The Adani Group is currently facing a significant downturn, with its total market capitalization plummeting by 21% compared to the previous year, according to a report from March 24, 2025. This decline translates to a staggering loss of approximately ₹3.4 trillion in market value. Let’s explore the recent performance of Adani Group shares and the factors contributing to this market dip.
Share Performance Overview
As of March 28, 2025, the performance of Adani Group stocks has been troubling. Here’s a snapshot of how the shares have fared this fiscal year:
- Adani Green Energy: ₹1,837.29 (down 48.3%)
- Adani Total Gas: ₹925.86 (down 35.1%)
- Adani Enterprises: ₹3,106.62 (down 25.4%)
- Adani Wilmar: ₹321.12 (down 19.8%)
- Adani Energy Solutions: ₹1,025 (down 15.1%)
- Adani Ports & SEZ: ₹1,341.71 (down 12.1%)
- Adani Power: ₹533.75 (down 5%)
Among these, Adani Green Energy has experienced the most significant decline, with its market cap nearly halved. Additionally, Adani’s cement ventures, specifically ACC and Ambuja Cements, have seen drops of 23.1% and 15.9%, respectively.
Reasons Behind the Decline
Increased Regulatory Scrutiny
A major factor contributing to the downturn is intensified regulatory scrutiny surrounding the Adani Group. In September 2024, allegations surfaced from Hindenburg Research, claiming that Swiss authorities had frozen over $310 million in several accounts during investigations related to potential money laundering and securities fraud dating back to 2021. The Adani Group refuted these claims, asserting that their foreign holding structures are transparent and adhere to legal standards.
Bribery Allegations
Adding to the turmoil, a bribery scandal emerged last year, revealing that Adani officials allegedly bribed Indian authorities to secure power contracts for Adani Green Energy. The Securities and Exchange Commission (SEC) accused the company of paying $265 million in bribes to state officials between 2020 and 2024, which enabled them to win a lucrative solar power project expected to generate $2 billion in profits over 20 years. This situation has further intensified investor concerns and contributed to the volatility of Adani shares.
Foreign Institutional Investors Pullback
The ongoing instability has prompted Foreign Institutional Investors (FIIs) to reduce their investments in Indian stocks, including those of the Adani Group. Over the last three quarters of 2024, FIIs have significantly sold off shares in several Adani companies, particularly Adani Green Energy and Adani Power.
FII Holdings in Adani Group Stocks:
| Date | Adani Green Energy (%) | Adani Power (%) | Adani Energy Solutions (%) | Adani Total Gas (%) | Adani Ports & SEZ (%) | Adani Enterprises (%) | Adani Wilmar (%) |
|---|---|---|---|---|---|---|---|
| Mar-24 | 18.2 | 15.9 | 17.5 | 13.1 | 14.9 | 14.4 | 0.8 |
| Jun-24 | 16.9 | 14.7 | 15.5 | 12.9 | 15.2 | 11.7 | 0.7 |
| Sep-24 | 15.2 | 12.7 | 18.7 | 13.1 | 15.2 | 11.3 | 0.9 |
| Dec-24 | 13.7 | 12.3 | 17.3 | 13 | 13.9 | 11.7 | 1.2 |
Broader Market Challenges
The entire Indian stock market has faced headwinds due to reduced urban spending, geopolitical uncertainties, and high interest rates. These factors have been particularly detrimental to capital-intensive sectors like renewable energy and gas. Investors are also wary of potential new trade tariffs from the U.S., which could impact operations.
Looking Ahead
Despite the challenges, the Adani Group is strategizing for a brighter future. The conglomerate has decided to exit the agricultural sector to streamline its focus and has recently acquired Sanghi Industries to bolster its cement market presence. Furthermore, Adani Enterprises is investing in promising sectors such as solar module manufacturing, green hydrogen, and data centers, all while aiming for a leadership role in the green hydrogen market.
Adani Green Energy has ambitious plans to achieve 50 GW of renewable energy capacity by 2030, while Adani Power is pursuing a “debt-light” strategy that targets over 30 GW of generation capacity by FY30.
Signs of Recovery?
Interestingly, recent market activity suggests a potential turnaround. As of March 27, 2024, Adani stocks regained approximately ₹400 billion in market capitalization within just 15 days. Whether this uptick represents a sustainable recovery or a short-lived bounce remains to be seen.
Stay updated with our latest articles on Adani Group stocks and market trends. Happy investing!
Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Always consult a financial advisor for personalized guidance.
