Adani Enterprises Shares Gain 7.4% As US Investigation Could Be Dropped

Adani Enterprises shares (NSE: ADANIENT) experienced a significant rise in today's trading session, surging 7.44% as positive news flow appeared to temporarily overshadow persistent market concerns. The stock climbed to ₹2,465 by the close of the day, reflecting a gain of ₹170.80 per share.

While the sharp intra-day rally moved the stock towards the top performers on the Indian market today, the longer-term picture remains subdued, with the stock nursing losses of roughly 14.25% over the last twelve months. This underscores the volatility associated with the stock, further evidenced by its high Beta coefficient of approximately 0.88 and a wide 52-week trading range stretching from ₹ 2,025 to ₹ 3,743.9. So why the sudden turnaround in sentiment?

The gains can be largely attributed to emerging reports concerning discussions related to a US-based investigation involving the conglomerate. Talks taking place with the Trump administration to dismiss charges relating to the company were seen as sufficient to trigger substantial buying interest, pushing the stock significantly higher on strong trading volumes.

From a technical standpoint, the surge propelled Adani Enterprises' price above various calculations of its 50-day moving average of ₹ 2,260.

Looking at recent operational results, the company's recent Q4 FY25 earnings presented a mixed, yet intriguing, picture. Adani Enterprises reported a headline-grabbing 752% year-on-year surge in net profit. However, this was heavily skewed by a significant exceptional gain. A closer look reveals a slight dip in revenue compared to the previous year. Perhaps more indicative of the underlying business health was the robust growth in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). This operational strength was notably powered by the company's burgeoning ventures, particularly its integrated resource management (IRM), airports, and the rapidly developing green hydrogen ecosystem validating its strategic role as an incubator scaling new, capital-intensive businesses.

Further bolstering sentiment, prominent global investor GQG Partners reportedly increased its investment across Adani Group entities, including Adani Enterprises, during the quarter ended March 2025.

This move by a major institutional player often serves as a positive signal to the broader market. Looking ahead, Adani Enterprises has signalled ambitious growth plans, evidenced by its board's proposal for future fundraising activities potentially reaching up to Rs 15,000 crore (approximately $1.8 billion). This capital injection would likely be channelled towards fueling expansion in its key growth areas like data centers, airport infrastructure, and green energy initiatives.

For the bulls, whilst today's news provided a welcome catalyst for gains, it may take more than initial talks in order for a sustained rally to materialise.