Whalesbook
Adani Group has announced its highest-ever operating profit for the first half of the fiscal year 2026 (H1 FY26), ending September 30, 2025. The port-to-power conglomerate reported an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of ₹47,375 crore, marking a 7.1% increase compared to the previous year. This performance pushes the trailing twelve-month (TTM) EBITDA to ₹92,943 crore, an 11.2% rise year-on-year.
The group's core infrastructure segments—utilities, transport, and platforms under Adani Enterprises—were the primary drivers, contributing 83% of the total EBITDA. Group CFO Jugeshinder Singh highlighted that these businesses are showing strong double-digit growth while the group undertakes a massive capital expenditure (capex) program, aligning with India's growth ambitions. Despite seasonal factors, the first half of FY26 saw the highest-ever capex.
The group has doubled its capex to ₹1.5 lakh crore for FY26, significantly expanding its gross assets by ₹67,870 crore to ₹6,77,029 crore. This expansion is backed by robust cash flows and strong access to capital. Financial discipline remains a key focus, with the net debt-to-EBITDA ratio standing at 3x, well below the guided range of 3.5x–4.5x. The group also holds a substantial cash balance of ₹57,157 crore.
Credit quality has also strengthened, with 90% of EBITDA generated from domestic AA-rated or higher assets, and 52% from AAA-rated assets, showing a significant increase from previous years. The return on assets (ROA) for H1 FY26 was reported at 15.1%, considered among the highest globally in the infrastructure sector, maintained consistently over six years.
Impact:
This news indicates robust financial health and aggressive expansion plans for one of India's largest conglomerates. It suggests strong operational execution and financial management, which could positively influence investor sentiment towards Adani Group stocks and the broader Indian infrastructure and energy sectors. The sustained high ROA and controlled debt metrics point towards potential stability and growth.
Rating: 8/10
Terms Explained:
- EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance before accounting for financing decisions, accounting decisions, and tax environments.
- Capex (Capital Expenditure): Money spent by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment.
- Return on Assets (ROA): A profitability ratio that measures how efficiently a company is using its assets to generate profit. It is calculated by dividing net income by total assets.
- Net Debt-to-EBITDA Ratio: A financial metric used to assess a company's ability to pay back its debt using its operating income. A lower ratio indicates better financial health.
- AAA-rated/AA-rated Assets: These are credit ratings assigned by rating agencies to debt instruments, indicating the issuer's creditworthiness. AAA is the highest rating, signifying minimal risk of default, while AA indicates very low risk.