Adani Green Faces Financial Challenges Amid Growth Targets

31 May 2024 CW Team

In a detailed 51-page report, Snowcap Research highlighted that Adani Green Energy is falling short of its stated return targets. The report emphasized that the combination of lower returns and rising debt-financing costs threatens the company's ability to meet its ambitious 2030 renewable energy goal. Snowcap's analysis indicated that without raising equity, Adani Green can only meet 50 percent of its 50GW target funding requirement by 2030, despite the company's claims that the target is "fully funded."

Snowcap also pointed out that Adani Green has not achieved the return on capital target of 17 percent announced in 2021. Instead, the company has likely delivered an 11-12 percent return on capital for projects completed over the past three years, aligning with industry peers but below expectations, with a 9.5 percent cost of debt.

Adani Green's response to the report was swift and categorical. A company representative stated that the analysis was "baseless, factually inaccurate, and contains analytical errors and false allegations," designed to negatively impact the company's share price. Despite the report, Adani Green's shares fell over 2.2 percent but recovered some losses shortly after. Adani Enterprises, the group's flagship company, also saw a dip of up to 2.6 percent.

The criticism from Snowcap comes over a year after the Adani Group faced significant allegations from short-seller Hindenburg Research, which accused the group of corruption and market manipulation. These accusations initially wiped out over $150 billion of the Adani Group's market value, though Adani has consistently denied any wrongdoing and much of the stock value has since been regained.

Snowcap clarified that it holds no positions in or against Adani Green, which is approximately 56 percent owned by units controlled by Adani.

The renewable energy unit of billionaire Gautam Adani's empire, Adani Green Energy, may miss key growth targets unless it consolidates its finances through a share issue, according to a report by London-based Snowcap Research. In a detailed 51-page report, Snowcap Research highlighted that Adani Green Energy is falling short of its stated return targets. The report emphasized that the combination of lower returns and rising debt-financing costs threatens the company's ability to meet its ambitious 2030 renewable energy goal. Snowcap's analysis indicated that without raising equity, Adani Green can only meet 50 percent of its 50GW target funding requirement by 2030, despite the company's claims that the target is fully funded. Snowcap also pointed out that Adani Green has not achieved the return on capital target of 17 percent announced in 2021. Instead, the company has likely delivered an 11-12 percent return on capital for projects completed over the past three years, aligning with industry peers but below expectations, with a 9.5 percent cost of debt. Adani Green's response to the report was swift and categorical. A company representative stated that the analysis was baseless, factually inaccurate, and contains analytical errors and false allegations, designed to negatively impact the company's share price. Despite the report, Adani Green's shares fell over 2.2 percent but recovered some losses shortly after. Adani Enterprises, the group's flagship company, also saw a dip of up to 2.6 percent. The criticism from Snowcap comes over a year after the Adani Group faced significant allegations from short-seller Hindenburg Research, which accused the group of corruption and market manipulation. These accusations initially wiped out over $150 billion of the Adani Group's market value, though Adani has consistently denied any wrongdoing and much of the stock value has since been regained. Snowcap clarified that it holds no positions in or against Adani Green, which is approximately 56 percent owned by units controlled by Adani.

Infrastructure Energy

30 Jun 2025

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Infrastructure Transport

30 Jun 2025

Saarstahl Rail to Supply Tracks for Bengaluru Suburban Rail Project

Rail Infrastructure Development Company Karnataka Limited (K-RIDE) has identified Saarstahl Rail as the lowest bidder for the track supply contract in the Bangalore Suburban Railway Project. The selected contractor will be responsible for supplying 60E1 (UIC 60), 1080 HH Grade rails in accordance with IRS-T-12-2009 standards (including all amendments and correction slips) for two specific sections: Corridor 2, from Baiyappanahalli to Chikkabanavara, and Corridor 4, between Heelalige and Rajankunte.The tender for this supply contract, which includes a completion deadline of 365 days, was issued..

Infrastructure Transport

30 Jun 2025

Railways Unveils Major Reforms to Improve Train Controller System

In a major initiative to enhance railway safety and efficiency, the Ministry of Railways has introduced a series of reforms aimed at improving the functioning and working conditions of train controllers. The measures focus on strengthening domain expertise, ensuring performance accountability, and addressing the high-stress nature of the job.Under the new guidelines, train controllers will be required to serve a minimum of three years in the control office to build sufficient operational knowledge. Only experienced and high-performing traffic inspectors and station masters with strong service ..

Adani Green Faces Financial Challenges Amid Growth Targets

New Push to Cut India’s Air Pollution through Power Sector Reforms

Saarstahl Rail to Supply Tracks for Bengaluru Suburban Rail Project

Railways Unveils Major Reforms to Improve Train Controller System

Latest Updates

Advertisement

Recommended for you

Advertisement

Subscribe to Our Newsletter

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address