The Adani Group has experienced a significant downturn in FY25, with its stocks collectively losing 21% in value, amounting to a market capitalisation erosion of ₹3.4 lakh crore. The sharp decline reflects investor caution, regulatory scrutiny, and a broader sell-off by foreign institutional investors (FIIs), alongside global economic uncertainties.
Stock Performance and Market Impact
Among the hardest-hit stocks, Adani Green Energy witnessed a near 48% decline in value, bringing its market capitalisation down to ₹1.46 lakh crore from ₹2.90 lakh crore at the close of FY24. Adani Enterprises, the group’s flagship company, recorded a 27% drop, resulting in a ₹94,096 crore loss in market cap.
Other notable declines include:
- Adani Ports and Special Economic Zone (APSEZ): Down 11.4%, with a ₹33,029 crore reduction in market capitalisation.
- Adani Total Gas: Declined by 31.84%, shedding ₹32,411 crore in value.
- Adani Energy Solutions: Fell by 18.95%, losing ₹14,546 crore.
- Cement segment (ACC & Ambuja Cements): Saw declines of 23.1% and 15.92%, respectively.
- Adani Wilmar: Dropped by 17.35%, as the group announced plans to exit the segment to focus on core infrastructure projects.
- Sanghi Industries: Declined by 36.84%, despite its strategic acquisition by Ambuja Cements in December.
- NDTV, the group’s media arm, experienced a 41.58% decline in valuation.
In contrast, Adani Power saw only a marginal 2.11% drop despite strong sectoral performance in the energy space.
Factors Contributing to the Decline
Several macroeconomic and sector-specific challenges have contributed to Adani Group’s stock market performance in FY25:
- Regulatory and Legal Scrutiny
- Hindenburg Research, which previously accused the group of corporate malpractice, has continued to raise allegations, including claims of links between former SEBI Chairperson Madhabi Puri Buch and offshore entities connected to Adani.
- Swiss authorities reportedly froze over $310 million across multiple bank accounts linked to the group amid money laundering and securities fraud investigations.
- The U.S. Securities and Exchange Commission (SEC) has also filed charges against Gautam Adani and others for alleged investor fraud and bribery.
- Investor Caution and FII Sell-offs
- Foreign institutional investors have been offloading Indian equities, particularly Adani Group stocks, reducing their holdings in six of its companies over three consecutive quarters.
- Rising global interest rates and policy uncertainties surrounding renewable energy and natural gas have negatively impacted capital-intensive businesses, including Adani’s core segments.
- Broader Market Weakness
- The Indian stock market has faced macroeconomic headwinds, weak urban consumption trends, and geopolitical risks.
- Uncertainty over U.S. trade policies, particularly potential tariffs under a second Trump administration, has contributed to investor unease.
Adani Group’s Response and Market Outlook
Despite the turbulence, Adani Group has denied all allegations and continues to assert its commitment to regulatory compliance and business expansion. While its stocks remain under pressure, market analysts note that clarity on regulatory investigations and a more stable macroeconomic environment could improve investor sentiment in the coming quarters.
As the financial year progresses, stakeholders will closely monitor Adani Group’s strategic moves, regulatory developments, and market conditions that could shape its recovery trajectory.
