Adani Energy Solutions Limited (AESL) just grabbed IntelliSmart Infrastructure for ₹3,050 crore, making waves in smart metering. This bold acquisition lets AESL tap the rising demand as Indian government targets swapping out 250 million old meters under Revamped Distribution Sector Scheme (RDSS).
Deal comes with an implied price-to-sales multiple of about six times . Shows AESL's serious about boosting market presence. With smart meter rollout speeding up,AESL plans to use IntelliSmart’s established 22 million meters across states like Uttar Pradesh,Gujarat,Madhya Pradesh,Bihar and Assam.
Smart meter market's been booming. From tiny pilot projects between FY14 and FY16,installations could hit nearly 50 million by FY26. AESL's already put in over 10 million smart meters. Says a lot about their ambitions.
IntelliSmart, since 2019, has shown strong financials,maybe justifying AESL's premium. Revenue soared nearly threefold to ₹243.5 crore in FY24,then more than doubled to ₹540.8 crore in FY25. Operating margins climbed sharply to 16.6% in FY25 from just 4.3% year before .
On consolidated level,IntelliSmart saw revenue jump 155% year-on-year, hitting ₹621 crore in FY25. Operating margin turned positive at 7.6%,up from negative 0.6% prior year. Standalone net profit rocketed 265% to ₹99 crore, consolidated profit up 196% to ₹27 crore .
But despite strong figures,gap between standalone and consolidated earnings hints some subsidiaries still growing,maybe losing money. This isn't just financial move; it's a long-term bet on booming smart meter market.
With Indian government readying for wide-scale smart meter rollout, AESL's take on IntelliSmart could be timely. Yet success depends on how well they integrate IntelliSmart's operations into AESL's plans…
