In a strategic shift, the Adani Group has entrusted a private family-owned company with managing all infrastructure projects across its listed entities. This move is designed to consolidate operations and retain financial margins that were previously earned by external contractors.
Centralized Control and Billion-Dollar Fundraise
Adani Infra (India) Ltd, a private company owned by billionaire Gautam Adani and his family, is now the single point of oversight for the conglomerate's vast infrastructure portfolio. According to an executive familiar with the private discussions, the firm is leveraging its substantial orderbook, valued at over ₹50,000 crore, to raise more than $1 billion through a private placement of dollar-denominated bonds.
The capital raised will be deployed as promoter loans or equity contributions to fund the massive capital expenditure (capex) requirements of various Adani Group companies. This strategic pivot coincides with the group entering an intense investment phase, with its capex soaring to ₹1.26 trillion in FY25 from approximately ₹71,000 crore the year before. The group plans to spend ₹1.5 trillion in FY26, having already deployed ₹67,870 crore in the first half of the current fiscal year.
Capturing Margins and Building Scale
Previously, project management consultant (PMC) work was dispersed across individual listed companies within the group. By centralizing this function under Adani Infra, the conglomerate can consolidate a sizable operation. The company's orderbook now rivals established players like Kalpataru Projects International Ltd and Afcons Infrastructure Ltd.
"With the scale of their projects, it made sense for them to bring project management in-house. They also wanted to capture the margins within the group," the anonymous executive stated. Adani Infra will not only manage projects but will also increasingly handle engineering and construction work itself, thereby capturing profits that would have gone to third-party EPC vendors. To bolster its capabilities, the company acquired a 34.41% stake in Ahmedabad-based PSP Projects Ltd for about ₹700 crore earlier this year.
Financial Performance and Prudent Leverage
The surge in group capex has directly fueled Adani Infra's revenue growth. As per a Care Ratings note from 13 October, the privately held firm's revenue skyrocketed to ₹6,764 crore in FY25 from just ₹868 crore in the preceding year. The company reported a profit of ₹3,669 crore for FY25, money that remains within the Adani ecosystem.
As of 30 June, Adani Infra's orderbook stood at ₹53,134 crore, with ₹47,725 crore coming from PMC orders from group companies. Its top clients include Adani Green Energy, Adani Airport Holdings, Adani New Industries, and Adani Energy Solutions. The company maintains that it deals with all group firms at arm's length, with competitively priced services approved by the banks lending to the group.
Care Ratings has noted the firm's plan to raise "sizeable external commercial borrowings (ECBs)." The company intends to limit its net debt to less than its trailing 12-month profit before interest, lease rentals, depreciation, and taxation (PBILDT), which was ₹4,832 crore in FY25. This figure is expected to exceed $1 billion (around ₹9,000 crore) by the time of the proposed bond issue. Care has assigned Adani Infra's long-term borrowings an AA- rating, which is in line with group flagship Adani Enterprises.
The Adani Group did not respond to queries regarding Adani Infra's appointment as the exclusive PMC partner or its debt-raising plans.
