Adani Enterprises to raise Rs 25,000 crore via rights issue amid profit drop

Adani Enterprises, the flagship company of billionaire Gautam Adani, announced on Tuesday its plan to raise Rs 25,000 crore through a rights issue to finance an ambitious expansion across its infrastructure ventures.

The company confirmed in a stock exchange filing that its board had “approved the issuance of partly paid-up equity shares of the company of face value of Re 1 each for an amount not exceeding Rs 25,000 crore by way of a rights issue to the eligible equity shareholders of the company.”

Adani Enterprises posts second-quarter profit drop

The massive capital-raising move comes as Adani Enterprises reported a dip in its second-quarter adjusted profit, reflecting challenges in its core coal trading business.


Profit before exceptional items and tax fell sharply to Rs 8.14 billion ($92.6 million) in the quarter ended 30 September, down from Rs 24.09 billion in the same period last year.

However, the company reported an exceptional gain of Rs 35.83 billion related to the sale of its stake in AWL Agri Business, formerly known as Adani Wilmar.

Coal trading slump offsets renewable energy and airport growth

Coal trading, the backbone of Adani Enterprises’ revenue, has been under pressure as India shifts towards greener energy solutions.

Traditionally contributing to nearly three-quarters of the country’s annual electricity output, coal-fired power generation has seen declining demand amid the rapid growth of renewables.

The decline in coal business revenue, which fell nearly 29% to Rs 66.58 billion in the quarter, outweighed gains in Adani Enterprises’ renewable energy and airport segments.

The renewable energy segment, including solar manufacturing and wind turbine businesses, grew by 3.7%, while the airport business surged 42.7%.

Consolidated revenue falls but long-term growth plans remain intact

Overall, Adani Enterprises’ consolidated revenue from operations fell 6% to Rs 212.49 billion. The results triggered a drop in the company’s shares, which fell as much as 3.1% before closing 1.9% lower.

Despite short-term challenges in coal trading, the firm continues to focus on long-term expansion in renewable energy, logistics, and infrastructure, aiming to diversify its revenue streams and reduce dependency on traditional coal-based power.