The Adani Group, one of India’s largest conglomerates, has reported a significant increase in its tax contributions for FY 2023-2024. The group’s total global tax and other contributions to the exchequer amounted to Rs 58,104.4 crore, marking a substantial rise from Rs 46,610.2 crore in the previous financial year. This 25% year-on-year increase underscores the group’s growing economic impact and commitment to financial transparency.
Breaking Down the Tax Contributions
The tax payments reported by the Adani Group encompass a wide range of contributions. These include direct contributions such as global taxes, duties, and other charges borne by the Adani portfolio of companies. Additionally, the figure accounts for indirect tax contributions and duties collected and remitted on behalf of other stakeholders. The group has also included other levies, such as social security contributions made for the benefit of employees.
The comprehensive tax report covers seven of the group’s listed entities: Adani Enterprises Limited, Adani Ports and Special Economic Zone Limited, Adani Green Energy Limited, Adani Energy Solutions Limited, Adani Power Limited, Adani Total Gas Limited, and Ambuja Cements Limited. Furthermore, the reported figure includes tax payments from three other listed companies – NDTV, ACC, and Sanghi Industries – which are held by the seven primary entities.
Transparency and Corporate Responsibility
The release of these Tax Transparency Reports for FY 2023-24 is part of a voluntary initiative by the Adani Group to demonstrate its commitment to transparency and foster stakeholder trust. By providing a detailed breakdown of its global tax contributions, the group aims to set new benchmarks for responsible corporate conduct and contribute to a more accountable global tax environment.
Gautam Adani, Chairman of the Adani Group, emphasised the importance of this initiative, stating, “Transparency is the foundation of trust, and trust is essential for sustainable growth. As one of India’s largest contributors to the exchequer, we recognise that our responsibility goes beyond compliance. It is also about operating with integrity and accountability”.
The group views tax transparency as an integral part of its broader Environmental, Social, and Governance (ESG) framework. This approach aligns with the growing global trend towards corporate tax transparency, which is increasingly seen as a key aspect of responsible business practices.
To ensure the credibility of the reported figures, the Adani Group engaged a professional agency to provide an independent assurance report on its global contribution to the exchequer. This move further reinforces the group’s commitment to accuracy and transparency in its financial disclosures.
The significant increase in tax contributions comes at a time when the Adani Group has been under scrutiny following allegations of financial irregularities. In November 2024, US prosecutors charged Gautam Adani and other group executives with allegedly orchestrating a bribery scheme related to solar energy contracts in India. While the group has denied these allegations, the indictment led to a sharp decline in the group’s stock value and caused some investors to pause their investments in Adani project.
In this context, the voluntary release of detailed tax information can be seen as a strategic move to rebuild investor confidence and counter recent controversies. By providing a clear picture of its financial contributions to the national exchequer, the Adani Group is attempting to demonstrate its economic significance and commitment to ethical business practices.
The group’s increased tax payments also reflect its expanding operations and growing profitability. For the trailing 12 months ending December 2024, the Adani Group reported its highest-ever EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of Rs 86,789 crore, indicating robust financial performance across its diverse portfolio of businesses.
