Adani group capex reached its highest-ever annual level in FY26 at ₹1,52,967 crore ($16.1 billion) — the largest single-year capital deployment by any Indian corporate — yet the portfolio’s operating earnings grew at their slowest pace in three years. EBITDA rose just 5.6 per cent year-on-year to ₹94,834 crore, a sharp deceleration from the 8.2 per cent posted in FY25 and a long way from the 45 per cent surge the group delivered in FY24.
The scale of the spend is hard to overstate. The conglomerate itself noted that FY26’s deployment roughly equals the asset base it had built over its first twenty-five years. Nearly 80 per cent of the Adani group capex was directed at core infrastructure — energy, utilities, transport, and logistics. Several marquee projects entered operations during the year: 5.1 GW of new renewable energy capacity, 1.38 GWh of battery storage, the Navi Mumbai International Airport, a Guwahati airport terminal, the Ganga Expressway (opened April 2026), and a copper smelter. The total asset base swelled to ₹7,85,098 crore ($82.2 billion), up roughly 29 per cent from ₹6.1 lakh crore at the close of FY25.
The question worth examining is why earnings growth has lost momentum while investment has accelerated. Part of the answer lies in timing: freshly commissioned assets typically need several quarters — sometimes longer — before contributing meaningfully to EBITDA. Meanwhile, the balance sheet reflects the cost of this acceleration. Net debt-to-EBITDA climbed to 3.3x, up from 2.6x in FY25 and reversing the deleveraging trend that had brought the ratio down from 3.8x in FY19 to a low of 2.2x in FY24. Cash reserves at year-end stood at ₹55,852 crore, or 15 per cent of gross debt — down from 18.5 per cent a year earlier.
Not everything in the portfolio tilts toward caution. Average borrowing costs fell to 7.8 per cent, down from 9 per cent two years ago, supported by a run of credit-rating upgrades. The group says 87 per cent of its EBITDA now flows from core infrastructure businesses with long-duration, contracted cash flows. Equity still funds 60 per cent of the asset base — a ratio the conglomerate cites as evidence that the Adani group capex cycle is not debt-fuelled. For context, domestic assets rated AA or better contribute roughly 90 per cent of portfolio earnings, according to the company’s own BSE filings.
For shareholders, the next two to three quarters will be decisive. If the newly operational assets — particularly Navi Mumbai airport and the expanded renewable portfolio — begin earning at the pace management expects, the EBITDA growth curve should re-steepen. If they do not, a 3.3x leverage ratio leaves materially less cushion than the group enjoyed a year ago. Two data points are worth tracking in upcoming filings: quarterly EBITDA contribution from assets commissioned in FY26, and any further movement in net debt-to-EBITDA toward or past the stated 3.5x ceiling. Investors seeking broader context on how India’s infrastructure capex cycle is shaping corporate balance sheets may find [internal link — add relevant site article URL before publishing] useful.
This article is journalism and educational commentary, not investment advice. The author is not a SEBI-registered Research Analyst. Figures should be independently verified against official filings before any financial decision.
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