Now Reading: Adani Infra turns cash machine, buys ₹11,561 crore group stakes
-
01
Adani Infra turns cash machine, buys ₹11,561 crore group stakes
Adani Infra turns cash machine, buys ₹11,561 crore group stakes
Adani Infra (India) Ltd, a promoter-owned company, posted a Rs 7,127 crore profit in FY26, doubling from the previous year and surging 80 times from FY24, according to filings. The private firm…
The Story in Brief
Adani Infra (India) Ltd, a promoter-owned company, posted a Rs 7,127 crore profit in FY26, doubling from the previous year and surging 80 times from FY24, according to filings. The private firm generated Rs 6,666 crore in free cash flow, the most in the Adani Group. About 95% of its Rs 11,301 crore revenue came from group entities after it was made the conglomerate's project management and EPC arm in FY25.
Over the past seven months, Adani Infra spent Rs 11,561 crore buying minority stakes in four listed group firms: Adani Enterprises, Adani Energy Solutions, Adani Green Energy, and Adani Power. Some purchases were open-market, raising promoter stakes; others were from a UAE-based promoter entity, keeping overall ownership unchanged. The group says contracts are arm's-length and approved by lenders.
The Indian Opinion
This story feeds two conflicting narratives: that the Adani Group is minting money from its own projects, and that it is using a private entity to consolidate control. The truth is more routine. A project management company earning fat fees from group firms and then reinvesting in those firms is a circular flow, not a scandal. But neither is it a sign of outside confidence. The real test will come when Adani Infra starts earning a majority of its revenue from external clients, as it claims it will. Until then, the cash is just rearranging deckchairs on a very large ship.
Source: livemint.com
This story was synthesised by AI from the source linked above.
