The Adani group’s performance for 12 months ending December 2023 has pleasantly surprised the markets as well as analysts. The group has demonstrated the strength of its cash flow-generating assets. The net debt to EBITDA for Adani prior to the Hindenburg Research report was 3.8 times but now, thanks to its unimpacted and fast-growing EBITDA, the ratio improved to 3.3x in March FY23. It will end FY2024 with an EBITDA of a record Rs 80,000 crore. This will cross Rs 1 trillion by fiscal 2025.

The net debt to EBITDA further improved to 2.5x by September 2023, with a record EBITDA growth in the December quarter, and a $1.425 billion capital infusion by the promoters ($1.125 billion) and Total Energies ($300 million). This was possible only due to the high quality of its assets, which are inflationprotected and have stable cash flows with multidecadal visibility, and have continued to deliver despite external environment/circumstances.

But the Hindenburg Research report, which has been now debunked as a fake report, has helped the group to take immediate steps to reduce its debt and improve Gautam Adani cash flows.