Adani Enterprises revenue to jump to Rs 1.5 lakh cr, net earnings to rise 46% by FY27: Brokerage

New Delhi, Dec 29 (PTI) Adani Enterprises Ltd, the flagship company of the ports-to-energy conglomerate helmed by billionaire Gautam Adani, is likely to see consolidated revenue grow at a CAGR of 17.5 per cent and net earnings by 45.8 per cent over 2023-24 fiscal year (FY24) and FY27, a report said.

AEL is one of India's largest listed incubators which has conceived, grown, matured and demerged many successful businesses, including ports company Adani Ports & SEZ, city gas distributor Adani Total Gas, power transmission company Adani Energy Solutions, renewable energy firm Adani Green Energy, Adani Power, and commodities firm Adani Wilmar.

The company is incubating airports, manufacturing solar modules and wind turbines, green hydrogen, road construction, data centre, and copper.

"Adani Enterprises Ltd (AEL), the incubator of many successful industry-leading businesses, is ambitiously diversifying into green hydrogen and its ecosystem to drive future growth," Ventura Securities said in the report.

"Despite stock volatility following US Department of Justice (US-DOJ) notice (over bribery allegations) in November 2024, AEL has demonstrated resilience, supported by robust fundamentals and operational strength in FY25 (April 2024 to March 2025)." It has received a letter of award for electrolyser manufacturing facility for 101.5 megawatt per annum under SIGHT scheme from SECI.

Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme is a financial programme that supports the production of green hydrogen and the manufacturing of electrolysers in India. The scheme is part of the National Green Hydrogen Mission, which has an outlay of Rs 19,744 crore up to 2029-30.

Cumulative capacity of 300 MW per annum has been awarded.

AEL's Navi Mumbai International Airport welcomed the first aircraft. While the Chennai data centre uptime continues 100 per cent, Noida and Hyderabad Phase I data centre has crossed 95 per cent completion. Road projects in West Bengal and Telangana have received provisional commercial operations date and Ganga Expressway construction has crossed the half-way mark.

"Over FY24-27E, AEL's consolidated revenue, EBITDA, and net earnings are expected to grow at a CAGR of 17.5 per cent, 37.5 per cent, and 45.8 per cent, reaching Rs 1,56,343 crore, Rs 28,563 crore, and Rs 9,245 crore, respectively," the report said.

EBITDA and net margins are projected to expand by 647 bps to 18.3 per cent and 255 bps to 5.9 per cent, respectively.

"Strong growth in airports and solar/wind turbine businesses and revenue contribution from copper are expected to enhance financial performance and profit margins. As a result, return ratios -- Return on Equity (RoE) and Return on Invested capital (RoIC) -- are expected to improve by 563 bps to 14.5 per cent and 99 bps to 11.3 per cent, respectively," it said.

AEL is targeting Rs 6.5-7 lakh crore in capex over the next decade for its expansion into airports, data centres, copper and green hydrogen and its ecosystem. This is expected to be primarily funded through debt, leading to an increase in net debt-to-equity and net debt-to-EBITDA from 1.2x/1.7x in FY24 to 1.8x/2.2x by FY27E.

As part of fundraise, the company raised Rs 4,200 crore earlier this year through a QIP with strong participation from both international and domestic investors and Rs 800 crore through its first-ever public issuance of NCDs, marking the first such public issuance by a non-NBFC private corporate in the last decade. Additionally, the airport business secured Rs 1,950 crore, and the road business raised Rs 1,124 crore, both through NCD issuances.

Ventura put an equity value of Rs 1.87 lakh crore for the airports business housed in AEL, Rs 52,056 crore for road, Rs 29,855 crore for coal and Rs 11,003 crore for data centre business.

Green hydrogen and clean energy business is valued at Rs 1.86 lakh crore while copper is valued at Rs 27,442 crore and FMCG at Rs 47,775 crore.

AEL's strategic approach to business incubation and its diversified portfolio continue to drive its growth and reinforce its status as a pivotal player in India's economic development, it added.