Regardless of the challenges from outside, in its recent H1 FY25 and trailing-twelve-month results, Adani Group has demonstrated excellent financial health with steady growth. The Trailing-Twelve-Month EBITDA jumped 17% YoY to reach a level of USD 10 billion. Likewise, FFO showed excellent annual growth of more than 30% for five continuous years, reaching USD 7 billion.
The net debt-to-EBITDA ratio is at 2.46x, way below the guidance range set by the group for 3.5x to 4.5x. Liquidity remains robust across portfolio companies, with reserves across them offering full coverage for debt obligations over the next 12 months and beyond. In H1 FY25, the Adani Group’s asset base expanded by USD 9 billion to USD 60 billion, while gross debt merely increased by USD 2 billion. Incidentally, equity is now 63% of total funding.
The group’s debt maturities are well within manageable limits through the 2034 financial year, even under a no-growth scenario, in line with its long-term strategy of investing USD 100 billion over the next decade. Energy, transport, and utilities-Adani Group’s core infrastructure sectors-remain the key performance drivers, comprising 86.8% of the H1 FY25 EBITDA. Emerging sectors like green energy, airports, and roads reported an impressive EBITDA growth of 70.1% year-on-year.
The airports business saw passenger volumes rise 6% YoY in Adani Enterprises. The Solar Module business had a much spurt with a surge of 91%. Adani Green Energy announced 34% YoY growth in operational capacity and commenced development work at a 500 MW hydro pump storage project.
Adani Energy Solutions added 2,760 circuit kilometers to its transmission network and was awarded three new projects. In addition, cargo volumes at Adani Ports and SEZ increased 9% YoY, driven by strategic acquisitions. The recent acquisitions also took the capacity of Adani Cements up to 97.8 million tonnes per annum.
As of September 2024, the cash reserves of the Adani Group were at INR 53,024 crore, which is 21% of gross debt and covers liquidity for 28 months of debt servicing.
The trailing twelve-month EBITDA reached USD 10 billion, indicating robust growth. Funds from operations of USD 7 billion reflect sustained cash flow growth of more than 30% annually for five years. Net debt to EBITDA of 2.46x indicates reasonable levels of debt. Strong liquidity across portfolio companies is adequate to cover all debt obligations in the next year.
Manageable debt maturities until FY 2034 mean current FFO can cover upcoming maturities even without growth. The asset base has grown by USD 9 billion to USD 60 billion. This represents faster growth in assets over debt. Equity constitutes 63% of total funding, indicating lower dependence on debt. Exposure to Indian banking stands at USD 11 billion, which presents a low net exposure after considering USD 6 billion in cash, largely held with Indian banks.
