Adani’s Ebitda, debt surge as businesses grow and group invests in growth

Mumbai: Adani Group’s consolidated earnings before interest, tax, depreciation and amortization (EBITDA) exceeded ₹90,000 crore on a twelve-month basis for the first time in the September quarter. But an even sharper rise in borrowings in the last six months means the conglomerate’s net debt is now three times record EBITDA.

Ahmedabad-based conglomerate consists of 13 listed companies and businesses Cement production to operating airports reported consolidated EBITDA ₹92,943 crore in the 12 months ending September 30. ₹89,806 crore in FY25, according to a presentation released by the conglomerate on Monday.

In this period, the performance of the group companies was affected by resource trade and Mining where low coal prices reduce earnings.

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After deducting interest costs and tax liabilities, the group received the resulting income. ₹65,016 crore free funds from operations during these 12 months; cash flow that it can use to pay down debt, invest in expansion projects, or distribute dividends to shareholders.

“Our core infrastructure activities continue to deliver strong double-digit growth even as we drive one of India’s largest capital expenditure programs aligned with the Viksit Bharat capex supercycle,” said Jugeshinder Singh, Group CFO. Adani Group said in a press release.

He said that in the first half of FY26, the conglomerate recorded its highest ever capital expenditure during this period. Despite this, the group’s debt indicators remain below the guided range, he added.

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“What took 25 years to build, we are now gearing up to replicate in a single year and expect to earn 15-16% return on assets as the new assets become operational as planned,” Singh said.

increasing debt

In the first half of FY26, the group’s net debt has increased so far: ₹2.79 trillion ₹2.37 trillion at the end of FY25. This increased the net debt to EBITDA ratio to 3 times from 2.63 times in March, the highest level in the last two years.

While borrowings increased in many group companies, the sharpest increase was experienced by Adani Green Energy Ltd, which is in the process of aggressive expansion in renewable energy capacity. The company, which built the world’s largest single-location renewable energy park in the Khavda deserts of Gujarat, is the most powerful company of the Adani Group. It has net long-term debt below. ₹Net debt to EBITDA is 70,000 crore at 5.45 times.

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But on average the group’s cash flows were more than sufficient to manage its debt as it came due. At the portfolio level, the average maturity of Adani Group’s long-term debt is seven years. Meanwhile, its long-term debt was approximately 3.82 times free funds generated from operations in the trailing twelve months.

In other words, the group’s long-term debt is just under four times the cash it generated in the last 12 months, with long-term debt due to be repaid in an average of seven years. This provides enough room for cash flows to repay debt.

Half of Adani Group’s gross debt ₹3.05 trillion borrowed from domestic banks. The other half is divided between foreign banks (23%), foreign capital markets (18%), domestic capital markets (6%) and other smaller sources.