Whalesbook
Court Dismisses Probe Plea Citing Foreign Filings
The Bombay High Court has dismissed a petition that sought a CBI investigation into bribery allegations against Adani Green Energy. The court ruled that the petitioner's case relied too heavily on foreign legal proceedings, effectively stopping calls for a domestic probe into claims of illegal payments for solar power deals in various Indian states. While the court's full order is still to be released, this dismissal offers Adani Green Energy relief from allegations. These claims, drawn from U.S. indictments and SEC filings, reportedly involved bribes of over ₹2,000 crore to state officials. The company's stock, trading around ₹853.80 on March 26, 2026, has seen volatility from such legal challenges, with sharp drops and recoveries in recent years.
Valuation and Sector Snapshot
Adani Green Energy operates in India's fast-growing renewable energy sector, which ranks fourth globally in installed capacity and is set for significant expansion. By early 2026, over 51% of India's total installed power capacity came from non-fossil fuel sources, with solar and wind driving much of this growth. Even with this strong sector expansion, Adani Green Energy's valuation metrics, particularly its Price-to-Earnings (P/E) ratio, seem high compared to industry averages. In March 2026, its P/E ratio was about 93.13, far above the Indian Renewable Energy industry average of 25.4x. This indicates investors expect substantial future growth. Analysts generally hold a 'Strong Buy' rating for Adani Green Energy, with average 12-month price targets between ₹1,165.29 and ₹1,396.25, suggesting possible upside. However, its P/E ratio is much higher than peers like JSW Energy (P/E 44.63) and IREDA (P/E 17.02).
Underlying Allegations Remain
Even though the High Court dismissed the case, the underlying allegations continue to be a concern for the company's long-term reputation. These claims, said to come from U.S. Department of Justice indictments and SEC civil complaints, suggest a bribery scheme to secure power purchase agreements at higher prices. Adani Green has stated that Gautam Adani and Sagar Adani have not been charged under the U.S. Foreign Corrupt Practices Act (FCPA) for these issues. However, the U.S. Securities and Exchange Commission (SEC) has filed separate civil lawsuits alleging violations of U.S. securities laws. This ongoing legal situation has added to past stock price volatility and previously caused rating agencies like Fitch to place Adani Group bonds on a negative watch. The Bombay High Court's dismissal, based on the strength of domestic evidence versus foreign proceedings, does not end the foreign legal actions. The petitioner, Jitendra Maru, also has a history of similar petitions, including one against Reliance Industries regarding gas extraction, indicating a pattern of using legal challenges. The company's low interest coverage ratio and its trading value at over seven times its book value also highlight financial weaknesses that could worsen with continued legal or regulatory attention.
Analyst View and Outlook
Analysts generally remain optimistic about Adani Green Energy's future. A strong 'Buy' consensus and average price targets suggest significant potential upside from current trading prices. The company benefits from its place in India's rapidly growing renewable energy market, backed by government policies and rising demand for clean power. However, investors should carefully consider the ongoing legal issues and the company's high valuation metrics.