Adani Group Faces U.S. Charges Amid Robust Financial Performance

The Adani Group demonstrates strong financial stability amid U.S. legal challenges, maintaining liquidity to cover debts and expenses. CRISIL Ratings confirms that the group's performance is stable despite legal proceedings involving securities fraud allegations, and notes potential risks from market and regulatory changes.

The Adani Group remains financially stable with sufficient liquidity to cover its debt obligations and capital expenditures, as confirmed by CRISIL Ratings. The ratings agency disclosed that all outstanding ratings for the group are under constant review, amidst concerns about legal proceedings in the United States.

On November 20, 2024, the U.S. Department of Justice and the Securities and Exchange Commission (SEC) charged key officials of Adani Green Energy Ltd, including Gautam Adani, with allegations of securities fraud. Charges encompass misleading bond offerings, although the group denies any violations of the Foreign Corrupt Practices Act.

Despite these challenges, CRISIL notes that investor confidence remains steady with no accelerated debt repayments demanded. The Adani Group's recent fiscal year performance reflects this stability, reporting an EBITDA of Rs82,917 crore and a net debt-to-EBITDA ratio of 2.19. The group's substantial cash reserves further bolster its financial health.

CRISIL underscores the importance of monitoring potential risks such as increased financing costs or regulatory actions that may affect the group's financial flexibility. The recent decline in market value and the cancellation of a significant bond offering highlight the need for vigilance in the coming months.

The agency is keeping a close watch on these developments to assess their impact on the Adani Group's financial standing.

(With inputs from agencies.)