Adani group's Ebitda may go past Rs 1 trn in FY25 on infra, power biz

Cement, power, and green energy expected to contribute 86% to growth

Adani group is on track to surpass a combined Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 1 trillion in the ongoing financial year (FY25) as it prepares for a $2 billion (over Rs 16,700 crore) share sale by its flagship entity Adani Enterprises next month, according to a source close to the matter.
 

For the financial year ending March 2024, the group reported a combined Ebitda of Rs 82,917 crore, according to a presentation made to the bankers. This significant increase is anticipated due to the growth in its core infrastructure sectors, bolstered by recent acquisitions of Penna Cement and Sanghi Cement. The group’s cement, power, and green energy businesses are expected to contribute 86 per cent to this year’s Ebitda.
 

Across its 10 listed companies, the Adani group is investing nearly $15 billion (Rs 1.2 trillion) in the current financial year, raising equity funds to support these initiatives. Over the next decade, the conglomerate plans to invest an additional $100 billion (Rs 8.3 trillion) in various infrastructure projects, with a detailed funding strategy already in place, according to senior company executives.

To attract investors, the group is conducting road shows globally. Last week, the promoter family sold a minority stake in Ambuja Cements as part of their portfolio rebalancing efforts and may consider selling an additional 3 per cent in Adani Power.

 

In terms of debt exposure, data reveals that Indian lenders have increased their exposure to the Adani group over the past year. Prominent public sector banks, including State Bank of India, REC, PFC, Bank of Baroda, Union Bank of India, and Canara Bank, as well as private banks like Axis Bank, ICICI Bank, and HDFC Bank, have extended funds for various projects. The group’s net debt decreased to Rs 1.81 trillion in the financial year ending March 2024, down from Rs 1.86 trillion in FY23.
 

Among its companies, Adani Power is actively acquiring major electricity generation projects. It has emerged as the highest bidder for KSK Mahanadi, a bankrupt power firm, with an offer of Rs 27,000 crore. Additionally, it is in the process of acquiring Lanco Amarkantak for Rs 4,100 crore, and is negotiating the purchase of Vidarbha Power.
 

Shares of Adani Enterprises closed at Rs 3,068 a share on Monday, up by 7.7 per cent since January this year. The benchmark BSE Sensex is up 26 per cent this year since January.