Adani’s Wealth Plunges: Rs 3.4 Lakh Crore Loss in FY 2025
Adani Group Faces Massive Market Cap Erosion
The financial year 2025 proved to be highly volatile for the Adani Group, with the company’s stocks witnessing a significant decline in market value. The main reason behind this downturn is the allegations in the US, which the Adani Group has consistently denied. Despite this, investors have remained cautious, leading to a 21% drop in market capitalization, amounting to Rs 3.4 lakh crore.
Adani Green Energy Suffers the Biggest Loss
Among the various companies within the Adani Group, Adani Green Energy suffered the most. As of March 21, 2025, the company’s total market cap stood at Rs 1.46 lakh crore, compared to Rs 2.90 lakh crore on March 28, 2024—a decline of nearly 50%. The primary reason behind this drop is the alleged $265 million bribery scheme, involving Gautam Adani, his nephew Sagar Adani, and others, making Adani Green Energy a direct beneficiary of the controversy.
Market Cap Decline Across Adani Group Companies
- Adani Enterprises: Market cap dropped 27%, equating to a Rs 94,096 crore loss.
- Adani Ports and SEZ (APSEZ): Declined by 11.40%, with market cap reducing by Rs 33,029 crore.
- Adani Total Gas: Saw a 31.84% decline, losing Rs 32,411.40 crore.
- Adani Energy Solutions: Market cap fell by 18.95%, amounting to a Rs 14,546.59 crore loss.
- ACC and Ambuja Cements: Declined by 23.10% and 15.92%, respectively.
- Adani Wilmar (AWL Agri Business): Dropped by 17.35%.
- Sanghi Industries: Saw a 36.84% decline.
- Adani Power: Faced a marginal drop of 2.11%, despite favorable regional conditions.
- NDTV: Experienced a 41.58% valuation decline.
Why Are Adani Group Stocks Falling?
1. Global and Domestic Market Uncertainties
- Macroeconomic challenges such as inflation, geopolitical risks, and uncertainties around Trump tariffs have created volatility in the Indian equity market.
- Weak urban consumption trends and rising global interest rates have affected capital-intensive businesses like renewable energy and gas.
2. Foreign Institutional Investors (FIIs) Reducing Holdings
- FIIs have aggressively sold Indian equities, including Adani Group stocks.
- In the three quarters leading up to September 30, 2024, FIIs reduced their stake in six Adani Group companies.
3. Regulatory and Legal Challenges
- The Hindenburg Research report linked former SEBI chairperson Madhabi Puri Buch and her husband Dhaval Buch to offshore companies connected to the Adani family.
- A fresh Hindenburg allegation surfaced, accusing Adani Group of bribery in a US court.
- Despite Adani Group denying all allegations, regulatory scrutiny and investor skepticism have led to significant stock corrections.
