Adani Green Faces Financial Challenges Amid Growth Targets
ECONOMY & POLICY

Adani Green Faces Financial Challenges Amid Growth Targets

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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Next Story
Real Estate

Manglam Group to Develop Sheraton Hotel in Jaipur

Manglam Group has signed an agreement with Marriott International to develop a Sheraton hotel on the Jaipur–Ajmer Highway in Jaipur. The project will feature 220 keys and is being developed with an investment of around Rs 3.5 billion across more than 300,000 sq ft.The hotel marks Manglam Group’s third collaboration with Marriott International and forms part of its Rs 10 billion hospitality investment roadmap. The agreement was signed by Amrita Gupta, Director, Manglam Group and CEO, Manglam Spa and Resorts, and Rajeev Menon, President, Asia Pacific excluding Greater China, Marriott Interna..

Next Story
Infrastructure Urban

India Warehousing Show 2026 opens at YashoBhoomi

India's warehousing, logistics, and supply chain ecosystem came together as the 15th edition of India Warehousing Show (IWS) 2026 opened at YashoBhoomi, India International Convention & Expo Centre (IICC), Dwarka, New Delhi on June 25 (Thursday). Organised by RX India, the three-day event will run from 25-27 June 2026, bringing together policymakers, industry leaders, technology providers, and supply chain professionals under one roof. It also features a two-day knowledge conference that will run alongside the exhibition. Inaugurated by Pankaj Kumar, Joint Secretary - Logistics, DPIIT..

Next Story
Real Estate

Platinum Corp Launches Bespoke Presidential Suites

Platinum Corp has launched Platinum Stellar: Bespoke Presidential Suites, a luxury residential project on Main Avenue in Santacruz, Mumbai. The project has been positioned as a boutique, design-led development for high-net-worth individuals, business owners and legacy residents from the Bandra-Khar-Santacruz belt.The project has been developed in collaboration with celebrity interior designer Sussanne Khan and follows a design-first approach inspired by Art Deco architecture. It incorporates refined detailing, spacious layouts, premium material palettes and arrival experiences planned to creat..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement