Adani Groups Credit Profile Sees Sharp Rise As Debt Declines Steadily

The Adani Group’s net debt to Ebitda ratio has consistently declined over the last five years, leading to an improvement in credit profile even as the conglomerate’s operating profit soared.

The group’s net debt for the first time is below 2.5 times its Ebitda — at 2.19 times in FY24, according to an investor presentation. This, despite a series of global headwinds in the last five starting from the Covid-19 pandemic to the Russia–Ukraine war to a short seller-triggered event and the Middle East conflict.

Moreover, 24.77% of gross debt is in form of cash balances providing liquidity cover of over 30 months of debt servicing. For the first time, equity deployed in assets is now above 60% and stands at 62%.

Cash reserves of Adani portfolio companies are at the highest levels ever at Rs 59,791 crore. Net debt in FY24 stood at Rs 1.81 lakh crore.