Will surpass $11 billion in EBITDA this fiscal, Adani group tells investors 

The Adani Group has raised over $2 billion in equity this year

The Adani Group has told its investors that the conglomerate is set to surpass $11 billion in earnings before enterest, taxes, depreciation, and amortiaation (EBITDA) this financial year, marking an increase from $10 billion a year ago, sources told Moneycontrol.

According to details shared with a select group of investors, including some prominent international bond houses, the group said its asset base grew to Rs 5.53 lakh crore as of September 30, 2024, reflecting ongoing investments and expansions across various business verticals, with total capital expenditure (capex) for FY25 already exceeding $15 billion.

The Adani Group has raised more than $2 billion in equity this year. This includes $1 billion by Adani Enterprises Ltd (AESL), $600 million by Adani Energy Ltd (AEL), $444 million at the subsidiary level for Adani Green Energy Ltd and an additional promoter equity infusion of nearly $300 million in AGEL. EBITDA is expected to be close to $12 billion in CY24, it said.

The group’s total assets have increased to Rs 5.53 lakh crore to date. It told investors that its capital expenditure across verticals in the current fiscal reached Rs 75,500 crore in the first half of the year. It had guided for a capex of Rs 1.3 lakh crore for FY25. In a note to investors in August, the  conglomerate said it has enough cash to cover more than 30 months of debt payments and its businesses are firing on all cylinders.

The group's net debt increased by approximately $3 billion, driven by capital expenditure and business expansion, investors were told. The group said it maintains a relatively strong cash position of nearly $7 billion, which provides financial flexibility for growth initiatives.

A group spokesperson declined Moneycontrol's request seeking comments.

According to analysts, the recently announced stake sale in Adani Wilmar is expected to boost the group's liquidity, allowing it to raise additional debt of Rs 35,000–36,000 crore, creating a Rs 50,000–52,000 crore corpus.

Adani Green on November 21 cancelled  its proposed $600-million dollar-denominated bond fundraise after bribery charges were filed by US federal prosecutors against key group executives. The company announced its decision to scrap the bond issue in a regulatory filing, citing the indictment as the reason for its subsidiaries’ plans to defer the bond offering.

In an internal communication to employees on New Year's Eve, Adani Group chairperson Gautam Adani said capital is no longer a constraint but the true challenge lies in deploying it effectively. In 2025, the company's focus would be on technological advancements and talent, he said.