Adani to invest USD 14 billion (~INR 1.2 lakh crore in FY25), 40% higher than FY24: Sources

• USD 14 billion investment in FY25, 40% higher year-on-year
• More than 70% will be towards green energy
• Most of the remaining will go into fast growing Airports and Ports businesses
• These investments will set the stage for exponential profit growth
• In December quarter, Adani’s portfolio reported record EBITDA growth of 63.6% Y-o-Y, taking its twelve month EBITDA to all-time high of USD 9.5 billion (INR 78,823 crore) in CY23
• Increasing cashflows from fast growing profits have set stage for mega-scale investments.

Adani, the poster boy of Indian infrastructure has made an investment plan of USD 14 billion (~INR 1.2 lakh crore) in FY25 through its portfolio of 11 listed companies, in developing the country’s infrastructure according to sources . The projected capex is 40% higher than its capex for FY24, which is estimated at ~USD 10 billion.

India’s largest infrastructure conglomerate with showcase projects like Navi Mumbai Airport, Ganga Expressway, world’s largest renewable park at Khavda and Mundra Port has committed a USD 100 billion investment over the next 7-10 years. This investment will play a pivotal role in transforming India’s energy and transportation landscape.

With strong emphasis on green energy transition, it will be allocating more than 70% of this USD 100 billion to its green businesses including renewable power, green hydrogen , green evacuation transmission lines etc. The conglomerate is building world’s largest renewable park at Khavda, Gujarat, spanning over 530+ square km area—five times the size of city of Paris.

A large portion of total investments is earmarked for expansion and development of its fast-growing airports business and ports business. With a portfolio boasting 8 airports including the upcoming Navi Mumbai airport and 14 domestic ports, Adani wants to further solidify its presence in these sectors.

In the December quarter, it reported record quarterly EBITDA growth of 63.6% year-on-year, taking its twelve-month EBITDA to all time high of USD 9.5 billion(INR 78,823 crore) in CY23, thanks to its investments in previous years. The net debt to EBITDA at the end of September was 2.5x, which is expected to further reduce by end of FY24, due to strong growth.

With higher investments, it is setting stage for an exponential growth in the coming years said the source. In a media statement released in February, the group said that increasing cashflows and its robust credit profile has set stage for unrivalled ‘Green Investment.’