Archive · 10 Sep 2026
Jefferies backs Adani stocks with differing infrastructure growth strategies
Jefferies is positive about two Adani Group companies, but for different reasons.
It gave both companies a Buy rating.
Adani Energy Solutions is working to make its power-trading income more predictable.
It has arranged a 25-year contract to supply 2.5 GW of power.
Adani Enterprises is building several businesses, including airports, data centres and defence.
These projects could grow significantly, but they require large investments.
Adani Energy Solutions faces risks from interest rates and competition.
Adani Enterprises faces risks such as delays, higher costs, regulation and rising debt.
Jefferies retained Buy ratings on Adani Energy Solutions and Adani Enterprises.
Adani Energy Solutions received a Rs 2,060 target price, implying about 46% upside.
Adani Enterprises received a Rs 3,830 target price, implying about 29% upside.
Adani Energy Solutions has contracted 2.5 GW of round-the-clock power supply for 25 years.
Adani Enterprises could invest around Rs 2 lakh crore across businesses between FY26 and FY31.
- Who
- Jefferies, Adani Energy Solutions and Adani Enterprises.
- What
- Jefferies retained Buy ratings and issued target prices for both Adani Group stocks.
- When
- The report discusses projections for FY26-FY31 and trading data for FY27, including September 2026.
- Where
- The companies' infrastructure and energy businesses include operations in India; the cited power agreement is in Maharashtra.
- Why
- Jefferies expects contracted power volumes to improve Adani Energy Solutions' earnings visibility and believes Adani Enterprises' new businesses can drive long-term growth.
Contracted earnings visibility
Diversified infrastructure expansion
Investment case
Contracted earnings visibility
Adani Energy Solutions is primarily a predictability story: long-term power contracts could reduce its exposure to volatile merchant prices and improve earnings visibility.
Diversified infrastructure expansion
Adani Enterprises is primarily a growth and scaling story, with investments across airports, data centres, defence, energy transition, logistics and mining.
Growth profile
Contracted earnings visibility
Higher tied-up power volumes and stronger merchant prices could support the energy solutions business, while a higher valuation for trading may depend on reduced risk.
Diversified infrastructure expansion
Jefferies expects Adani Enterprises' EBITDA to grow at about 23% CAGR through FY31, with particularly strong projected growth in defence and data centres.
Main risks
Contracted earnings visibility
Adani Energy Solutions remains exposed to interest-rate pressure, market-share losses and the risks of power-market volatility.
Diversified infrastructure expansion
Adani Enterprises' broad expansion creates risks from execution delays, cost overruns, slower monetisation, regulation and increased leverage during its investment phase.
- Adani Energy Solutions target
- Rs 2,060; approximately 46% potential upside.
- Adani Enterprises target
- Rs 3,830; approximately 29% potential upside.
- Power-supply agreement
- Adani Energy Solutions tied up 2.5 GW of round-the-clock supply for 25 years with Maharashtra State Electricity Distribution Company.
- Trading volumes
- Tied-up volumes are expected to reach 57% of the trading segment in FY28, compared with 20% at the end of the first quarter of FY27.
- Adani Enterprises investment
- Jefferies estimates around Rs 2 lakh crore of investment between FY26 and FY31.
- Adani Enterprises EBITDA outlook
- Jefferies expects EBITDA to grow at approximately 23% CAGR from FY26 to FY31.
- Key risks
- Adani Energy Solutions: interest-rate pressure and market-share losses. Adani Enterprises: execution delays, cost overruns, slower monetisation, regulation and potentially higher leverage.