Adani Group stocks continued their upward trajectory for the second consecutive session on June 3, mirroring the bullish trend in Indian equities. Increased trading volumes significantly boosted the group’s market capitalization by over Rs 2.6 lakh crore across these two sessions. On Monday, Adani Enterprises surged 7%, Adani Energy Solutions jumped 8%, Adani Ports and SEZ gained 9%, Adani Power rose 12%, Adani Green Energy climbed 7%, Adani Total Gas increased 7%, Adani Wilmar added 3.5%, Ambuja Cement grew 4%, ACC rose 3%, and NDTV gained 5%.
Adani Power led the market cap gains, adding Rs 47,000 crore to reach over Rs 3.3 lakh crore. Adani Enterprises followed, bolstering its market cap by over Rs 61,000 crore, surpassing Rs 4 lakh crore. Adani Green and Adani Ports each saw increases of over Rs 42,000 crore, while Adani Total Gas rose by over Rs 21,000 crore. Ambuja Cement and Adani Energy each added over Rs 13,000 crore to their market caps. The total market cap of Adani Group firms has surged to nearly Rs 19.65 lakh crore from Rs 17 lakh crore just two days ago.
This upward momentum comes after the group reported strong earnings. In FY24, Adani Group’s EBITDA surged by 40% year-over-year to Rs 66,000 crore, primarily driven by Adani Power, whose EBITDA doubled due to capacity expansion, increased volumes, merchant contributions, and lower imported coal prices.
Jefferies India noted that the group’s market cap was previously impacted by a short-seller report in late FY23. However, in FY24, the group focused on reducing debt and lowering founders’ share pledges. The total group EBITDA grew 40% YoY in FY24, and the group raised fresh funds through equity, debt, and strategic investors. Promoters also increased their stakes in group companies, leading to a market cap rebound. The group is now eyeing USD 90 billion in capital expenditure over the next decade.
Other group companies saw EBITDA growth ranging from 16-33%, with the exception of Adani Wilmar, which experienced a decline. Adani Enterprises saw a 29% YoY EBITDA growth driven by new businesses like ANIL, solar, airports, and IRM trading. Adani (Ambuja) Cement’s EBITDA growth stemmed from a significant rise in unit EBITDA, while Adani Ports’ growth was driven by a 24% increase in volumes. Adani Green’s EBITDA rose by 33% due to capacity expansion and higher CUF. Adani Energy Solutions’ EBITDA increased by 16% from new line additions, and Adani Total Gas achieved a 27% YoY growth from volume increases and margin expansion due to lower gas costs. However, Adani Wilmar’s EBITDA declined due to inventory losses and hedge misalignment caused by oil price fluctuations.
The group’s net debt, including debt from the Cement business acquisition, remained steady at Rs 2.2 trillion in FY24, compared to Rs 2.3 trillion in FY23. The net debt/EBITDA ratio improved significantly, dropping to 3.3x in FY24 from around 5x YoY. Adani Ports and Adani Power reduced their net debt during FY24, while Adani Enterprises and Adani Green saw increased leverage due to new capital expenditure projects.