Mutual Funds Deepen Exposure To The Adani Group’s Energy-Linked Companies

Domestic mutual funds are increasing their investment in the Adani Group’s energy-linked companies, given its key role in India’s power generation sector.

As per the latest shareholding data for March 2026, mutual funds have raised their stake in Adani Energy Solutions. The holding went up from 1.91% in December 2024 to 6.59% in March 2026.

Adani Green Energy also saw higher mutual fund interest. The exposure rose from 0.37% to 3.22% in the same period. Adani Power followed the same trend. Mutual fund holding increased from 1.60% to 3.62%.

This trend comes amid a notable jump in share price levels. Adani Power shares rose by 108% over the last year and have risen significantly this year so far, allowing it to surpass NTPC in market capitalisation. Adani Energy Solutions has gained 48% in a year, while Adani Green Energy has risen 46% during the same period.

Why Are Mutual Funds Buying Adani Energy Stocks?

Fund managers tracking the sector believe the market is beginning to treat these businesses as long-term infrastructure plays rather than high-risk group companies. The logic is tied closely to India’s growing electricity demand and the need for large-scale investments in generation and transmission.

A significant portion of the Adani Group’s earnings also comes from contracted assets. That gives investors clearer visibility on future cash flows compared to many cyclical businesses. The group operates across power generation, renewable energy, transmission, logistics, ports and airports, giving it exposure to several areas linked to India’s capital expenditure cycle.

Market estimates indicate the group’s consolidated EBITDA could expand up to ₹2.5-3 lakh crore by FY30 as projects across energy and infrastructure continue to scale up.

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India’s Electricity Demand Is Driving The Theme

The broader story revolves around electricity consumption. Data centres, electric vehicles, manufacturing activity and urban infrastructure projects are all increasing pressure on India’s power network. Analysts say demand linked to artificial intelligence and digital infrastructure is also starting to emerge as a fresh driver.

That has pushed energy and transmission companies back into focus for large domestic investors searching for businesses with visible long-term growth opportunities.

Adani Energy Solutions, in particular, has drawn attention because of its large transmission project pipeline and its position in the private-sector transmission and distribution space. Analysts tracking the sector also point to the group’s execution track record across ports, renewable energy projects, airports and transmission corridors as a factor strengthening institutional confidence.

The recent rise in mutual fund ownership suggests domestic investors are becoming more comfortable taking long-term exposure to companies tied directly to India’s next phase of infrastructure and power expansion.

Source:

The Economic Times