Adani Group’s ₹48,550 Crore Surge: Decoding the Drivers Behind the Market Euphoria

In a single day of trading, the Adani Group gained a significant ₹48,550 crore in market capitalisation, and this was not just a minor bump. In fact, the Adani Group was able to regain investor faith, report robust quarterly earnings in its core business, and remove investor regulatory overhangs. In this article, you will find a detailed breakdown of what triggered this rally, how individual stocks in the group performed, and what it means for a retail investor.

Stock-Wise Performance Breakdown

Here is a quick overview of how some major listed companies within the group performed during the rally:

• The Adani Green Energy (AGEL) stock surged by 14%, with a ₹14,464 crore addition to market capitalisation in just one trading day, on the back of strong Q2 results.
  
• Adani Total Gas (ATGL) also rose by 8.7% intraday trade and has added ₹1,468 crore to market capitalisation, despite some margin pressures.
  
• Adani Ports & Special Economic Zone (SEZ) stock rose by nearly 3% and its market value increased by ₹8,500 crore.
  
• Adani Enterprises increased by 2% with a net increase of ₹5,592 crore in value added.
  

Other businesses of Adani, like Adani Energy Solutions, added ₹5,592 crore, and its stock surged by 2%. The agri segment contributed ₹936 crore, NDTV ₹33 crore, and Sanghi Industries added ₹32 crore.

What’s Driving the Momentum?

Here are some factors that contributed to Adani Group’s momentum:

ATL’s Volume Growth and Margin Defence

Adani Total Gas Limited (ATGL), a joint venture between the Adani Group and France’s TotalEnergies, reported a 9% year-on-year decline in Q2 FY26 net profit to ₹162 crore. The drop was largely due to a 26% rise in input gas costs following reduced allocation of lower-priced Administered Price Mechanism (APM) gas. However, improved operational efficiency supported market sentiment.

Revenue from operations rose 19% YoY to ₹1,569 crore, driven by a 16% increase in combined Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) volumes. ATGL expanded its CNG network to 662 stations, adding 12 new outlets, while PNG household connections crossed 1 million.

Capacity Expansion

Adani’s massive expansion at the Khavda Renewable Energy Park in Gujarat remains a key growth driver. With a planned capacity of 30 GW, Khavda is set to become the world’s largest greenfield renewable energy plant, spanning 538 square kilometres—five times the size of Paris. By September 2025, AGEL had already achieved 7.1 GW of operational capacity across solar, wind, and hybrid projects.

The site aims to generate 87.4 billion units of clean energy annually, contributing 6.6% of India’s total power capacity. In H1 FY26 alone, 2,437 MW was added—74% of last year’s total. Advanced technologies, high plant efficiency, and over 90% EBITDA margins have made Khavda a global benchmark for large-scale energy transition.

Adani Power’s Q2 Earnings and Acquisitions

Adani Power delivered a solid Q2 FY25 performance, strengthening market confidence in the group’s energy and infrastructure resilience. The company’s revenue rose 10.8% year-on-year to ₹13,465 crore, while continuing EBITDA increased 24.6% to ₹5,402 crore and Profit Before Tax jumped 44.8% to ₹3,537 crore. Despite flat system-wide power demand, the company outperformed peers through plant additions and strict margin control.

Key growth drivers included the acquisition of Coastal Energen’s 1,200 MW Tamil Nadu plant, later merged with Moxie Power Generation; Lanco Amarkantak Power’s 600 MW Chhattisgarh unit acquired via NCLT; and the ₹815 crore purchase of the 500 MW Dahanu Thermal Power Station. Additionally, a 25-year, 1,496 MW power purchase agreement from a new supercritical project secured steady long-term revenue visibility.

Google-AdaniConneX

In October 2025, Adani Enterprises, through its data infrastructure joint venture AdaniConneX, announced $15 billion partnership with Google to co-develop India’s largest AI-powered data centre campus in Visakhapatnam over the next five years. The project is designed as a next-generation artificial intelligence (AI) hub. It will feature a gigawatt-scale data centre with hyperscale computing capabilities to handle advanced AI workloads and provide global connectivity.

The facility will run on renewable energy and is supported by co-investments in solar, wind, transmission, and storage infrastructure. Additionally, Airtel and other telecom partners are developing subsea cables and international gateways to transform Visakhapatnam into a major pan-Asian technology node.

Resolution of Controversy

A key driver behind the October 2025 surge in Adani Group’s market value was the resolution of long-standing regulatory and governance concerns from the 2023 Hindenburg Research controversy. The report had alleged stock manipulation, accounting fraud, and offshore irregularities, wiping out billions in value. Investor sentiment turned positive after SEBI dismissed all allegations in September 2025, finding no evidence of fraud or related-party issues. Earlier, in 2024, the Supreme Court upheld the Securities and Exchange Board of India’s (SEBI) authority, reinforcing trust in its investigation.

Implications for Retail Investors

For retail investors in India tracking the Adani Group stocks, the following factors may be relevant:

• The recent surge indicates a recovery in stocks that had earlier faced regulatory pressure. Price movements led by sentiment, however, have historically shown volatility.

• Within the group, performance varies across sectors. Companies such as AGEL (renewables) and ATGL (gas distribution) have been associated with specific growth areas tied to broader sector trends.

• Headline gains may not always reflect underlying financial strength. Key indicators to monitor include capacity expansion, leverage levels, and profitability metrics, as these determine long-term business momentum.

• Exposure to Adani Group companies can be assessed relative to overall portfolio diversification, risk levels, and investment horizon. Market reactions may differ between short-term trading activity and long-term value formation.

• Upcoming earnings results, regulatory updates, and sector developments remain important variables that could influence sentiment and valuations in the near term.

Conclusion

The Adani Group’s ₹48,550 crore single-day surge reflects a convergence of regulatory relief, solid earnings, structural sector themes and revived investor confidence. For a retail investor, it offers an opportunity—but only with a disciplined lens on fundamentals, risks and long-term viability. The re-rating appears to be underway rather than purely speculative, but sustained by execution. Keep watch on execution, debt, regulatory developments and sector dynamics to assess whether this momentum can be carried forward.

Sources

The Economic Times
Adani Group
Adani Group
Asianet News
Tech Story
Fortune India
ET Now
Adani Power
Business Standard