In a major financial milestone, Adani Electricity Mumbai Ltd has secured a AAA credit rating, becoming the first privately owned power distribution company in India to achieve a rating equal to the sovereign level.
According to a rating agency, the upgrade reflects “strong regulatory support, improving credit metrics and sustained deleveraging, supported by stable cash flows under a cost-plus regulatory framework.” The Mumbai utility was acquired in 2018 from the Anil Dhirubhai Ambani Group and has since recorded a strong turnaround under the Adani Group.
Since the acquisition, the company has more than doubled its asset base to over ₹10,000 crore through steady capital expenditure to meet rising electricity demand in India’s financial capital. The rating agency cited “timely and cost-reflective tariff orders issued by the Maharashtra Electricity Regulatory Commission,” which 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 stayed largely stable due to prudent financial management and the Adani Group’s integrated power model. The distributor benefits from access to low-cost generation within the group, which helps reduce exposure to input cost volatility. The agency also pointed to the company’s steady deleveraging and expanding regulated asset base.
“AEML’s regulated asset base is expected to exceed ₹100 billion by fiscal year-end 2026,” the agency said, adding that gross adjusted debt to RAB is projected to fall below 1.0 times by then, supported by strong internal accruals and disciplined capital use.
Operational performance has also improved. Distribution losses declined to 4.3% in the first half of fiscal 2026, while collection efficiency remains close to 99%. The agency noted that all 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% now comes from renewable sources, compared with less than 3% in 2019. The company plans to raise this share to 60% by 2027. This would make Mumbai the first major global city to source such a high proportion of power from green energy. Renewable supply is expected mainly from Adani Green Energy Ltd, along with thermal supply from Adani Power Ltd.
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