Adani Enterprises Targets FY28 Demerger, ₹35,000 Crore Yearly Capex

Adani Enterprises Ltd (ADANIENT) expects to begin spinning off its incubating businesses from FY28 onward, Group CFO Jugeshinder Singh told shareholders at the company's annual general meeting on Wednesday.

“We are confident with where Adani Airports is. We are confident with the timeline of FY28-29 for the demerger process to begin of the currently incubating businesses. So from FY28 onwards our new businesses will start demerging from Adani Enterprises,” Singh said.

Adani Enterprises functions as the group's incubation platform. It houses airports, roads, data centres, green hydrogen and other infrastructure businesses. Each is scaled before being spun off into an independent listed entity. The FY28 target gives investors a concrete window for when the next wave of asset monetisation could begin.

Singh said the company plans to invest ₹35,000-40,000 crore annually over the next five years, targeting a 15% rate of return. “For each of the businesses that are in AEL, we have a certain cost of capital and we would like to invest in those businesses if we can earn greater than our cost of capital,” he said. The CFO added that the rate of return on assets is “comfortably above” the cost of capital.

Addressing shareholder concerns about stock price volatility – a recurring issue since the Hindenburg Research report in early 2023 – Singh said the company focuses on timely and transparent disclosures. “While we do not have control over the excessive volatility of the share price, what we try to do is make sure that all relevant information is disseminated to the market appropriately and in time and at all forums where it needs to go,” he said.

Chairman Gautam Adani told shareholders the group invested a record ₹1.5 lakh crore in infrastructure during FY26, which he said accounted for more than 30% of India's total private-sector capital expenditure for the year. He described FY26 as a year of “extraordinary scrutiny” but said the group expanded across energy, logistics, airports, ports, data centres, mining, defence and industrial manufacturing.

Adani laid out specific targets. Adani Power plans to expand to 45 GW over five years. The group aims to build a 3 GW data centre platform by 2030. Adani Ports targets handling one billion tonnes of cargo annually by the end of the decade. For FY26, the group reported consolidated revenue of ₹2.92 lakh crore, EBITDA of ₹94,834 crore and profit after tax of ₹46,376 crore.

The demerger timeline is the clearest signal yet on value unlocking from the incubation pipeline. Adani Enterprises shares have been volatile. The CFO's capital allocation discipline and the chairman's infrastructure spending numbers give investors a framework for judging whether the incubation model is working. The FY28 start date for demergers is the next concrete milestone to track.