Adani Group stocks zoom up to 14% on Wed; what's driving the rally here?

Among the frontline Adani stocks - Adani Enterprises, Adani Power and Adani Ports and Special Economic Zone were up in the range of 3 per cent to 5 per cent on Wednesday.

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Share price movement of Adani Group companies

 

Shares of Adani Group companies were in demand with Adani Green Energy (AGEL), Adani Total Gas (ATGL) and Adani Energy Solutions rallying between 7 per cent and 14 per cent on the BSE in Wednesday’s intra-day trade backed by heavy volumes. Adani Enterprises,  Adani Power and Adani Ports and Special Economic Zone (APSEZ) were up in the range of 3 per cent to 5 per cent. In comparison, the BSE Sensex was up 0.32 per cent at 84,898 at 11:40 AM.

 

However, despite today’s rally, most of the Adani Group stocks were quoting lower by up to 33 per cent from their respective 52-week highs.

 

What's driving Adani Group stocks?

 

Adani Group companies so far have reported a healthy performance in September quarter (Q2FY26) earnings.

 

That apart, state-run insurer, Life Insurance Corporation of India (LIC) clarified that it did not receive any instructions from the government for investing in Adani Group companies. On Saturday, Times of India reported that LIC investment decisions were taken independently by its board after due diligence.  Among individual stocks, AGEL has soared 14 per cent to ₹1,145 on the back of a multiple-fold jump in trading volumes. As many as 26.06 million equity shares changed hands on the NSE and BSE. 

 

AGEL reported a 25 per cent year-on-year (YoY) rise in net profit at ₹644 crore for Q2FY26, up from ₹515 crore in Q2FY25. Revenue from operations remained flat at ₹3,008 crore versus ₹3,005 crore a year ago, while revenue from power supply rose 20 per cent YoY to ₹2,776 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 18.05 per cent YoY to ₹2,603 crore, with margins improving sharply by 14.3 percentage points to 86.5 per cent from 72.2 per cent in Q2FY25.

 

Strong revenue, EBITDA, and cash profit growth are primarily backed by robust Greenfield capacity addition of 5.5 GW, deployment of advanced RE technologies, strong plant performance and commissioning of new capacities in resource rich sites in Khavda, Gujarat and Rajasthan.

 

The company’s operational capacity grew 49 per cent YoY to 16.7 GW as of September 30, driven by the addition of 2,437 MW of Greenfield capacity in H1FY26, mainly from its Khavda and Rajasthan renewable projects. 

 

Shares of ATGL surged 9 per cent to ₹675 on the BSE in intra-day trade. In Q2FY26, the company’s compressed natural gas (CNG) volume increased by 18 per cent YoY on account of network expansion across multiple Geographical Areas (GAs). With stabilization of gas prices, there has been an increase in consumption of PNG Industrial volume, and coupled with the addition of new piped natural gas (PNG) connection in domestic and commercial segments, PNG volume has increased by 11 per cent YoY.

 

ATGL’s standalone revenue from operations rose by 19 per cent YoY on account of higher volume and sales realization.  Besides higher volume, the gas cost increased by 29 per cent largely due to the lower allocation of administered price mechanism (APM) to CNG segment being replaced by high priced New well gas and high-pressure, high-temperature (HPHT) gas. 

 

Despite an increase in exchange rate and higher gas costs, ATGL delivered an increase in volume through calibrated pricing strategy and Opex optimization, delivering an EBITDA of ₹ 302 crore in Q2FY26, the company said.