The Adani Green Energy share price surged over 5% on Friday, September 19, 2025, as a wave of positive news reignited investor confidence in the renewable energy giant. The rally was driven by two major catalysts: a clean chit from the Securities and Exchange Board of India (SEBI) in key allegations from the Hindenburg case and a highly optimistic report from global brokerage firm Jefferies, which sees significant upside potential for the stock.
Table of Contents
- What Was the SEBI Clean Chit and Why Does It Matter?
- Jefferies' Bullish Report: A 30%+ Upside Potential
- What Does This Mean for Investors and the Adani Green Share Price?
- Frequently Asked Questions
The most significant trigger for the rally was SEBI's final order on Thursday, which dismissed key allegations of stock manipulation and rule violations levelled against the Adani Group by the US-based short-seller Hindenburg Research in January 2023.
The market regulator stated that its investigation found no evidence to support claims that the Adani Group had routed funds through related parties to manipulate its stock prices or had breached disclosure norms regarding these transactions. This clean chit removed a major cloud of uncertainty that had been hanging over Adani Group stocks for nearly three years, leading to a broad-based rally across all the conglomerate's listed companies.
Following the news, the Adani Green Energy share price jumped as much as 5.6% to a day's high of ₹1,034.50 on the NSE.
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To check the share price, latest performance, charts, and detailed financials for the company, see the dedicated page of Adani Green share price.
Adding fuel to the fire, global brokerage firm Jefferies maintained its 'Buy' rating on Adani Green Energy and set a target price of ₹1,300, implying a potential upside of over 30% from its previous closing price.
Jefferies' bullish stance is based on several key factors:
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Ambitious Growth Plans: The brokerage is confident in the company's ambitious plan to increase its renewable energy capacity by 3.5 times, from 14 GW in FY25 to 50 GW by 2030.
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Khavda Project: A massive 30 GW of this capacity is being developed at Khavda in Gujarat, a location with some of the best solar irradiation levels in India. This project is expected to significantly boost the company's power generation efficiency.
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Strong Financials: Jefferies noted that a promoter infusion of ₹9,350 crore has strengthened the company's balance sheet. It projects that the net debt-to-EBITDA ratio will improve, providing a healthier financial profile.
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Valuation Discount: Despite the recent rally, Jefferies believes the stock is still trading at a significant 63% discount to its peak in January 2023 (before the Hindenburg report) on a forward EV/EBITDA basis. This suggests there is still substantial room for growth if the company continues to execute its plans effectively.
Discover Adani Green's strong fundamentals and growth plans. For a complete review of financials and Adani Green Q1 FY26 results, see the detailed analysis.
The combination of the SEBI clean chit and the strong endorsement from a major brokerage has created a powerful positive narrative for Adani Green Energy.
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Reduced Risk: The conclusion of the SEBI investigation into these specific Hindenburg allegations removes a major regulatory risk and overhang that had depressed the stock's valuation.
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Focus on Fundamentals: With this part of the controversy fading, investors can now shift their focus to the company's strong business fundamentals, including its massive capacity expansion pipeline and long-term Power Purchase Agreements (PPAs) that ensure stable cash flows.
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Path to Recovery: While the Adani Green Energy share price is still down significantly from its pre-Hindenburg peak, the recent developments have laid a clear path for its recovery.
For investors, these events signal a potential turning point for Adani Green. The removal of a key uncertainty, coupled with a clear and ambitious growth strategy, has put the stock firmly back on the radar of both retail and institutional investors.
This positive news had a ripple effect across the entire conglomerate. To learn more about the flagship company of the group and track its performance, check the Adani Enterprises share price.
For a more visual perspective on the stock's future prospects and an expert opinion on whether Adani Green is a good investment, watch this in-depth video analysis.
Q1: What did SEBI's clean chit to the Adani Group mean?
A1: SEBI's clean chit cleared the Adani Group of key allegations made by Hindenburg Research, specifically those related to stock price manipulation through related-party transactions. This removed a major regulatory overhang that had been affecting the stock for nearly three years.
Q2: How did the Adani Green share price react to the news?
A2: The stock surged over 5% to a day's high of ₹1,034.50 on the NSE as the news restored investor confidence and shifted focus back to the company's strong growth prospects.
Q3: Why is Jefferies bullish on Adani Green Energy?
A3: Jefferies maintained a 'Buy' rating with a target of ₹1,300, citing the company's ambitious plan to reach 50 GW capacity by 2030, the strategic importance of its Khavda project, and a strengthened balance sheet. They also believe the stock is still trading at a significant discount to its pre-Hindenburg peak.
Q4: Is the Adani Group completely cleared of all allegations?
A4: The SEBI order on September 18, 2025, pertained to allegations of stock manipulation via related-party transactions. Investigations into other matters, such as compliance with minimum public shareholding norms, are still ongoing.
Q5: What is the key takeaway for investors regarding the Adani Green share price?
A5: The key takeaway is that a major regulatory uncertainty has been removed, allowing investors to focus on the company's strong fundamentals and ambitious growth plans. While the stock has recovered partially, the bullish analyst report suggests there may still be significant upside potential.