On Monday, the stocks of the Adani Group declined as fresh concerns about US scrutiny due to alleged bribery in the renewable energy operations of the conglomerate weighed on the group’s shares.
Adani Total Gas was the worst performer with a drop of over 3.8% to Rs. 743.95 per share. Other major stocks also saw declines, with over a 2% drop in Adani Power and Adani Ports. Adani Enterprises, Adani Green Energy and Adani Energy Solutions also were in the red.
"The matters related to our US legal proceedings are now behind us, thereby allowing us to focus with renewed confidence and belief on the next phase of our growth," Gautam Adani said.
The renewed scrutiny from US authorities appears to have weakened investor sentiment. This follows several reported settlements in May, such as $18 million to the US Securities and Exchange Commission, and a US Department of Justice “drop” of criminal charges, plus a $275 million settlement with OFAC sanctions.
The new headline has raised questions about whether the US regulatory overhang has been completely resolved, or if there are any other issues associated with renewable energy operations that could continue to influence sentiment.
The sharp decline in the shares of the Adani group is a paradox, as the company has expressed confidence in the market. The group has consistently denied or settled allegations, but investors are sensitive to new developments in regulation in the United States.
A Bernstein research report on May 24 noted that the Adani overhang was easing and that funding for the group could revive, observing that many global funds had stayed away from Adani Group stocks pending clarity on US-related developments, despite strong operational execution.
But the recent sell-off suggests regulatory news will continue to be a risk factor for Adani Group stocks.
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The company's two major themes are “infrastructure” and “intelligence,” Adani added. He pointed out that the development of artificial intelligence would need notable power generation, transmission grids, data centres and logistics investments.
It was among one of the highest annual capital expenditure programmes, accounting for an investment of over Rs. 1.5 lakh crore in FY2025-26. These investments included work in renewable energy, ports and airports, data centres, transmission and manufacturing.
“Because what we have always been defined by is: Not the noise that surrounds us, but the strength of our response. Not the intensity of the challenge, but the clarity of our purpose. Not the criticism, but the nation-building we continue to believe in,” he said.
Adani Green installed 5.1 GW of renewable energy capacity during the year, and its installed portfolio crossed the threshold of 19 GW. Adani Energy Solutions' transmission order book grew to Rs. 71,779 crore while Adani Power remained on track with an order book expansion of 42 GW capacity by FY32.
Adani Ports has processed over 500 million tonnes of cargo and the company has also constructed Navi Mumbai International Airport and a new terminal at Guwahati Airport.