Adani Electricity Mumbai gets AAA rating, first private power distributor to match sovereign grade

Adani Electricity Mumbai Ltd. has received a AAA credit rating, becoming the first privately owned power distribution company in India to achieve a rating on par with the sovereign, according to India Ratings.

“The rating upgrade reflects strong regulatory support, improving credit metrics and sustained deleveraging, supported by stable cash flows under a cost-plus regulatory framework,” India Ratings said in a statement.

Acquired in 2018 from Anil Dhirubhai Ambani Group, the Mumbai utility has seen a sharp turnaround under the Adani Group. Since the acquisition, the company has more than doubled its asset base to over ₹10,000 crore, through sustained capital expenditure to meet rising electricity demand in India’s financial capital.

India Ratings cited “timely and cost-reflective tariff orders issued by the Maharashtra Electricity Regulatory Commission,” adding that these have enabled “full recovery of past regulatory assets, including carrying costs, restoring regulatory balances to a surplus position as of the first half of fiscal year 2026.” Despite higher investments, consumer tariffs have remained largely stable, supported by prudent financial management and the Adani Group’s integrated power model. The distributor benefits from access to low-cost generation within the conglomerate, helping mitigate volatility in input costs.

India Ratings also highlighted the company’s deleveraging trajectory and expanding regulated asset base. “AEML’s regulated asset base is expected to exceed 100 billion rupees by fiscal year-end 2026,” the agency said, adding that gross adjusted debt to RAB is projected to decline below 1.0 times by then, supported by strong internal accruals and disciplined capital allocation.

Operational metrics have also improved. Distribution losses declined to 4.3% in the first half of fiscal 2026, while collection efficiency remains around 99%, India Ratings said.

The agency added that the utility’s entire long-term foreign currency debt is fully hedged, supporting “comfortable liquidity and low refinancing risk.” Of the total power procured by Adani Electricity Mumbai, 40% is from renewables, compared to less than 3% in 2019. The company has pledged plans to increase this to 60% by 2027, a move that would make Mumbai the first major global city with such a high share of green power in its supply mix.

Renewable supply is expected to come largely from Adani Green Energy Ltd, one of the world’s lowest-cost renewable power producers, alongside thermal supply from Adani Power Ltd, among India’s most cost-efficient coal-based generators.