In the third quarter of the fiscal year 2025 (Q3 FY25), several prominent Indian companies have made significant strides in reducing their debt levels, reflecting robust financial health and strategic management.
Macrotech Developers (Lodha Group): Macrotech Developers reported a 12% reduction in net debt, bringing it down to ₹4,320 crore in Q3 FY25. This achievement is attributed to strong pre-sales and collections, with the company recording its highest-ever quarterly pre-sales of ₹4,510 crore, a 32% year-on-year increase. The company’s Managing Director, Abhishek Lodha, highlighted the robust performance and expressed optimism for continued growth.
Reliance Power: Anil Ambani-led Reliance Power turned its performance around in Q3 FY25, reporting a profit of ₹41.95 crore after a loss of ₹1,136.75 crore in the same quarter last year. The company significantly improved its financial position by reducing its debt-to-equity ratio from 1.61:1 at the end of FY24 to 0.86:1 by the end of Q3 FY25. Notably, Reliance Power now has zero bank debt and no defaults, with its net worth reaching ₹16,217 crore.
Vedanta Resources: S&P Global Ratings upgraded Vedanta Resources’ credit rating to “B” from “B-” after the company secured sufficient support for its debt restructuring plan. This plan reduces refinancing risks and improves the company’s capital structure by removing clauses that could have accelerated bond payments. This marks the third upgrade by S&P for Vedanta Resources in the year, reflecting the company’s efforts to strengthen its finances through strategic debt restructuring.
Bank of Baroda: India’s third-largest state-run lender, Bank of Baroda, has set a target to recover ₹10,000 crore from bad loans by the end of FY25. In the first quarter, the bank successfully recovered ₹1,005 crore from bad debts, primarily from small-ticket loans. This initiative is part of the bank’s strategy to improve its asset quality and financial stability.
HDFC Bank: In Q3 FY25, HDFC Bank reported that its deposit growth outpaced loan growth, with deposits rising by 4.2% to ₹24.53 trillion. This strategic move aims to improve the bank’s loan-to-deposit ratio, which had increased post its merger with its parent company, HDFC, in July 2023. The bank has been focusing on boosting deposits and moderating loan growth to maintain financial equilibrium.
These developments underscore a broader trend among Indian companies focusing on debt reduction and financial consolidation, positioning themselves for sustainable growth in the evolving economic landscape.