Adani Group Achieves Record Financial Performance in FY25
Overview of Adani Group's FY25 Financial Results
The Adani Group has unveiled its financial results for FY25, showcasing remarkable achievements across its portfolio. The conglomerate reported an unprecedented EBITDA of ₹90,000 crore (approximately $10.5 billion), alongside a record capital expenditure of ₹1.26 lakh crore.
The total gross assets of the group surged to ₹6.09 lakh crore, reflecting a compound annual growth rate (CAGR) exceeding 25% from FY19 to FY25. Additionally, the profit after tax (PAT) reached a historic high of ₹40,565 crore ($4.7 billion), marking an impressive CAGR of 48.5% since FY19.
In terms of efficiency, the conglomerate achieved a Return on Assets (RoA) of 16.5% in FY25, positioning itself among the leaders in the global infrastructure sector.
The strong profit growth has positively impacted the company's debt levels, with the Net Debt-to-EBITDA ratio decreasing to 2.6x in FY25 from 3.8x in FY19. The group maintains a robust cash reserve of ₹53,843 crore, which has contributed to a declining cost of debt, now at 7.9%. Notably, 90% of the EBITDA is derived from high-quality AA-rated assets, with around half coming from top-tier AAA-rated assets.
Detailed Financial Highlights
FY25 marked a significant milestone for the Adani Portfolio, with EBITDA reaching an all-time high of ₹89,806 crore, reflecting an 8.2% year-on-year increase. When excluding non-recurring items, the growth rate is even more impressive at 18%.
A substantial 82% of the EBITDA is generated from the stable 'Core Infrastructure' segment, which includes Adani Green Energy, Adani Power, Adani Energy Solutions, and Adani Total Gas, as well as Adani Ports & SEZ.
The Cash After Tax (CAT) or Fund Flow from Operations (FFO) rose to ₹66,527 crore, an increase of 13.6%, driven by strong operational performance across various sectors.
The profit after tax (PAT) reached a record ₹40,565 crore, while the robust cash flows facilitated an unprecedented asset addition of ₹1.26 lakh crore, bringing total gross assets to ₹6.1 lakh crore, with three-fourths of this growth occurring in the last six years.
Prudent capital allocation and effective execution have enabled the Adani Portfolio to consistently achieve a Return on Asset (ROA) exceeding 15% over the past six years, with FY25's ROA at 16.5%, one of the highest in the global infrastructure landscape.
The significant profit growth has led to a marked reduction in leverage, with the portfolio-level Net Debt to EBITDA ratio decreasing from 3.8x in FY19 to 2.6x.
The strong financial performance has resulted in improved credit ratings, with nearly 90% of EBITDA now generated from assets rated 'AA-' and above, compared to 63% and 48% two and six years ago, respectively.
Consequently, the cost of debt for FY25 was recorded at 7.9%, down from 9% in FY24 and 10.3% in FY19.
In line with conservative credit policies, the Adani Portfolio maintains sufficient liquidity across its companies to meet debt servicing obligations for at least the next 12 months. As of March 31, 2025, the portfolio had a cash balance of ₹53,843 crore, representing 18.5% of gross debt, comfortably covering 21 months of debt servicing needs, exceeding the stated policy of 12 months plus one day.