Adani Enterprises Sets Nov 25 for Rs. 24,930 Cr Rights Issue

Introduction

Adani Enterprises Ltd has moved back into the spotlight after announcing a massive Rs. 24,930 crore rights issue, one of the biggest fundraising initiatives by a listed Indian company. The rights issue will open on November 25 and close on December 10, giving eligible shareholders the opportunity to subscribe to partly paid-up shares at a discounted price. The development comes at a crucial time as the company looks to strengthen its capital structure and reduce debt across key subsidiaries. Meanwhile, the stock traded mildly lower during the session, reflecting cautious sentiment ahead of the subscription window. 

Let’s explore the company’s business fundamentals, rights issue structure, and what investors should know.

 

About the Company

Adani Enterprises Ltd, incorporated in 1993, is the flagship incubator of the Adani Group. The company operates across multiple infrastructure and industrial segments, developing new businesses before spinning them into independent listed entities such as Adani Ports, Adani Power, Adani Green Energy, and Adani Total Gas.

 

Business Profile

• Integrated Resource Management (IRM) and mining services

• Coal & iron ore mining operations in India and overseas

• Solar PV cell and module manufacturing

• Airports, roads, water, and data-centre infrastructure

• Data centres under the Adani Connex JV

• Agro, defence, and other emerging businesses

 

Key Facts

 

Adani Enterprises Ltd Moves in 2025

Major Updates This Year

• November 2025:

AdaniConneX signed an SPA to acquire Trade Castle Tech Park for Rs. 231.34 crore, further expanding its data-centre footprint. The company also confirmed that Navi Mumbai International Airport will begin operations on 25 December 2025. Shares showed positive momentum, while AEL announced details of its Rs. 24,930 crore rights issue. Q2 FY26 results reported an 84% YoY jump in PAT, and the company incorporated a new subsidiary, Munger Sultanganj Road, to support its roads portfolio.

 

• October 2025:

The company strengthened its digital infrastructure business through AdaniConneX’s partnership with Google for a large-scale data-centre campus in Visakhapatnam. The board approved raising up to Rs. 3,000 crore via NCDs, and Adani Road Transport executed agreements to acquire Yashodhan Highways and KN Highways Development. A major highlight was securing the Rs. 4,081 crore Kedarnath–Sonprayag ropeway project, enhancing its transport infrastructure presence.

 

• September 2025:

AEL expanded its roads portfolio with Adani Road Transport’s acquisition of D P Jain TOT Toll Roads. The stock remained volatile through the month, trading between Rs. 2,276 and Rs. 2,507. The company also received another significant ropeway mandate from NHLML, reinforcing its leadership in mobility infrastructure.

 

• August 2025:

The company expanded into new technology and industrial domains with the incorporation of Adani Cybersecurity Services and Nagpur Syn-Gas & Chemicals. Q1 FY26 earnings reflected a softer quarter, with PAT declining 49.5% YoY due to lower IRM revenues, though operations across airports, mining services, and new verticals remained steady.

 

Evolution of Adani Enterprises Ltd

 

Financial Performance Overview

Quarterly Results Snapshot (All Figures in Cr.)

The quarterly trend shows softer revenues through the year, though operating margins improved in September 2025 on the back of tighter cost controls. Net profit and EPS saw a sharp jump during March and September 2025, driven largely by exceptional other income rather than core operating growth.

 

Yearly Financial Comparison (FY24 vs FY25)

FY25 saw a sharp rise in profitability driven by exceptional other income, even as operating revenues softened. Margins held firm and EPS nearly doubled, though interest costs increased due to ongoing capex.

 

Balance Sheet Highlights

(All Figures are in Crores.)

The balance sheet reflects stronger net worth in FY25, driven by a sharp rise in reserves and higher investments. Borrowings increased to support ongoing capex across airports, roads, and data-centre projects, while total assets expanded accordingly.

 

Cash Flow Summary (All Figures are in Crores.)

Operating cash flow turned negative in FY25 due to higher working-capital requirements and capex, while financing inflows rose sharply to support expansion. Overall net cash flow dipped slightly, reflecting the company’s aggressive growth cycle.

 

Shareholding Pattern (Sep 2025)

 

Peer Comparison

Adani Enterprises stands out as the largest and most profitable peer by a wide margin, with strong quarterly earnings despite softer revenue. Smaller peers remain significantly weaker in scale, stability, and profitability.

 

Upcoming Plans

• Raising Rs. 25,000 crore via rights issue to reduce debt and fund expansion.

• Navi Mumbai International Airport to begin operations soon; further airport capacity expansion planned.

• Adani Road Transport progressing key stretches of the Ganga Expressway and other highway projects.

• Building India’s second-largest metals & materials portfolio; business expected to be listed by FY27–28.

• Mundra Petrochem Ltd. developing a 1 MTPA PVC plant, targeted for December 2026 launch.

• AdaniConneX expanding data centres nationwide; partnership with Google for an AI data-centre campus in Visakhapatnam.

• Entering Battery Energy Storage Systems (BESS) with a 1126 MW / 3530 MWh project.

• Continued focus on green energy, hydrogen ecosystem, and next-gen infrastructure platforms.

 

Corporate Actions

• Bonus: One bonus issue so far — 1:1 on 10 Dec 2009.

• Board Meeting: Latest held on 11 Nov 2025 for rights issue approval.

• Rights Issue: Issued twice; latest on 17 Nov 2025 in 3:25 ratio at Rs. 1,799 premium (FV Rs. 1).

• Stock Split: One split — FV Rs. 10 → Rs. 1 effective 28 Jul 2004.

• Dividend: 23 dividends declared since 2003; last dividend Rs. 1.30 (Ex-date 13 Jun 2025), dividend yield 0.05%.

 

Strengths & Risks

Strengths

• Strong profit growth of 103% over the past three years.

• Consistently healthy ROE (21.28%) and ROCE (23.34%).

• Attractive PEG ratio of 0.30, indicating reasonable valuation vs growth.

• Highly efficient cash conversion cycle of –166 days.

• High promoter holding (73.97%), signalling confidence.

 

Risks

• Weak revenue growth at –0.14% over three years.

• Negative operating cash flow (–Rs. 3,731 crore).

• Low tax rate (12.32%) may not be sustainable.

• Stock trades at a high P/E (32.74) and elevated EV/EBITDA (75.89), indicating valuation risks.

 

Market Performance & Sentiment

Adani Enterprises has seen renewed positive sentiment, supported by strong participation in its November 2025 Rs. 24,930-crore rights issue, which lifted the stock by nearly 6% on heavy volumes. Derivatives data also shows rising open interest and active call buying, indicating bullish trader positioning. Analyst commentary has turned mildly positive following creditor approval for a major acquisition plan and steady business updates, though broader market volatility continues to influence short-term movements.

 

Strategic Outlook (2026 & Beyond)

Adani Enterprises is set for a multi-year expansion driven by green energy, airports, logistics, and digital infrastructure. The company plans large investments in green hydrogen, BESS storage, and solar–wind manufacturing, alongside scaling AI-grade data centres through AdaniConneX and the Google partnership. Major subsidiaries in airports, roads, metals, and data centres are expected to unlock value through listings from FY27 onward. AEL is also strengthening its metals portfolio with the Mundra copper project, while long-term capex remains focused on airports, data centres, and new-energy platforms. Overall, the outlook signals sustained high-growth momentum backed by strong capex visibility.

Investor View

Short-Term Traders

Adani Enterprises is likely to stay volatile in the near term due to the large rights issue, frequent project announcements, and fluctuations in FII participation. Price movements may remain sensitive to subscription response, quarterly earnings, and news flow from its airports and data-centre businesses. Traders can expect sharp swings but strong momentum around project wins and capex updates.

 

Long-Term Investors

For long-term investors, Adani Enterprises offers a diversified growth story across green energy, airports, roads, copper, data centers, and digital infra. The company’s multi-year capex pipeline, improving profitability, and expansion into metals, BESS, and AI-driven data centres support strong structural growth. However, high valuations and elevated debt levels require careful monitoring. Investors with a long-term horizon may see meaningful value creation as major businesses move closer to listing and cash flows improve.

Bottom Line:

Adani Enterprises’ Rs. 24,930-crore rights issue marks one of its most significant capital moves in recent years, strengthening its balance sheet and supporting expansion across airports, data centres, green energy, and infrastructure. While the stock may witness short-term volatility, the company’s diversified portfolio, strong promoter commitment, and multi-year growth roadmap keep it firmly in investor focus.

 

Frequently Asked Questions (FAQ)

1. Why is Adani Enterprises in focus now?

Because of its large Rs. 24,930-crore rights issue, new project acquisitions, strong Q2 FY26 profit growth, and expansion across airports, data centres, and green energy.

 

2. Is Adani Enterprises profitable?

Yes. The company reported strong profitability, with net profit rising sharply in FY25 and robust margins supported by mining services, airports, and new energy businesses.

 

3. What is the company’s debt position?

Debt has increased due to aggressive capex in airports, renewables, and infrastructure. Part of the rights issue proceeds will be used to reduce borrowings.

 

4. What are the key growth drivers ahead?

Green energy, data centres (through AdaniConneX), airport expansion, copper manufacturing, BESS projects, and the upcoming Navi Mumbai International Airport.

 

5. Does the company pay dividends?

Yes, Adani Enterprises has a long dividend history. In the last 12 months, it declared a final dividend of Rs. 1.30 per share, though the yield remains low due to a high share price.

     

Conclusion

Adani Enterprises continues to build a powerful diversified business spanning energy, logistics, digital infrastructure, and consumer-facing verticals. With a landmark rights issue, a surge in profitability, and multiple long-term growth engines, the company remains a key watchlist stock for both traders and long-term investors. While near-term volatility may persist due to large capex and leverage, its strategic expansion and strong promoter backing position it for sustained growth over the coming decade.

 

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