In a significant development in the power distribution sector, Adani Energy Solutions Limited (AESL) has agreed to acquire 100 per cent of the equity shares of IntelliSmart Infrastructure Private Limited, a joint venture (JV) of the National Investment and Infrastructure Fund (NIIF) and Energy Efficiency Services Limited (EESL). The acquisition, valued at Rs 30.5 billion, will significantly expand AESL’s smart metering portfolio to over 47 million installed and contracted smart meters, making it the country’s largest smart metering platform and significantly strengthening its presence in the segment.
The acquisition comes at a time when the smart metering market is entering a phase of rapid expansion. Driven by the Revamped Distribution Sector Scheme (RDSS) and other enabling policy measures, smart meter installations across the country have increased sharply from limited pilot deployments during FY 2014-FY 2016 to nearly 50 million by FY 2026. The increasing adoption of smart meters is being driven by their growing role in enabling dynamic tariffs, demand-side management and new energy market opportunities. In addition, the government has extended the timeline for smart meter installations under the RDSS from FY2026 to FY2028, providing additional momentum to the roll-out. Coupled with the sector’s continued focus on digitalisation, this extension is expected to keep the smart metering market sizeable over the coming years and create long-term opportunities for private players.
Against this backdrop, the acquisition further strengthens AESL’s position in one of the fastest growing segments of the power sector. According to the company’s annual report for FY2025-26, AESL already accounted for 19 per cent of the RDSS smart metering projects, a share that is expected to increase following the acquisition.
Background
Incorporated in 2019, IntelliSmart Infrastructure Private Limited was previously a JV between the NIIF, which held a 51 per cent stake, and EESL, which held the remaining 49 per cent. Over the years, the company has emerged as a leading smart metering and digital solutions provider, offering end-to-end advanced metering infrastructure solutions. It has been actively involved in the large-scale roll-out of smart meters under the RDSS, working with utilities and other stakeholders to procure, deploy, operate and maintain smart metering infrastructure. Besides this, its offerings include consumer data management and artificial intelligence-and machine learning-based analytics, helping utilities improve operational efficiency and identify new revenue opportunities.
The company has also recorded strong business growth, with an authorised share capital of Rs 10 billion and a paid-up share capital of Rs 6.78 billion. In terms of operational performance, its turnover increased from Rs 850 million in FY 2023 to Rs 2,435 million in FY 2024 and further to Rs 6,213.2 million in FY 2025. At the same time, IntelliSmart built a smart metering portfolio of 22.2 million installed and contracted meters across key markets, including Uttar Pradesh, Gujarat, Madhya Pradesh, Bihar and Assam.
Meanwhile, AESL had a strong presence in the smart metering segment before the acquisition. As of 2025-26, the company had a smart metering order book of 24.6 million meters under 10 advanced metering infrastructure service provider contracts, with a revenue potential of Rs 295.19 billion. In addition, by the end of FY 2026, it had installed over 11.4 million smart meters across six states through cumulative investments of Rs 65 billion.
As such, the acquisition aligns with AESL’s strategy of pursuing value-accretive growth through both organic and inorganic growth routes. By combining IntelliSmart’s 22.2 million meter portfolio with its existing order book, AESL’s cumulative installed and contracted smart metering portfolio will immediately double to over 47 million meters. Besides expanding its scale, the acquisition will strengthen AESL’s execution capabilities, deepen its relationships with discoms and enhance its position in future smart metering tenders.
The timing of the transaction is also significant. According to the company, nearly 103 million smart meters still represent a countrywide market opportunity where public tendering is yet to commence. This underscores the significant headroom for future project awards and long-term value creation.
Beyond electricity metering, IntelliSmart has diversified its portfolio into smart gas metering. As part of this strategy, the company successfully executed India’s first smart gas metering pilot project under the total expenditure model for Assam Gas Company Limited, where it deployed over 1,500 smart gas meters. It is now implementing the next phase of the project, which covers an additional 11,000 smart gas meters. This not only creates an additional long-term revenue stream, but also provides AESL with an entry into the smart gas metering segment, an area identified by the company as a strategic growth opportunity.
Deal insights
On June 9, 2026, AESL signed a binding securities purchase and subscription agreement (SPSA) with the NIIF, EESL and IntelliSmart to acquire 100 per cent of IntelliSmart’s equity share capital. The transaction, valued at Rs 30.5 billion, also includes the redemption of the optionally convertible debentures held by the NIIF in IntelliSmart.
The acquisition is expected to be completed within 180 days of signing the SPSA, or on such other date as may be agreed by the parties. However, its completion remains subject to customary conditions precedent, including obtaining anti-trust approval from the Competition Commission of India.
The deal reflects AESL’s growing focus on the smart metering business. This comes at a time when the segment itself is witnessing rapid expansion. Between 2024 and 2026, industry-wide smart meter installations increased from 3.07 million to 52.91 million, representing a 17-fold rise. During the same period, AESL’s installations grew much faster, from 0.15 million to 11.43 million smart meters, representing a 76-fold increase. The company also invested Rs 35.56 billion in its smart metering business during 2025-26. The segment generated operational earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 4.52 billion, with an EBITDA margin of 78 per cent, highlighting its strong profitability.
Overall, the acquisition marks an important milestone for both AESL and India’s smart metering sector. For the company, it is expected to strengthen market leadership and create operational synergies through economies of scale. Commenting on the acquisition, Kandarp Patel, chief executive officer (CEO), Adani Energy Solutions, said, “The acquisition of IntelliSmart enhances our scale and execution capabilities and enables us to support India’s power distribution modernisation through technology-led solutions.” More broadly, the transaction reflects the growing maturity of India’s smart metering market and the increasing investor confidence in the segment.
It also marks a significant milestone for IntelliSmart and is expected to encourage further investment in digital power infrastructure. Commenting on the acquisition, Anil Rawal, managing director and CEO, IntelliSmart, said, “IntelliSmart is proud to be a part of this milestone transaction, which has created value for its stakeholders. This achievement is expected to catalyse further investments and accelerate the digitalisation of the power distribution sector, which is already emerging as a key driver of transformation across the country’s entire power value chain.”