Adani Group Earnings Amid Legal Victory and Mixed Sector Performance

Legal Headway in SEC Case

A US court has granted the Adani Group's request for a hearing to dismiss the Securities and Exchange Commission (SEC) fraud case. Adani's legal team contends the court lacks jurisdiction and argues against the extraterritorial application of U.S. laws. The news led to stock surges for Adani Group companies, including Adani Green Energy, on April 9, 2026. This legal progress may impact market sentiment as the group releases its financial results.

Ambuja Cements Faces Profit Dip, Sequential Gains

Ambuja Cements, slated to report its Q4 and FY26 results on April 30, presents a mixed financial picture. Brokerage Nuvama forecasts a 39% year-on-year net profit decline to Rs 778 crore. However, the company is expected to see a strong 112% sequential increase, boosted by acquisition synergies. Revenue is projected to rise over 12% year-on-year to Rs 11,228 crore, with volumes up about 4%. This pattern of a year-on-year profit drop alongside sequential recovery highlights integration efforts and operational changes. The company's merger with subsidiary Sanghi Industries received NCLT approval, effective April 1, 2024.

Sector Watch: Cement, Renewables, and Power Performance

The Indian cement industry is poised for growth in FY26, with operating profits forecast to increase 12-18%. Price hikes are anticipated in the first quarter of 2026, driven by seasonal demand and capacity constraints. Ambuja Cements, trading at a P/E ratio of approximately 28-30, is valued below peers such as UltraTech Cement (P/E 42-50) and Shree Cement (P/E 47-70). While revenue grew 7.3% year-over-year, Ambuja's profit growth has outpaced this at 13.3% year-over-year over the past five years.

Adani Green Energy (AGEL), reporting April 24, shows significantly higher P/E ratios (around 90-170) compared to peers like JSW Energy (P/E 33-41). India's renewable sector is growing fast, adding 44.5 GW between April 2025 and January 2026, but PPA delays and execution challenges persist. AGEL added 5 GW of renewable capacity in FY26 and holds a consensus 'Buy' rating. The company reported Rs 82 crore net profit in Q4 FY26, down 85.3% year-over-year, with revenues rising 17.1% year-over-year to Rs 2,958 crore. AGEL has not paid dividends since its incorporation.

In the power sector, Adani Power has a P/E of about 25-29, strong profit growth (65.7% CAGR over 5 years), and a 26.1% ROE. India's total installed power capacity reached 520.51 GW by January 2026 with minimal shortages. FY26 demand growth is projected at 1.5-2%, expected to rise to 5% in FY27. Adani Energy Solutions, with a P/E of 50-210 and zero dividend yield, has a 'Moderate Buy' analyst consensus.

The media sector entity, NDTV, reported losses with a negative P/E ratio and has not paid dividends since 2008. Its stock performance has lagged over the past year.

Risks and Valuation Concerns

Despite the legal progress, the Adani Group continues to face scrutiny over SEC fraud allegations, though it is actively pursuing dismissal. High P/E ratios across many Adani entities, such as Adani Energy Solutions (around 210) and Adani Green Energy (over 100), indicate expectations for substantial future growth that might be challenging to meet if operational or regulatory issues emerge. Adani Green Energy's decision not to pay dividends, despite generating profits, may deter income-focused investors. Ambuja Cements' year-on-year profit drop in Q4 FY26, even with sequential recovery, points to pressures from costs and competition. The company's market capitalization of roughly ₹1.1 lakh crore contrasts with larger peers like UltraTech Cement (around ₹3.2 lakh crore) and Shree Cement (around ₹83,000 crore).

Analyst Views and Sector Forecasts

Analyst sentiment for key Adani entities remains largely positive, though with caution. Adani Enterprises holds a 'BUY' consensus, with price targets between ₹2,870-₹2,990. Adani Energy Solutions has a 'Moderate Buy' rating and an average target price of ₹1,090. Macquarie initiated coverage on Adani Green Energy with an 'Outperform' rating and a target of ₹1,200, setting a bull-case target of ₹2,600. The cement sector is forecast to experience margin improvements in Q1 2026-27 due to price increases and operating efficiencies. Power sector demand growth is expected to recover in FY27, driven by industrial activity and favorable weather patterns.