Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Periwal from Antique Stock Broking . Thank you, and over to you, Mr. Periwal.
Yeah, thanks, Michelle. Good afternoon, everyone, and welcome to the Post-Result Earnings Call of Adani Enterprises Limited. Management team from Adani Enterprises is led by Mr. Robbie Singh, Chief Financial Officer, and Mr. Manan Vakharia, who is heading investor relations. We will have opening remarks from the company, and then we will have lines open for Q&A. Thank you, and over to you, sir.
Thank you very much, and thank you for being here on a public holiday. Good evening, everyone. We welcome you to Adani Enterprises Results Call for financial year 2025 ending 31 March . As you would be well aware, Adani Enterprises is a flagship company of Adani Group, one of India's largest business incubators.
Over the years, Adani Enterprises has focused on building utility and infrastructure assets, logistics, and our core metals, mining, and material businesses, largely focused on addressing the logistics and energy transition and productivity challenges of India. FY 2025 results have validated AEL's incubation model of growing emerging core infra businesses. It is focused on timely completion of projects and capacity building of existing projects. AEL's strong execution capabilities have been validated by improved credit ratings with both CARE and ICRA now rating AEL at AA-.
This consistent growth has boosted overall consolidated results for financial year 2025 as follows: income up by 2% to INR 1,365 crores, EBITDA up by 26% to INR 16,722 crores, and PBT up by 16% to INR 6,533 crores. In addition to this PBT number, AEL has a realized gain of INR 3,946 crores on account of 13.5% stake sale of Adani Wilmar.
The emerging core infra businesses have demonstrated growth momentum and delivered their highest-ever results. In just the last two years, incubating business results have shown an income which now equals the AEL total income for financial year 2023. Income is up of the incubating portfolio, 42% to INR 34,546 crores, EBITDA up 68% to INR 10,025 crores, which is higher than AEL consolidated EBITDA as reported in financial year 2023. PBT up 87% to INR 4,996 crores roughly INR 5,000 crores, which is higher than financial year 2023 overall PBT of AEL, for example.
In our businesses that span the specific categories of green hydrogen ecosystem, there the EBITDA increased by 108% to INR 4,776 crores. In the airport business, EBITDA grew by 43% to INR 3,480 crores and saw a run rate of about INR 1,000 crores per quarter. In the solar business, the expansion of another 6 GW cell module line has started. In the wind turbine business, capacity has been expanded to 2.25 GW from 1.5 GW.
Overall commitments in relation to ESG, I'm pleased to inform you that the CDP has upgraded AEL rating to A- for year 2024, which is a leadership category, indicating AEL's dedication and commitment to lowering GHG emissions and their overall impact. A quick update on our mining services business, which is made up of 13 service contracts, 11 in coal and 2 in iron ore. We have 5 operational in coal and 1 operational in iron ore.
The dispatch volume of the services business is 43.3 million metric tons and increased 40%. Revenue is up 60% to INR 3,787 crores. EBITDA is up 100% to INR 1,688 crores. The integrated resource management business volume was at 56.5 million metric tons, which gives it an EBITDA of INR 3,585 crores. Commercial mining, Carmichael Mine is now operating close to its rated capacity of 15 million metric tons. I will now open for Q&A. Thank you.
Thank you very much, sir. We will now begin with the question and answer session. Anyone who wishes to ask questions may press star and one on the touchtone phone . If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yes, good evening, sir. Thanks for the opportunity. My first question is, you've accounted for Adani Wilmar sale in this quarter, right? Is there any impact on the tax because of this sale?
Yes, sir. The increase in the sale proceeds, yes, there will be tax increase and tax will be calculated on that gain, roughly about INR 650-odd crore. Because we report the numbers net of one-off items anyway, there is no impact in the numbers I laid out.
Okay, understood. Depending on the solar cell and module line and wafer, are we expecting ourselves to 6 GW cell and module? Are we not expanding into wafer? What is the timeline for this expansion?
Cell and module line should be ready in the next roughly around financial year 2026 end to 2027.
Any plan to expand the wafer by another 8 GW?
No, that does not work in that manner. But the entire ecosystem, as we had laid out about three years ago, will be a 10 GW ecosystem once fully completed.
Understood. Understood. Given the fact that there is so much uncertainty on the solar export, do you think that the capacity to sell in the FY26, especially solar, will move to the domestic industry?
No, we have proper contracts with key partners, so those sales are highly visible to us. There's no uncertainty from that front.
Last question on the coal mining services. I think you have done a fabulous job. You have gone from, I think, 50% up to 47 million tons. How do you see FY 2026 and FY 2027 on this large base?
See, from a mining services point of view, largely speaking, that is the owner and the user of the product determines a lot. In terms of the rated numbers, we expect that we will be closer to 60 over the next 18 months based on the current demand patterns of the owners and users.
Understood. Thank you and all the best. Thank you.
Thank you.
Thank you. Participants, you may please press star and one to ask questions. The next question is from the line of Nirav Shah from GeeCee Holdings . Please go ahead.
Yeah, good evening, sir. Congrats on great numbers, and thanks for the opportunity. Just the question is, I mean, on the copper smelter front, now that we have commissioned the smelter also, if you can just guide us in terms of how the ramp-up will take place in the first half, second half, and any challenges in the sourcing front of the ore are we facing right now because of lower supply of the ore globally? From when will we start reporting the segmental results separately? That's the first question.
Segmental results, most likely to just answer your last part, we expect to be able to report segmental results in this probably around Q4 because even though it might not be sufficiently important overall, I think it's an important milestone for us before our metals business, so we will report. It will not be material to AEL, but it's important that we have a formal commencement of our metals business in terms of metals, materials, and mining.
With the ramp-up, consequently, just working backwards, we expect the ramp-up to over the next, say, 180 days. Somewhere around Q3 , we expect it to hit the full run rate. Ore is not specifically an issue for us.
That's not an issue. The TCRCs, the lower TCRCs right now will impact something, I mean, from what we had estimated earlier in the profitability front?
No, the way we've done the numbers, our numbers were already hugely conservative in terms of how we were expecting this EBITDA and free cash flow. It is within that range.
Got it. The second question is on the airports front. I mean, if we can give a broad breakup of EBITDA between Mumbai and non-Mumbai, and for the full year, how much has the airport AAHL HoldCo done in terms of EBITDA? How do we see the profitability over there? That is where we are trying to do a lot within the platform itself. If you can just elaborate on this, please.
Yeah. See, in relation to the specifically out of the EBITDA of about INR 4,000 crore, about 45% is MIAL, which is Mumbai airport. The rest is our total ecosystem of other airports which sit under AAHL. This year, the last quarter, the run rate was a little bit higher than INR 4,000 crore, but we are not guiding anything.
Actually, what we are also planning to do is that because it is now a significantly large part of AEL, meaning it will be closer to the INR 4,500 to 5,000 crore EBITDA in the coming quarters, in the half-year result, we will include as part of our normal investor call a formal presentation by the formal commentary by the leadership team of airports alongside myself. You will get a lot more clarity because we start reporting it in a much, much more granular detail from 30 September .
On airport, I mean, any of the six PPP airports still not achieving EBITDA breakeven, or all the airports have achieved EBITDA breakeven?
No, all EBITDA breakeven now.
Great. Just the last question on the revenue and profitability number of wind turbines for this Q4.
Wind turbine breakdown in terms of the EBITDA of wind turbines itself is around for the quarter itself is INR 274 crores.
For the revenue?
Revenue is INR 1,200 crores, round-figure. Precisely INR 1,188 crores.
Got it. Great. I have no questions. I'll be back in the queue. Thank you.
Thanks.
Thank you. You may please press star and one to ask questions at this time. The next question is from the line of Prateek Kumar from Jefferies. Please go ahead.
Hi, sir. Good evening. [inaudible] . First question on your working capital, which has been very elevated in the year-end results, also resulting into overall increase in debt position for the year-end number. Any specific reason there? Also, interest expense has remained elevated. Last quarter, you said interest expense had run off related to forex depreciation, which was hurting expense then, but has largely remained elevated in this quarter also, which has also impacted your PBT this quarter.
Yes, see, look, there's a basic level of FX volatility that exists because some of our reporting, some of our businesses are in US dollars, and we report that back into rupees. A lot of that is our internal investment only.
Consequently, it has very little cash flow impact. It has just a P&L impact. That's number one. Number two is that as copper plant is ramping up, therefore there's an inventory buildup. It is nothing alarming from that point of view. It will get washed out as the ramp-up occurs over the next 180 days. If you see the elevated level of debt, it's relatively of the INR 18,000 crore which you see external debt, roughly 70% of that is just airports and roads, and about another 20% is copper itself.
It has been fully accounted for, all the capital is fully accounted for, operational result of airports, Ganga Expressway, and copper will come in the next year. We report that way rather than capital works in progress because it is just a more conservative way to give you a position that we have in relation to our emerging business. Very little of this debt is specifically in the current under-construction projects which is recorded. We have booked the debt for the PVC business, about 10% odd.
Okay, so the working capital is elevated in copper.
You can see working capital in copper. You can see that on page 29 of the investor presentation. There's a detailed sheet, and then you can go to page 30 where you can see precisely the segment-wise detail of both working capital and of the long-term debt. You will see in that the rise, the elevated number is about 50% rise in the working capital of copper from about INR 1,000 crore to INR 1,500 crore. Otherwise, overall, compared to last year, the working capital debt is less this year than last year, as is 31 March 2024.
Sure. Okay. On PVC business, what is the CapEx incurred till now? You said the timeline for commissioning is FY 2028.
PVC business, can we take this question on notice because we can revert back in writing to you, please?
Sure. Okay. Overall, you've incurred around INR 29,000 crore CapEx this year. What is the CapEx guidance for FY 2026 and segmental expectation there?
We have completed CapEx of around actually just over INR 31,500 crore this year. We are on track in the following year of roughly around just over INR 36,000 crore.
Okay. Just bookkeeping questions on guidance on IRM, MDO, and commercial mining design in terms of volumes. I think you said for mining already, but for all three segments in terms of volumes.
No, for MDO, we expect the user demand will push it, but the basic indication is that it's likely to be around 60 million metric tons. IRM, we don't expect the volumes to alter much. Flat.
Australian mine business?
Mine already operating at rated capacity of roughly 15 million metric tons.
Okay. Flat there as well, like in the net basis?
It is operating at its capacity.
Sure. Thank you, sir. I'll get back to the queue.
Thank you.
Thank you. Participants, you may please press star and one to ask questions. The next question is from the line of Mahesh Patil from ICICI Securities . Please go ahead.
Yeah. My first question is on the wind manufacturing. How much is the capacity right now? What are the volumes that we are expecting in India?
Capacity is now 2.25 GW per annum. We would expect to produce roughly 450- odd sets in a combination of 5.5 and 3.3 capacity megawatt.
450 sets over this year?
For three years.
Three years. Okay. Sir, given the recent draft notification on the incremental domestic content in wind manufacturing, are you also planning what is the status on that? I mean, are we importing some components, and are we planning to increase the domestic content for the four mentioned components?
No, I think we have sufficient domestic capacity in terms of that notification. If your question is that is it a qualifying domestic product, then answer is yes. Because it's 5.5, there's no other manufacturer of 5.5 GW in the world onshore wind turbine.
Okay. You are procuring the four-side components from the domestic market, correct?
No. Our system plus the ecosystem that we need to get the parts and the materials. Increasingly, it will become a domestic ecosystem.
Okay. Okay. Sir, second question is on the CapEx. If you can provide the, you mentioned around INR 36 crore of CapEx and INR 31.5 crore in this fiscal FY 2025. If you can give some color on the major breakup of this.
The major breakup is that on the core areas, on green hydrogen ecosystem, roughly INR 5,500 crore, airports roughly INR 10,500 crore, and roads roughly INR 6,200 crore. The majority of the CapEx will occur in these three categories. We expect the continuing work on PVC to add another about INR 9,000 crore to the CapEx. These are the four major categories.
You mentioned 9,000?
Yeah.
Okay. Sir, the third question is on the airport side. Any idea about the tariff order for Mumbai? I mean, how much is the increase in tariff here?
We expect by June this year.
By June we are expecting. Okay. Sir, the status of the Navi Mumbai tariff petition?
That's fine. That will take its time, but we can operate under provisional tariff. It is not necessary to have the final orders at operational start date.
Okay. Okay. Sir, for this Navi Mumbai airport, may I know the total capitalized cost?
Total?
Capitalized cost.
We will provide that number post 30 June.
Okay, sir. Okay. Yes, sir. Thank you. I have some more questions. I'll get back to you.
Thank you. Participants, please press star and one to ask questions. The next question is from the line of Prateek Kumar from Jefferies. Please go ahead.
Yeah. Thanks for the opportunity. Again, my question is on airport business. Firstly, there is a small decline in airport business versus, I know it is not material, but anything specific on a sequential basis because volumes have been largely flat, tax-handled, but there is a sequential decline of around 13% in EBITDA in airport business. Any specific reason there?
That is largely driven by the fact that the way the business is structured, for us, given there's a significant element of the business is non-aero, and non-aero within the Indian market context will be higher in the last quarter of the calendar year due to various festivals, marriage seasons, etc.
You just had a higher non-aero business during that quarter, which reverts to normal for the rest of the year. That's all it is. That is why we will report actually detailed segmental analysis of airports from 30 September onwards with the airport team presenting because you see this type of seasonality that will occur because of a much higher contribution of non-aero the way we are set up our airports business.
Secondly, on airport business again, there was this consultation paper on Mumbai which said that the old airport will be demolished, the part of one terminal will be demolished, and it will have the traffic will be lowered from currently 55 million to 40 million odd next year. Then most of it will shift to new airports. How are we looking at this overall project of Mumbai Airport Terminal 1 and the shift of traffic thereafter between the two airports?
None of that, Prateek, matters because it's a sequential program. You are earning a rate of return on the assets deployed, and Terminal 1 will be redone to the new standard. This is a fairly common occurrence in a regulatory asset base. It makes absolutely no difference to the total revenue profile and growth of the business. It only becomes a timing difference.
Yeah, but just for understanding, what are the timing of that Terminal 1 demolition? Is it like expecting FY 2026 or FY 2027?
No, no, no. Once we announce the proper transition to Navi Mumbai and the operational stabilization of Navi Mumbai and the airlines, and in consultation with the airlines, we will determine what's the best timing for that. We want to upgrade Terminal 1. It won't be rushed. It won't be near term.
Okay. It is in near term. So basically, when Terminal 1 of Navi Mumbai is properly operational, post that, that event might happen?
We haven't decided the exact start date, but yes, we need to first stabilize Navi Mumbai Airport so that the airlines are comfortable operating there. Once we are ourselves confident on the operational stability of both airports or two airport systems, then only we will decide.
I'm asking this question in another way. Basically, the question was more like from FY 2027, let's say, or maybe FY 2026, because now we are almost closer to commissioning. The overall traffic, which has been sort of since mid-50s kind of range for past two years for Mumbai, what is the total traffic you expect for FY 2027 when both airports are commissioned?
No, that we are not providing that guidance. We just overall, we just think that the capacity structure and the latent demand in Mumbai far exceeds the demand in any other part for a single city in India. Consequently, the latency of the demand is much, much, much higher than the current traffic numbers of passengers and possibly in three-digit millions, so 100 million plus.
Now, with the ramp-up schedules, how it works, when the airlines can start, what are the amendment rights for various airlines, who can commence, how they can commence, that is over a period of time. Nevertheless, the catchment area demand is the highest of any city in India.
Thank you, sir. That was very useful.
Thank you. A reminder to all the participants that you may please press star and one to ask questions. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yes, sir. Thanks for the opportunity once again. There was clarification on the when are we going to start phase two and if we have the client? What will be the capacity of the phase two in terms of facts?
That's what Navi Mumbai we expect to start phase two immediately post stabilization of phase one because all preparations are already done. Consequently, as soon as we stabilize the operations in phase one, phase two will start in Navi Mumbai. That will take the capacity from 20 million to 60 million passengers.
Understood. Thank you, all of the above. Thank you.
Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the management for closing comments. Thank you and over to you, sir.
Thank you very much to the investors and thank you very much to Adani Enterprises for organizing the call.
Thank you, members of the management. On behalf of Adani Enterprises, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.