Adani group stocks jump up to 3%, add Rs 23,000 crore to total m-cap. What’s behind the surge?

ETMarkets.com

The flagship Adani group company Adani Enterprises rose 3% to Rs 2,550. The company reported a consolidated net profit of Rs 1,492 crore for the second quarter of FY27, as against the Rs 3,304 crore net profit reported in the same period last year, as the base quarter bottomline was buoyed by exceptional gains worth Rs 3,583 crore.

Jefferies, in its bullcase, forecasts 70% upside. It said that Adani Enterprises (AEL) has incubated several industry-leading businesses over the past decade across ports, power, city gas distribution (CGD), transmission and FMCG. The Adani Group has established a track record of executing large-scale infrastructure projects, and the brokerage expects AEL's newer businesses in green hydrogen, airports, data centres, roads and copper to emerge as industry leaders.

Jefferies sees AEL benefiting from India's underpenetrated aviation market through its airport business, which offers exposure to consumer spending. The brokerage also highlighted the data centre business as a beneficiary of India's growing digital economy, while newer ventures such as copper and PVC could gain from the country's push towards import substitution.

Adani Ports jumped 3% following Q2 nos. Jefferies raised its target price for Adani Ports and Special Economic Zone to Rs 2,180 from Rs 2,160, implying an upside of 24%, while retaining its Buy rating.

The brokerage said September 2026 quarter EBITDA exceeded its estimates by 4%, driven by a sharp ramp-up in international ports.

Jefferies views Adani Ports as a high-conviction play on India's trade and logistics transformation. Its port assets are expected to support a compound annual growth rate of more than 20% in free cash flow between FY26 and FY31, despite elevated growth capex.

Nomura also raised its target price for Adani Ports and Special Economic Zone (ADSEZ) to Rs 2,150 from Rs 2,080, implying an upside of over 21%. Following a strong first half, the company increased its FY27E revenue and EBITDA guidance by Rs 10 billion to Rs 440-460 billion and Rs 260-270 billion, respectively.

The higher guidance supports progress towards Adani Ports' FY31E revenue and EBITDA ambitions of Rs 915 billion and Rs 520 billion, respectively.

Adani Green Energy Q2

The stock rose over 2% on Thursday. Last week, the company reported a 15% year-on-year (YoY) growth in its consolidated net profit at Rs 673 crore in the second quarter. The same stood at Rs 583 crore in the same quarter of last year. Revenue from operations increased 39% YoY to Rs 4,520 crore.

Segment-wise, revenue from power supply, the company's main business, increased 45% YoY to Rs 4,019 crore from Rs 2,776 crore, driven by the commissioning of new solar, wind and hybrid projects. EBITDA from power supply surged 51% to Rs 3,835 crore from Rs 2,543 crore, while the EBITDA margin improved to 92% from 90.5% a year earlier.

Earlier this month, Jefferies retained its ‘Buy’ rating on Adani Green Energy, and assigned a target price of Rs 1,695 citing reasonable valuations after a 22% correction from the stock's peak. The brokerage believes rising power demand, improving utilisation at its Khavda project and the company's expanding battery storage business could support growth despite concerns over higher interest costs following the Reserve Bank of India's rate hike.

Adani Power’s strong Q2 numbers

Thermal power producer Adani Power reported a 134% year-on-year (YoY) jump in consolidated net profit to Rs 6,919 crore for the second quarter of FY27, compared with Rs 2,953 crore in the year-ago period.

Revenue from operations rose 45% to Rs 19,439 crore from Rs 13,457 crore in the corresponding quarter last year, the company said in a regulatory filing.

The company said it is advancing its capacity expansion programme to add 23,720 MW of new thermal power capacity. Execution of the 1,320 MW Korba Phase-II Supercritical Thermal Power Project and the 1,600 MW Mahan Phase-II Ultra-Supercritical Thermal Power Project is in the advanced stages.

For the quarter under review, margins shot up 400 basis points to 42.3% from 38.% in the year-ago period, the company said. Adani Power's consolidated power sales volume rose 11.5% year-on-year to 26.4 billion units (BU) in Q2 FY27, compared with 23.7 BU in Q2 FY26, driven by strong growth in power demand.

Adani Energy Solutions and Adani Total Gas rallied over 2% in today’s session.