The Adani group is ‘deeply overleveraged’, cautions CreditSights

The group’s investments in existing and unrelated new businesses come with a high risk and could spiral out of control, the report says

Billionaire Gautam Adani’s debt-fuelled growth plans have made his group “deeply overleveraged”, which could spiral into a “massive debt trap” and default of one or more group companies, said financial research firm CreditSights in a report released on Tuesday. CreditSights is a unit of Fitch Group, which is the parent company of credit rating agency Fitch. 

“The group has been investing aggressively across both existing and new businesses, predominantly funded with debt, resulting in elevated leverage and solvency ratios. This has understandably caused concerns about the group as a whole, and what implications it could have on the group companies …


Prince M. Thomas

Prince leads the newsroom at The Morning Context as managing editor. A fascination with the written word has taken Prince to some of the leading newsrooms across the country, including The Economic Times, Dow Jones Newswires, Forbes India and Moneycontrol. In a career spanning 20 years, Prince has led teams, managed pages, projects and special editions, and has authored The Consolidators, published by Penguin Random House in 2017.

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