Adani Group’s Q1 FY25 Results Highlight Resilience and Strategic Growth Across Sectors

The firm experienced an uptick in its earnings by 13% year-over-year to Rs. 26,067 crores, the significant revenue increase was largely attributed to exceptional operational results in both the ANIL Ecosystem and the company’s airport operations. EBITDA showed significant improvement, increasing by 48% to Rs. 4,300 crores.

Profitability metrics advanced significantly, with profit before tax more than doubling, rising by 107% to Rs. 2,236 crores. Profit after tax attributable to owners exhibited even stronger growth, surging by 116% to Rs. 1,458 crores. Cash accruals demonstrated robust expansion, growing by 81% to Rs. 2,704 crores.

Operational highlights showcased impressive developments across various business segments. Solar module exports skyrocketed by 109% to 808 MW, while ANIL WTG achieved a milestone by crossing its 200th blade production during the quarter. Furthermore, ANIL WTG received the final type certificate for its 3 MW wind turbine, marking a significant technological advancement.

The Airports segment demonstrated strong performance, with passenger movement crossing 90 million for the first time on a trailing twelve-month basis, indicating a robust recovery in air travel demand. The company’s incubating businesses, particularly the ANIL Ecosystem and Airports, also recorded impressive performance. The Airports segment experienced a 27% rise in total income, growing from ₹1,711 crore to ₹2,177 crore.

Adani Group maintained a strong growth trajectory across its diverse portfolio, showcasing resilience and adaptability in various sectors. The substantial improvements in revenue, EBITDA, and profitability metrics position the company well for sustained performance in FY25, despite potential market challenges.

The ANIL Ecosystem saw its total income surge by 1.4 times to ₹4,519 crore in Q1 FY25, with EBITDA multiplying by 3.6 times to ₹1,642 crore and PBT rising by 4.1 times to ₹1,425 crore. Despite the PBT remaining negative, it improved to a loss of ₹89 crore. The Airports segment saw a 7% increase in passenger movement to 22.8 million and a 7% rise in ATMs to 152.1 thousand. The Roads segment reported an 8.1-fold increase in construction volume, while Mining Services saw a 47% increase in dispatch volume. However, IRM segment volumes fell by 13%. Additionally, 41 WTG sets were produced in Q1 FY25. These developments across various segments underscore Adani Group’s strong growth trajectory, with a focus on renewable energy and strategic expansion in key sectors.

Consolidated Financial Highlights: (Figures in Rs. Crs)

Operational Highlights:

Industry Overview:

India is endowed with a diverse range of minerals, including fuels, metallic, non-metallic, atomic, minor, and rare minerals, positioning it as a strong player on the global stage. The capacity to produce, process, utilize, and recycle these resources will be critical in the future. Despite the global shift toward renewable energy, coal still represents 50% of India’s energy mix. The country is steadily progressing toward an annual coal production of 1 billion tonnes, with an ambitious target of 1.5 billion tonnes by FY30 to meet rising energy demands. Although coal demand is expected to grow, initiatives like coal gasification are being pursued to meet energy requirements while also addressing sustainability objectives. Beyond coal, India’s mineral sector, including metals and rare earth elements, is on the brink of significant growth. As the world’s fifth-largest economy, with a GDP of approximately USD 3.6 trillion and a growth rate of 7.3%, India has a strong demand for copper, aluminum, steel, and rare earth minerals, which are vital for industries such as construction, electronics, and renewable energy. Over the last 20 years, the consumption of refined copper in India has tripled, driven by these expanding sectors. ANZ Research forecasts a strong decade for Southeast Asia and India, predicting substantial growth in global copper demand. CRU, a global market intelligence provider for mines and metals, projects India’s demand for refined copper to rise to 1,200 KT by 2028, up from 819 KT in 2023. The global iron ore market is expected to grow from 2.5 billion metric tonnes in 2023 to 2.7 billion metric tonnes by 2026, with a CAGR of 3%. India’s strong steel industry drives its iron ore consumption, creating significant opportunities for Mine Developers and Operators (MDOs) within the country. Additionally, India’s aluminum industry, supported by substantial bauxite reserves, particularly in Odisha, Chhattisgarh, and Jharkhand, is showing remarkable growth. The industry’s shift toward value-added products like extrusions and rolled products has increased its competitiveness and integration into global supply chains. By embracing modernization and technology, these industries have improved productivity and efficiency while reducing energy consumption and emissions. Government initiatives like “Make in India” and “Atmanirbhar Bharat” are further boosting the growth of the aluminum, copper, rare mineral, and other metal industries by promoting domestic manufacturing and innovation. As India advances towards sustainable practices and digitalization, these sectors are poised for a bright future, driven by increasing urbanization and industrialization, which offer significant opportunities for growth and investment.

Business Updates

Scheme of Arrangement for Food FMCG business:
Adani Enterprises, serving as an incubator, remains committed to fostering new businesses and generating sustainable, long-term value for its stakeholders. Over the years, we have established a strong track record of successfully nurturing ventures across various sectors, many of which have become leading players in their respective industries, delivering significant returns to shareholders. The food FMCG segment has now become self-sustaining, showing strong performance, and is well-positioned for further growth under AWL. This arrangement not only aims to unlock value for AEL’s shareholders but also allows the company to concentrate on a focused strategy for sustainable growth within its incubating businesses.

Adani New Industries Ecosystem has made significant strides in solar and wind turbine manufacturing. In solar manufacturing, module sales rose by 125% year-on-year, reaching 1,379 MW, with exports up by 109% and domestic sales growing by 151%. The company saw an improvement in EBITDA margins, fueled by cost reductions from the TopCon cell line, which became fully operational on March 31, 2024, along with decreased raw material expenses. In wind turbine manufacturing, Adani submitted an RLMM listing application for its 5.2 MW prototype 2, which utilizes ANIL blades. A key milestone was reached with the production of the 200th blade during this quarter. AdaniConnex Pvt Ltd (ACX), focused on data centers, also reported progress. The Noida Data Center is 89% complete in terms of construction for its 50 MW core and shell plus 10 MW MEP. Construction progress on the data centers varies by location. In Hyderabad, the initial stage is nearing completion, with 94% of work done on facilities that will offer 9.6 MW of capacity. Meanwhile, the Pune project’s first phase, also designed for 9.6 MW, shows different levels of advancement across its components, with completion rates at 20% and 38% respectively.

The image added is for representation purposes only