Adani to invest $14 billion in FY25

Adani group plans to invest more than ₹1.2 lakh crore (about $14 billion) across its portfolio companies

Adani group plans to invest more than ₹1.2 lakh crore (about $14 billion) across its portfolio companies that range from ports to energy, airports, commodities, cement and media in fiscal year starting April 1, as it doubles down on its $100 billion investment guidance over the next 7-10 years to grow businesses, sources said.

The projected capital expenditure or capex for 2024-25 (April 2024 to March 2025) fiscal is 40% higher than what the portfolio is estimated to have incurred in FY24.

According to analysts, the portfolio is estimated to have incurred a capex of around $10 billion in FY24 that ends on March 31.

Sources said these investments will set the stage for exponential profit growth.

The group had previously guided a $100 billion capex over the next 7-10 years. Most of this investment is going to go into group fast growing businesses – renewable, green hydrogen and airports.

As much as 70% of the planned capex will go into its green portfolio – primarily renewable power, green hydrogen, green evacuation. Of the remaining 30%, the majority will be spent towards airports and ports businesses, they said.

In calendar year 2023, the portfolio delivered a $9.5 billion EBITDA (up 34.4% year-on-year), while its net debt has reduced by 4% from March 2023 to September 2023 (balance sheet figures are only declared half yearly).