Adani Share News: Why is Adani Green Energy Share Price Falling?

Posted by : Kashish Aggarwal | Thu Feb 26 2026

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Adani Green Energy share has declined by 1.87% over the past day and 3.93% over the past week. The Adani Green Energy share has continuously falling over the past six months by 0.11%. The stock traded within a wide range of nearly ₹963.00, hitting an intraday low of ₹923.10. The stock’s performance has notably underperformed the broader Power Generation and Distribution sector, which itself declined by approximately 3.5%. Furthermore, Adani Green’s share price has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, reflecting a bearish trend.

Table of Contents

Key Reasons Behind the Adani Green Energy Share Price Fall

There are several reasons behind the Adani Green Share Price Fall, such as legal & regulatory compliance, market sentiment risks, operational & executional uncertainties, Technical decline in the share, and short-term sell pressure.

Legal & Regulatory Compliance: US SEC required court approval to deliver summons to a group of executives as part of a bribery and fraud case, which spooked investors in Adani shares in general, including Adani Green shares.
Market Sentiment Risks: It appears that stock price movements are more influenced by market sentiment and risk appetite, particularly for high-beta, capital-intensive stocks such as renewable utilities. During the broader sell-off, Adani Green shares, like the group’s other shares, underperformed the market.
Operational & Executional Uncertainties: Although Adani Green has reported EBITDA growth and capacity expansion, some analysts have highlighted operational issues that could affect the stock. Certain debt ratios, such as low interest coverage ratios and high capital intensity, could negatively impact returns in a rising interest rate or conservative market environment.
Technical decline in the share price: The fact that Adani Green is not included in a few global indices (for example, the MSCI Global Standard Index) has, in the past, led to passive selling due to index rebalancing. Fewer foreign investors contribute to larger declines.
Short-Term Sell Pressure: Short-term trading dynamics — including profit booking after large gains in prior periods and underperformance relative to benchmarks — have also contributed to downward price momentum.
Technical decline in the share price: Adani Green’s exclusion from certain global indices (e.g., the MSCI Global Standard Index) has historically led to passive outflows as index trackers adjust their holdings. Lower foreign investor participation tends to amplify down-moves.

Adani Green Energy: Recent Share Performance

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Investor participation in Adani Green Energy has also declined recently, with delivery volumes falling by over 36% compared to the five-day average. Despite some institutional buying, the company’s low profitability, recent losses, and expensive valuation relative to its capital employed have undermined investor confidence. The company has a high debt-to-equity ratio (avg) of 8.01 times and a Return on Capital Employed (avg) of 6.78%, indicating low profitability per unit of total capital. The stock is trading at a discount compared to its peers’ average historical valuations.

Adani Green Energy: Future Outlook

The renewable energy industry in India is among the fastest-expanding in the world, with the country aiming to reach 500 GW of non-fossil fuel-based capacity by 2030. This gives AGEL a long runway for growth. AGEL plans to develop ~50 GW of RE capacity by 2030, including large solar-wind hybrid projects such as the Khavda park, one of the largest planned RE projects in the world, which could help the company substantially expand its power generation capacity and earnings base. Certain brokerages have assigned a Buy or Outperform rating with substantial upside potential in the medium- to long-term.

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Adani Green Energy: Share Price Target

The Adani Green Energy share price target is 968. The consensus estimate represents an upside of 2.10% from the last price of ₹963.00. According to Wall Street analysts, the average 1-year price target for Adani Green Energy India is ₹972.10, with a low forecast of ₹910.10 and a high forecast of ₹970.10. According to projections from 31 analysts, the average 12-month price target for Adani Green Energy India is ₹910.12, with a high estimate of ₹934.10 and a low estimate of ₹810.10. Adani Green Energy India has a potential upside of +3.5%, based on analysts’ average price target.

Adani Green Energy: Analyst’s Rating

The average 12-month price target is ₹910.21, and the consensus rating is Hold (mix of Buy, Hold, & Sell).
The analyst’s target range is between ₹810.12 and ₹910.12.
According to some analysts, concerns remain about a ‘Reduce’ call at ₹810.12.
The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama).

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What is the Right Time to Buy Adani Green Energy Shares?

According to analysts, Adani Green Energy’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Adani Green Energy India. There are several factors to consider before investing in Adani Green Energy India Company shares.

Strong Fundamentals: Investors should review Adani Green Energy India Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.
Financing Partnerships: Financing partnerships bridge the gap between customers and power institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.
Growth in the Energy Sector: The company is well-positioned in this sector to deliver benefits to Adani Green Energy India. This dominant sector increases demand and prices for Adani Green Energy India.
Highly Volatile: Prices are highly volatile, leading to significant price changes that substantially affect Adani Green Energy India Company’s stock price. Investors must review the market structure before investing in Adani Green Energy India shares.

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Conclusion

The sharp decline in Adani Green Energy’s share price is primarily driven by weak financial results, high debt levels, and sustained underperformance relative to market benchmarks and sector peers. Despite some institutional buying, the company’s low profitability, recent losses, and expensive valuation relative to its capital employed have reduced investor confidence. The stock’s proximity to its 52-week low and its failure to hold key moving averages confirm the bearish outlook for Adani Green Energy’s share price.

Also Read- Why is the IRFC Share Price Falling

FAQs

What are the key reasons behind the Adani Green Energy share price fall?

Ans. There are several reasons behind the Adani Green Share Price Fall, such as legal & regulatory compliance, market sentiment risks, operational & executional uncertainties, Technical decline in the share, and short-term sell pressure. It appears that stock price movements are more influenced by market sentiment and risk appetite, particularly for high-beta, capital-intensive stocks such as renewable utilities.

What is Adani Green Energy’s share price target?

Ans. The Adani Green Energy share price target is 968. The consensus estimate represents an upside of 2.10% from the last price of ₹963.00. According to Wall Street analysts, the average 1-year price target for Adani Green Energy India is ₹972.10, with a low forecast of ₹910.10 and a high forecast of ₹970.10.

What are the future expectations of Adani Green Energy’s share?

Ans. The renewable energy industry in India is among the fastest-expanding in the world, with the country aiming to reach 500 GW of non-fossil fuel-based capacity by 2030. This gives AGEL a long runway for growth. The company has a high debt-to-equity ratio (avg) of 8.01 times and a Return on Capital Employed (avg) of 6.78%, indicating low profitability per unit of total capital.

What are the factors that affect the Adani Green Energy share?

Ans. According to analysts, Adani Green Energy’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Financing partnerships bridge the gap between customers and power institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.