Adani Enterprises share price today – Adani Enterprises shares: What CARE says on rating upgrade, Wilmar stake sale & DOJ issue

Shares of Adani Enterprises Ltd (AEL) are in focus today after CARE Ratings upgraded long-term bank facilities, short-term bank facilities and non-convertible debentures of the Adani group flagship, while reaffirming its ratings on commercial papers. The rating agency believes monetisation of roads and airports businesses could lead to significant deleveraging for AEL going ahead.

CARE Ratings said it adopted a consolidated approach, which is primarily attributed to significant degree of operational, financial, and managerial linkages between AEL and its subsidiaries.

AEL, it said, incubates new businesses under it and extends need-based support until these businesses become self-sustainable. In the past, the Adani group firm has successfully incubated ports, thermal and renewable power generation, power transmission, and city gas distribution businesses, the brokerage said.

Wilmar stake sale
CARE Ratings said the funds inflow from Adani Wilmar stake sale deal alleviates concerns on increased reliance on promoters towards bridging funding requirement for Adani Enterprises’ capex in the medium term. While the Adani Wilmar stake sale proceeds are expected to substitute funding from promoters, the latter continues to stay committed to AEL and the group’s business as evident from infusion of unsecured loans of Rs 5,000 crore in AEL in nine months ended December 2024, CARE Ratings said.

In January, AEL sold 13.51 per cent stake in Adani Wilmar Limited in the open market leading to cash inflow of Rs 4,808 crore. As per agreement entered with Wilmar Group, AEL would offload its remaining 30.42 per cent share in AWL subject to receipt of regulatory approvals, which would lead to overall cash inflow of Rs 14,200 crore by September 2025.

US DOJ, SEC cases
CARE Ratings said it understands that matter related to Indictment and civil complaint filed by United States Department of Justice (DoJ) and United States Securities and Exchange Commission (SEC), respectively is currently sub-judice. Yet concerns related to the impact on AEL’s large sized capex stand substantially reduced, given the on-schedule progress of its capex in addition to timely debt disbursals and fresh debt tie-ups received at Adani group level.

Airport, green hydrogen
CARE Ratings acknowledged sustained improvement in performance of airport division and green hydrogen eco-system (Adani New Industries Limited or ANIL) in FY24 and 9MFY25. In the medium term FY25-FY27, large capex is planned across ANIL, polyvinyl chloride (PVC) segment, roads and airports sector, of which, entire capex in roads sector is regulatory in nature, related to under-construction projects on hand.

“Majority capex in airport sector is also regulatory capex, while balance capex relates to non-aero and city side development (CSD) works. The latter being discretionary in nature, allows AEL to defer and implement in phases,” CARE Ratings said.

The rating agency said the capex of ANIL encompasses expansion of existing integrated capacities of solar module to 10 GW. In solar module manufacturing, integration across the value-chain from poly silica to module are likely to yield substantial benefits from uninterrupted supply of raw materials, better cost competencies leading to healthy margins in medium term.

“AEL has tied-up entire debt related to the PVC project, and it is expected to contribute to profit before interest, lease rentals, depreciation, and taxation (PBILDT) from FY29 onwards. In FY25-FY27, generation of free cash flow from operations is expected to be sufficient to meet equity requirements of AEL’s capex. Consolidated external debt/PBILDT also improved from 5.85 times at the end of FY22 to 3 times at the end of FY24 and 3.30 times at 9MFY25 end,” CARE Ratings said.

Asset monetisation
CARE Ratings said AEL continued to derive strength from successful incubation track record and independent listing of entities over years, imparting financial flexibility to the group and AEL’s leading position in coal trading business.

The operating performance of coal trading business moderated in 9MFY25 due to decline in coal imports in India, which was outweighed by expansion of PBILDT margins in ANIL, airport segment and road segment, it said.

CARE Ratings said AEL witnessed substantial improvement in performance of ANIL in FY24 and 9MFY25 mainly considering benefit of completed expansion of 4 GW capacity for solar module and solar cells, and consequent increase in exports volumes and realisation of solar module.

“Going forward, scheduled commissioning of Navi Mumbai Airport in FY26 (~20 million passenger capacity) augur well for the expansion of PBILDT of airports division. CARE Ratings believes AEL’s financial flexibility shall be further strengthened by robust monetisation potential in airports and road segments, apart from other equity events to be pursued by AEL management,” it said.