Adani Enterprise Limited - Research Report

Incorporated in 1993, Adani Enterprise Ltd. (AEL) is the flagship Company of the Adani Group and acts as the Group’s incubator for new businesses. All the listed companies/businesses viz – Adani Power Ltd., Adani Transmission ltd., Adani Ports and Special Economic Zone Ltd., Adani Gas Ltd, Adani Green Energy Ltd., and Adani Wilmar Ltd. were initially incubated under AEL and are now functioning independently. Currently it has business interests in various economic areas such as mining, integrated resources management (IRM), infrastructure such as airports, roads, rail/ metro, water, data centres, solar manufacturing, agro and defence.

On a standalone basis, AEL earns major revenue from Integrated Resource Management (IRM) and Mining Services, while on a consolidated basis other segment such as integrated solar PV cell & module manufacturing and Airport are the main contributors of the revenue and apart from shipping, bunkering, and agri-storage which are smaller contributors to AEL’s overall revenue and profitability.

Under its Integrate Resource Management, AEL has a leading position in India in the Integrated Resources Management business wherein AEL imports coal through its established coal sourcing arrangements with coal suppliers in Indonesia, Australia, and South Africa and sells to a diversified domestic clientele. Under the Mining business segment company’s operations are focused on mining business i.e. Developer & Operator (MDO - Coal & Iron Ore) and Commercial Mining (Coal) it operates several mines across India and is also developing and operating mines in Indonesia and Australia.

Under Solar PV Manufacturing segment Adani Solar is the largest integrated solar manufacturer in India. It has a manufacturing facility of 1.5 GW capacity along with Research and Development (R&D) facilities within an Electronic Manufacturing Cluster (EMC) facility located in Mundra Special Economic Zone (SEZ). Adani Solar’s manufacturing facility with multi-level infrastructure will be optimized for scaling up to 3.5 GW of modules and cells under a single roof. Company recorded Module sales of 3.3 GW during nine months on back of export growth of 20% and domestic sale increase of 176%. Company’s 3.3 MW WTG model of Wind Turbine got listed in RLMM, taking ANIL Wind business offerings to four listed WTG models. Its 400th Blade production milestone crossed during this quarter.

Under Road Development business segment Road projects are being undertaken by Adani Road Transport Ltd. Under the road segment, AEL currently has 14 ongoing projects and with 5 under the Build-Operate-Transfer model, 8 under Hybrid Annuity Model, and a project under the toll-operate-transfer model. Out of the above, 1 is operational, 1 is near completion and the rest are at various stages of completion.

Company also has projects for Data Centre and Water Segment. AEL is having two water projects being undertaken by Adani Water Ltd. AEL is developing data centers under Adani Connex which is a Joint Venture between AEL and Edge Connex. In the initial phase, Adani Connex is developing data centers in Chennai, Navi Mumbai, Noida, Vizag, and Hyderabad. Company has completed the Phase I of Hyderabad Data Center with capacity of 9.6 MW fully operational and Pune 1 & 2 Phase I crossed 50% completion.

The Adani Group has also forayed into the Airports sector in 2019, Adani Airports won the mandate to modernize and operate six airports - Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, Mumbai and Thiruvananthapuram – through the Airports Authority of India’s globally competitive tendering process. Adani Airports will operate, manage and develop all six airports for 50 years. The newest Navi Mumbai airport successfully conducted first commercial flight validation test and now a step closer to become operational and Mumbai Airport became first in India and third in world to receive prestigious Level 5 Accreditation from ACI for exemplary standards in customer experience. During the quarter company added 14 new routes, 4 new airlines and 9 new flights.

Fundamentals:

CMP	Rs. 2447
52 - week high / low	Rs.3,744 / 2,025
Dividend % (consolidated)	0.06%
ROE	9.73%
BV(Rs.)	363
Sales (Rs.)	1,00,109 cr.
Debt to Equity	1.92
P/E ratio	70.2
EPS (consolidated)	32.5
P/B ratio	6.4
Market Cap	Rs. 2,67,906 Cr.
Face value	Rs. 1
PEG Ratio	1.64

 

Financial Results:

Company’s 9mFy25, Revenue increased by 6% to Rs. 72,763 cr, EBITDA increased by 29% to Rs. 12,377 cr making it the highest ever so far and driven by continued strong operational performance by ANIL Ecosystem and Airports and PBT increased by 21% to Rs. 5,220 cr.

On segmental front, Company’s Adani New Industries Limited Ecosystem’s Revenue grew by 77% to Rs. 10575Cr, EBITDA grew by 121% to Rs. 3666Cr and PBT grew by 125% to Rs. 3033Cr. in 9mFY25 period. Its Airports business also reported 26% growth in Income and reached Rs. 7393Cr., EBITDA grew by 42% and reached Rs. 2527Cr. and it turned PBT positive in 9M FY25 from negative PBT in 9MFy24.

On operational front, ANIL Ecosystem reported 78% growth in Module Sales (MW) to 3273MW in 9MFy25 and WTG sets grew 13.8x in 9mFY25 and reached 104 sets. Airports reported 7%, 6% and 11% growth in Pax movement, ATMs and Cargo and reached 69.7Mn, 466,000 and 8.2Lacs MT respectively in 9MFy25.

Company’s Roads and Mining Services reported 6.5x and 45% growth in Construction and Dispatch while IRM business reported -28% degrowth in Volumes.

 

Latest Updates:

1. Adani Defence & Aerospace, in collaboration with the Defence Research and Development Organisation (DRDO), recently unveiled India’s public-private partnership-based Vehicle-Mounted Counter-Drone System at Aero India 2025. The Vehicle-Mounted Counter-Drone System ensures long-range protection, agility, and precision, making it a formidable asset for modern defence forces. It offers seamless protection through advanced sensor capabilities, including automatic detection, classification, and neutralization of drones.
2. AEL has plans to sell ~13% in Adani Wilmar Ltd to achieve minimum public shareholding requirements and Wilmar International has agreed to acquire~31% held by AEL in Adani Wilmar Ltd. With this, AEL will fully exit the Adani Wilmar Ltd platform. The company plans to utilize the proceeds from the sale for turbocharging growth in the core infrastructure platforms in energy & utility, transport & logistics, and other adjacencies in primary industry.
3. Sirius Digitech, backed by Adani & Sirius International Holding announces the acquisition of cloud platform company Coredge.io. The Acquisition will enable Sirius Digitech to provide cloud services to empower organizations in leveraging sovereign cloud innovations while retaining sensitive data within their boundaries. Coredge.io offers secure and compliant cloud services for AI applications safeguarding data sovereignty and supports clients across Japan, Singapore and India.
4. Adani Defence & Aerospace has signed a milestone cooperation agreement with EDGE Group, one of the world’s leading advanced technologies and defence groups in the UAE. The agreement aims to establish a global platform leveraging the defence and aerospace capabilities of both companies to bring together their respective product portfolios and cater to the requirements of global and local customers. This includes evaluating cooperation across EDGE’s and Adani’s core product domains, including missiles & weapons covering airborne, surface, infantry, ammunition, and air defence products, platforms & systems covering unmanned aerial systems (UAS), loitering munitions, counter drone systems, unmanned ground vehicles (UGV), as well as electronic warfare (EW) and cyber technologies.
5. Adani Airports recently reported handling of Over One Million Tonnes of Cargo to Achieve 7% Growth. Company’s Seven airports facilitated over 10 lakh metric tonnes of cargo capturing an impressive 30.1% market share. It Recorded a 7% y-o-y increase as compared to the previous fiscal year (9,44,912 metric tonnes). International cargo tonnage amounted to 662,258 metric tonnes, recording 9% y-o-y growth.
6. Adani One and ICICI Bank has also launched India’s first co-branded credit cards with airport-linked benefits in collaboration with Visa. Available in two variants – Adani One ICICI Bank Signature Credit Card and Adani One ICICI Bank Platinum Credit Card – they offer a comprehensive and substantial reward programme. The cards come with a plethora of benefits designed to enhance the cardholders’ lifestyle and elevate their airport and travel experience. They offer up to 7% Adani Reward Points on spends across the Adani Group consumer ecosystem like Adani One app, where one can book flights, hotels, trains, buses, and cabs; Adani-managed airports; Adani CNG pumps; Adani Electricity bills, and Trainman, an online train booking platform. Interestingly, the rewards are uncapped.
7. AdaniConneX, a 50:50 JV between Adani Enterprises and EdgeConneX, has established India’s largest sustainability linked financing to raise up to USD 1.44 billion. The financing has an initial commitment of USD 875 million, with an accordion feature to extend commitment up to USD 1.44 billion. The transaction elevates AdaniConneX’s construction financing pool to USD 1.65 billion, building on the maiden construction facility of USD 213 million executed in June 2023. The upcoming data center facilities will employ state-of-the-art technologies and renewable energy solutions to minimise the ecological footprint while optimising operational efficiency.
8. Kutch Copper, a subsidiary of Adani Enterprises Limited, commissioned the first unit of its greenfield copper refinery project at Mundra by dispatching the maiden batch of cathodes to customers. Adani Enterprises has invested nearly $1.2 billion to set up a copper smelter with 0.5 MTPA capacity in the first phase. On completion of the second phase that will add similar capacity, Kutch Copper, with 1 MTPA, will be the world's largest single-location custom smelter, benchmarking ESG performance standards while leveraging state-of-the-art technology and digitalisation. It will create 2,000 direct and 5,000 indirect employment opportunities.
9. Adani Defence & Aerospace recently inaugurated South Asia’s largest Ammunition & Missiles Complex. Spread over 500 acres, full spectrum of ammunition to be manufactured with an investment plan of INR 3000+ Crores with 4000+ jobs and 5X multiplier. The complex inhibits Industry 4.0 – state of the art automation including use of AI for quality.
10. In a landmark moment for the Navi Mumbai International Airport (NMIA; Airport Code: NMI), an Indian Air Force (IAF) aircraft successfully touched down on its South runway. The inaugural landing of the IAF C-295, a large multi-role tactical airlifter, represents a significant milestone in the Adani Group’s development of the greenfield international airport. NMIAL’s strategic location makes it one of India’s most prominent aviation hubs of the future, serving as a gateway to both Maharashtra and Western India. NMIAL is designed to accommodate both domestic and international passengers, featuring state-of-the-art facilities, including a 3,700-metre runway capable of handling large commercial aircraft, modern passenger terminals and advanced air traffic control systems. Terminal 1 is projected to handle up to 20 million passengers per annum (MPPA). The airport will ultimately have a capacity to handle 90 million passengers per annum (MPPA), along with 800,000 tons of cargo in its initial phase.

 

Capex fueled by High Debts: Total debt as on March 31, 2022, increased to Rs. 41,024 Cr (including unsecured loans from promoters of Rs.12,541 Cr) as compared to Rs.16,051 Cr (including unsecured loans from promoters of Rs.4444 Cr) in the previous year. For FY24, the planned Capex is Rs.48000 Cr with Rs.19,600 for ANIL, Rs. 8,000 Cr for the airport, and Rs.9000 Cr for the road segment. Post FY24, most of the Capex is expected to be incurred in ANIL.

Adani Enterprises Limited continues to be a significant growth driver within the Adani Group, with operations that align closely with India’s infrastructure and clean energy ambitions. Its presence across high-growth sectors — such as green hydrogen, airports, data centers, and mining — signals a clear long-term vision and strategic diversification.

From a financial standpoint, the company has demonstrated robust revenue growth with a CAGR of approximately 20% over the past five years, supported by continuous project execution and strong government-linked opportunities. However, its debt-to-equity ratio remains elevated, reflecting the capital-intensive nature of its ventures. Additionally, the company's EBITDA margins, though improving, remain sensitive to global commodity price fluctuations and policy developments.

For retail investors pursuing a growth-oriented strategy, Adani Enterprises represents a potentially rewarding investment, especially for those willing to ride short-term volatility for long-term gains. Given its scale, ambition, and alignment with macroeconomic trends, the stock offers substantial upside. That said, prudent investors should monitor leverage levels and diversify their portfolios to manage risk effectively.

HET ZAVERI

info@smartinvestment.in

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