How Adani’s $125 billion capex boom is creating new winners on Dalal Street
Adani Group's massive investments in infrastructure are proving advantageous for various publicly traded companies. These affiliates are not only seeing significant growth in their order books but also witnessing an upsurge in stock valuations. With a focus on expansion, Adani considers these businesses as essential collaborators, driving progress in the engineering and technology sectors and…
The record infrastructure spending by Adani Group is reverberating on Dalal Street, driving substantial order books and sharp stock gains for contractors, manufacturers, and power technology suppliers connected to the conglomerate's expansion. Shares of Hitachi Energy India have jumped 197% over two years, while Cemindia Projects and GE Vernova T&D India have soared 152% and 147%, respectively. BHEL has climbed 79% in the past year, and PSP Projects is up 39%.
Adani's capital expenditure (capex) spending reached a record ₹1.53 lakh crore in the fiscal year ending March, with about 80% of the outlay passing through vendors. The conglomerate aims for about ₹2.1 lakh crore in capex this fiscal year and a five-year target of $125 billion. This strategy is reshaping the relationship between project owners and their suppliers, shifting them from mere vendors to "strategic partners" with the potential to become "world-class enterprises."
For investors, this transformation presents a fresh set of listed proxies for Adani's infrastructure buildout. PSP Projects, acquired by Adani with a 34.41% stake, saw its order book rise 85% to ₹13,447 crore in FY26 from ₹7,266 crore in FY25, reflecting the impact of Adani's large-scale building plans. While profitability has yet to improve commensurately, the surge in orders has yet to translate into a comparable gain in returns, highlighting the need for effective execution of these projects.
Cemindia Projects, acquired by Adani through a 67.46% stake in ITD Cementation, experienced a 34% increase in its order book to ₹24,545 crore in FY26, with new orders doubling to ₹14,821 crore and Ebitda climbing 30% to ₹1,199 crore. Its return on capital employed improved to 34% from 28% in FY25 and about 19% in FY23, indicating stronger capital efficiency.
Adani's growing project capital raises the potential for Cemindia to become a significant player in the sector, with Ratings projecting that Adani Group projects could account for up to 50% of Cemindia's portfolio in the medium term.
Power equipment and grid technology suppliers like Hitachi Energy India, BHEL, and PSP Projects are also reaping the benefits of Adani's capex boom. Hitachi Energy India saw its order book rise to ₹29,555 crore in FY26, with significant contributions from Adani Energy Solutions. BHEL, a state-owned manufacturer, reported that its revenue from Adani Group reached about ₹6,673 crore, or nearly one-fifth of its FY26 sales.
The surge in Adani's capex spending is creating a new wave of opportunities for these suppliers, positioning them as key players in the conglomerate's infrastructure projects.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
