Ladies and gentlemen, good day and welcome to the Q4 FY 2025 earnings update call hosted by Adani Energy Solutions Limited. From the Adani Energy Solutions side, we have the following on the call: Mr. Kandarp Patel, CEO, Adani Energy Solutions Limited; Mr. Kunjal Mehta, CFO, Adani Energy Solutions Limited; Mr. Anupam Mishra, Head, Group Corporate Finance; Mr. Vijil Jain, Head, IR, Adani Energy Solutions Limited. 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 an operator by pressing star then zero on a touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vijil Jain from AESL. Thank you, and over to you, Mr. Jain.
Thank you, Michelle. Hi everyone. Thank you for joining the call. Warm welcome to the quarter four earnings call. I hope you got a chance to go through the earnings material which was uploaded on the website. In terms of just to explain the flow of the call, we will start with an opening statement from the CEO, Mr. Kandarp Patel, followed by Q&A, and then, of course, the closing remarks. Let me now hand over the call to KP sir. Over to you, sir.
Welcome and good morning to all investors and analyst friends. The last financial year, 2025, was a remarkable year for AESL, both in terms of future growth perspective and in terms of execution and operation during the financial year. You all must have noted that we now have a strong order book close to about INR 60,000 crore. Those projects will get executed in the next four to five years. In the last year, we had about seven projects in different geographies, but essentially, those projects are for evacuation of green power. We will continue to have those kinds of project development which help the integration of more and more renewable power into the grid. From the operation side, you must have noted that at AESL level, we could double the CapEx as compared to the previous year.
We closed this financial year, FY 2025, with a total CapEx of INR 11,444 crore, which in the previous year was about INR 5,600 crore. Going forward, also, you will see this number growing. In FY 2026, we expect to do a CapEx of close to INR 16,000-18,000 crore, and that will be aggregate CapEx of transmission, smart meter, and distribution. With all this performance, the EBITDA has grown at a healthy rate of 23%, beating our previous trend of about 11-12% CAGR. We aim to continue this kind of growth at least for another four to five years. From an operational update standpoint, our ability remains close to 100, which is 99.7%. That enabled also us to earn the incentive of about INR 132 crore. Now, the total circuit kilometer has reached close to 27,000 circuit kilometers.
We commissioned and MP'd two transmission projects, which were a little complex ones involving quite a large number of substations and small transmission lines. We could also complete that difficult project. We acquired last year the Mahan- Sipat project as well. On the distribution side, we sold about 6% additional. We could witness 6% growth in energy sale of AEML Mumbai. This is a very interesting one. In a geography like Mumbai, also, we could grow at the rate of 6%. In Mundra, we sold 44% additional electricity. That was because of additional demand that is coming from the Mundra region. The remarkable thing as far as distribution is concerned in Mumbai, we could reduce T&D losses first time to less than 5%. We closed this year at 4.7%. Last year, it was 5.29%.
The reduction of at least around 0.5%, which is significant on the base of 5.29%. The renewable penetration in Mumbai continues to be the highest in the country, and it was 36% in terms of energy for AEML in FY 2025. All in all, in terms of financials as well as operation, AEML has done quite a good performance both in terms of operation and financials and also in all the three segments. The smart metering business, which started last year, we started with a slow pace, but by the time we closed the financial year, we could reach to 3.2 million meters. Now, we are installing at the rate of about 27,000 meters a day. The average that we have done in the current month so far.
We expect to do at least 7 million meter installation in the current year, and that will take to about 10 million aggregate meters by the year close. Similarly, we also expect to commission seven transmission projects, aggregating project cost of about INR 15,000 crore during the financial year. One of the biggest in these seven projects will be a Mumbai HVDC, which we aim to commission by December this year. With this pipeline and growth opportunity in all the three segments, we continue to grow at the pace that we have shown in the current year and keep this performance excellence in tech and manage those transmission line abilities and distribution operations very, very efficient. You must have also noted that AEML has been ranked number one distribution utility in the country consecutively for the last three years. Over to you now.
We'll take all those questions and additional information that you would want to have from us.
Sir, should we open the floor for the Q&A session?
Yes, please.
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on the touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only hands while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press star and one to ask questions. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Hi. Good morning, sir. The convergence is a very strong win in the fiscal year, especially on the transmission, right? My first question is, what are the CapEx which you have incurred? Are they incurred in FY 2025 for the transmission, distribution, and smart meters separately? If you can give us that number, it will be helpful. Yeah.
Yeah. Hi, Mohit. Thank you so much. The CapEx that we incurred in FY 2025 was INR 11,444 crore, out of which in transmission it was INR 7,646 crore. In distribution, it is INR 1,782 crore. In smart metering, it was INR 2,015 crore.
Some questions on the opportunities on the transmission side. FY 2025 was a great year. Do you see a similar pipeline in the next 12 to 18 months, or do you think the pipeline has declined to a certain extent? That is on the transmission and the smart meters. Similarly, if we can throw some, I believe that Tamil Nadu has floated an order. Is that right? Are there any other opportunities on the smart meters? Yeah. Thank you, sir.
Yeah, Mohit. Transmission will remain, the pipeline will continue to remain very healthy. INR 54,000 crore already under bidding at ISTS level. You must have seen that in a state like Maharashtra, in fact, we discussed that in the last call as well. All those transmission lines which are coming up for evacuation of green power, ISTS lines, all the states will also have to augment their transmission capacity to absorb the power in their area. We feel that there will be a lot of opportunity now at a state level. Maharashtra itself has a prepared plan of about INR 150,000 crore in the next six years, and many of the projects that they wanted to go through TBCB. We believe that the pipeline will continue to remain healthy for at least a couple of years, and there is absolute visibility about it.
As far as smart metering is concerned, there are three or four big states which they haven't yet finalized those smart metering contracts. One, obviously, among them is Tamil Nadu, who has floated the tender. The balanced one is part of Madhya Pradesh, where they did it in a few cities only. The rest of them is balanced. The entire state of Telangana, Karnataka, and half of Tamil Nadu because sorry, Andhra Pradesh. Andhra Pradesh also, last time they invited a bid for a limited number of meters. They haven't bid out all the meters. I feel about 10-11 crore meters that will come into a bidding. The timeline is not sure, but they will certainly be coming out. What we are focusing on right now is to improve our installation rate, which we have reached to already 27,000 meters a day.
Once we have that kind of a volume, we are in a position to install on the ground. We will also then participate in all these bids and try and maintain our market share.
Understood, sir. Thank you in all the way, sir. Thank you.
Thank you .
Thank you. Thank you, sir. We'll take the next question from the line of Dhananjay Bagrodia from ASK Investment Managers. Please go ahead.
Hi, sir. Congratulations on a good set of numbers. Just a couple of questions from my side. What is the CapEx we are looking at for FY 2026 on a consolidated basis? Hello?
Yeah. We are looking at CapEx of about INR 16,000-18,000 crore on FY 2026. The breakup of that would be around INR 1,600 crore in AEML that we continue to do. About INR 4,000 crore would be, minimum INR 4,000 would be in smart meters because we plan to do at least 7 million meters in this current year. In transmission, we will be doing about INR 12,000-13,000 crore.
Transmission, 12 to 13. Sir, any update on the privatization of any of the distribution arms we thought we were looking at earlier we mentioned for UP?
Yeah. UP, the process is going on. In fact, they also had a meeting with all prospective bidders. All the senior officials, including Chief Secretary, were present. They were very keen to take that process ahead. They already appointed a transaction advisor, Grant Thornton. I think they should be coming out with a bidding document in a month's time.
Okay.
Yeah. The government of UP seems to be committed, and they wanted to do it as early as possible.
Any idea what the, so this 16-18 thousand will not include this, and that would be over and above anything which comes?
Sorry, come again?
The 16,000-18,000 crore doesn't include the UP privatization. Anything for UP will be over and above it.
It is not. Anything relating to UP will be additional.
Okay. Sir, lastly, just now we're hearing so much on the ground side that so much government movement towards solar is increasing significantly. Are we seeing also more in terms of bid pipeline increase significantly going ahead? How are we seeing that for the next two, three years?
As I replied to Mohit, we see a very healthy pipeline both at CTU, meaning ISTS level. Now we will see a lot of opportunities coming up at a state level in a state like Maharashtra, Gujarat, Rajasthan, MP. In fact, MP recently came out with three-four bids under TBCB. Maharashtra has also initiated that process. REC has already published that bid document and tender notice. We will see a lot of traction from now state side as well, besides the ISTS projects.
Okay. Sure. Thank you, sir.
Thank you.
Thank you. The next question is from the line of Dhruv Mitchell from HDFC AMC. Please go ahead.
Yeah, sir. Thank you so much. The first question was on the metering business. You have spent about INR 2,000 crore in the quarter in terms of CapEx, right, sir? This is for the quarter. No, this is for the year. Sir, if I do this math of what is the implied installations that should have happened at this CapEx rate, that implies about INR 6,000 per meter is the CapEx cost. Is this in line with what you were expecting, or is there some error in how I'm doing the math?
The CapEx amount is correct. The number of meters which were installed was close to around 3.1 million meters. Plus, there is a certain inventory also which is carried in the books. Roughly around INR 500 crore is also an inventory which is carried for the smart meters. The per meter amount of the CapEx is roughly around INR 5,500 to INR 5,000 per meter, right? If you do that math, then the number of 3.1 million would match. You have to add the inventory which is also included in the CapEx amount. To answer your question, the actual cost number is exactly in line with the expected number that we planned. There is no change there.
Sir, how do you account for this INR 900, that subsidy that we get from the government, or is that not part of the estimates as of now?
INR 900 is an incentive which is given by the central government to the state discoms, and which the state discoms give as a part of lump sum advance as a part of the tariff itself. It does not materially impact the capital cost. It just helps in sourcing of that funds whenever I have to fund it. It is a part of the tariff itself.
How are you accounting for it? That does not come to you as a company. That comes to the state government or the state discom?
Yes, it comes to the state discom. Whenever we complete the installation, the state discom then passes it on a one-time lump sum basis to us as part of the tariff itself.
Okay. That is already part of your bid price. Whatever, INR 120 per meter, it is already part of that. That will not be separately accounted. Got it. Got it.
Yes. Yes.
Sir, the second question is just on a broader outlook on the transmission business. You have a very large order book now, and the execution is also improving. How do we see, and the pipeline also seems very healthy as of now, as you mentioned, INR 54,000 crore, plus probably some state bidding also can happen. How do you see, given the balance sheet plus the existing order book, can there be a meaningful addition to the order book still, or there could be a slowdown and focus more on execution now?
No, obviously, we will add projects only if that fits within our financial metrics and also execution metrics. We will not be taking projects just because we wanted to build the order book. We will only add the projects looking at what are the kind of CapEx that we are delivering on the ground. Suppose in case it slows down than our expected rate, then we would probably not take the project.
Got it. Got it. Sir, one interesting development, probably I will take that a little later, but in terms of execution of transmission, when I look at the under-construction projects, there have been some delays in terms of the timeline. Some projects were expected to commission, I think by March, have been delayed by a few months, probably only a few months. Just to understand, what are the major challenges in terms of the timeline? Because this probably leads to some revenue loss to us.
No, sir, the project that you are mentioning is we are delayed not because of delay on our part, but because it is a part of a system. You also need to be once those connecting elements are ready. When you do a transmission project, obviously, at a certain point, you will have a dependency on somebody's component coming up. We are not affected because of that. There are two ways of mitigating it. We continue to monitor those elements on which we are dependent. In that case, we will also regulate our pace accordingly. We do not end up in that case unnecessary IDC.
Okay. The revenue, if there is a delay on account of somebody else, you get a change in law or whatever?
Correct. Correct.
Loss period.
The approach is that you don't get into regulatory issues if that issue is manageable otherwise. We will try and make sure that we have limited or bare minimum regulatory intervention that requires for us.
Got it. Got it. Perfect. Great, sir. That's all. Thank you, and all the best.
Thank you.
Thank you. We'll take the next question from the line of Anuj Upadhyay from Investec . Please go ahead.
Yeah. Hi, sir. Thanks for the opportunity and congrats on the website, members. You mentioned about the commissioning of the transmission assets for FY 2026, the major one being the Mumbai HVDC. What will be the other major assets you mentioned, I guess, from six to seven projects which are likely to get commissioned for the current fiscal? Can you elaborate more on the projects which are likely to get commissioned?
Yeah. Anuj, another major one is Khavda phase II part A. Khavda 1 pooling station, which is extension 1 and RTM 1. North Karanpura, the project which has been delayed for quite some time because of those environmental issues. We aim to complete this project in the current year. The WRSR project. The Halwad project that is already under construction. Mumbai HVDC. All these projects. Khavda is about INR 1,300 crore. Khavda KPS 1 pooling station is about INR 900 crore. NKTL North Karanpura is about INR 1,000 crore. WRSR is about INR 2,100 crore. Halwad is about INR 2,700 crore. HUDC is about INR 7,000 crore.
Halwad, you said, sir, almost 2,400?
2,700.
Okay. In HVDC, 7,000.
Yeah.
Thank you, sir. Thank you, sir. The overall order book of around INR 60,000 crore which we have, how much of that could be converted into, I mean, what could be the revenue which we could determine or translate from the INR 60,000 crore of CapEx which we'll be doing over the next four to five years?
That will be close to about INR 8,250 crore for those pipeline of INR 60,000 crore CapEx. That will translate to about 13.77% tariff to CapEx ratio, which you will see it's a very healthy one.
Okay. Okay. How much would be the incentive income, sir, for the full year from this transmission availability?
Currently, we do about INR 130 crore. All these projects, once come in, could be about close to INR 200 crore.
This is for FY 2026, sir, or by the commissioning of this entire order?
130 was for the current financial year which we actually earned.
Right. Twenty-four. Right. And the two hundred was?
200 once all these projects are commissioned. You can say for FY 2026, 27, you will have an incentive of about INR 200 crore. Because these projects will get commissioned during the currency of the current year. It will not be a full operation. Full operation will be in 2027.
Got it. Got it. I missed out on the upcoming states who are probably planning to come out with a smart meter bidding and all. Last time, you had mentioned that around INR 10 crore is yet to happen for states like Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Madhya Pradesh. Will they just give the status of, I guess you mentioned, but your voice was not clear, so I missed out on that question.
You're right. Although states remain, they will come out with the bidding process. One of them, Tamil Nadu, has already come out.
Okay. Okay. Lastly, sir, on the Fatehpur-Bhadla HVDC, have we started the awarding process with OEMs?
Yeah. We have already executed that contract with Hitachi and BHEL. The work has already started on that project.
Thank you, sir. This was helpful from my end. I'm wishing you luck.
Thank you.
Thank you. Thank you, sir. We'll take the next question from the line of Xinran Pan from Loomis, Sayles. Please go ahead.
Hello. Can you hear me?
Yes, ma'am. Please do.
Yes. Thank you. I want to ask for smart metering business. What is the current EBITDA? I mean, how should we expect when we talk about 1 crore number of metering? How much annual EBITDA would that contribute to?
In the current financial year, we installed close to 3 million meters. The revenue was not that material, and therefore, it is not part of our segment reporting. From next year onwards, it could be a substantial number once we are able to achieve the 7 million additional meters plus 3 million or 10 million could get established next year. On the EBITDA estimate, around INR 1,350 per meter is the annual estimated EBITDA for smart metering business.
I'm sorry. For the EBITDA guidance, it's INR 13 crore-INR 15 crore per meter?
INR 1,300-1,500 crore.
1,300-1,500 per meter. That's?
Yeah. Correct.
Okay. Can I also ask, on the AEML level, is there any dividends payout stream planned to QIA?
The dividend would be as per the covenants which are there under the bond documents, whereby whatever is the surplus, whichever is there, would be available for distribution to the shareholders if at all there is available surplus. Plus, the company is more looking to deliver its balance sheet as you would have seen in the past two years or so. A combination of either dividend or repayment of the existing loan, including the shareholder loan, would be utilized from the available surplus at AEML level.
I see. Our next question is on the refinancing. I think the PPT mentioned you expect to refinance the Adani Transmission 26 bond with a new amortizing bond. Would this be onshore or offshore? Is there already some discussion, some progress you can share?
Sure. It is sometimes, I mean, yeah, incongruous.
Yeah. This one, all the options are from the table. We will activate those options about six to nine months prior to the actual refinancing.
Okay. Now, can I just ask, what's the current funding situation onshore for because your pipeline is actually quite substantial? How is the funding planned, the cost?
Kunjal, you want to take that?
Yeah, sure. All the projects which are under construction, almost all of them are currently tied up in terms of the financial closures with the Indian banks and the Indian financial institutions. Under the Indian banks, all these projects which are under construction have already been tied up.
Cost, Kunjal? If you can give an idea of the cost.
Cost would be around 9.5% of these under construction projects.
The way they are structured is once these projects become operational, the rating improves, and then the pricing drops below 9%.
That we have done recently for a few projects as well. Kunjal, you might like to give input about that part.
Yeah. What happens is that post-construction, our rating for transmission projects improves significantly. If you would have seen, most of our projects are either AAA or AA domestically rated. For AAA and AA plus ratings, we are able to achieve cost of around 8-8.5% from most Indian banks, Indian financial institutions, and even the domestic capital markets.
Okay. Just one last question. I think before we mentioned some HVDC line ramp-up. Does that refer to the MP package two that commissioned last year?
Sorry. Can you repeat your question?
I was just checking some old notes, and there was some SDVC line that referred to that we expect to ramp up. I just want to check on the progress of that.
What we communicated is that the Mumbai HVDC line is going as per schedule, and we plan to commission that project during Q3 of this financial year.
Okay. Thank you.
Thank you. The next question is from the line of Nikhil Nigania from Bernstein. Please go ahead.
Hi. Thanks for taking the question. My first question is on the distribution side. Beyond Uttar Pradesh also, are you seeing any other opportunities, possibly in early discussions for privatization of these comps?
Yeah. Nikhil, currently, it is only Uttar Pradesh who has undertaken that process. I believe if it goes through in Uttar Pradesh, it will set an example for a lot of other states as well. You might see a lot of distribution companies coming out with this kind of initiatives. The Uttar Pradesh one is also a fairly big one. They are planning to privatize two distribution companies out of their four distribution companies. They want to convert these two companies into five companies so that the size is manageable. Those would be around 12,000 million unit volume companies. Those five companies, they wanted to privatize.
Understood. These five companies, I mean, if you could share some color, their plan is to give it like one, no, one player can get more than one, or there's no restrictions, or it's too early to say?
Yeah. It's too early to say because they haven't issued the RFP yet. I think they will be issuing that RFP in maximum one month time. A lot of discussion has happened with the prospective bidder, with the MOP and everyone. I think they should be able to come out with that document very soon. Once we have that document, all those contours will be clear.
Okay. Understood that. My second question then was on the transmission side. When we speak to renewable companies, everyone highlights transmission as being a massive bottleneck for them. Given your present same transmission, same distribution, and we spoke about intrastate transmission as well as a new opportunity, I wanted to understand from a macro perspective on the grid, where do you see the biggest bottleneck which is happening? Is it interstate? Is it intrastate? Or is it just execution of all the interstate projects which is leading to such a situation?
It varies on a case-to-case basis. Sometimes you will find that ISTS line is ready, and wherever it is getting connected in any state, from there you have a bottleneck. Sometimes state is ready, and then you have a bottleneck in ISTS line. There are interesting cases as well. Recently, some of the transmission ISTS line which has to be completed for evacuation of Rajasthan Renewable Power, they got delayed. Project got commissioned, and that energy started coming into Gujarat through existing ISTS line, and that created problem in Gujarat. It is a very dynamic one. It depends on a case-to-case basis. What good thing has happened is having realized this problem, now coordination between all those generator, transmission players, and CEA, MOP, and CTU is very, very good now. In fact, Secretary Power takes a review meeting at every interval of one month.
CEA and CTU also keep on reviewing the situation regularly at the interval of 15 days. Whenever there is an issue, all these people get together and find a solution and push whatever that is required to be done.
Understood. Thank you. That's my one last question then. I mean, you have built a very sizable order book for Adani Energy. Would capital become a constraint? I understand, I think, what you mentioned to Dhruv earlier, that you won't bid for anything less than your return threshold. Would capital become a constraint in bidding for new projects, given the INR 16,000 crore work in hand that you already have for transmission?
I don't think that is going to be a problem. Anupam, would you like to?
Yeah, I'll take that. See, the way this works, Nikhil, is that today we've got about $1 billion of EBITDA, and that $1 billion of EBITDA will grow as and when more and more projects become operational, right? Our conversion ratio of EBITDA to FFO across our projects is about 50% odd. What that means is that that is the kind of cash flow available for us to reinvest. When we do these projects, transmission projects, there is a three- to four-year timeline of construction. Some projects are broadly three years on average. From that perspective, we will have a three-year CapEx outlay. That's how the equity and the debt will go. For smart meter, it is one year, but then within a year itself, you'd start generating cash flow. Distribution is self-funding.
If you put all of these three together, we still have a lot of capacity to build and put up more projects. We will be an active player, but we'll be very disciplined in terms of returns.
Understood, Anupam. Thanks for that. Appreciate that as well. Thank you so much. Those were my questions.
Thank you. We'll take the next question from the line of Sumit Jain from ASK Investment Managers Limited. Please go ahead.
Hello, sir. I'm just keen to know what is the capitalized asset base in transmission business currently, which is, let's say, March 2025?
Yes, just a sec. Total, all put together, we roughly have around INR 42,000 crore of asset base, of which distribution itself accounts for around INR 10,000 crore. The balance entire amount is towards the transmission assets.
INR 32,000 crore, roughly. Of this 32, how much would have got capitalized this year?
Out of 11,000 that we incurred, almost entire got capitalized, except for the INR 600-odd crore of the smart meter inventory, which did not get capitalized, and roughly around INR 1,000-odd crore, which is still under CWIP.
Okay. So roughly closer to about INR 10,000 crore, INR 9,500 crore got capitalized?
9,500 got capitalized.
In transmission business. In that case, when I look at.
All put together, all put together, we incurred INR 11,400 for all three businesses.
How much would be in transmission of this?
7,646. 7,646, to be precise.
Twenty-five thousand to thirty-two thousand is what we would have seen in terms of what is in capitalized base. Hello?
Out of the amount, 15,000, I mean, 12,000 that we are going to incur in the next year, around 9,000-10,000 would get capitalized. The balance would be CWIP on a progressing basis.
Okay. This is in FY 2026. For FY 2025, what you are saying is INR 11,000 crore got capitalized, and of which INR 7,650 is in transmission. Is my understanding right?
Correct. 11,400 was the 11,400 was the total CapEx, of which 7,600 was in transmission assets.
This is CapEx. And capitalized amount would be?
The capitalization, I'll come back to you, but roughly around INR 1,000-odd crore would be in CWIP. Out of INR 7,500, about INR 1,000-odd crore would be CWIP. INR 6,000-odd crore would be capitalized amount.
Got it. When I look at our operating EBITDA in transmission business, which is about INR 1,108 crore, that shows growth of just about 5% year on year. If our capitalization is INR 6,000-odd crore on a base of, let's say, INR 25,000 crore, that's about 25%. I mean, thereabout in terms of growth. Why has EBITDA increased only 5%?
EBITDA increased from INR 3,800 crore to INR 4,400 crore, which is 19% on a full-year basis.
I'm talking transmission business because capitalization can happen during the course of the year. Let's say one thinks about this quarter itself versus the last quarter, the entire 32, broadly thereabouts, would be giving us EBITDA, right? While EBITDA increases only 5% in this quarter versus the base quarter last year.
Correct. Operating EBITDA is 5.
Yeah. Logically, this should increase in line with the growth in our capitalized asset base.
Right. In the entire year, the operating EBITDA has grown 19%, which is in line with the capitalization which I had completed. I mean, based on the lines actually gets completed, the capitalization happens, and the tariff starts getting billed.
What you're saying is the right picture to look at is not necessarily on a quarter basis, but full-year number is what is the right number.
Correct. Because there could be overlay. Like in this financial year, there are certain lines which actually get billing would get started in the next financial year, and so would have happened in the previous financial year.
Sure. Got it. What is the difference between operating EBITDA and EBITDA? Why is EBITDA significantly higher than revenue itself in transmission?
The bridge between operating and EBITDA could be because of the EPC businesses, certain treasury incomes that we add, and the trading income that is the trading from the power businesses that we add. All put together, there could be a gap of around INR 500 crore-INR 600 crore each year.
Got it. Got it. Thanks a lot for this. Thank you.
Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yeah. Thanks for the opportunity once again. My first question is on the HVDC, which you won recently, that Khavda or Khavda. What is the timeline for execution, and is it being, and what is the timeline which you expect the financial closure to happen? I'm asking this question because this is slightly larger project site compared to.
The scheduled timeline for the HVDC to get completed is around 48 months, and we are looking to complete the financial closure in the next six to eight months.
Understood.
Mohit, there are two polls. First poll, 48 months, and second, 54 months.
Understood. I believe that we are facing some issues in general in procuring the HVDC terminals, so the government has allowed 54 and 60 months. Is that not correct? Have you signed the transmission service agreement?
We have signed the transmission service agreement, and we have also placed an order with Hitachi matching that required schedule under the TSA.
It is 48-54 months. That is right.
Yes. Yep.
What is the status of bids for HVDC, Khavda, Olpad, VSC scheme? Has the technical bids been submitted? When do you expect the financial base to open? A rough number, a broad guideline.
That bids submission has not happened. In fact, the final schedule for bidding should come anytime soon now. That bidding process, we expect it to get completed in another next three months, right up to the reverse bidding.
Understood, sir. Thank you, sir. Thank you, Anupam. Thank you.
Thank you.
Thank you. The next question is from the line of Ashwani Sharma from Emkay Global Financial Services. Please go ahead.
Yeah. Good morning, gentlemen, and congratulations for great set of performance. A couple of questions from the smart meter. First one is that out of that 10-11 crore smart meter pipeline that you mentioned, what would be probably our win target out of that?
We wanted to maintain our market share, which is about 22-23%. We'll target at least 2.2-2.3 additional crore meters.
Secondly, sir, again, the implementation. Is there a supply chain issue that you in dispatch due to this US-led tariff announcements? In here also, while implementation, is there a resistance from the residents as far as implementation is concerned?
There has been a resistance, not so great from residents, but those political interests, Western interest groups. Now things have sorted out in almost all geography. Last year, when we started, we deployed smart meter at the average of about 2,000 meter in quarter one. When we closed the year in quarter four, we had an average of about 18,000 meter a day. Currently, we are doing about 27,000 meter a day in April. Now, in fact, all those issues relating to public resistance and those deployment on the ground, manpower, their training, the supply chain, now everything has been sorted, and there are a lot of action in terms of implementation from our side. With this kind of a number, we are probably the highest in the country who is installing that number of meter in a daily basis.
Anything on U.S. tariffs, sir?
U.S. tariff does not impact us because we are a homegrown utility, and no services of us is either getting exported or we are not dependent on any services or goods that comes from the U.S. There is no impact on us.
Okay. Thank you very much.
Thank you. Participants, you may please press star and one to ask questions at this time. You may please press star and one to ask questions. The next question is from the line of Abhiram Iyer from Deutsche Bank. Please go ahead.
Hi, team. Congratulations on a good set of numbers. Could you just give out what the debt numbers and cash numbers would be at the different entities, the transmission business, the Mumbai distribution business, and the smart metering business? If you could also may ask, what would be the liquidity requirements at each of these entities over the next year, whether it's CapEx or any refinancing coming up? If you can help us elaborate a bit on what the company's plans are for these.
Sure. As outlined, the plan for next year is close to around INR 15,000-18,000 of the CapEx in the next financial year, which comprises distribution of INR 1,600-odd crore, which is a self-funded asset, so you do not need CapEx for that. INR 4,000 crore of smart meters, since it is also largely funded through internal accruals and working capital lines, immediately that would be around roughly 50% that would be partially funded through debt and partially through internal accruals and short-term lines. Transmission of around INR 12,000-15,000 crore, generally we do a borrowing of 70%-75% of the total cost. Currently, we have around INR 8,500 of cash and cash equivalents, and our net external debt is around INR 32,000-odd crore, which gives us a net debt to EBITDA of around close to 3.2x, which is at a comfortable position.
Thank you very much for the clarification.
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I would now like to hand the conference over to Mr. Kunjal Mehta for closing comments. Thank you and over to you, sir.
I would like to thank all the investors and the participants who participated in the call. In case you have any additional queries or clarifications, happy to take that post the call also. Thank you all for participating in the call.
Thank you very much, sir. Thank you, members of the management. On behalf of Adani Energy Solutions Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.