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“During this discussion, we discovered calculation errors that we had made in two Adani Group companies, Adani Transmission and Adani Power. For Adani Transmission we have revised our EBITDA estimate from ₹ 4,200 crore to ₹ 5,200 crore. For Adani Power we have revised our gross debt estimate to 48,900 crore from 58,200 crore. These corrections have not changed our investment recommendations,” she adds.

The agency had raised red flags about the capital structure of Adani Group, controlled by the world’s third-richest person, Gautam Adani, in its previous report, saying the conglomerate was “over-indebted.” The report claimed that Adani Group’s rapid business expansion was largely debt-financed, which could eventually become a massive debt trap and potentially lead to distress or default of one or more of the group’s companies.

The report, published on Aug. 23, mentioned that Adani Group had been pursuing an aggressive expansion plan that had put pressure on its credit metrics and cash flows. In recent years, the energy-to-FMCG conglomerate has grown aggressively. This includes both rapidly growing operations of its existing businesses (e.g. Adani Green is aiming to almost quintuple its operational renewable capacity by FY25) and entering new sectors where it has no experience (including cement , copper). refining, petrochemicals, data centers and most recently media, telecom and alumina/aluminum production among others).

Sybil Alvarez

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