Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Commercial Paper (CP) 2000.00 - ACUITE A1+ | Reaffirmed | Rating Watch with Developing Implications
Total Outstanding 2000.00 - -
Total Withdrawn 0.00 - -
 
Rating Rationale

Acuité has reaffirmed the short-term rating of 'ACUITE A1+' (read as ACUITE A one plus) on the Rs. 2000 Cr. Commercial Paper Programme of Adani Enterprises Limited (AEL).
The ratings have been placed ‘under watch with Developing Implications’.

Rationale for rating
The outstanding ratings have been placed under watch with developing implications in view of news relating to the indictment allegations against executives of Adani Green Energy Limited (AGEL) with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions based on false and misleading statements. Further media also reported the indictment charges by US Department of Justice (DOJ) on Adani Group chairman, his nephew and six others in an alleged Rs 2,100 crore ($250 million) bribery case. In a parallel action, Securities & Exchange Commission (SEC) has also charged Adani Group chairman and his nephew for conduct arising out of bribery scheme. However, Adani Group has strongly refuted allegations made by the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) against directors of its renewable energy arm, Adani Green.In addition to that , Adani Green Energy Ltd (AGEL) highlighted that the charges in the US Department of Justice (DOJ) indictment and the civil complaint by the US Securities and Exchange Commission (SEC) do not include allegations of bribery or corruption.

Acuite will closely monitor the development pertaining to these allegations and its impact on the business and financial performance of the Adani Enterprises Limited. Acuite will also keep a watch on the liquidity position including the access to market to raise any further debt or equity.

The rating continues to reflect extensive experience and the long track record of AEL's management in its core trading businesses and its strategic role as an incubator for new business ventures of Adani Group. AEL has successfully developed and spun off companies such as Adani Power, Adani Green Energy and Adani Wilmar amongst others. It also takes into account the need-based funding support available to AEL from its Group which consists of various listed entities in which the promoters hold a substantial stake. Acuité believes that debt levels are likely to go up with planned capex for the newly incubated businesses and the debt to EBITDA levels is likely to remain sensitive to the stabilisation of these newly incubated businesses and will continue to remain key monitorable over the near term.

About the Company
­Incorporated in 1993, Adani Enterprises Limited (AEL) is the flagship company of the Adani Group, promoted by Mr. Gautam Adani. It is primarily engaged in Integrated Resource Management (IRM) i.e. coal trading and logistic services, Mine development operations (MDO) and power trading business. AEL has a diverse interest as an incubator of various businesses through its direct and stepdown subsidiaries. The registered office of the company is in Gujarat.
 
About the Group
­­The Adani Group has evolved into a diversified portfolio engaged in diversified businesses such as energy and utility (renewables, transmission and distribution, gas discom, IPP, data centre, solar module manufacturing, wind turbines etc.), transport and logistics (roads, ports and airports), material, metal and mining (copper, PVC, aluminium, cement etc.), agro-processing (including sale of edible oil under the brand name `Fortune') among others.
 
Unsupported Rating
­Not applicable
 
Analytical Approach

Extent of Consolidation
•Full Consolidation
Rationale for Consolidation or Parent / Group / Govt. Support
­Acuité has considered consolidated financial and business risk profile of AEL to arrive at the rating. The entities consolidated include AEL (standalone) along-with all its subsidiaries & step- down subsidiaries, associates and JVs. The segments currently reported under AEL include IRM, mining services, commercial mining, new energy ecosystem, airports, roads and other businesses mostly undertaken through subsidiaries (which includes Shipping, Bunkering, Agro- edible oil,  water treatment plants) among others. List of consolidated entities given in the annexures below.
Key Rating Drivers

Strengths
­Vast experience of promoters and established track record over diverse business segments of AEL:
AEL is the flagship company of the Adani Group. The group is a diversified portfolio with varied interests across resources (coal trading and Mine Development Operations), logistics (ports and logistics, shipping and rail), energy (power generation, transmission and distribution) and ancillary activities. The group has been incubator for various new industries like Roads, Green Hydrogen, Airports among others. The major companies of the group are Adani Enterprises Limited (engaged in Integrated resource management, power trading, MDO, agri-processing & storage and Bunkering & Shipping among others), Adani Ports and SEZ Limited (engaged in port operations and logistics) Adani Power Limited (holds Group’s thermal and solar power projects), Adani Energy Solutions Limited erstwhile Adani Transmission Limited (holds group’s transmission assets), Adani Total Gas limited (engaged in city gas distribution), Adani Green Energy Limited (engaged in renewable energy generation) Adani Airport Holding Limited (engaged in managing airports various states) Adani Road Transport Limited and Adani Wilmar Limited (AWL) etc. AEL is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

AEL is promoted by Mr. Gautam Adani, the Chairman and Founder of the Adani Group. Under his leadership, the Group has emerged as a global integrated infrastructure player with interest across transport & Logistics , energy & utility , primary industry and direct to consumer verticals. The promoters are well supported by well qualified and experienced management team. The Group has consistently demonstrated the ability to nurture new businesses under the flagship company i.e. AEL and scale them to a level so that they can be spun off into separate entities to create value for stakeholders. Acuite believes AEL will continue to operate as Flagship Company of the group and play a leading role in incubating new businesses for the group. The Adani group entities have demonstrated their ability to raise short term and long-term funding through various capital market instruments in Indian as well as in foreign currency. The diversified lender and investor profile augments the resource raising ability of the company/group.

Stable revenue in FY2024 with improved operating margin.
AEL has been amongst the leading importer of non-coking coal catering to the requirements of both private clients and public-sector undertakings for over two decades. AEL imports coal from Indonesia, Australia and South Africa and sells across major power producers . The consolidated revenues for the AEL stood at  Rs. 96867.10 crore in FY2024 as against Rs 127853.50 crore in FY2023.The company reported revenues of Rs. 48080.47 crore in 6MFY2025 as against Rs. 42190.73 crore in the corresponding period during the previous year. The group’s incubating businesses like Roads, solar manufacturing, wind turbine, airports have exhibited growth and, the other businesses like shipping, bunkering, power trading have shown steady performance. The company has reported an improvement in EBDITA to Rs. 7471.61 crore in 6M FY2025 as against Rs. 4955.29 crore in 6MFY2024 mainly led by the increase share of revenues from the higher margin industries such as Airports, solar manufacturing, roads etc. Acuite believes, AEL will report healthy margins and cash accruals in FY2025.

Weaknesses
­High debt levels due to huge capex plans mitigated by need based financial support to AEL being part of Adani Group
 The total debt as on March 31, 2024 stood at around Rs. 65310.15 crore (including the lease liability to the tune of Rs. 13919.69 crore). Although going forward additional debt requirement is expected to remain low for established businesses, AEL’s newly incubated businesses such as green hydrogen, copper, roads and airports has significant capex is planned. AEL has followed an aggressive leverage policy, with high debt to EBITDA (excluding other income) of 5.2 times in FY2024 (though improved from 5.4 times for FY2023). The Adani group entities have demonstrated their ability to raise short term and long-term funding through various capital market instruments in Indian as well as in foreign currency. The diversified lender and investor profile augments the resource raising ability of the company/group. Acuité believes any higher-than-expected debt funded capex and subsequently debt addition will lead to breach of debt to EBITDA above 6 times thus imparting a negative bias to the rating. AEL demonstrated propensity towards incubating businesses by significantly leveraging its balance sheet.
ESG Factors Relevant for Rating
For the commodity trading industry, green supply chain, GHG emissions, energy efficiency, environmental management and waste management are significant environmental factors. The industry is primarily exposed to social issues such as community support and development, employee safety, employment quality, product quality and human rights. Additionally, key material issues such as product responsibility, product safety, responsible procurement and employee development have a significant impact on the social scores for this industry. The relevant corporate governance factors include anti-competitive behaviour, business ethics, management compensation and board independence. Moreover, board diversity and compensation, audit committee effectiveness, financial audit & control and shareholders’ rights are the other key material issues for this industry.  AEL has a moderate track record in ESG performance with improvement observed in governance and social factors over the last 1-2 years. The company's strength lies in board independence, financial audit and control and community services. The group has seen a few controversies in the recent past but nothing of a serious nature has emerged so far.
 
Rating Sensitivities
­
  • Timely completion of the proposed capex plans without major time and cost overruns
  • Any significant regulatory challenge in any of the group’s core businesses
  • The development pertaining to these allegations levied by US Department of Justice and SEC
 
Liquidity Position
Adequate
­The liquidity profile of the company remains adequate as marked by healthy cash accruals of Rs. 6377.42 crore as on March 31,2024 as against the repayment obligations of Rs. 1423.37 crore in FY2024. The company’s operations are however, working capital intensive as reflected by Gross Current Assets (GCA) days of 113 days in FY2024 as against 94 days in FY2023. AEL majorly uses Non-Fund- Based Limits (LC and BG) which were 57 percent utilized for last 9 months ended September 2024. The company had cash and cash equivalents of Rs. 2306.55 crore as on March 31, 2024. Besides, The CP outstanding as on October 31, 2024 was Rs. 617 Cr. as compared to the rated programme of Rs.2000 crore. The unutilized CP limits, working capital limits as well as available cash and cash equivalent supports the liquidity further. Further, the Adani group entities have demonstrated their ability to raise short term and long- term funding through various capital market instruments in Indian as well as in foreign currency. The diversified lender and investor profile augments the resource raising ability of the company/group.
 
Outlook:
­Not Applicable
 
Other Factors affecting Rating
None
 

Particulars Unit FY 24 (Actual) FY 23 (Actual)
Operating Income Rs. Cr. 96867.10 127853.50
PAT Rs. Cr. 3335.27 2421.60
PAT Margin (%) 3.44 1.89
Total Debt/Tangible Net Worth Times 2.73 2.17
PBDIT/Interest Times 2.76 2.48
Status of non-cooperation with previous CRA (if applicable)
­Not Applicable
 
Any Other Information
­None
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Commercial Paper: https://www.acuite.in/view-rating-criteria-54.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm

Note on complexity levels of the rated instrument

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
06 Feb 2024 Commercial Paper Program Short Term 2000.00 ACUITE A1+ (Reaffirmed)
10 Feb 2023 Commercial Paper Program Short Term 2000.00 ACUITE A1+ (Reaffirmed)
27 Jan 2023 Commercial Paper Program Short Term 2000.00 ACUITE A1+ (Reaffirmed)
14 Jun 2022 Commercial Paper Program Short Term 2000.00 ACUITE A1+ (Reaffirmed)
11 Jun 2021 Commercial Paper Program Short Term 2000.00 ACUITE A1+ (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Not Applicable Not avl. / Not appl. Commercial Paper Program Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2000.00 Simple ACUITE A1+ | Reaffirmed | Rating Watch with Developing Implications
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)
­
  Adani Enterprises Limited - List of entities
  Subsidiary Companies and Step Down Subsidiaries
1 Aanya Maritime Inc
2 Aashna Maritime Inc
3 Adani Aerospace and Defence Limited
4 Adani Agri Fresh Limited
5 Adani Airport Holdings Limited
6 Adani Australia Pty Limited
7 Adani Aviation Fuel Services Limited (formerly known as Sabarmati Infrastructure Services Limited)
8 Adani Bunkering Private Limited
9 Adani Cement Industries Limited
10 Adani Cementation Limited
11 Adani Commodities LLP
12 Adani Data Networks Limited
13 Adani Defence Systems and Technologies Limited
14 Adani Digital Labs Private Limited
15 Adani Disruptive Ventures Limited
16 Adani Elbit Advanced Systems India Limited
17 Adani GCC Private Limited
18 Adani Global (Switzerland) LLC
19 Adani Global Air Cargo Solutions Limited (formerly known as Rajputana Smart Solutions Limited)
20 Adani Global DMCC
21 Adani Global FZE
22 Adani Global Limited
23 Adani Global Pte. Limited
24 Adani Global Royal Holding Pte Limited
25 Adani Global Vietnam Company Limited
26 Adani Green Technology Limited
27 Adani Health Ventures Limited
28 Adani Infrastructure Pty Limited
29 Adani Israel Limited
30 Adani Metro Transport Limited
31 Adani Minerals Pty Limited
32 Adani Mining Limited (formerly known as Hirakund Natural Resources Limited)
33 Adani Mining Pty Limited
34 Adani Naval Defence Systems and Technologies Limited
35 Adani New Industries Limited (formerly known as Mundra Windtech Limited)
36 Adani North America Inc
37 Adani Petrochemicals Limited
38 Adani Railways Transport Limited
39 Adani Renewable Asset Holdings Pty Limited
40 Adani Renewable Asset Pty Limited
41 Adani Resources Private Limited
42 Adani Road O&M Limited
43 Adani Road GRICL Limited
44 Adani Road STPL Limited
45 Adani Road Transport Limited
46 Adani Rugby Run Finance Pty Limited
47 Adani Rugby Run Pty Limited
48 Adani Shipping (India) Private Limited
49 Adani Shipping Pte Limited
50 Adani Solar USA Inc
51 Adani Solar USA LLC
52 Adani Tradecom Limited (formerly known as Adani Tradecom LLP)
53 Adani Water Limited
54 Adani Welspun Exploration Limited
55 Adani-LCC JV
56 Aelius Resources S.A
57 Agneya Systems Limited
58 Ahmedabad International Airport Limited (formerly known as Adani Ahmedabad International Airport Limited)
59 Alluvial Heavy Minerals Limited
60 Alluvial Mineral Resources Private Limited
61 Alluvial Natural Resources Private Limited (Under Striking off)
62 Alpha Design Technologies Private Limited
63 Alpha Elsec Defence and Aerospace Private Limited
64 Alpha Tocol Engineering Services Private Limited
65 Alwar Alluvial Resources Limited
66 AMG Media Networks Limited
67 AP Mineral Resources Private Limited (formerly known as Kurmitar Mining Private Limited) (Under Striking off)
68 April Moon Retail Private Limited
69 Armada Defence Systems Limited
70 Astraeus Services IFSC Limited
71 Atharva Advanced Systems and Technologies Limited
72 Azhiyur Vengalam Road Private Limited
73 Badakumari Karki Road Private Limited
74 Bailadila Iron Ore Mining Private Limited
75 Bangalore Airport & Infrastructure Developers Limited
76 Bengal Tech Park Limited
77 Bhagalpur Waste Water Limited
78 Bilaspur Pathrapali Road Private Limited
79 Bowen Rail Company Pty Limited
80 Bowen Rail Operation Pte. Limited
81 Budaun Hardoi Road Private Limited
82 Carroballista Systems Limited
83 CG Natural Resources Private Limited
84 East Coast Aluminium Limited (formerly known as Mundra Copper Limited)
85 Flaire Unmanned Systems Private Limited
86 Galilee Biodiversity Company Pty Limited
87 Galilee Transmission Holdings Pty Limited
88 Galilee Transmission Pty Limited
89 Gare Palma II Collieries Private Limited
90 Gare Pelma III Collieries Limited
91 Gidhmuri Paturia Collieries Private Limited
92 Global Airports Operator L.L.C.
93 Guwahati International Airport Limited (formerly known as Adani Guwahati International Airport Limited)
94 GVK Airport Developers Limited
95 GVK Airport Holdings Limited
96 Hardoi Unnao Road Private Limited
97 Horizon Aero Solutions Limited (formerly known as Adani Rave Gears India Limited)
98 IANS India Private Limited
99 Indravati Projects Private Limited (under striking off)
100 Jaipur International Airport Limited (formerly known as Adani Jaipur International Airport Limited)
101 Jhar Mineral Resources Private Limited
102 Jhar Mining Infra Private Limited
103 Kagal Satara Road Private Limited
104 Kalinga Alumina Limited (formerly known as Mundra Aluminium Limited)
105 Kodad Khammam Road Private Limited
106 Kortas Industries Private Limited
107 Kurmitar Iron Ore Mining Private Limited
108 Kutch Copper Limited
109 Kutch Copper Tubes Limited (formerly known as Adani Copper Tubes Limited)
110 Kutch Fertilizers Limited
111 Le Marché Duty Free SAS
112 Lucknow International Airport Limited (formerly known as Adani Lucknow International Airport Limited)
113 Mahanadi Mines and Minerals Private Limited
114 Mancherial Repallewada Road Private Limited
115 Mangaluru International Airport Limited (formerly known as Adani Mangaluru International Airport Limited)
116 MH Natural Resources Private Limited
117 Microwave and Optronics Systems Private Limited
118 Midlands Parent LLC
119 Mining Tech Consultancy Services Limited
120 MP Natural Resources Private Limited
121 Mumbai International Airport Limited
122 Mumbai Travel Retail Private Limited
123 Mundra Petrochem Limited
124 Mundra Solar Energy Limited
125 Mundra Solar Limited
126 Mundra Solar PV Limited
127 Mundra Synenergy Limited
128 Nanasa Pidgaon Road Private Limited
129 Navi Mumbai International Airport Private Limited
130 NDTV Convergence Limited
131 NDTV Labs Limited
132 NDTV Media Limited
133 NDTV Networks Limited
134 NDTV Worldwide Limited
135 New Delhi Television Limited
136 Niladri Minerals Private Limited (under stricking off)
137 Oakwood Construction Services Inc
138 Ordefence Systems Limited (formerly known as Adani Land Defence Systems and Technologies Limited)
139 Ospree International FZCO
140 Panagarh Palsit Road Private Limited
141 Parsa Kente Collieries Limited
142 Pelma Collieries Limited
143 PLR Systems (India) Limited
144 PLR Systems Private Limited
145 Prayagraj Water Private Limited
146 PRS Tolls Private Limited
147 PT Adani Global Coal Trading
148 PT Adani Global
149 PT Coal Indonesia
150 PT Energy Resources
151 PT Gemilang Pusaka Pertiwi
152 PT Hasta Mundra
153 PT Lamindo Inter Multikon
154 PT Niaga Antar Bangsa
155 PT Niaga Lintas Samudra
156 PT Suar Harapan Bangsa
157 PT Sumber Bara
158 Puri Natural Resources Limited
159 Queensland RIPA Holdings Pty Limited
160 Queensland RIPA Pty Limited
161 Quintillion Business Media Limited
162 Rahi Shipping Pte Limited
163 Raigarh Natural Resources Limited
164 Rajasthan Collieries Limited
165 Reline Thermal Imaging and Software Private Limited
166 RRPR Holding Private Limited
167 Seafront Segregated Portfolio
168 Sibia Analytics and Consulting Services Private Limited
169 Sirius Digitech International Limited
170 Sompuri Infrastructures Private Limited
171 Sompuri Natural Resources Private Limited
172 Stark Enterprises Private Limited
173 Stratatech Mineral Resources Private Limited
174 Surguja Power Private Limited
175 Suryapet Khammam Road Private Limited
176 Tabemono True Aromas Private Limited
177 Talabira (Odisha) Mining Private Limited
178 TRV (Kerala) International Airport Limited (formerly known as Adani Thiruvananthapuram International Airport Limited)
179 Unnao Prayagraj Road Private Limited
180 Urja Maritime Inc
181 Vanshi Shipping Pte Limited
182 Vijayawada Bypass Project Private Limited
183 Vindhya Mines and Minerals Limited
184 Vishvapradhan Commercial Private Limited
185 Whyalla Renewable Holdings Pty Limited
186 Whyalla Renewables Pty Limited
187 Airports Infrastructure PLC
188 Adani Energy Resources (Shanghai) Co. Limited
189 CELERITAS INTERNATIONAL FZCO
  Joint Ventures
1 Adani Esyasoft Smart Solutions Limited
2 Adani Global Resources Pte Limited
3 Adani Total LNG Singapore Pte. Limited
4 Adani Wilmar Limited
5 Adani Wilmar Pte. Ltd, Singapore
6 Adani ConneX Private Limited (formerly DC Development Chennai Private Limited)
7 Aviceda Infra Park Limited
8 AWL Edible Oils and Foods Private Limited
9 AWN Agro Private Limited
10 Bangladesh Edible Oil Limited, Bangladesh
11 Carmichael Rail Development Company Pty Limited
12 Carmichael Rail Network Holdings Pty Limited
13 Carmichael Rail Network Pty Limited
14 Coredge.io India Private Limited
15 DC Development Hyderabad Limited (formerly DC Development Hyderabad Private Limited)
16 DC Development Noida Limited (formerly DC Development Noida Private Limited)
17 DC Development Noida Two Limited
18 Golden Valley Agrotech Private Limited
19 Innovant Buildwell Private Limited
20 King Power Ospree Pte Limited
21 Kowa Green Fuel Pte Limited
22 KTV Edible Oils Private Limited
23 KTV Health Foods Private Limited
24 Leverian Holdings Pte. Limited
25 Mumbai Airport Lounge Services Private Limited
26 Mumbai Aviation Fuel Farm Facility Private Limited
27 Noida Data Center Limited
28 Omkar Chemical Industries Private Limited
29 OnArt Quest Limited
30 Parserlabs India Private Limited
31 PT Flextech Packaging
32 Pune Data Center Limited
33 Pune Data Center Two Limited (formerly Mumbai Data Center Limited)
34 Semolina Kitchens Private Limited
35 Sirius Digitech Limited
36 Support Properties Private Limited
37 Terravista Developers Private Limited
38 Vishakha Polyfab Private Limited
39 Smartport City Limited
40 Brahmaand AI Limited
  Associate
1 Adani Power Resources Limited
2 Astro Awani Network SDN. BHD
3 AutoTEC Systems Private Limited
4 Cleartrip Private Limited
5 Comprotech Engineering Private Limited
6 General Aeronautics Private Limited
7 GSPC LNG Limited
8 India Inc Limited
9 Maharashtra Border Check Post Network Limited
10 Mundra Solar Technopark Private Limited
11 Red Pixels Ventures Limited
12 Unyde Systems Private Limited
13 Vignan Technologies Private Limited
14 Vishakha Industries Private Limited
15 Vishakha Pipes and Moulding Private Limited
 

Contacts

About Acuité Ratings & Research

© Acuité Ratings & Research Limited. All Rights Reserved.www.acuite.in