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The Adani Group has announced a capital expenditure of INR 1.1 lakh crore for the financial year 2025-26, higher than this financial year's INR 92,000 crore allocation. The focus remains on core sectors such as energy and infrastructure. Senior officials indicated that INR 60,000 crore of this expenditure will be financed through internal cash generation, while the remaining amount is expected to be raised via equity and debt. The group has reduced the average financing cost of its long-term borrowings, resulting in significant savings. It also continues to raise funds through share sales and plans major investments through its subsidiaries.
The Adani Group has announced that it will allocate a capital expenditure of INR 1.1 lakh crore for the financial year 2025-26. This represents an increase from this financial year's INR 92,000 crore, with the group prioritising its core businesses in the energy and infrastructure sectors. Advertisement
According to senior officials, the proposed expenditure will be supported by an internal cash generation of INR 60,000 crore. The remaining funds are expected to be raised through equity and debt mechanisms.
Earlier this financial year (FY25), the group succeeded in reducing the average financing cost of its long-term borrowings from 10.4% to 8.1%, leading to savings amounting to INR 4,000 crore. Officials mentioned that they anticipate maintaining this cost reduction over the coming years, with the cost of capital for new borrowings forecast to decrease by 75-100 basis points.
As of FY25, the group's gross debt stood at INR 2.4 trillion, while its net debt amounted to INR 1.85 trillion. The group has been refinancing approximately INR 40,000 crore of debt annually, achieving an average saving of 1.72% in the process.
Officials mentioned in presentations to overseas investors that these savings are expected to continue for the next two decades.
During FY25, the group successfully raised USD 2 billion by selling shares in various group companies, including Adani Wilmar and Adani Energy Solutions. The capital raised was utilised for refinancing existing debt obligations and funding capital expenditure initiatives. Officials noted that, over the past five years, the group's market capitalisation had increased by 53%, while profit after tax (PAT) had risen by 49%.
The group attributed a large part of this growth to its improved PAT, indicating that the company's re-rating has not yet fully reflected its lower capital costs, stability, and liquidity. Over the past two decades, the Adani Group's market capitalisation has expanded by 32%, positioning it as a favourable long-term investment compared to its industry peers, according to officials.
Among the group's subsidiaries, Adani Ports & Special Economic Zone (APSEZ) plans to invest INR 80,000 crore in capital expenditure between FY25 and FY29 to drive organic domestic growth. Of this, INR 45,000-50,000 crore will be allocated towards domestic ports, while INR 20,000-25,000 crore will be directed towards logistics initiatives.
APSEZ is also exploring opportunities for port expansions. By 2030, the group has set a target of handling 800-850 million tonnes of domestic cargo, representing an 11% increase in domestic cargo throughput through 2031.
Additionally, the group's new airport in Navi Mumbai is expected to be commissioned by next quarter, making it the eighth airport within the Adani Group's portfolio.
By leveraging internal cash generation and external funding, the group aims to meet its ambitious capital expenditure plans. Subsidiaries like APSEZ are set to play a crucial role in enhancing port capacity and logistics. With the upcoming Navi Mumbai airport, the group continues to diversify its portfolio, reinforcing its position as a significant player in India's infrastructure development.
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