Adani Energy Solutions Ltd (NSE: ADANIENSOL) Q4 2026 Earnings Call dated Apr. 24, 2026
Corporate Participants:
Prashant Soni — Head Finance
Kandarp Patel — Chief Executive Officer
Kunjal Mehta — Chief Financial Officer
Analysts:
Mohit Kumar — Analyst
Manish Ostwal — Analyst
Dhruv Muchhal — Analyst
Mahesh Patil — Analyst
Manish Somaiya — Analyst
Shirom Kapur — Analyst
Ram J — Analyst
Bharat Shah — Analyst
Nirmal — Analyst
Vishal Biraia — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY26 Earnings Conference Call hosted by Adani Energy Solutions Limited. From the AESL side, we have the following on the call as main speakers: Mr. Kandarp Patel, CEO; Mr. Kunjal Mehta, CFO; Mr. Prashant Soni, Head, Finance. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your Touchstone phone.
I now hand the conference over to Mr. Prashant Soni from AESL. Thank you, and over to you, Mr. Soni.
Prashant Soni — Head Finance
Thank you. Thank you, Ryan. So 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 final 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.
Kandarp Patel — Chief Executive Officer
Good morning everyone and warm welcome to all the investor and analyst friend on this call for Q4 and FY26 of Adani Energy Solution. Well, you must have received all the material in terms of our accounts and financial performance, and also operational performance. But I would like to highlight few points that are very distinguished point which probably may not have been emerged out very clearly from our finance. So obviously, this year besides many other project we have commissioned that Mumbai HVDC project which is not only in 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.
Another significant milestone that we could complete, 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 all this project execution on the ground, there is a significant shift or change that is happening at an AESL level. You must have noted that the capex of AEML, consolidated capex transmission, distribution, smart metering has increased significantly over a period of time.
We have now reached to close to INR15,000 crore capex. We will continue to improve the capex and reach about INR20 crore capex this year. But while we are improving capex, you also must have noted that there is a significant improvement that is happening on a credit rating side. So now most of our assets are AAA+, AAA, and there is a significant improvement in credit rating while we are scaling up the capex. So usually it becomes even challenging to maintain the credit rating value or the 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 are 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 an incremental return for shareholders.
Now, similarly with HVDC commissioning and the regulatory asset and base capex that we continue to do at AEML, now when we took that AEML, the RAB [Phonetic] was about INR5,400 crore, today you must have seen that it has reached to INR10,500-plus crore. Similarly, in transmission as well the asset RAB-based asset was about INR10,000 crore. Now, we have added INR7,000 crore of HVDC, and we will continue to make sure that proportion of regulatory asset base and competitive asset base remains healthy, and that is driving our growth and cash generation. And with this, we have been able to do the refinancing of our $500 million bond, and that we refinance from Apollo who is an US insurance investor. 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 the 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. So, we believe that this opportunity is going to continue even when those existing concession expires. Maybe in terms of extension or new bidding opportunities, and 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 1,50,000 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 the 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 our 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. So all in all the distribution loss has already reached to 4.2%.
In fact, we started with 8.5% and we have reached to this level. The significant thing that is going to happen from a growth side besides transmission and smart metering will be C&I segment. So we have started that operation. We are now closely about 5,000 megawatts of renewable capacity contracted. We are already having about dozens of third-party consumers of about aggregating of about 1,400 megawatts 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.
So all in all, the C&I will also become one of the major growth drivers 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, and we will lay out what are the kind of activity, that we have been able to do it in C&I. So all in all, in our segments that we operate whether it is transmission, distribution, smart meters or C&I [Phonetic], we see a great potential there, great opportunity. And since we are improving capability of capex deployment and with a discipline in capital management and capex deployment, we will continue to capture those opportunities.
With this, I will hand it over to Kunjal.
Kunjal Mehta — Chief Financial Officer
No, I think we can now start the questions from the analyst or the investors.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions]. We take the first question from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Hi. Good afternoon sir, and 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?
Kandarp Patel
Yeah, sure. So we will have about INR22,000 crore of capex next year of which transmission would be about INR15,500 crores, Distribution about INR2,350 crores, Smart metering about INR3,900 crores, and so these are the numbers. So, we’ll be around INR21,000 crores; between INR21,000 crores to INR22,000 crores.
Mohit Kumar
So this is for FY27, right, sir? Is it possible to share the FY28 or it’s not possible as of now?
Kandarp Patel
No, no, it is possible but that number would be little approximate but it will be around INR23,000 crores. So of that, transmission would be about INR20,000 crores; Distribution again will be about INR2,000 crores; and Smart metering given the order book, we are not assuming the additional one, but given the order book it will be INR1,500 crores and whatever the additional orders that will come will get added.
Mohit Kumar
Understood.
Kandarp Patel
So somewhere it’s between INR22,000 crores to INR25,000 crores.
Mohit Kumar
Understood sir. My second question is, sir, and is it possible to share the expectation for capitalization or commissioning in FY27, FY28? And can you just please help us understand whether you have included the Mumbai HVDC completely in FY26? Is that the right understanding?
Kandarp Patel
Yes. For Mumbai, the commission in FY26 only in the last month, yeah, completely.
Mohit Kumar
100% for — [Speech Overlap]
Kandarp Patel
Yeah. Yeah, 100%. And the capitalization number in FY27 would be about 21,000; 21,000, 22,000. In FY28 it could be about 13,000. And thereafter the capitalization will improve in — especially in transmission, because those HVDC project that will start getting commissioned from FY29.
Mohit Kumar
Understood sir. Thank you. And all the best, sir. Thank you.
Operator
Thank you. We take the next question from the line of Manish Ostwal from Nirmal Bang Securities Private Limited. Please go ahead.
Manish Ostwal
Yes sir. Thank you for the opportunity. I have a question on the balance sheet leverage. So sir, if you look at our cash flow for the year, at ’26 we have operating cash flow of INR10,000 crores, almost INR11,000 crores. And we are having capex of INR14,431 crore. So effectively our free cash flow negative INR7,500 crores. So what is your view on the balance sheet leverage where we are comfortable. Can you guide us on that front, sir? That will be helpful for us.
Kunjal Mehta
So, that’s from an operating cash flow. So you would understand is that most of our assets we generally finance it in the ratio of 70:30. So only the equity portion is funded through the internal accruals. So balance is tied up through the debt. From that position we are fully comfortable to meet all our existing capex requirements in transmission, smart meter and even distributor.
Operator
Thank you. We move on to the next question which is from the line of Dhruv Muchhal. Please go ahead.
Dhruv Muchhal
Yes sir. Thank you so much. So can you help me? What is the capitalization for FY26, and if you can also break it up between a transmission, what is in transmission?
Kandarp Patel
So ’26 is about INR15,000 crore, INR15,300 crore. Transmission is INR10,260 crore. Distribution INR1, 511 crore, and smart metering INR3,556 crore.
Dhruv Muchhal
Okay. Sure. And sir, also one accounting thing is, what would be your CWIP be in a normal accounting term at the end of FY26 be? Overall, consol CWIP.
Kunjal Mehta
So between the SC assets and the normal conventional assets, so if you look at the financial the current CWIP is around INR2,053 crore which is the non-SC assets. And for the currently — we are currently having SC assets of about, I’ll just give you the number.
Dhruv Muchhal
Because now the accounting has changed, so it will become a bit confusing.
Mahesh Patil
Yeah,
Kunjal Mehta
Yeah, yeah, yeah. So SC asset is currently around INR6,200 crores and the CWIP is around INR2,500 crores.
Dhruv Muchhal
Okay. So sir, so broadly INR8,000 crores of CWIP. And sir, just trying to combine the math and you’re guiding for a capitalization of about INR15,000 crores in transmission in next year FY27. So what we generally see is what your CWIP is at the end of the year probably gets capitalized at the end of the next year, the typical cycle in transmission. So, but your guidance is much higher. For example for your transmission guidance is about INR15,000 crores next year — capitalization guidance, and assuming all these regular IP is for transmission, that’s about INR8,000 crores. So I’m just trying to reconcile the math.
Kunjal Mehta
Yeah, but there would be a capex which will be incurred during the current financial year as well which will also get translated into capitalization. So I mean just to give you a perspective, especially in transmission assets, what happened is that certain types of transformers or certain types of sub-stations are generally procured during the fag end of the asset and then that gets capitalized immediately. And this is exactly what happened in case if you note in HVDC project as well. So it is just that the last period when you procure heavy equipment which gets capitalized during that financial year and which does not generally form part of CWIP or your SC.
Kandarp Patel
So Dhruv next year also, means in the current year we plan to do a transmission capex of about 15,000 to 16,000 and 8,000 of these WIP. And out of this total block we plan to capitalize about 14,500 to 15,000.
Dhruv Muchhal
Perfect. And 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 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, I mean, why the thought? Just trying to understand how you’re seeing this?
Kandarp Patel
No, obviously that debate is going on at a policy level as to how much of transmission capacity that country should add, because it also has a cost implication especially for renewable project. So the debate is that should we push as a sector the installation of more co-located BSE base so that transmission cost would be optimized.
But see, what is happening is that that’s a one leg of transmission. But whatever electricity 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 lot more activity from a state side, because all those transmission corridors 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. So we see a lot of opportunity coming from state side as well.
And you must have seen in last year there are few utilities or state who has already started bidding for multiple project like Maharashtra, Rajasthan, Uttar Pradesh and even Karnataka. So we see a lot of action coming from those state as well.
Dhruv Muchhal
So 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 intra-state network?
Kandarp Patel
No, I am not saying that it is already done. There will also be if we as a country we are in a position to install base at a massive scale then probably the quantum might come down to a certain extent. But it is not completely done.
Dhruv Muchhal
Yeah. Yeah. Sure. Got it. And sir, last thing, on the C&I, you mentioned about five gigawatt, you have tied up and the data center like demand that you can cater. Just trying to understand it seems the government is also looking at state governments are looking at giving distribution licenses to these large hyperscalers.
So how does it position us in that thing? I mean, can they still come to you for that, round the clock power or they do it themselves or — I mean, just trying to understand our positioning then, if they get… [Indecipherable]
Kandarp Patel
No, certainly. Even if they become a distribution licensee, they will have to source power and because their requirement of power will be very, very pecular, that is where we come in. Especially from power infra side as well as from supply side. So now we having got capacity of solar, wind as well as base with us, we are in a position to offer that kind of a solution to whether it is a customer or a deemed distribution licensee given to a customer. So essentially it remains a customer.
Dhruv Muchhal
Okay. And this five gigawatt that you have tied up is, I mean, you have freezed this capacity for yourselves and then you find your customers, for example 1.54 you have already found and the remaining you will find it now?
Kandarp Patel
Correct, correct, correct.
Dhruv Muchhal
Sure sir, great. Nice one. Will be helpful to understand more on the C&I as you shared. Thank you so much.
Kandarp Patel
Thank you.
Operator
Thank you. We take the next question from the line of Manish Somaiya from Cantor Fitzgerald. Please go ahead.
Manish Somaiya
Good morning. A couple of questions. The first one is on smart metering. The installation rate was quite impressive in the fourth quarter. So, I was hoping you could help us understand how we should think about 2027? And also, when I look at the book of business that you currently have, which is around 24.6 million meters, if you can just help us get a feel for when is sort of the next time you’ll have an opportunity to do more tenders and when do you expect to for that number to meaningfully increase?
Kandarp Patel
So Manish, so next year probably we’ll be doing about minimum about one crore meters. Having done 83 lakh meter in the current year, we are confident that we’ll be able to install another one crore meter in the current financial year. As far as next opportunity is concerned, you must have seen when we started that concessions were about 2.3 crore. But now we have reached to 2.5 crore. Essentially there are two ways of getting additional concessions here.
One is that in existing contract itself it has fell to 2.5 crores, 2.3 crores, and the balance opportunity which remains in the market is about nine crore to 10 crore meter. There are few states who are awaiting their approval from central government under RDSS, and those states are the Karnataka, Tamil Nadu; Tamil Nadu already has an approval so now they have to come out with a bidding process. Probably they will come out once their elections are over. So, the opportunity remains are Tamil Nadu, Karnataka whole state, Telangana whole state, Andhra Pradesh part, Gujarat part and MP part. So these are the opportunities which are still pending in the market.
Manish Somaiya
Okay. That’s super helpful. And then on the distribution side EBIT was down about 14%. Volumes were up, losses obviously improved. So 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.
Kandarp Patel
So, 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 so we continue to add about INR1,500 crore to INR2,000 crore capex every year. And we are also making sure that our tariff remains the same almost at the same level and that we have been able to do and we will continue to do by improving operational efficiency. So, effectively what we are doing is that all efficiency gains are transferred for investors for incremental return because we continue to add that RAB. So it’s a win-win for customer as well as shareholders. So shareholders returns are improving, but customer tariff are remaining same and service levels are also improving significantly. And that’s the reason why AEML has been rated number one distribution company in the country since last four years now.
Manish Somaiya
And then just lastly on transmission, I think you talked about the Mumbai HVDC coming online. If you can 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 INR1.5 billion, how should we think about the win rate as we model out?
Kandarp Patel
Sorry Manish, how should we think about — [Speech Overlap]
Manish Somaiya
The win rate for the tendering opportunities that you have?
Kandarp Patel
Yeah. Yeah.
Manish Somaiya
Should we assume a certain percentage?
Kandarp Patel
So Manish, currently we are about — in fact we were about 20%, 25%. We have improved this year to close to 30%. So we will continue to maintain that market share between 25% to 30% while we can also increase market share, but then we as I mentioned we will make sure that we remain disciplined both in terms of capital management as well as capex deployment. So, that is an area where we don’t want to compromise. So we will limit ourselves to 25% to 30%, and that will also be converted into amount, it will be INR40,000-odd crores, INR50,000-odd crore of new opportunity for us in a transmission itself.
Prashant Soni
And 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 INR1,600 crores of EBITDA around INR1,600 crores, by those commisioning of existing the projects which have been commissioned in this financial year. I’m talking about the INR1,600 crores is the revenue number.
Manish Somaiya
Okay. And then just maybe for Kunjal, last question, in terms of leverage with capex going higher, are we still comfortable with the four times to 4.5 times or should we expect that to inch a little bit higher?
Kunjal Mehta
No, we’ll continue to maintain that leverage in the ratio of around 4.5 to 4.7.
Manish Somaiya
Okay, great. Thank you so much and good luck in ’27.
Operator
Thank you. We take the next question from the line of Mohit Kumar from ICICI Securities. Please go ahead. Yeah,
Mohit Kumar
Good morning. Thanks for the opportunity once again. Sir, my question is on the Mumbai HVDC which you commission, how to expect to book revenues in the F27? Will it be at lower project cost? I mean, in the sense it will be booked at provisional tariff or it will be booked at the full project cost?
Kunjal Mehta
No, so, Mohit, as you know this is a RAB-based project, and once the tariff is approved by the regulator you are entitled to start billing to the regulator. So currently, the number is INR1,300-odd crores which is the full year tariff from the Mumbai HVDC project, which we will start accruing from next financial.
Mohit Kumar
Understood, sir. My second question is sir, of course it was regarding HVDC pole two 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 or — anything on that? And is it fair to expect that HVDC pole two start working in this from this fiscal?
Kandarp Patel
So, as far as HVDC pole two is concerned, the evaluation at MERC and STU level is going on. We feel that Mumbai will require, certainly require additional transmission capacity, but we can’t commit currently because that’s still under the evolution at MERC and STU.
Mohit Kumar
Understood, sir. My second question is, sir, can you help us with the progress on the two HVDC projects which you are working on right now in terms of percentage completion and could you also address the ROW challenges if you are facing any.
Kandarp Patel
So as far as Fatehpur-Bhadla HVDC is concerned the construction has already begun, both at a substation and a line level, and 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, so the 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. And 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, and then we already submitted those proposals for environment and forest clearances because that will also become a significant part. We already started applying for ROW permission, so those compensation orders from state government. So currently, it’s progressing as per plan. You will see a lot of action on ground on both the project in the current year.
Mohit Kumar
Sir, if it’s possible to share the percentage completion for Fatehgarh Bhadla how much percentage completed till date?
Kandarp Patel
I don’t have that number ready made, but we will send it.
Mohit Kumar
But is it fair to understand that most of the capex will happen in F27 and F28 are for Fatehgarh Bhadla?
Kandarp Patel
So the capex in Fatehgarh-Bhadla will start, significant capex will start from current year.
Mohit Kumar
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? And when do you expect the 1.5 GW to start contributing to the topline?
Kandarp Patel
So the 1.5 GW that we have already tied up, the margins are in excess of INR0.50 per unit, rest we are still working. So 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. So, and that depend on a market condition which is varying on a day-to-day basis.
Mohit Kumar
And is it right to say that the margin profile currently is lower and it will improve once we start selling into the merchant market? Sorry, selling into the long-term C&I market?
Kandarp Patel
So I would not say it is lower, but you will get more certainty once you have a contract.
Mohit Kumar
Understood sir. Understood sir. Thank you sir. That’s very helpful. Thank you.
Operator
Thank you. We take the next question from the line of Shirom Kapur from Jefferies, please go ahead.
Shirom Kapur
Hi. Thanks for the opportunity. Just had a small bookkeeping question. So your operational EBITDA for your smart meters business, so nine months FY26 in the presentation showed about INR466 crores. And for FY26 full year it’s showing as INR452 crore. Though for the fourth quarter it’s showing about INR180 crores. So has there been some kind of restatement in your operational EBITDA and if you could quantify that for the past three quarters like what would have changed in those numbers?
Kunjal Mehta
No, so just that the operating EBITDA is purely a function of the number of meters that gets installed. So from that perspective, every quarter that number will keep on increasing. So 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.
Shirom Kapur
No, right, I’m referring to the non-Ind AS numbers itself. Your operational EBITDA in the nine month of FY26 totally was INR466 crores. But your total full year FY26 is INR452 crores. But the fourth quarter wasn’t a loss, right? Fourth quarter itself was INR180 crores of operational EBITDA. So that’s what I’m understanding. Then this number implies only about INR270 crores in nine month FY26 versus INR470 crores that you mentioned in your nine month presentation. That’s the kind of discrepancy I’m asking about. If you could share, clarify that.
Kunjal Mehta
No. So my operating EBITDA for the full year comes to around INR593 crores for smart meter business. And for the Q4 it is INR214 crores.
Shirom Kapur
I’m referring to non-Ind AS numbers, that’s where I’m seeing the discrepancy. That’s why.
Kunjal Mehta
So I’ll have to check that as to from where you are getting nine month number.
Shirom Kapur
It’s in your presentation, the nine months presentation, slide 10. We can take it offline. That’s okay. My next question is on this $1.5 trillion tender pipeline. So is this entirely an opportunity in the next 12 months or if you could give what the 12 month pipeline number would be.
Kandarp Patel
So 12 months would be about to INR80,000 lakh crore to INR1 lakh crore depending on how bidding process proceeds. But we expect that bids about 80 to — INR80,000 lakh crore to INR1 lakh crore will get finalized.
Shirom Kapur
Got it. Could you give this, what this 12 month pipeline would have been at the same time last year? Has it increased?
Kandarp Patel
It has almost remained the same.
Shirom Kapur
Remained the same? Okay, and just last a clarification on the SCA assets that you mentioned. This rupee, INR6,200 crores of SCA assets that would be you know accounting-wise part of your gross block number, right, and the INR2,500 crore you mentioned would be part of CWIP. This is not part of — this is beyond what is your reported number. Is that understanding correct?
Kunjal Mehta
No. So SCA gets reported separately as under non-financial asset.
Shirom Kapur
Right. So that — the number you mentioned, INR6,200 crores. That would be the already the operational asset and INR2,500 crores 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.
Kunjal Mehta
So one is contracted assets and one is SC asset? Once the asset gets, I mean, once the asset gets commissioned that forms part of your contracted asset. And once it forms, I mean once it is under construction it forms part of your SC asset, and both are part of non-financial assets.
Shirom Kapur
Sure. So sir, could you give that number that in your other financial assets right now how much is the already the contracted asset and how much is under construction?
Kunjal Mehta
6,200 and 7,000.
Shirom Kapur
6,200 and 7,000.
Kunjal Mehta
Correct.
Shirom Kapur
Okay, got it. Thank you so much sir. Appreciate the clarifications.
Operator
Thank you. We take the next question from the line of Mahesh Patil from ICICI Securities. Please go ahead.
Mahesh Patil
Thanks for the opportunity. First question is on the intrastate opportunity. So, what do you think like annually, what’s the pipeline, and what kind of bidding number that we are looking at?
Kandarp Patel
So, interest rate would be around INR30,000 crore to INR40,000 crore collective all state together, annually.
Mahesh Patil
Yes. Yes. And sir, my second question is on the HVDC — Mumbai HVDC project. So we mentioned that we commissioned it fully in FY26. So is it possible to share the date? Was it a single date or the different elements were commissioned at different point of time?
Kunjal Mehta
It was a single date, we commissioned on as from 15 March.
Mahesh Patil
Okay. And sir, the cost remains as INR7,000 crore, right? For tariff and everything. No additional cost or tariff is being claimed here.
Kunjal Mehta
So INR7,000 crores is the cost of completing that project.
Mahesh Patil
Okay, thank you.
Operator
Thank you. We take the next question from the line of Ram J from J.P. Morgan. Please go ahead.
Ram J
Hi. I have a question regarding the smart meter installed. How much is the number for the last year smart meters?
Kandarp Patel
No, no, last year we installed 82.29 lakh smart meter, in ’26.
Ram J
Okay. Sir your media release page three it says we have deployed one crore smart meters.
Kandarp Patel
It all aggregates till today, yes, it is all aggregate till today. So last year when we began, there was about 31 lakh smart meters which was installed. In the current year we installed about this 82.20 lakh meters. So the aggregate is that number.
Shirom Kapur
Thank you.
Operator
Thank you. We take the next question from the line of Bharat C. Shah from BCS Capital Ideas Limited. Please go ahead.
Bharat Shah
Yeah. Hi Kandarp [Foreign Speech] 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. But our smart meter is a high growth opportunity at least for some length of time and maybe at some steps C&I will kick-in. [Indecipherable] drop if I look at and I’m focusing on operating profit I.e. profits before adding any other income. So our profits for a four year period have remained range bound between INR4,000 crore to INR4,500 crores each year between financial year ’19, ’20 up to ’22-’23. In that four year period it has been in a range of INR4,000 crore to INR4,500 crores.
Then clearly we made a break in the subsequent year approaching closer to INR6,000 crores, then in ’25, INR7,000 crores, and now ’26 about INR8,000 crores. Definitely there is a progress made in last three years but it would stay 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 profit. So from INR8,000 crores for the last year operating profit at what state do we see doubling of that and in what time period we think it will triple?
Kandarp Patel
Thank you Bharat [Foreign Speech] for this question. So this year, last year the consolidated number was INR8,726 crores. See our business other than C&I is all capex business. And then the moment we capitalize we add that profitability and as we discussed the capex and capitalization plan for coming year that will directly translate to addition of EBITDA.
So next year given the capitalization plan, we expect that number could be around INR11,500 crores.
Kunjal Mehta
So Bharat [Foreign Speech], as you know generally as management we would not give guidance on the EBITDA numbers, but as we mentioned is that there is a significant capex capitalization which is going to happen during the next two years itself. And if you consider that during this financial year we have just added, I mean we have not added any revenue numbers from the Mumbai HVDC year which is a significant increase when the full year numbers will kick in, in FY26. So 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,
Bharat Shah
Sorry, Three times, in what time you said?
Kunjal Mehta
In once all these, all the existing transmission project gets completed in the next 36 months to 40 months.
Bharat Shah
I see. So in three to four years time, what is operating profit of about INR8,000 crore and EBITDA of little less than INR9,000 crore, last year, you are saying it should triple in three to four years’ time?
Kunjal Mehta
Yeah. Yeah. Once all these projects because all these projects have been locked in tariff which has been indicated and all these projects on a run rate basis will start then tackling all these numbers that we mentioned.
Bharat Shah
And that takes into account all of that takes into account some amount of additional smart meter contracts that you may get? Or based on the current contracts only that you are estimating?
Kunjal Mehta
Based on the current smart meter contracts of 2.46 crore meters.
Bharat Shah
All right. Which means essentially that what is about INR8,000 crores operating profit and less than INR9,000 crores to INR8,700-odd crores EBITDA should be in the corridor of 25,000 to 27,000 in three to four years’ time?
Kunjal Mehta
I would not, I mean, I mean I’m just saying is that all the tariff number would get ticked in. I would not want to put a number today on the EBITDA margins because I don’t — we generally do not give a guidance on the EBITDAs to only investors. What 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.
Bharat Shah
Okay. Kunjal, I appreciate your being coy about the guidance. I am — because these are predictable assets, predictable timelines of execution and we know what are the rate of returns that we have to earn on that. So there is a fair degree of settled clarity as to what the number should pay out. Essentially
Kunjal Mehta
This is exactly what I think is that, sir, that 72,000 of the under construction pipeline would translate to an additional tariff of INR10,000-odd crores once this entire project gets completed. You know that the distribution business will have currently INR2,500 crores EBITDA which will translate to close to INR3,000 crores, INR3,200 crores numbers. And smart meter business will also start generating INR2,400 crores to INR3,000-odd crores of EBITDA trajectory, once the entire smart meter profit — I mean other number gets — I mean, that’s the guidance which we have been giving to everybody and we’ll continue to give that.
Bharat Shah
Okay, I appreciate. I just wanted to wanted to basically hear and understand that finally a rangebound kind of a corridor in which we were there for a length of time. Clearly last three years there have been an improved progress, but tear away progress is what I was looking forward to. And I believe now this is the phase which is commencing for that tear away growth, right?
Kunjal Mehta
Correct.
Bharat Shah
Okay. And is the picture more sedate thereafter after these three to four year corridor is over, or given the longevity of the transmission opportunity and other things which will play out like you talked about C&I gain, hopefully distribution game may open up. Would we say that the pace of our expansion, Kandarp [Foreign Speech], would continue thereafter, is it?
Kandarp Patel
Obviously Bharat [Foreign Speech], we would like to continue that way. And you are spot on, 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. And then the other one that we are incubating is district cooling, probably that will also start picking up in four, five years’ time. So we will continue to have that aspiration of growing but with the financial discipline and execution discipline as well.
Bharat Shah
Right. One last thing, Kandarp [Foreign Speech], for District Cooling opportunity, I believe we are doing something in Gandhi Nagar. But, overall, with 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?
Kandarp Patel
No, no, I think, Bharat [Foreign Speech], 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. We are also talking to various state government, and wherever — So we see a great opportunity there. It may not be a sizable today, but going forward, Bharat [Foreign Speech], we think that it is going to be a big one.
Bharat Shah
Okay, fantastic, and heartily congratulations. I think probably the most exciting phase of this opportunity, probably, as I say, it has begun.
Kandarp Patel
Perfect. Thank you. Thank you.
Bharat Shah
Thank you.
Operator
Thank you. [Operator Instructions] We take the next question from the line of Nirmal from Aditya Birla Sun Life AMC. Please go ahead.
Nirmal
Thank you for taking my question, sir. So, I have two small questions on the transmission bottlenecks. So just wanted to understand to what extent do you see the revised compensation scheme, especially after the latest revision, positively impact and resolving the ROW issues this financial year? And is it just the compensation that is impacting ROW issues or there are other issues as well?
Kandarp Patel
So ROW, there are two kind of ROW. One is where you require a permission. So essentially it is like a forest clearance or if you are encountering any wildlife sanctuary, then those clearances. And there is a set process around it, and we have also, completely structured that particular process in a way that we now know very clearly as to when are we going to get, and our team is fully, fully aligned to the process or the requirement of the process for getting those approval. So, and the second part is ROW from the general public where there is a ownership of the land from farmers or individual. And there those government policies come into play.
Many a time we see that despite having 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 government, 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. So 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.
Nirmal
Okay. And do you see the revised compensation impacting positively this financial year?
Kandarp Patel
So 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 changing law. But I don’t see in the — it is getting revised significantly in any time soon.
Nirmal
No sir, I meant the new amendments that are there. So, now you need to have a committee, the market review committee is there. So 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.
Kandarp Patel
No, 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. And in fact they are called DLBC committee. So they assess what is the market rate prevailing in that particular area and decides compensation based on that. That also gives a flexibility, you know, sometimes it happens that in a particular area your Ready Reckoner or the [Indecipherable] is low but market price is high. And there those committees intervention becomes very, very useful. So, it certainly helps us.
Nirmal
Okay. Sir, thank you for the response.
Operator
Thank you. We take the next question from the line of Vishal Biraia from Bandhan AMC. Please go ahead.
Vishal Biraia
Hi. Any equipment that is being sourced from China or you plan to source from China which is in the short supply in India?
Kandarp Patel
Vishal, we can’t source equipment from China, if we [Indecipherable] are…
Vishal Biraia
On behalf of your EPC suppliers and equipment contractors on behalf of transmission?
Kandarp Patel
No. So as per conditions of the build we can’t use any equipment manufactured in China if it is through TBCB. So we don’t envisage any such import from China for our TBCB projects.
Vishal Biraia
Thank you, sir. That is very helpful. And one question for Kunjal [Foreign Speech].
Kandarp Patel
Just to add one thing on the supply side, the kind of challenges that we were facing as a sector in the country is easing out. And in fact a lot of new capacity is being added as far as GIS transformers, reactors are concerned. And all those OEM manufacturers has also started manufacturing quite a good amount of component in HVDC as well. So, GEs and Hitachis of the world has invested in India in their manufacturing capacities. So, we see these supply related issues getting eased out very soon. And in fact it has eased out to a great extent.
We had a very different distinct advantage, even in a 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 our — no project of AESL got delayed because of delay in equipment delivery.
Vishal Biraia
That is heartening to hear sir. Thank you.
Operator
Thank you. We take the next question from the line of Bharat C. Shah from BCS Capital Ideas Limited. Please go ahead.
Bharat Shah
Yeah. Just one more thing, Kunjal. The borrowing level I think for the last year in aggregate was I think about less than INR50,000 crores. Four years down the line what kind of borrowing level do you envision?
Kunjal Mehta
Sir, I don’t have an absolute number about four years borrowing level. But we have been always giving a guidance that our net leverage would be in the range of 4.5 times to 4.7 times. So we will continue to maintain that and that financial discipline we will continue to maintain to ensure that we always get the highest ratings for all our transmission projects.
So from that perspective we will ensure that our leverage is always in check to ensure that we have the highest ratings overall.
Bharat Shah
But Kunjal, if this is going to be high growth phase for our profit say the projects will kick in. Therefore if we assume the same 4.5 to 4.7 time, then it will appear that our borrowings also would go to INR125,000 crore to INR150,000 crore which I think based on the yearly cash flows and other things I doubt or given the capex requirement that our borrowing level will be hitting that kind of a number.
Kunjal Mehta
Sir, I’ll walk you through separately about our [Indecipherable] borrowings programs for the next four, five years, especially at the end of four years, or especially in…
Kandarp Patel
But Bharat [Foreign Speech], two thing is certain that we are not reaching that number 4.5 to 4.6 and second thing is also certain that we have logged in capex of INR77,000 crores
Bharat Shah
In the four year period?
Kandarp Patel
Yes, yes.
Bharat Shah
Yeah, that’s what I understand. On the Kandarp [Foreign Speech], given that kind of a pace of about INR20,000-odd crores a year of capex, I would assume that borrowing probably will not rise at the same level. But, and I’ll separately work on that with Kunjal.
Kunjal Mehta
Perfect. Thank you, sir.
Bharat Shah
Yeah. Thank you.
Operator
Thank you. Ladies and gentlemen, we will take that as a last question and we conclude the question-and-answer session. I now have the conference over to Mr. Kunjal Mehta for his closing comments.
Kunjal Mehta
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.
Operator
[Operator Closing Remarks].