The Adani Group has showcased impressive financial performance, despite facing external challenges. According to their latest H1 FY25 and Trailing-Twelve-Month (TTM) results, the group continues to see robust growth across key financial indicators.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged 17% YoY to reach USD 10 billion, marking a strong year-over-year growth. Additionally, funds from operations (FFO) reached USD 7 billion, reflecting an annual growth rate of over 30% over the past five years.
The group’s net debt-to-EBITDA ratio stands at 2.46x, comfortably below their target range of 3.5x-4.5x. This indicates manageable debt levels, while the group maintains strong liquidity across its portfolio, with reserves covering debt obligations for the next 12 months and beyond.
In the first half of the 2025 financial year, the Adani Group’s asset base expanded by USD 9 billion to USD 60 billion, while gross debt grew by only USD 2 billion. This shows that the group’s assets are growing faster than its debt. Notably, equity now accounts for 63% of total funding, reducing the group’s dependence on debt.
Looking ahead, debt maturities until FY2034 are well within manageable limits, even assuming no growth. This aligns with the group’s long-term strategy of investing USD 100 billion over the next decade.
Key Business Highlights:
- Energy, transport, and utilities continue to drive the group’s performance, contributing 86.8% of H1 FY25 EBITDA.
- Emerging sectors like green energy, airports, and roads saw EBITDA growth of 70.1% YoY.
- Adani Enterprises saw a 6% YoY increase in passenger volumes across airports, while solar module sales jumped by 91%.
- Adani Green Energy increased its operational capacity by 34% YoY and began a 500 MW hydro pump storage project.
- Adani Energy Solutions expanded its transmission network by 2,760 km.
- Adani Ports and SEZ reported a 9% growth in cargo volumes and benefited from acquisitions to boost operational capacity.
- Adani Cements raised its cement capacity to 97.8 million tonnes per annum through acquisitions.
Financial Strength:
- The group maintains a healthy cash reserve of INR 53,024 crore (as of September 2024), which accounts for 21% of its gross debt. This ensures liquidity for 28 months of debt servicing.
Key Financial Takeaways:
- EBITDA of USD 10 billion, a 17% increase YoY, signals strong growth.
- Funds from operations (FFO) of USD 7 billion, growing 30% annually for the last 5 years, reflects strong cash flow.
- A net debt-to-EBITDA ratio of 2.46x indicates manageable debt levels.
- A strong liquidity position ensures debt obligations can be met, with refinancing options for the next 12 months.
- Debt maturities through FY2034 are easily covered by the current FFO, even without growth.
- Asset base grew by USD 9 billion to USD 60 billion, with debt growing only by USD 2 billion.
- Equity now makes up 63% of total funding, showing reduced reliance on debt.
- Indian banking exposure stands at USD 11 billion, with a low net exposure due to USD 6 billion in cash held mostly with Indian banks.