter market and the ambitious plans of the government, this acquisition can prove to be a big bet for the future for the Adani Group. This is expected to further strengthen the company’s presence in the market.
To modernize the electricity distribution system in India, the Central Government is working on a plan to replace about 25 crore traditional electricity meters with smart meters under the Revamped Distribution Sector Scheme (RDSS). For this reason, the smart meter industry has become one of the fastest growing infrastructure sectors of the country. Adani Energy Solutions is already active in this sector and by FY26 the company has installed more than 1 crore smart meters. Now after the acquisition of IntelliSmart, the company will get an additional portfolio of 22 million meters. IntelliSmart has its presence in big states like Uttar Pradesh, Gujarat, Madhya Pradesh, Bihar and Assam, which will further strengthen Adani’s reach.
What is the reason behind the expensive deal?
According to experts, the price of this acquisition is relatively high. The valuation of the company is estimated to be almost six times its sales figures. However, IntelliSmart’s rapid growth justifies this high price to some extent. The standalone revenue of IntelliSmart, established in 2019, increased to Rs 243.5 crore in FY24. In FY25 this figure more than doubled to Rs 540.8 crore. During the same period, the company’s operating margin increased from 4.3 percent to 16.6 percent, which reflects better operating efficiency and growing business.
Strong financial performance becomes attraction
On a consolidated basis, IntelliSmart’s FY25 revenue increased by 155 percent to Rs 621 crore. At the same time, the company’s operating margin became positive at 7.6 percent from the negative level of a year ago. Standalone net profit grew by 265 per cent at Rs 99 crore in FY25, while consolidated net profit grew by 196 per cent at Rs 27 crore. This performance shows that the company is rapidly expanding its business and there is potential for better earnings in the future.
What will be the benefit to Adani?
This acquisition will immediately give Adani Energy Solutions a bigger footprint in the smart metering sector. The company will gain a stronger presence in new states, a larger customer base and long-term revenue opportunities. This will also open a new avenue of portfolio diversification for the group.
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