The Adani Group has seen a 21% decline in total market capitalisation compared to the previous year, as per to a report dated 24 March 2025. This has led to a market cap erosion of Rs 3.4 trillion.
Here’s how the shares of the company have performed in FY25 so far.
Adani Green Energy has seen the sharpest decline, losing about half of its market cap this year. Adani-owned cement companies have also been suffering, with ACC and Ambuja Cements falling by 23.1% and 15.9% respectively.
Here’s why Adani Group stocks are falling…
#1 Regulatory scrutiny intensifies
The market downturn is due, in part, to the mounting regulatory pressures on the Adani group.
In September 2024, the US short-seller Hindenburg Research claimed that Swiss authorities had frozen more than US$ 310 m in several Swiss bank accounts as part of an investigation into alleged money laundering and securities forgery linked to the Adani Group, dating back to 2021.
These allegations, based on Swiss criminal court records, have added to investor concerns.
However, the Adani Group rejected these allegations, labelled them as baseless. The company is that its foreign holding structures remain completely transparent and in line with legal requirements.
In addition, it clarified that neither the company nor its subsidiary companies are involved in any Swiss court proceedings, nor have they received any formal request for clarification.
#2 Bribery accusation effect
A bribery case came to light last year in the US, adding to the upheaval.
The allegations stated Adani officials bribed Indian authorities to secure power purchases for Adani Green Energy and then misled American investors about the company’s anti-corruption policies.
The Securities and Exchange Commission (SEC) said that the officials of Adani paid US$ 265 million (m) in bribes to state government officials between 2020 and 2024, making the company capable of winning an estimated solar power contract for generating US$ 2 billion (bn) in profits in 20 years.
It also accused Adani Green Energy Limited of raising US$ 2 bn from American and foreign investors based on misleading information about its corporate governance and anti-bribery policies.
The US Department of Justice (DOJ) further claimed that Adani Green Energy hid the ongoing bribe allegations from American investors in violation of the US Securities Act, earning money from American investors.
These allegations have intensified market concerns and put additional pressure on Adani shares, which has increased instability.
#3 FII Pull Back
The ongoing turmoil has led Foreign Institutional Investors (FIIs) to trim their exposure to Indian equities, with Adani Group stocks being one among them.
Over the past three quarters of 2024, FIIs have offloaded shares in six Adani companies, with Adani Green Energy and Adani Power experiencing consistent selling pressure.
Take a look below.
FII Holding in Adani Group Stocks
| Mar-24 | Jun-24 | Sep-24 | Dec-24 | |
| Adani Green Energy (%) | 18.2 | 16.9 | 15.2 | 13.7 |
| Adani Power (%) | 15.9 | 14.7 | 12.7 | 12.3 |
| Adani Energy solutions (%) | 17.5 | 15.5 | 18.7 | 17.3 |
| Adani Total Gas (%) | 13.1 | 12.9 | 13.1 | 13 |
| Adani Port & SEZ | 14.9 | 15.2 | 15.2 | 13.9 |
| Adani Enterprises (%) | 14.4 | 11.7 | 11.3 | 11.7 |
| Adani Wilmar (%) | 0.8 | 0.7 | 0.9 | 1.2 |
#4 Broader Market Headwinds
India’s equity markets have been impacted by slowing urban spending, geopolitical tensions, and high interest rates. These factors have been particularly harsh on capital-intensive sectors like renewable energy and gas.
Additionally, changes in potential US policy, especially the possibility of new trade tariffs under the Trump administration has alerted global investors.
What next?
The Adani Group is taking strategic steps for long-term growth.
To streamline its focus, the group has decided to exit the agricultural sector.
In December, Ambuja Cements completed the acquisition of Sanghi Industries, strengthening its footprint in the cement market.
Adani Enterprises has doubled down on high-development areas, with investments in solar module manufacturing, green hydrogen, airports, and data centers. The group is eyeing a leadership role in the global green hydrogen space.
Adani Green Energy has set an ambitious target of 50 GW of renewable energy capacity by 2030.
Adani Power is implementing a “debt-light” strategy, aiming for over 30 GW of generation capacity by FY30, relying on strong cash flows for expansion.
The group as a whole is targeting an EBITDA of Rs 900 bn within the next 2-3 years.
Is a Recovery in Sight?
Despite all the challenges, recent market activity suggests that a change could be on the horizon.
As of 27 March 2024, Adani stocks have seen a revival, adding about Rs 400 bn in market cap in the last 15 days.
However, whether this rebound indicates a continuous recovery or just a temporary bounce remains to be seen.
You can refer to our recent articles on Adani group stocks for more.
Happy investing.
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