Adani Group Commits ₹1.1 Trillion Capex for FY26

To be funded through a mix of cash, debt/equity sale

- DEV CHATTERJEE

The Adani group has said it will have a capital expenditure of ₹1.1 trillion in 2025-26 as against this financial year's ₹92,000 crore, with a focus on core energy and infrastructure.

Expenditure will be financed through an internal cash generation of ₹60,000 crore, and the rest will be raised via equity and debt, according to senior officials.

This financial year (FY25) the group reduced the average finance cost of its long-term borrowing from 10.4 per cent to 8.1 per cent, saving ₹4,000 crore. It expects to sustain this cost reduction over the next few years, with the cost of capital for new borrowing projected to decrease by 75-100 basis points.

As of FY25, the group's gross debt stood at ₹2.4 trillion with a net debt of ₹1.85 trillion. The group refinances about ₹40,000 crore of debt annually, saving, on average, 1.72 per cent.

These savings are expected to persist for the next two decades, an official said, after making presentations to overseas investors.

In FY25, the group raised $2 billion by selling shares in various companies including Adani Wilmar and Adani Energy Solutions. The funds raised were used to refinance existing debt and spend on capital. The official said over the past five years, the group's market capitalisation had grown 53 per cent, while profit after tax (PAT) increased 49 per cent.