With Rs 2.2 lakh cr, Adani Group among most indebted businesses in India

With a gross total debt of Rs 2.2 lakh crore by March-end, the Adani Group is among the most indebted businesses in India.

Using debt financing to expand its business, the company’s gross debt was up by a whopping 42 per cent year-on-year, according to a report by Business Standard.

The group’s debt-to-equity ratio was at a four-year high of 2.36, up from 2.02 a year ago, the publication’s data showed.

However, despite the high headline debt, the group’s debt-servicing capacity has seen a major improvement on the back of earnings, analysts told the publication. Also, a decline in interest rates in the past two years due to the pandemic has also meant low growth in interest costs despite higher borrowings.