The Adani Group has reached a significant financial milestone, with its consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) exceeding ₹90,000 crore for the first time on a trailing twelve-month basis. However, this record profitability comes alongside a substantial increase in borrowings, pushing the conglomerate's net debt to three times its historic EBITDA.
Record Breaking Financial Performance
According to a presentation released by the conglomerate on Monday, the Ahmedabad-based group reported consolidated EBITDA of ₹92,943 crore for the twelve-month period ending September 30. This marks an improvement from the ₹89,806 crore recorded during the previous fiscal year.
The diversified conglomerate, which spans thirteen listed companies across sectors ranging from cement manufacturing to airport operations, demonstrated improved performance across most of its businesses. The only exception was its resources trading and mining division, where subdued coal prices negatively impacted earnings.
After accounting for interest costs and tax obligations, the group generated ₹65,016 crore in free funds from operations during this period. This substantial cash flow provides the company with flexibility to service existing debt, fund expansion initiatives, or distribute dividends to shareholders.
Aggressive Expansion and Debt Concerns
During the first half of FY26, the Adani Group recorded its highest-ever capital expenditure for the period, according to Group CFO Jugeshinder Singh. In a press release, Singh emphasized that "our core infrastructure businesses continue to deliver strong double-digit growth even as we execute one of the largest capex programs, aligned with India's Viksit Bharat capex super cycle."
Despite the aggressive investment strategy, Singh noted that the group's debt metrics remained below the guided range. He made a striking comparison about the pace of growth: "What took 25 years to build, we are now gearing up to replicate within a single year, and as new assets become operational on schedule, we expect to sustain returns on assets of 15-16%."
The expansion came with increased borrowing, however. The group's net debt climbed to ₹2.79 trillion during the first half of FY26, up from ₹2.37 trillion at the end of FY25. This pushed the net debt-to-EBITDA ratio to 3 times, significantly higher than the 2.63 times recorded in March and representing the highest level in two years.
Debt Composition and Repayment Capacity
While multiple group companies increased their borrowings, the most substantial debt accumulation occurred at Adani Green Energy Ltd, which is pursuing an aggressive renewable energy capacity expansion. The company, currently developing the world's largest single-location renewable energy park in Khavda, Gujarat, now carries net long-term debt of nearly ₹70,000 crore with a net-debt-to-EBITDA ratio of 5.45 times, making it the most leveraged entity within the Adani Group.
The conglomerate's overall debt structure shows that half of its ₹3.05 trillion gross debt comes from domestic banks. The remaining debt is distributed among foreign banks (23%), foreign capital markets (18%), domestic capital markets (6%), and other smaller sources.
Despite the rising debt levels, the group's cash flows appear sufficient to manage maturing obligations. At the portfolio level, Adani Group's long-term debt has an average maturity of seven years. The long-term debt stands at approximately 3.82 times its free funds from operations for the trailing twelve months, meaning the group's cash generation would need nearly four years to repay all long-term debt, while the average repayment period is seven years, providing adequate buffer for debt servicing.
