Adani's Kutch Copper eyes ₹3,100 cr ebitda in FY27

Mumbai: Kutch Copper, the copper smelter of the Adani Group, is likely to generate around Rs 2,800 – Rs 3,100 crore of earnings before interest, tax, depreciation and amortization (EBITDA) next fiscal, said Robbie Singh, the chief financial officer at Adani Enterprises.

Kutch Copper is currently housed in group flagship Adani Enterprises, which hosts incubation businesses.

The EBITDA generated from Kutch Copper will depend on its utilization rates, Singh told analysts. While Kutch Copper was commissioned early in 2024, it is yet to be completely ramped up.


“The full utilization should start over the next 2 to 3 months. So you'll start seeing the numbers in the first quarter of the following financial year,” he said.

“And then there's a further refining element to it, where the EBITDA can go up by another 20%,” Singh said.

With a smelting capacity of 500,000 tonne, Kutch Copper is the only other major copper smelter in the country apart from Hindalco’s copper business. The Tuticorin copper smelter of the Vedanta Group remains non-operational.

While the initial capacity was set up for a capital expenditure of around $1.2 billion, the Adani Group plans to double capacity at the unit for a capex of $700 - $800 million, ET had reported in April last year. Work on the second phase will be initiated only after the first phase is completely ramped up and stabilised.

Kutch Copper has been able to procure significantly less ores than what it needs for its operations, which has delayed the ramp-up of its capacity. This has also impacted the TC/RC margins that refiners generally make for processing ore.

While Latin America remains the source of copper concentrate for Kutch Copper, the company recently signed a pact with Caravel Minerals of Australia, where the two companies will explore investment and offtake opportunities for the Caravel Copper Project.

For Adani Enterprises, Kutch Copper is one of the three businesses which are expected to bring in additional EBITDA from the next fiscal with Ganga Expressway and the Navi Mumbai International Airport being the other two.