Adani Group Sees 33% Profit Surge and Lowest Leverage in Years

The Adani Group, led by billionaire Gautam Adani, reported a big jump in profits for the April-June quarter. Their earnings before interest, taxes, depreciation, and amortization (EBITDA) soared by 33% to ₹22,570 crore. This increase brought their total EBITDA for the past year to ₹79,180 crore, up 45% from the previous year.

Net profit also surged by over 50% to ₹10,279 crore in the first quarter of the 2024-25 fiscal year. The strong performance was mainly driven by the group’s core infrastructure businesses, which make up over 80% of their EBITDA. These core operations saw a 41.6% increase in EBITDA compared to the same period last year.

Key highlights include:

• Adani Enterprises Ltd: EBITDA rose 46% to ₹4,487 crore, and net profit more than doubled to ₹1,776 crore.
• Adani Green Energy: EBITDA increased by 30% to ₹2,866 crore, with net profit nearly doubling to ₹629 crore.
• Adani Power: Profit jumped 54% to ₹3,490 crore.
• Adani Ports & SEZ: Profit grew 47% to ₹3,107 crore.
• Adani Total Gas: Smaller profit growth of 14.4%, reaching ₹172 crore.

The group’s new infrastructure businesses, including solar and wind manufacturing, airports, and roads, contributed significantly to growth, with their EBITDA rising 70% to ₹2,991 crore. The company’s leverage (net debt to EBITDA ratio) is at its lowest in years, standing at 2.2x.

Adani Green Energy is expanding its solar and wind operations, with solar module sales up 125% and construction of a new 500 MW hydro pump storage project. Their airport business saw strong growth with passenger numbers surpassing 90 million for the first time, and the road construction segment completed its highest-ever 730 lane-km during the quarter.

The group has also made significant investments in the cement sector, injecting ₹15,000 crore into Ambuja Cements and acquiring Penna Cement, increasing their total cement capacity to 89 million tonnes per year.