Adani Group Faces Major Stock Decline Amid Scrutiny
The Adani Group, led by Gautam Adani, has seen a staggering 21% drop in its market capitalization for the fiscal year 2025, amounting to a loss of Rs 3.4 lakh crore. This decline comes amid ongoing market volatility and heightened regulatory scrutiny. Notably, Adani Green Energy has suffered the most, losing nearly half of its market value, while Adani Enterprises has also experienced significant share price reductions.
Significant Losses Across Adani Stocks
As of March 21, 2025, Adani Green Energy’s market capitalization plummeted to Rs 1.46 lakh crore, down from Rs 2.90 lakh crore at the end of the previous fiscal year. The company’s troubles have been exacerbated by allegations involving a $265 million bribery case, which reportedly implicates Gautam Adani and his nephew, Sagar Adani. Despite these serious allegations, the Adani Group has firmly denied any wrongdoing.
Adani Enterprises, the flagship company of the group, has seen its share price drop by 27%, resulting in a market capitalization loss of Rs 94,096 crore. Similarly, Adani Ports and Special Economic Zone (APSEZ) recorded a decline of Rs 33,029 crore, equating to an 11.40% decrease. Other subsidiaries, including Adani Total Gas and Adani Energy Solutions, also reported significant market cap reductions of 31.84% and 18.95%, respectively.
Broader Impact on Adani’s Business Units
The downturn has not spared Adani’s cement companies, with ACC shares falling by 23.10% and Ambuja Cements dropping by 15.92%. The agricultural division, Adani Wilmar, saw a 17.35% decrease in value, while Sanghi Industries experienced a dramatic 36.84% decline. In response to these challenges, the group has announced plans to exit the agri-business sector to focus more on infrastructure operations. Notably, Ambuja Cements completed a strategic acquisition of Sanghi Industries in December.
Despite favorable conditions in the power sector, Adani Power recorded a modest decline of 2.11% in market value. The media arm, NDTV, faced a significant valuation drop of 41.58%, highlighting the widespread impact of the group’s challenges across various sectors.
Market Conditions and Regulatory Challenges
The decline in Adani stocks is reflective of broader challenges facing the Indian equity market, including macroeconomic pressures, reduced urban spending, and global political tensions. These factors have contributed to a cautious investment climate as the fiscal year approaches its end on March 31, 2025. Policy uncertainties and rising global interest rates have particularly affected sectors like renewable energy and gas, which require substantial capital investment. Foreign Institutional Investors (FIIs) have also played a role in the downturn, with reports indicating increased selling of Indian equities, including significant reductions in positions across six Adani Group companies during the last three quarters of 2024. Regulatory scrutiny remains a critical issue, especially following allegations linking former SEBI Chairperson Madhabi Puri Buch to offshore entities associated with the Adani Group. The situation escalated when the U.S. Securities and Exchange Commission filed charges against Gautam Adani and associates for alleged fraud targeting American investors, alongside accusations of bribery. The Adani Group has consistently rejected these allegations, maintaining its stance against the claims made by various regulatory bodies and investigative firms.
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