Tag Adani Group

Adani Power Ltd
Adani Power Stock Jumps 9% in Two Sessions – Is It the Right Time to Invest?

Business and Industry Overview: 

Adani Power (APL) is the biggest private company that makes electricity in India. They have power plants in many states like Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand. They also have a small solar power project in Gujarat. APL started making electricity in 2006 and was the first company to use special technology to make electricity from coal in a clean way. APL can make 15,250 MW of electricity. They have plants that use good technology to make power, and they can make electricity when people need it the most. They sell electricity to state companies and big businesses through long-term agreements. They also sell some electricity in the open market. APL is building new power plants to make even more electricity in the future. They want to increase their total power to 30,670 MW by 2032. In the last few years, they have faced some challenges, but they have used smart solutions to keep their business strong. They are spending a lot of money to improve their power plants and use new technology. APL cares about the environment and has received awards for their good work. They have a good score for taking care of the environment and being responsible. Recently, they won important legal cases that will help them get more money. APL is committed to growing while being good to the planet. 

Thermal power is the biggest way India makes electricity. It gives about 71% of the power. Thermal power plants use fuels like coal, diesel, gas, and natural gas to create steam. This steam helps make electricity. As of August 2024, India can make 242.99 GW of power from these plants. Coal is very important. It makes up about 46.2% of all the power. 

Some big power projects are in states like Jharkhand, Madhya Pradesh, Andhra Pradesh, Gujarat, Maharashtra, and Odisha. The thermal power sector is expected to grow because the government wants to make more coal and improve technology to reduce pollution. They plan to increase clean energy to 500,000 MW by 2031-32. They also want to grow renewable energy sources like wind and solar power. 

India started using thermal power in 1920 with the first plant in Hyderabad. Today, most electricity comes from thermal, nuclear, and renewable sources. Coal is still the main source and makes up about 75% of all electricity. In December 2020, India made 103.66 billion units of power, according to the Central Electricity Authority. 

Adani Power Limited is the largest private thermal power producer in India with an installed capacity of 15,250 MW. 

Latest Stock News: 

Adani Power’s stock price has gone up and down. In the last six months, it went down by 23%. In one year, it went down by 12%. But in two years, it went up by 260%. This week, the stock price went up by 9% in two days. On Thursday, it reached ₹512.30. Experts say if the price stays above ₹510, it may go up more, maybe to ₹589. Many people are buying the stock. The number of shares traded was 4 times more than usual. This is a good sign.  The stock price went up after Adani Power got permission to buy Vidarbha Industries Power Ltd (VIPL). VIPL makes electricity and belongs to Reliance Power. VIPL has money problems, so Adani Power will take over. Adani Power has also bought three other power companies before this.  Adani Group will also spend ₹1.1 trillion in Madhya Pradesh and ₹50,000 crore in Assam. They will build power plants, cement factories, mines, smart meters, roads, airports, and more. 

Potentials: 

Adani Power’s stock may go up by 30–54.5% in the future. The company is growing and making more electricity. It will increase its power capacity from 17.6 GW to 30.7 GW by 2030. It has land and money ready for this. Adani Power has long-term deals to sell electricity and buy fuel, which makes its business strong. More people in India are using gadgets, and factories need more power, so demand for electricity is increasing. Adani Power can help fill this gap. Experts say its profits will grow 10% every year from 2024 to 2027, and after 2027, when new power plants start working, profits may grow 19% every year. But there are some risks. It had old problems with power sale agreements, and sometimes payments get delayed. If demand is lower than expected, growth may slow down, but stock will yield a higher return. 

Analyst Insights:  

Market capitalisation: ₹ 1,87,428 Cr. 
Current Price: ₹ 486 
52-Week High/Low:₹ 897 / 431 
P/E Ratio: 14.6 
Dividend Yield:0.00 % 
Return on Capital Employed (ROCE):32.2 % 
Return on Equity (ROE): 57.1 % 

Adani Power is growing fast and making more money. In the last five years, its profit went up by 88.5% every year. It is good at using money and getting high returns. In the last three years, it had a return of 47.8%. The company is getting paid faster by customers, from 106 days to 84.6 days. Even though it makes a lot of profit, it does not give money to investors as dividends. In the last three months, its profit went up by 7.4% to ₹2,940.07 crore, and its total money earned grew by 5.2% to ₹13,671.18 crore. It made 8% more money before costs, and its profit margin got better, from 35.8% to 36.7%. It also sold 8% more electricity, reaching 23.3 billion units. The company plans to get ₹5,000 crore from investors and ₹11,000 crore through special loans. The CEO said the company wants to make over 30 GW of electricity by 2030. After sharing this good news, the stock price went up by 4.78% to ₹520.95. 

Adani Power makes electricity. Its stock price is ₹486 now. Last year, the highest price was ₹897. The company is making good money and growing fast in the last five years. It is good at using money wisely. This year, the company made more money and more profit than last year. It is selling more electricity too. Adani Power wants to grow more. It will get more money from investors. It wants to make over 30 GW of electricity by 2030. The stock price went up after the good news. But the company does not give money to investors as dividends. It also has a lot of debt and is borrowing more money. This stock is good for people who want to invest for a long time and can take risks. But it is not good for people who want regular income. 

Adani Ports Ltd
Adani Ports (APSEZ) Growth Outlook: Tax Payments Surge 25% to ₹58,104 Crore in FY24

Business and Industry Overview

Adani Ports and Special Economic Zone (APSEZ) is India’s largest port operator, managing 25% of the country’s cargo through 13 strategically located ports across seven states. It also operates logistics parks and India’s largest Special Economic Zone (SEZ) in Mundra, spanning 8,000 hectares, which serves as a major hub for industrial development. The company has been expanding rapidly by acquiring new ports and enhancing its infrastructure to efficiently handle container, dry, and liquid cargo. APSEZ has formed partnerships with leading global businesses, strengthening its position in the industry. It aims to become the world’s largest private port operator and India’s most comprehensive transport utility by 2030. To achieve this, it is reducing financial exposure to group firms, divesting non-core assets, and broadening its logistics network, including warehouses, rail, trucking, air freight, and inland waterways. Recognized as a great place to work, APSEZ continues to drive India’s trade growth and contribute significantly to the economy. 

India’s ports are growing fast! In FY24, major ports handled 819 million tonnes of cargo—4.45% more than last year. Smaller, non-major ports also saw an 11% increase. India’s exports also went up to $451 billion from $417 billion in the previous year. The government is making ports bigger and better, allowing 100% foreign investment, which has brought in $1.637 billion so far. Many projects are happening under public-private partnerships (PPP), with 46 major projects worth $4.49 billion in progress. The Sagarmala Programme is working on over 200 modernization projects worth $10.71 billion, aiming to increase port capacity to handle more cargo by 2025. Big projects include a new $9.14 billion mega port in Maharashtra and infrastructure upgrades worth $22 million at Chennai and Kamarajar ports. The government has also set aside $281 million for port development in the 2024-25 budget. 

Private companies like Adani Ports are expanding fast, planning to invest $3 billion to grow their global presence. They’ve also secured a five-year deal at Kolkata Port and got approval for a $5.39 billion expansion of Mundra Port, which already handles 27% of India’s total cargo. India is also focusing on eco-friendly initiatives, aiming for net-zero emissions by 2070 and doubling ship recycling capacity by 2024. New policies and investments in inland waterways are making trade easier and more efficient. Overall, India’s ports are modernizing quickly with better infrastructure, bigger investments, and a strong push toward sustainability, making trade smoother and more efficient. In December 2024, Adani Ports and Special Economic Zone (APSEZ) handled 38.4 million metric tons (MMT) of cargo, which is 8% more than the previous year. This growth was mainly due to a 22% increase in container handling. From April to December 2024, APSEZ managed a total of 332.4 MMT of cargo, 7% more than the same period last year. Container shipments went up by 9%, and liquid and gas cargo rose by 8%. In logistics, the company transported 0.48 million TEUs (containers moved by rail), showing a 9% increase. Meanwhile, freight moved under a special railway investment scheme (GPWIS) grew by 13% to 16.1 MMT. In October 2024, APSEZ reported a net profit of ₹2,445 crore for the second quarter of FY25, which is nearly 40% higher than the previous year. During this period, it handled 111 MMT of cargo, a 10% increase. Over the years, APSEZ has become a leader in the shipping industry by improving efficiency and smartly connecting ports with industrial zones and warehouses. Between FY2016 and FY2021, Indian ports increased their average output per ship by 32%, with APSEZ playing a key role. By making better use of its assets and streamlining operations, APSEZ has strengthened its position in the industry. 

Latest Stock News

Adani Group is planning to invest ₹30,000 crore in Kerala over the next five years. Their main focus will be improving ports and airports and setting up new businesses in logistics and e-commerce. A big part of the investment—₹5,500 crore—will go toward expanding Thiruvananthapuram airport, allowing it to handle 12 million passengers a year instead of the current 4.5 million. Another ₹20,000 crore will be used to develop Vizhinjam port, aiming to make it one of the world’s biggest ports for transferring goods. The company will also expand its cement-handling facilities and build a logistics and e-commerce hub in Kochi. Karan Adani, the Managing Director of Adani Ports and SEZ, shared these plans at the Invest Kerala Global Summit. The Kerala government is organising this event to attract more businesses and investors. The summit focuses on industries like tourism, food processing, healthcare, technology, aerospace, and defence. It includes 28 sessions with business representatives from six countries and over 3,000 attendees. Adani Ports and Special Economic Zone (APSEZ) made a profit of ₹2,520 crore between October and December 2024, which is 14% higher than last year’s ₹2,208 crore. However, this was lower than what experts had predicted (₹2,597 crore – ₹2,711 crore). The company’s revenue for the quarter was ₹7,964 crore, a 15% increase from ₹6,920 crore last year. Despite the profit growth, APSEZ’s stock price dropped by 5% to ₹1,042 after the results were announced. Most of the company’s earnings came from port and SEZ activities, bringing in ₹7,413 crore. Their operating profit (EBITDA) was ₹4,802 crore, up 15% from ₹4,186 crore last year. The company’s debt situation also improved, as its debt-to-profit ratio went down from 2.3 to 2.1 times. APSEZ’s CEO, Ashwani Gupta, said the company is growing steadily, gaining market share, and improving efficiency. He also announced a new trucking service to improve transportation. The company has now adjusted its profit forecast for the full year 2025, expecting to earn between ₹18,800 crore and ₹18,900 crore. Even though the company performed well, its stock price dropped because investors were expecting even higher profits. 

Potentials

Adani Ports and Special Economic Zone (APSEZ) has significant growth opportunities as it continues to expand its operations. The company is investing heavily in ports, airports, and logistics hubs, with a ₹30,000 crore investment planned in Kerala over the next five years. A major part of this investment is focused on developing the Vizhinjam port, which aims to become one of the largest transshipment hubs in the world. Additionally, APSEZ is handling increasing volumes of cargo, with an 8% rise in December 2024. Container volumes are also growing, contributing to higher revenues. The company’s financial performance remains strong, with a 14% increase in net profit in Q3 FY25, reaching ₹2,520 crore, while revenue grew by 15%. Strategic investments in logistics and e-commerce hubs, particularly in Kochi, and improvements in railway infrastructure further support the company’s expansion. 

However, APSEZ also faces certain risks that could impact its growth. Despite its profit increase, the earnings were below analysts’ expectations, which might affect investor confidence. The company’s business is closely linked to global trade, meaning any slowdown in the world economy could reduce cargo volumes and revenue. Additionally, regulatory challenges, environmental restrictions, and political factors could delay projects like the Vizhinjam port. Competition from other major ports in India and neighboring countries is another risk, as it could limit APSEZ’s market share. To sustain its growth, the company needs to effectively manage these risks while continuing its strategic expansion. 

Analyst Insights

Key Metrics:

Market Value: ₹2,31,329 crore 
Price-to-Earnings (P/E) Ratio: 21.9  
Book Value per Share: ₹265  
Dividend Yield: 0.56%  
Return on Capital (ROCE): 12.9%  
Return on Equity (ROE): 18.1%  
Dividend Payout: 19.3%  
Sales Growth (Last 10 Years): 18.7% per year on average 

Adani Ports is growing steadily, reporting a 14% increase in profit compared to last year. The company is investing ₹30,000 crore in Kerala to expand its ports, airports, and logistics infrastructure, which will boost its future earnings. One major project, the Vizhinjam transshipment port, is expected to become one of the biggest in the world, helping India become a key player in global trade. However, there are challenges. The company’s recent profit was lower than expected, which has made some investors cautious. Factors like global trade uncertainties, government regulations, and competition from other ports could impact future growth. Also, the stock is currently priced at a P/E ratio of 21.9, meaning it is not too expensive but not undervalued either. 

If you already own the stock, then hold onto it for long-term growth. The company has strong fundamentals, so it remains a good investment in the infrastructure and logistics sector. 

Ambuja Cement and UltraTech Q3 FY25 Results
Q3 FY25 Results: Ambuja Cement Profit Surges 157% YoY to ₹2,115 Cr, UltraTech Profit Falls 17% to ₹1,470 Cr; Revenue Growth Continues

Ambuja Cements Ltd: Overview 

Ambuja Cements Ltd, a part of the Adani Group, is one of India’s leading cement manufacturers, known for its strong market presence and commitment to sustainable development. The company operates through an extensive network of integrated cement plants, grinding units, and a robust distribution system that spans across the country. Ambuja specializes in producing high-quality cement products, including Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC), catering to a wide range of construction needs in residential, commercial, and infrastructure projects. With a focus on operational efficiency, cost optimization, and sustainable practices, Ambuja Cements has adopted advanced manufacturing technologies, waste heat recovery systems, and renewable energy initiatives to enhance its production capabilities and reduce carbon emissions. Additionally, the company benefits from its strong brand recognition, extensive dealer network, and continuous investments in research and development, positioning itself as a key player in the competitive cement industry. The Indian cement industry is poised for strong growth, driven by increasing infrastructure development, housing demand, and government initiatives such as the Pradhan Mantri Awas Yojana (PMAY) and Smart Cities Mission. The sector is expected to benefit from large-scale investments in roads, highways, metros, and rural development projects. The growing emphasis on sustainability and green cement production is also reshaping the industry, with companies investing in alternative fuels, energy-efficient technologies, and carbon reduction strategies. While the industry faces challenges such as rising input costs, supply chain disruptions, and environmental regulations, demand remains robust due to strong economic growth, rapid urbanization, and continued policy support from the government. 

Latest Stock News 

In Q3 FY25, the company achieved the highest percentage of trade sales among peers at 71%, primarily catering to the profitable Individual House Builder (IHB) segment. Premium cement contributed 26% of trade sales during the quarter, positioning the company among the industry leaders in this segment. Since the Adani acquisition from Holcim in September 2022, cost reductions have amounted to 17%, significantly improving operational efficiency. The sanctioning of additional houses under the Pradhan Mantri Awas Yojana has led to increased demand in Q3, with further improvement expected in Q4 FY25. The office market is experiencing robust growth, with leasing space projected to expand by 8% to 10%, driven by the rapid development of Global Capability Centers. Additionally, India’s data center industry is witnessing exponential growth, fueled by advancements in AI and the nationwide rollout of 5G technology, with capacity expected to grow by 66% by 2026. Government capital expenditure on infrastructure, which accounts for 25-30% of cement demand, is anticipated to accelerate in the second half of FY25. In Q3 FY25, the company added 631 million metric tonnes of new limestone reserves, bringing the total reserves to approximately 8,300 million metric tonnes. Freight and forwarding costs were reduced by 15%, primarily due to network optimization, which resulted in a 7% reduction in primary lead distance and a 17% reduction in secondary lead distance. 

Q3 FY25 Earnings 

  • Revenue of ₹9329 crore in Q3 FY25 up by 14.8% YoY from ₹8129 crore in Q3 FY24.  
  • EBITDA of ₹1712 crore in this quarter at a margin of 18% compared to 21% in Q3 FY24. 
  • Profit of ₹2620 crore in this quarter compared to a ₹1091 crore profit in Q3 FY24. 

UltraTech Cements Ltd: Overview 

UltraTech Cement Ltd, a subsidiary of the Aditya Birla Group, is India’s largest cement manufacturer and a dominant player in the global cement industry. With an extensive production capacity of over 140 million tonnes per annum (MTPA), UltraTech is known for its wide product portfolio, which includes Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Ready-Mix Concrete (RMC), white cement, and specialty building products. The company has a strong presence across India, the Middle East, and other international markets, supported by its integrated cement plants, clinkerization units, and grinding stations. UltraTech’s growth strategy is driven by continuous capacity expansion, efficiency improvement, and sustainability initiatives, including the use of renewable energy, alternative raw materials, and carbon capture technologies. The company has also been actively acquiring assets to strengthen its market leadership, including the integration of assets from Jaypee Cement and Binani Cement. UltraTech’s financial strength, operational excellence, and commitment to innovation make it a formidable force in the cement industry. The Indian cement industry is expected to witness steady growth, supported by rising infrastructure investments, increased urbanization, and favourable government policies. The demand for cement is projected to rise due to massive public and private sector investments in roads, railways, ports, and urban housing projects. Additionally, the real estate sector’s recovery, coupled with rising per capita cement consumption, is expected to boost the industry’s long-term prospects. However, the sector faces challenges such as rising costs of raw materials, energy, and logistics, which could impact profitability. The industry is also undergoing a transformation with increased emphasis on sustainability, digitalization, and advanced manufacturing processes to improve efficiency and reduce carbon footprints. UltraTech Cement, with its scale, strong distribution network, and technological advancements, is well-positioned to leverage these trends and maintain its leadership position in the cement market. 

Latest Stock News 

The infrastructure segment experienced a decline due to pollution control measures implemented in Delhi and nearby regions, as well as project delays caused by the farmers’ agitation in Punjab. Additionally, the average lead distance reduced to 377 km in Q3 FY25 compared to 397 km in Q3 FY24. The housing segment, on the other hand, registered growth across most regions, except in Prayagraj, where restrictions on heavy vehicle movement due to Kumbh Mela preparations impacted demand. In Maharashtra, the infrastructure sector witnessed a slowdown due to lower fund flows attributed to the state assembly elections, while in Gujarat, housing demand remained largely flat. UltraTech Cement made a strategic investment by acquiring a non-controlling financial stake of 8.42% in Star Cement Limited at a total cost of ₹776 crore. The clinker conversion ratio improved to 1.45 in Q3 FY25, compared to 1.43 in the same quarter of the previous year, reflecting enhanced efficiency in cement production. Additionally, the share of green power in the overall energy mix increased to 33.4% in Q3 FY25, up from 32.0% in Q2 FY25. Additionally, the company signed an agreement to deploy approximately 100 electric trucks to transport 75,000 metric tonnes of clinker monthly from its Dhar Cement Works in Madhya Pradesh to Dhule Cement Works in Maharashtra, covering a 400 km round trip. Realizations declined by 9.6% year-on-year but showed a slight improvement of 1.4% on a quarter-on-quarter basis. 

Q3 FY25 Earnings 

  • Revenue of ₹17193 crore in Q3 FY25 up by 2.17% YoY from ₹16740 crore in Q3 FY24.  
  • EBITDA of ₹2886 crore in this quarter at a margin of 17% compared to 19% in Q3 FY24. 
  • Profit of ₹1474 crore in this quarter compared to a ₹1775 crore profit in Q3 FY24. 
Adani Total Gas Q3 FY25 Results
Adani Total Gas Q3 FY25 Results: Profit Falls 19% to ₹142 Cr, Revenue Rises 13%

Adani Total Gas Ltd: Overview 

Adani Total Gas Ltd. (ATGL) is a joint venture between the Adani Group and TotalEnergies, a global integrated energy player. Founded in 2004, the company is a key player in the Indian natural gas distribution sector, focusing on the development and operation of city gas distribution (CGD) networks for both industrial and residential sectors. Adani Total Gas is involved in the distribution of piped natural gas (PNG) and compressed natural gas (CNG) to both domestic and commercial customers, particularly in cities across India. With the backing of the Adani Group, one of the largest business conglomerates in India, and TotalEnergies, a global energy giant, ATGL has leveraged its expertise to become a major provider of natural gas solutions in the country. 

The industry outlook for Adani Total Gas is highly promising, with the Indian government’s push toward cleaner energy sources, urbanization, and infrastructure development fuelling the demand for natural gas. Natural gas is seen as a transition fuel to meet India’s environmental goals, particularly in terms of reducing emissions from coal and oil, making it an attractive energy alternative. The Indian government’s focus on expanding CGD networks across multiple cities, combined with the growing adoption of CNG for transportation and PNG for cooking and industrial use, is expected to drive growth for ATGL in the coming years. Moreover, India’s increasing focus on sustainable and cleaner energy sources presents an opportunity for the company to expand its footprint and contribute to India’s energy transition. The development of new gas-based infrastructure, rising demand for natural gas, and the company’s strong positioning in both the industrial and residential markets provide a solid foundation for long-term growth. Furthermore, global energy trends towards decarbonization and the rising adoption of CNG vehicles also offer significant growth opportunities for ATGL, both in domestic and international markets. 

Latest Stock News 

CNG station network has expanded to 605 stations, with 58 new stations added during the year, including 28 new stations in the quarter under review. Additionally, our steel pipeline infrastructure has grown to 13,082-inch kilometres. On the domestic piped natural gas (PNG) front, ATGL now serves over 922,000 households. In the nine-month period, we added over 100,000 new connections, and during the December quarter, 28,677 connections were added. For industrial and commercial consumers, we have expanded our base to 8,913, adding 582 connections during the nine months, and 167 connections in the third quarter. Regarding emerging businesses, our e-mobility efforts have seen significant progress, with 1,914 EV charging points commissioned across 22 states and 4 Union Territories, covering 226 cities. We aim to reach approximately 3,000 charging points by March-April this year. Our EV charging infrastructure has also expanded to nearly 20 airports across India, making us one of the largest airport EV charge point operators in the country. On the gas front, ATGL faced two reductions in APM gas allocation. The first reduction, from 63% to 51%, occurred on October 16, 2024, followed by a second reduction from 51% to 37% on November 16, 2024. These reductions, combined with the increase in gas prices, resulted in an EBITDA of INR 272 crores for the quarter, with a PBT of INR 193 crores and a PAT of INR 143 crores. However, effective from January 16, 2025, the APM allocation for CNG has been increased from 37% to 51%, which is expected to have a positive impact in the current quarter. CNG continues to constitute 25% of our entire portfolio. 

Business Segments 

  • City Gas Distribution (CGD): The CGD segment forms the core of Adani Total Gas’s business. It involves the establishment and operation of pipelines that deliver natural gas to homes, businesses, and industries within designated urban areas. ATGL has expanded its CGD network across numerous cities in India, including major urban centers like Ahmedabad, Faridabad, and Khurja. With a commitment to sustainability and energy efficiency, the CGD segment is poised to remain a key revenue driver for ATGL. 
  • Compressed Natural Gas (CNG): The CNG segment is another important area for Adani Total Gas, focusing on providing CNG for vehicles as an alternative to conventional fuels like petrol and diesel. The Indian government has been encouraging the use of CNG vehicles as part of its efforts to reduce air pollution and dependence on oil imports. ATGL operates CNG stations in key cities, providing customers with a cleaner and more cost-effective fuel option.  
  • Piped Natural Gas (PNG): Adani Total Gas is also involved in the distribution of PNG to residential, commercial, and industrial customers. Piped natural gas offers significant convenience and cost advantages over traditional energy sources such as LPG and firewood. This segment is witnessing rapid growth as more urban households and businesses opt for natural gas for cooking, heating, and other industrial applications.  
  • Renewable Energy and Sustainable Solutions: With the global shift towards renewable energy, Adani Total Gas has also been exploring opportunities in the renewable energy space. The company has begun investing in renewable energy projects such as solar energy and green hydrogen, with an aim to complement its natural gas operations and contribute to India’s sustainability goals. 
  • Infrastructure Development and Management: The infrastructure development segment covers the planning, construction, and management of city gas distribution networks, as well as the development of fuelling stations for CNG vehicles. ATGL is actively involved in expanding the pipeline infrastructure, which is crucial for the transportation and distribution of natural gas. 

Subsidiary Information 

  • Adani Gas Limited: Adani Gas Limited is a subsidiary of Adani Total Gas that focuses on the development of city gas distribution networks. It operates in multiple cities and is responsible for the supply of piped natural gas (PNG) to households and compressed natural gas (CNG) to vehicles. The subsidiary plays a critical role in expanding the natural gas distribution network across India, contributing significantly to ATGL’s growth in both urban and semi-urban markets. 
  • Adani Green Energy Limited: Adani Green Energy Limited, a subsidiary within the Adani Group, is involved in the development of renewable energy projects, particularly in solar power. It focuses on generating clean energy through solar installations and contributes to Adani Total Gas’s strategic diversification into renewable energy.  
  • Adani Gas Infrastructure Limited (AGIL): AGIL is responsible for building and managing the infrastructure required for natural gas transportation and distribution. This subsidiary is pivotal in the expansion of ATGL’s pipeline networks and the establishment of CNG refuelling stations. 
  • Adani Transmission Limited: While primarily focused on the transmission of electricity, Adani Transmission is indirectly involved in the energy distribution network that complements Adani Total Gas’s operations. The synergy between both companies supports the broader Adani Group’s energy infrastructure goals, positioning ATGL to leverage integrated energy solutions as it expands its natural gas operations. 
  • Adani Renewable Energy Park Limited: A subsidiary dedicated to renewable energy initiatives, Adani Renewable Energy Park plays a key role in the development of large-scale renewable energy projects. The integration of renewable energy projects into ATGL’s portfolio strengthens the company’s position as a leader in both natural gas and clean energy solutions. 

Q3 FY25 Earnings 

  • Revenue of ₹1294 crore in Q3 FY25 up by 11.9% YoY from ₹1156 crore in Q3 FY24.  
  • EBITDA of ₹265 crore in this quarter at a margin of 20% compared to 25% in Q3 FY24. 
  • Profit of ₹142 crore in this quarter compared to a ₹177 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 1156 1294 4378 4475 
Expenses 868 1030 3508 3371 
EBITDA 288 265 870 1104 
OPM 25% 20% 20% 25% 
Other Income 18 8 54 62 
Net Profit 177 142 546 668 
NPM 15.3% 10.9% 12.5% 14.9% 
EPS 1.6 1.3 4.9 6.1 
Adani Enterprises Ltd Q3 FY25 Results
Adani Enterprises Ltd Q3 FY25 Results: Revenue Decline of 8.8%, Profit Growth to ₹229 Crore

Adani Enterprises Ltd: Overview 

Incorporated in 1993, Adani Enterprise Ltd. (AEL) is the flagship Company of the Adani Group and acts as the Group’s incubator for new businesses across diverse sectors. It plays a key role in infrastructure development, including energy, logistics, mining, and emerging industries such as green hydrogen and airports. AEL continues to expand its footprint through strategic investments, leveraging India’s economic growth, energy transition, and infrastructure modernization. The company operates in industries aligned with national priorities such as energy security, sustainability, and digital transformation. The Indian government’s focus on renewable energy, infrastructure development, and logistics efficiency presents significant opportunities for AEL. AEL imports coal through its established coal sourcing arrangements with coal suppliers in Indonesia, Australia, and South Africa and sells to a diversified domestic clientele. Despite regulatory challenges and global economic uncertainties, the company remains positioned for strong long-term growth due to its diversified operations and strategic business model. 

Latest Stock News 

Navi Mumbai Airport has successfully conducted its first commercial flight validation test, marking a significant milestone towards becoming fully operational. Additionally, during the quarter, 14 new routes, four new airlines, and nine new flights were introduced, enhancing connectivity. In the data center segment, Phase I of the Hyderabad Data Center, with a capacity of 9.6 MW, is now fully operational. Meanwhile, Noida Data Center, as well as Pune 1 & 2 (Phase I), have surpassed 50% completion, with construction nearing 99% for the 50MW core & shell and 10MW MEP. In the renewable energy sector, ANIL’s wind business has made progress with the listing of the 3.3 MW WTG model in the RLMM, bringing the total listed models to four. In solar manufacturing, module sales have reached approximately 3.3 GW over nine months, driven by a 20% growth in exports and a remarkable 176% increase in domestic sales. On the financial front, ACLLP launched an Offer-For-Sale (OFS) for approximately 19.51 crore shares at a floor price of ₹275 per share, including a base issue of 17.55 crore shares and a green shoe option of 1.96 crore shares. The company successfully sold 17.56 crore shares at an average price of ₹276.50 per share, generating net proceeds of ₹4,808 crore. As a result of this transaction, ACLLP/AEL’s stake in its joint venture Adani Wilmar Ltd. (AWL) has reduced from 43.94% to 30.42%. Consequently, Adani Enterprises Ltd.’s (AEL) consolidated PAT will reflect an impact of approximately USD 36 million (₹300 crore) from this exit. 

Business Segments

  • Integrate Resource Management: The mining business unit of the Adani group was established in 2007 AEL has a leading position in India in the Integrated Resources Management business wherein AEL imports coal through its established coal sourcing arrangements with coal suppliers in Indonesia, Australia, and South Africa and sells to a diversified domestic clientele. 
  • Mining: Operations are focused on mining business i.e. Developer & Operator (MDO – Coal & Iron Ore) and Commercial Mining (Coal) it operates several mines across India and is also developing and operating mines in Indonesia and Australia. 
  • Solar PV Manufacturing: Adani Solar is the largest integrated solar manufacturer in India. It has a manufacturing facility of 1.5 GW capacity along with Research and Development (R&D) facilities within an Electronic Manufacturing Cluster (EMC) facility located in Mundra Special Economic Zone (SEZ). Adani Solar’s manufacturing facility with multi-level infrastructure will be optimized for scaling up to 3.5 GW of modules and cells under a single roof 
  • Road Development: AEL has also operational projects under the road segment, water segment, and data centers. Road projects are being undertaken by Adani Road Transport Ltd. Under the road segment, AEL currently has 14 ongoing projects and with 5 under the Build-Operate-Transfer model, 8 under Hybrid Annuity Model, and a project under the toll-operate-transfer model. Out of the above, 1 is operational, 1 is near completion and the rest are at various stages of completion. 
  • Data Centers: AEL is having two water projects being undertaken by Adani Water Ltd. AEL is developing data centers under Adani Connex which is a Joint Venture between AEL and Edge Connex. In the initial phase, Adani Connex will develop data centers in Chennai, Navi Mumbai, Noida, Vizag, and Hyderabad.  
  • Airports: The Adani Group forayed into the airports sector in 2019, Adani Airports won the mandate to modernize and operate six airports – Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram – through the Airports Authority of India’s globally competitive tendering process. Adani Airports will operate, manage and develop all six airports for 50 years. 

Subsidiary Information

Adani Green Energy Ltd. 

Adani Green Energy Ltd. (AGEL) is one of the largest renewable energy companies in India, dedicated to accelerating the transition towards sustainable and clean energy solutions. The company focuses on solar and wind power generation, with a growing portfolio of operational and under-construction projects. AGEL has aggressively expanded its renewable capacity through strategic acquisitions, public-private partnerships, and Greenfield developments. 

Adani Airports Holdings Ltd. 

Adani Airports Holdings Ltd. (AAHL) is the aviation arm of the Adani Group, managing and operating several major airports across India. The company oversees key airports, including Mumbai, Ahmedabad, Jaipur, Lucknow, Thiruvananthapuram, Guwahati, and Mangaluru, handling millions of passengers annually. AAHL has undertaken large-scale infrastructure modernization projects to enhance passenger experience, increase operational efficiency, and integrate cutting-edge technology in airport management. 

Adani Road Transport Ltd. 

Adani Road Transport Ltd. (ARTL) is committed to developing India’s road and highway infrastructure, playing a crucial role in improving connectivity and facilitating economic growth. The company specializes in constructing, operating, and maintaining expressways, highways, and major road corridors through public-private partnerships (PPP) and government contracts. With a focus on Build Operate Transfer (BOT), Hybrid Annuity Model (HAM), and Toll Operate Transfer (TOT) projects, ARTL is engaged in several high-value infrastructure initiatives across India. 

AdaniConneX Pvt Ltd. 

AdaniConneX Pvt Ltd. is a joint venture between Adani Enterprises Ltd. and EdgeConneX, focusing on the development of hyper-scale data centers across India. With the rapid digitalization of industries and the increasing adoption of cloud computing, AdaniConneX is building energy-efficient, secure, and scalable data centers to cater to the growing demand for digital infrastructure. The company plans to establish a 1 GW (gigawatts) data center capacity in India, supporting businesses in sectors like IT, BFSI, e-commerce, and artificial intelligence. 

Adani Wilmar Ltd. 

Adani Wilmar Ltd. (AWL) is one of India’s leading fast-moving consumer goods (FMCG) companies, primarily engaged in the production and distribution of edible oils, food products, and essential consumer goods. The company markets its products under the well-known “Fortune” brand, which has become a household name in India. AWL’s product portfolio includes edible oils, pulses, rice, wheat flour, sugar, ready-to-eat foods, and personal care products. With an extensive supply chain and distribution network, AWL has established itself as a dominant player in India’s food industry.  

Q3 FY25 Earnings 

  • Revenue of ₹22848 crore in Q3 FY25 down by 8.8% YoY from ₹25050 crore in Q3 FY24.  
  • EBITDA of ₹3070 crore in this quarter at a margin of 13% compared to 13% in Q3 FY24. 
  • Profit of ₹229 crore in this quarter compared to a ₹1973 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 25050 22848 127540 96421 
Expenses 21824 19778 118722 85044 
EBITDA 3226 3070 8818 11377 
OPM 13% 13% 7% 12% 
Other Income 491 648 834 1146 
Net Profit 1973 229 2422 3335 
NPM 7.9% 0.1% 0.2% 3.5% 
EPS 16.6 0.5 21.6 28.4 
Why Adani Wilmar Shares Plunged
Why Adani Wilmar Shares Plunged: Key Reasons Behind the 9.2% Drop and Stake Sale Impact

Adani Wilmar Ltd. fell sharply 9.2% on the last trading day (Friday) to a one-day low of ₹291 on NSE. The fall came after one of its promoters, Adani Commodities LLP, announced a sale of up to 20% holding. The company submitted an offer (OFS) in this month (January 2025).

Strategic transformation by Adani Group

The share sale is in line with Adani Group’s broader strategy to exit non-core businesses. and focus on core infrastructure businesses including airports, roads, data centers, and green hydrogen. Sales generated a revenue of approximately Rs. 485 Cr., among these key activities. It will be a repeat investment.

Parent company Adani Enterprises plans to phase out Adani Wilmar. In the first phase, 13.5% of the shares will be sold through OFS, while in the second phase, Singapore’s Wilmar International Ltd will acquire the remaining shares at a price not exceeding ₹305 per share.

Impact on the market and shareholder changes

OFS has attracted huge interest from over 100 domestic and international investors, making it one of the largest OFS transactions in the recent history of the Indian capital market. The sale announcement, coupled with pressure in the broader market, sent shares of Adani Wilmar down 10% in price.

Investor structure after OFS: Adani Group’s stake in the joint venture decreased from 43.94% to 31.06% after the transaction, while Wilmar International It is set to purchase the remaining shares by March 2025.

Compliance and Finance

The sale of Adani Wilmar’s shares ensures compliance with Sebi’s minimum public shareholding (MPS) norms, which require public ownership of at least 25% in a listed entity. After OFS, public shareholders hold shares at 25.63%, while promoters hold 74.37% of the shares.

Business overview and growth trends

Adani Wilmar, an equal joint venture between Adani Group and Wilmar International, dominates the Indian FMCG sector with its flagship brand Fortune, which produces cooking oil, wheat flour, rice, and sugar. The company posted consolidated revenue of Rs 51,555 crore last fiscal year as on date. At the last update, it also reported a market capitalization of ₹42,000 crore.

Adani Total Gas
Adani Total Gas : Assessing Revenue Growth and Valuation Metrics

Company Overview 

Adani Total Gas Limited (ATGL), a joint venture between the Adani Group and TotalEnergies both owning 37.4 percent equity shares in the company, is one of the big players in CGD in India. The company’s primary operations include transportation gas supply and supply of natural gas for domestic, commercial and industrial purposes. ATGL commenced operations in 2004 and has grown to serve 34 districts while having equity stakes in a further 19 districts through a joint venture with the Indian Oil Corporation known as Indian Oil Adani Gas Pvt Ltd (IOAGPL). The cumulative distribution of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) with the active distribution of 577 CNG stations within the network by October 2024 remain the core businesses within its operations contributing positively to its operational finance. Consistent with its promise to sustainability, the company has diversified its operations into innovative energy solutions through its subsidiary Adani TotalEnergies E-Mobility Limited, focused on biogas, LNG, green hydrogen and electric vehicle infrastructure. Notwithstanding recent controversies sparked off by the allegations involving its parent company concerning corporate governance, ATGL rests the arguments on premises that the concerns surrounding their investment will lead to growth and therefore innovation which it has funding of $375 million sourced internationally to expand its distribution network across 13 states that is in line with India’s clean energy vision. 

Returns Summary 

YTD 1 Month 6 Month 1 Year 2 Year 3 Year 5 Year 
-22.46% -5.54% -13.68% -22.46% -79.26% -55.29% 371.14% 

3Years Return: SBI Ltd. v/s Nifty 50 

Shareholding Pattern 

Key Metrics 

Metrics – 
Mkt Cap (INR Cr):              83,230 Cr. 
52-week H/L:                      1198/546 
PE Ratio:                             120.81 
Dividend yield:                   0.03% 
ROCE:                                21.26% 
P/B:                                    21.5 
NSE Code:                          ATGL 

Financial Trends 

Year Sales (₹ Cr) Operating Profit (₹ Cr) OPM (%) Net Profit (₹ Cr) EPS (₹) Reserves (₹ Cr) Borrowings (₹ Cr) Fixed Assets (₹ Cr) Debt/Equity 
Mar-18 1,374 366 27% 162 6.31 759 1,345 897 1.77 
Mar-19 1,719 455 26% 229 2.08 992 394 980 0.4 
Mar-20 1,875 595 32% 436 3.97 1,361 428 1,198 0.31 
Mar-21 1,696 704 42% 463 4.21 1,824 529 1,379 0.29 
Mar-22 3,038 773 25% 509 4.63 2,306 1,035 1,733 0.45 
Mar-23 4,378 870 20% 546 4.97 2,831 1,422 2,335 0.5 
Mar-24 4,475 1,104 25% 668 6.07 3,470 1,557 3,174 0.45 

Peer Comparison 

Company Price (₹) Market Cap (₹ Cr) P/B P/E EPS (₹) ROE (%) ROCE (%) P/S EV/EBITDA 
Adani Total Gas 761.05 83,701.05 21.5 120.81 6.3 20.09 21.26 18.72 69.58 
Gujarat Gas 498.7 34,330.02 4.32 27.1 18.4 15.56 21.65 2.19 15 
Indraprastha Gas 415.65 29,095.53 3.1 18.1 22.96 22.36 29.86 2.08 10.55 
Gujarat State Petronet 361.9 20,418.81 1.93 18.16 19.93 13.15 16.86 10.05 11.88 
Mahanagar Gas 1,284.40 12,687.02 2.29 11.04 116.37 27.79 37.6 2.03 6.71 
Confidence Futuristic 89.7 224.43 1.6 83.78 1.07 1.86 2.63 44.36 58.09 

Latest News

Adani Total Gas has reported a 7.2% revenue growth over the past year and an impressive 111% growth over three years. Despite industry-wide challenges, including a projected 5.1% revenue decline, the company has maintained resilience, justifying its elevated price-to-sales (P/S) ratio.

Investors remain optimistic about its ability to outperform peers, but future growth hinges on overcoming challenges like declining natural gas allocations. With revenue growth exceeding industry trends, Adani Total Gas continues to attract attention, though its ability to sustain this momentum will be crucial.

Stock Analysis 

On December 31 2024 Adani Total Gas Ltd. Share price close in a market fall-down by 3.28% and made an intraday low at 726.6. This fall came on the heels of four consecutive days of gain and was in stark contrast to 2.46 percent fall (over the past month) with the Sensex. One of the major reasons for the drop is the decrease in APM-priced domestic gas allocation. In this regard GAIL India Limited vide letter dated November 15 2024, communicated to ATGL, a reduction in gas allocation by 13% effective from November 16 2024. Its relatively decrease affect all the City Gas Distribution CGD sector. It also expected to speak negatively of the firm about profits. Noting revenue, the last push could be rationalized on a standalone basis by ATGL is basically growing revenue in some form of consistent manner. This may lead investors speculate that revenues will come through hard and glaze in the coming period and allow sales annual growth. According to the consensus of analysts, the stock’s target price is ₹1,085.00, which means that it can potentially gain by around 59.72% from the last closing price of ₹679.30.   The recent cuts on gas allocation and potential cuts on profitability should sway investors and affect stock performance in the near term, however. How quickly is still dependent on how ATGL manages these issues and tailors its approach to mitigate the effects of declining natural gas supplies. It is up to investors to closely watch and see what operational improvements ATGL makes on top of market developments to determine when a turnaround in the company’ stock performance will occur.  

Investors are advised to keep their eyes on the companies’ financials and strategic decisions which will provide further direction as to take the appropriate action in short term. However, the future from long term perspective looks attractive.