Adani stocks slide as SEC pursues summons; weak quarterly earnings add to selloff

Shares of multiple Adani group companies sank sharply on Friday as a double whammy of regulatory scrutiny in the US and disappointing quarterly results spooked investors. The selloff followed reports that the US Securities and Exchange Commission (SEC) has asked a Brooklyn court for approval to serve summons to Gautam Adani and Sagar Adani via email in a fraud and alleged USD 265-million bribery case, after failing to obtain assistance from Indian authorities.

Adani Enterprises, the group’s flagship, slid 9.38 per cent to Rs 1,891.60 on the BSE, while Adani Power dropped 8.84 per cent to Rs 128.35, Adani Ports fell 7.81 per cent to Rs 1,303.35, and Adani Total Gas declined 7.55 per cent to Rs 507.

Adani Green Energy was the biggest casualty, plunging 13.20 per cent to Rs 785 after reporting a dramatic collapse in quarterly profit. Adani Energy Solutions Ltd (AESL) also tumbled 10.57 per cent to Rs 827.20 after posting an over 8 per cent decline in net profit and briefly hitting the lower circuit. The broader market mirrored the gloom, with the Sensex shedding 769.67 points to 81,537.70 and the Nifty dropping 241.25 points to 25,048.65.

The SEC lawsuit, filed in November 2024, accuses Gautam Adani and Sagar Adani of violating US securities laws by making false and misleading statements related to Adani Green Energy Ltd. The Adani group has rejected the allegations outright, saying accusations of paying bribes for solar contracts are “baseless” and that the conglomerate complies with all laws.

“The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied,” a group spokesperson said, adding that all legal remedies would be pursued.

The legal overhang collided with weak quarterly numbers. Adani Green Energy reported a consolidated net profit of just Rs 5 crore for the December 2025 quarter, down from Rs 474 crore a year earlier — a nearly 99 per cent collapse — amid sharply higher expenses. Total expenses rose to Rs 2,961 crore from Rs 2,329 crore, with finance costs jumping to Rs 1,698 crore from Rs 1,251 crore. Total income edged up to Rs 2,837 crore from Rs 2,636 crore.

Despite the profit shock, Adani Green sought to highlight its build-out speed. CEO Ashish Khanna said the company would add 5.6 GW of renewable capacity in 2026 — about 14 per cent of new solar and wind installations across India — taking operational capacity to 17.2 GW. He said the firm’s Khavda project, touted as the world’s largest renewable installation, was advancing quickly, with major battery storage and pumped hydro projects also on track.

In the first nine months of the financial year, Adani Green generated over 27 billion units of clean electricity, expanded operational capacity by 48 per cent year-on-year, and added 2,995 MW of greenfield capacity — more than 90 per cent of FY25’s total additions — pushing the company closer to its 50 GW target.

Other group stocks were dragged down in the fallout: Ambuja Cements slipped 5.98 per cent, Sanghi Industries 5.96 per cent, NDTV 5.31 per cent and ACC 2.76 per cent, underscoring how regulatory pressure and earnings risks across the Adani ecosystem converged into one bleak trading session.

Without PTI inputs