Tata Vs Adani: Who Has More Debt on the Books – Trustworthy Tata or Aggressive Adani?
A Closer Look at Debt Profiles of India’s Top Conglomerates
As the IPL heats up with fierce battles on the field, another clash is unfolding off the pitch.
Two of India’s biggest business empires are locking horns in the market - The Trustworthy Titan: Tata Group vs. The Ambitious Challenger: Adani Group.
These powerhouses dominate the Indian economy, but who truly reigns supreme? But beyond boardrooms and brand value, there’s one number that tells a gripping story — debt.
So, who’s carrying the heavier load?
Let’s break down the numbers, businesses, and influence in a blockbuster face-off.
Data Sourced: Ace Analyser (Consolidated)
For Analysis, we took 17 companies from the tata group provided by Ace Analyser and 7 companies from the Adani Group.
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Tata Group
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Adani Group
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Nelco Ltd.
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Adani Energy Solutions Ltd.
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Oriental Hotels Ltd.
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Adani Enterprises Ltd.
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Tata Chemicals Ltd.
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Adani Green Energy Ltd.
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Tata Communications Ltd.
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Adani Ports and Special Economic Zone Ltd.
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Tata Consultancy Services Ltd.
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Adani Power Ltd.
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Tata Consumer Products Ltd.
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Adani Total Gas Ltd.
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Tata Investment Corporation Ltd.
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AWL Agri Business Ltd.
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Tata Motors Ltd.
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Tata Power Company Ltd.
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Tata Steel Ltd.
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Tata Technologies Ltd.
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Tejas Networks Ltd.
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The Indian Hotels Company Ltd.
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Titan Company Ltd.
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Trent Ltd.
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TRF Ltd.
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Voltas Ltd.
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Observation:
IT companies and holding companies typically do not have any debt for their operations, as there are no companies within the Adani Group that operate in IT or as holding companies.
Total Debt:
Observation:
On comparing the debt of both groups, the Tata Group has slightly higher debt due to a larger number of companies.
Among companies with debt exceeding Rs 30,000 crore, the Tata Group has just 2 companies, while the Adani Group 5 out of 7 companies have debt exceeding Rs 30k crore.
In the Tata Group, 12% of the companies have a total debt-to-equity ratio greater than 2, compared to 29% of the companies in the Adani Group.
YoY Change in Debt
Observations:
The Adani Group has increased its debt level by 48% over the last four years, whereas the Tata Group has reduced its group debt by 8.5%.
From FY2023 to FY2024, the Adani Group has increased its debt by 2.3%, while the Tata Group has decreased its debt by 4.7%.
Within the Tata Group, Tata Consumer has increased its debt by 149%, the highest among both groups.
In the Tata Group, nearly 35% of the companies have reduced their debt in the last year, while in the Adani Group, 28% of the companies have done the same.
Tejas Networks from the Tata Group has taken on debt for the first time in the last five years.
Net Sales:
Observations:
Almost all the companies in the Adani Group and Tata group have achieved double-digit growth rates, in Adani Group with an average CAGR of 22.6%, compared to the Tata Group's average of 16.4%.
Among the Tata Group companies, only TRF has posted a negative CAGR in sales growth over the last four years. On the other hand, the highest sales growth within the group during this period was recorded by Tejas Networks at 54%.
The median and mean sales growth rates for the Adani Group are approximately the same, at around 22%. In contrast, the Tata Group shows a variation, with an average sales growth of 16% and a median CAGR of 12%.
Market Cap:
Observations:
The market cap of the Adani Group is 40% of that of the Tata Group.
The average market cap of the Tata Group and the Adani Group is almost the same.
Disclaimer: The article is for informational purposes only and not investment advice