Mutual Funds Shift Focus to Adani Group's Energy Stocks Amid Electrification Boom
Adani Power vs. Green vs. Energy: Why mutual funds are betting billions on this electrification trio
The Economic Times
Image: The Economic Times
Indian mutual funds are significantly increasing their investments in Adani Group's energy companies, reflecting a strategic shift towards viewing these stocks as long-term infrastructure plays. The ownership in Adani Energy Solutions has surged to 6.59%, while Adani Green Energy and Adani Power have also seen substantial increases, driven by India's urgent demand for reliable electricity.
- 01Mutual fund ownership in Adani Energy Solutions rose from 1.91% to 6.59% between December 2024 and March 2026.
- 02Adani Green Energy's institutional holdings increased from 0.37% to 3.22% during the same period.
- 03Adani Power shares have surged 108% in the past year, making it India's most valuable power company.
- 04The Adani Group's EBITDA is projected to reach ₹2.5–3 lakh crore by FY30, driven by diversified energy expansion.
- 05Analysts highlight the urgent need for electricity due to the rapid growth of data centers and electric mobility in India.
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Indian mutual funds are increasingly investing in Adani Group's energy-related stocks, viewing them as long-term investments rather than high-volatility trades. Ownership in Adani Energy Solutions has surged from 1.91% in December 2024 to 6.59% by March 2026, while Adani Green Energy saw its holdings jump from 0.37% to 3.22%. Adani Power also experienced growth, with mutual fund stakes rising from 1.60% to 3.62%. This shift is driven by the group's robust earnings visibility, with over 70% of its EBITDA coming from contracted capacity across power generation and renewables. Analysts project the group's consolidated EBITDA could reach ₹2.5–3 lakh crore by FY30, fueled by the urgent demand for electricity from sectors like data centers and electric mobility. Adani Power has seen its shares increase by 108% over the past year, positioning it as India's most valuable power company, with a market capitalization of ₹4.3 lakh crore. Jefferies has raised its price target for Adani Power to ₹255, reflecting strong growth prospects amid rising electricity demand.
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The increasing investments in Adani Group's energy stocks indicate a growing confidence in the company's role in meeting India's electricity demands, which could lead to more stable energy prices and improved infrastructure.
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