In January 2023, Hindenburg Research published a report designed to destroy a company. By its own admission, the New York-based short seller had built significant positions in Adani stocks before releasing allegations of fraud, stock manipulation, and related-party violations. The report wiped approximately $150 billion in market value within weeks. Global banks pulled back financing. Adani Enterprises abandoned a ₹20,000 crore follow-on offering midway. The group's founder was vilified internationally. Serious people were asking whether the entire Adani empire might unravel.
Three years later, that same group has just posted the highest-ever annual capital expenditure by any Indian corporate in history — ₹1.52 lakh crore — alongside the highest-ever EBITDA of ₹94,834 crore. Every single legal proceeding against the group — in India and in the United States — has now been formally resolved. And Hindenburg Research, the firm that triggered the crisis, shut its doors permanently in January 2025.
The comeback story of Indian business belongs to Adani. And it is far from complete.
THE FY26 HEADLINE NUMBERS
The Adani Portfolio invested ₹1,52,967 crore during FY26 — the highest annual capital expenditure by any Indian corporate group in history. Total assets expanded to ₹7,85,098 crore, with nearly 80% of investments directed toward energy, utilities, transport, and logistics.
EBITDA reached an all-time high of ₹94,834 crore, growing 5.6% year-on-year. Core infrastructure businesses generated ₹82,083 crore of that EBITDA — 87% of the portfolio total. The transport segment, led by Adani Ports, recorded the strongest growth at 23.2% to ₹25,228 crore. Utility businesses delivered 4.6% EBITDA growth to ₹45,377 crore.
Despite the unprecedented capex cycle, the group maintained Net Debt-to-EBITDA at 3.3x — below its stated ceiling of 3.5x. Cash reserves stood at ₹55,852 crore, equivalent to 15% of gross debt and sufficient to cover debt servicing for at least 17 months. The group's average borrowing cost declined to 7.8% in FY26 from 9% two years earlier, supported by credit rating upgrades. All Adani assets now carry domestic credit ratings of A- or higher.
For trajectory context: EBITDA was ₹58,653 crore in FY22. It is ₹94,834 crore in FY26 — a 62% increase in four years while absorbing the most intense regulatory and reputational scrutiny any Indian corporate has faced in decades.
THE LEGAL CHAPTER: COMPLETE CLOSURE ON ALL FRONTS
This is the most consequential update in the Adani story since the Hindenburg report itself — and it requires complete, accurate reporting.
India — SEBI:
In September 2025, SEBI formally closed proceedings against Adani Group, Gautam Adani, and associates, dismissing Hindenburg's core charges of fund diversion, related-party transaction violations, and fraud. The two most material allegations — round-tripping of funds and misuse of foreign portfolio investments — were found "not established." SEBI disposed of the matter without any penalty.
The Supreme Court subsequently dismissed fresh applications seeking further SEBI disclosures, maintaining that third-party short-seller reports were not "conclusive proof" to doubt a state regulator's findings.
United States — DOJ Criminal Case:
The US Department of Justice formally moved to permanently drop all criminal charges against Gautam Adani in a federal court filing in May 2026 — stating that prosecutors had "decided not to devote further resources to these criminal charges." The original indictment, filed in November 2024 in Brooklyn federal court, had alleged a $250 million bribery scheme linked to Indian solar energy contracts.
The defence, led by prominent American law firms including Sullivan & Cromwell and Nixon Peabody, had successfully argued that US authorities lacked jurisdiction and that prosecutors had attempted to convert unproven bribery allegations into securities fraud charges over conduct that was primarily centred outside the United States.
United States — SEC Civil Case:
The US Securities and Exchange Commission reached a civil settlement with Gautam Adani and Sagar Adani without requiring either to admit or deny the allegations. Under the settlement, Gautam Adani agreed to pay a $6 million penalty and Sagar Adani $12 million — modest figures relative to the scale of the original allegations and indicative of the weakness of the underlying evidentiary case.
United States — OFAC Iran Sanctions:
The US Treasury Department's Office of Foreign Assets Control announced a $275 million settlement with Adani Enterprises Limited over alleged apparent violations of American sanctions on Iran, relating to LPG imports sourced through a Dubai-based supplier between November 2023 and June 2025. AEL suspended the imports, engaged US legal counsel, and strengthened compliance procedures. The settlement — while financially significant — is a civil regulatory resolution, not a criminal finding.
The complete picture: DOJ criminal case dropped. SEC civil case settled for $18 million combined. OFAC sanctions matter settled for $275 million by AEL. SEBI domestic proceedings closed without penalty. Supreme Court petitions dismissed. Hindenburg Research itself permanently closed.
The easing of US legal uncertainty is expected to reopen international capital markets to the Adani Group — with FII investors who had been legally constrained from building positions in companies under active US federal investigation now free to reassess their Adani exposure.
THE PORTFOLIO: TEN BUSINESSES, ONE DIRECTION
Adani Ports and SEZ — India's largest commercial port operator — handles approximately 420 million metric tonnes of cargo annually across 14 ports. EBITDA grew 23.2% in FY26. PAT has crossed ₹8,000 crore. It is one of the highest-quality infrastructure assets in India — a natural monopoly at most locations it operates.
Adani Green Energy targets 50 GW by 2030 from 14.2 GW operational capacity as of March 2026. It is the largest renewable energy company in India. Adani Green's shares are up approximately 41% year-to-date as legal uncertainty cleared.
Adani Power remains one of India's largest private thermal power producers, generating strong cash flows that fund the group's broader expansion as India's grid continues to depend on reliable base-load power.
Adani Energy Solutions won the ₹25,000 crore Bhadla-Fatehpur HVDC project — its largest-ever order — positioning as the backbone transmission player for India's renewable push.
Adani Enterprises incubates new businesses including the data centre JV with EdgeConnex, copper smelter at Mundra, defence and aerospace, roads, and solar manufacturing.
Adani Total Gas provides piped natural gas across 35 geographical areas and is expanding as India's city gas distribution network deepens.
Adani Airports controls eight airports with Navi Mumbai inaugurated in October 2025, targeting an IPO by FY28.
Ambuja Cements and ACC make Adani India's second-largest cement producer, contributing meaningfully to portfolio EBITDA.
THE NEW BUSINESSES: COPPER, DEFENCE, AND DATA CENTRES
Copper: The Mundra copper smelter — India's first integrated copper complex targeting 1 MTPA — is approaching commercial operations in FY27. With copper prices at all-time highs and India importing 90%+ of refined copper requirements, the timing is extraordinary.
Defence and Aerospace: Adani Defence and Aerospace inaugurated South Asia's largest ammunition and missiles complex (Bloomberg) in 2025. India's 68% domestic defence procurement mandate creates a structurally growing market for the next decade.
Data Centres: The group has committed $100 billion to renewable energy-powered AI data centres through 2030. Maharashtra has signed an MoU for ₹50,000 crore in hyperscale data centre infrastructure.
CREDIT RATINGS AND THE INSTITUTIONAL INVESTOR PICTURE
Average borrowing costs fell from 9% to 7.8% in two years, driven by consistent EBITDA growth, deleveraging relative to guidance, and rating upgrades. All assets carry domestic credit ratings of A- or higher. International rating agencies have affirmed ratings with upgraded "Stable" outlooks across multiple Adani portfolio companies.
The FII picture has now changed decisively. The DOJ case dismissal specifically removes the principal constraint on US-regulated institutional investors — pension funds, endowments, and regulated asset managers — who faced legal and reputational constraints around companies under active US federal criminal investigation. The market's response was immediate: Adani Enterprises shares are up roughly 24% year-to-date, while Adani Green is up approximately 41%.
DII interest has been consistently strong throughout — with LIC, domestic mutual funds, and infrastructure-focused institutions maintaining or building positions. That domestic institutional base provided the stability that prevented the kind of sustained equity market destruction that a purely FII-driven base would have experienced.
WHAT FY27 LOOKS LIKE
The group plans to raise ₹90,000 crore from markets in FY27 to finance capex exceeding ₹1.5 lakh crore — maintaining the unprecedented investment pace of FY26.
Key FY27 milestones: Mundra Copper commercial operations at record copper prices. Adani Airports IPO preparation intensifying. Adani Green accelerating to 20 GW. Data centre campuses moving from announced to operational. And — most importantly for institutional investors — the complete absence of any material legal overhang for the first time since January 2023.
THE HONEST ASSESSMENT
Three years ago, the Adani Group was in genuine existential danger. The combination of Hindenburg's allegations, the SEBI investigation, and the US indictment created a wall of legal uncertainty that would have permanently constrained a less financially robust institution.
What has now become clear — formally, legally, and measurably — is that the underlying businesses were never broken. The SEBI clean chit confirmed the domestic governance. The DOJ case dismissal confirmed the US criminal case lacked the evidentiary foundation. The SEC and OFAC settlements, while financially meaningful, are the kind of civil regulatory resolutions that global companies routinely navigate without permanent reputational damage.
The group that spent three years under the most intense legal and reputational assault in recent Indian corporate history has emerged with record capex, record EBITDA, declining borrowing costs, upgraded credit ratings, and fully cleared legal books. The discount that the overhang created — for investors who understood the underlying business quality and had the conviction to hold — has been one of the most significant value creation opportunities in Indian equities over the past two years.
What comes next is the question. With $100 billion committed to AI data centres, a copper smelter at exactly the right moment in the commodity cycle, a defence business expanding into South Asia's largest ammunition complex, and an airports business preparing for India's most significant infrastructure IPO in a generation, the Adani Group enters FY27 with the strongest legal, financial, and strategic position it has held since before the Hindenburg report landed.
