The Adani Group has significantly increased its reliance on Indian lenders, with domestic banks and financial institutions now responsible for half of its staggering debt, which exceeds Rs 2.6 lakh crore, The Times of India reported on August 25. This marks a notable rise from 40% just a year ago, as the conglomerate navigates a changing financial landscape characterised by lower local funding costs and improved credit ratings, ToI's report (by Mayur Shetty) said.
In the twelve months leading up to June 2025, the Adani Group's overall debt surged by 20%. By the end of this period, loans in rupees constituted 50% of the total borrowings, balancing the proportion of dollar-denominated debt.
Public sector banks (PSUs) have notably increased their exposure to the group, raising their share of the total debt from 13% to 18%. Meanwhile, non-banking financial companies (NBFCs) and other financial institutions have also heightened their stake, now holding 25% of the total, up from 19% last year.
The trend reflects a broader shift in the group's financing strategy. Dollar bonds, once accounting for 31% of borrowings, have decreased to 23%, while the share of dollar loans from foreign banks has slightly dipped to 27%. Private banks have maintained a steady involvement, holding 2% of the total despite a 20% increase in lending.
This rapid increase in Indian banks’ exposure -- up by $15 billion (approximately Rs 1.3 lakh crore) in just two years --has solidified their critical role in the Adani Group's financial operations.
The conglomerate has communicated to investors that it has improved its credit ratings by ensuring stable cash flows through long-term contracts in sectors such as ports and power, all while keeping its leverage below industry averages.
The Adani Group's financial health is also bolstered by substantial cash reserves amounting to Rs 60,000 crore, equating to about a quarter of its total debt. This reserve acts as a buffer, providing a cushion against potential financial volatility.
Recent transactions further illustrate this shift towards local funding. For instance, Adani Airport secured $150 million through a syndicated loan from several international banks, while Adani Ports also engaged in bilateral borrowing, securing $125 million from MUFG.
Simultaneously, the group has reported strong earnings, with FY25 marking a record EBITDA of Rs 89,806 crore, an increase of 8.2%. The profit after tax reached Rs 40,565 crore, while capital expenditure surged to Rs 1.26 lakh crore. Despite the rising expenditures, a net debt-to-EBITDA ratio of 2.6 suggests that the group's leverage remains manageable.
With over 90% of its earnings linked to AA-rated or higher assets, the Adani Group has successfully secured lower funding costs and ensured continued access to both domestic and foreign capital. Internationally, it remains India's largest issuer in offshore markets under the 144A/Reg S route, having raised an impressive $9 billion across various maturities, including terms extending up to 30 years.
The group has refined its issuance programme, the largest by any Indian borrower, attracting more than 200 global investors. The interest is notable from regions including Asia (34%), the US and Canada (31%), and the EU (24%).
Over the past seven years, the Adani Group has refinanced $2.7 billion of its debt, facilitated by closer collaboration with credit rating agencies like Moody's, Fitch, and S&P, which have recently upgraded some of the group's companies.
In the twelve months leading up to June 2025, the Adani Group's overall debt surged by 20%. By the end of this period, loans in rupees constituted 50% of the total borrowings, balancing the proportion of dollar-denominated debt.
Public sector banks (PSUs) have notably increased their exposure to the group, raising their share of the total debt from 13% to 18%. Meanwhile, non-banking financial companies (NBFCs) and other financial institutions have also heightened their stake, now holding 25% of the total, up from 19% last year.
The trend reflects a broader shift in the group's financing strategy. Dollar bonds, once accounting for 31% of borrowings, have decreased to 23%, while the share of dollar loans from foreign banks has slightly dipped to 27%. Private banks have maintained a steady involvement, holding 2% of the total despite a 20% increase in lending.
This rapid increase in Indian banks’ exposure -- up by $15 billion (approximately Rs 1.3 lakh crore) in just two years --has solidified their critical role in the Adani Group's financial operations.
The conglomerate has communicated to investors that it has improved its credit ratings by ensuring stable cash flows through long-term contracts in sectors such as ports and power, all while keeping its leverage below industry averages.
The Adani Group's financial health is also bolstered by substantial cash reserves amounting to Rs 60,000 crore, equating to about a quarter of its total debt. This reserve acts as a buffer, providing a cushion against potential financial volatility.
Recent transactions further illustrate this shift towards local funding. For instance, Adani Airport secured $150 million through a syndicated loan from several international banks, while Adani Ports also engaged in bilateral borrowing, securing $125 million from MUFG.
Simultaneously, the group has reported strong earnings, with FY25 marking a record EBITDA of Rs 89,806 crore, an increase of 8.2%. The profit after tax reached Rs 40,565 crore, while capital expenditure surged to Rs 1.26 lakh crore. Despite the rising expenditures, a net debt-to-EBITDA ratio of 2.6 suggests that the group's leverage remains manageable.
With over 90% of its earnings linked to AA-rated or higher assets, the Adani Group has successfully secured lower funding costs and ensured continued access to both domestic and foreign capital. Internationally, it remains India's largest issuer in offshore markets under the 144A/Reg S route, having raised an impressive $9 billion across various maturities, including terms extending up to 30 years.
The group has refined its issuance programme, the largest by any Indian borrower, attracting more than 200 global investors. The interest is notable from regions including Asia (34%), the US and Canada (31%), and the EU (24%).
Over the past seven years, the Adani Group has refinanced $2.7 billion of its debt, facilitated by closer collaboration with credit rating agencies like Moody's, Fitch, and S&P, which have recently upgraded some of the group's companies.
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