According to research, Adani Enterprises Ltd., the main business of the ports-to-energy conglomerate led by billionaire Gautam Adani, is expected to see net earnings increase by 45.8% and consolidated sales expand at a CAGR of 17.5% during the fiscal years 2023–2024 and 2027. The ports company Adani Ports & SEZ, the city gas distributor Adani Total Gas, the power transmission company Adani Energy Solutions, the renewable energy company Adani Green Energy, the power company Adani Power, and the commodities company Adani Wilmar are just a few of the successful companies that AEL, one of India’s biggest listed incubators, has conceived, grown, matured, and demerged.
In addition to building roads, data centres, green hydrogen, wind turbines, solar modules, and copper, the corporation is incubating airports.
“Adani Enterprises Ltd (AEL), the incubator of many successful industry-leading businesses, is ambitiously diversifying into green hydrogen and its ecosystem to drive future growth,” Ventura Securities said in the report.
“Despite stock volatility following US Department of Justice (US-DOJ) notice in November 2024, AEL has demonstrated resilience, supported by robust fundamentals and operational strength in FY25.”
Under the SIGHT scheme, SECI has awarded it a letter of award for an electrolyser manufacturing facility with an annual capacity of 101.5 megawatts.
A financing initiative called the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme encourages India to produce green hydrogen and electrolysers. The National Green Hydrogen Mission, which has a budget of Rs 19,744 crore through 2029–2030, includes the program.
A total of 300 MW of annual capacity has been granted.
The first plane landed at AEL’s Navi Mumbai International Airport. The Phase I data centres in Hyderabad and Noida have reached 95% completion, while the Chennai data centre’s uptime remains 100%. The development of the Ganga Expressway has progressed past the halfway point, and road projects in Telangana and West Bengal have been given provisional dates for commercial operations.
“Over FY24-27E, AEL’s consolidated revenue, EBITDA, and net earnings are expected to grow at a CAGR of 17.5 per cent, 37.5 per cent, and 45.8 per cent, reaching Rs 1,56,343 crore, Rs 28,563 crore, and Rs 9,245 crore, respectively,” the report said.
Net margins and EBITDA are expected to grow by 255 bps to 5.9 per cent and 647 bps to 18.3 per cent, respectively.
“Strong growth in airports and solar/wind turbine businesses and revenue
contribution from copper are expected to enhance financial performance
and profit margins. As a result, return ratios — Return on Equity (RoE) and Return on Invested Capital (RoIC) — are expected to improve by 563 bps to 14.5 per cent and 99 bps to 11.3 per cent, respectively,” it said.
Over the next ten years, AEL plans to invest between Rs 6.5-7 lakh crore in capital expenditures to expand into data centres, airports, copper, green hydrogen, and related industries. It is anticipated that debt will be the main source of funding for this, increasing net debt-to-equity and net debt-to-EBITDA from 1.2x/1.7x in FY24 to 1.8x/2.2x by FY27E.
The company raised Rs 800 crore through its first-ever public issuance of NCDs, the first of its kind by a non-NBFC private corporate in the past ten years, and Rs 4,200 crore through a QIP earlier this year with significant participation from both domestic and foreign investors. Additionally, through NCD issuances, the road company raised Rs 1,124 crore while the airport sector obtained Rs 1,950 crore.
Ventura invested Rs. 1.87 lakh crore in the AEL-owned airports business, Rs. 52,056 crores in the road sector, Rs. 29,855crorese in the coal sector, and Rs. 11,00croresre in the dacentreter sector.
While copper is worth Rs 27,442 crore and FMCG is worth Rs 47,775 crore, the green hydrogen and clean energy industries are worth Rs 1.86 lakh crore.
It further stated that AEL’s varied portfolio and strategic approach to company incubation continue to propel its expansion and solidify its position as a key contributor to India’s economic growth.
