energy
Adani Energy Solutions
ADANIENSOL · Nifty 50
₹1,491
Price 2026-06-17
At a Glance
Fundamental
70/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Adani Energy Solutions scores 70/100 on fundamentals (strong). Adani Energy Solutions: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 70/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 9.4% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 9.42% is modest margin-driven and stable. Net margin of 8.8% × asset turnover of 0.29x × leverage of 3.7x.
What This Means
Net margin of 8.8% means the company keeps ₹8.8 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.29x means the company generates ₹0.29 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 3.7x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
47.2%
Operating
25.3%
Net
8.8%
Gross margin 47.2% → operating margin 25.3% → net margin 8.8%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 4.6x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
STRETCHEDInterest covered only 1.9x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 5.5x is high — monitor leverage.
Free Cash Flow
MODERATEFCF margin negative at -12.6% — spending more than earning. Check capex cycle.
Peer Comparison
Adani Energy Solutions is compared against 10 peers in the energy sector.
Key Watchpoints
Breaks above ₹1566 (+5%)
Trend reversal confirmation
Breaks below ₹1416 (-5%)
Further downside risk
PE reverts to 5Y median of 55.8
Valuation normalization
Energy sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Working capital is providing significant cash. Stretching payables — temporary boost.
Modern asset base. Lower near-term capex requirements.
Collection cycle changing. Collection improving — positive for cash flow.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes