Gautam Adani and his conglomerate found themselves back in market headlines on Monday, 5 May 2025, after multiple news outlets reported that senior representatives of the industrialist had met United States officials to seek the dismissal of overseas bribery charges. The development, confirmed by Bloomberg and Reuters, triggered a sharp rally in Adani Group shares even as investors digested the flagship Adani Enterprises’ stronger than expected full year earnings.
What the US talks involve
According to Bloomberg, advisers to Gautam Adani recently met with members of the Trump administration to discuss a possible resolution of a 2022 US indictment that accused Adani and nephew Sagar Adani of funnelling 250 million dollars in bribes to secure renewable power contracts in India and misleading investors during a 750 million dollar green bond sale Bloomberg. Reuters later cited the same discussions, noting that Adani’s camp argued the prosecution no longer fits Washington’s policy priorities Reuters.
Neither the US Justice Department nor the Adani Group commented on record, but people familiar with the matter told reporters that negotiations have “gained momentum” and could wrap up within a month if progress continues. Analysts say a favourable outcome would remove a major overhang for Adani Green Energy, which lost an estimated 13 billion dollars in market value since the indictment.
Market reaction
The story electrified Dalal Street. Shares of Adani Enterprises climbed 7.5 percent to close at Rs 2,461 while Adani Ports & SEZ jumped 6 percent to Rs 1,347. Smaller group firms such as Adani Total Gas and Adani Energy Solutions gained between 4 and 11 percent during a session when the benchmark Nifty 50 added just 0.5 percent The Times of India Business News Today. Traders said the rally reflected hopes that a settlement would lift legal uncertainty and revive foreign portfolio inflows into the conglomerate.
Earnings support the bullish mood
The surge builds on last week’s robust financial update from Adani Enterprises. In a filing to the exchanges on 1 May, the company reported a 26 percent year on year rise in consolidated EBITDA to Rs 167.2 billion for FY25, driven by rapid scale up at its airports, data centres, and road projects. Net profit before exceptional items rose 16 percent to Rs 65.3 billion, while incubating businesses posted a 68 percent jump in operating profit to Rs 100.2 billion Construction World Adani Enterprises Ltd.
Brokerages welcomed the numbers, highlighting that cash flows from new ventures now account for 60 percent of group EBITDA versus 40 percent two years ago. However, they cautioned that leverage remains high and any adverse ruling in the US case could still hit sentiment.
What happens next
Legal experts say resolving a foreign bribery indictment typically requires either a deferred prosecution agreement, a reduced charge, or an outright dismissal. Each path would involve payment of fines and compliance commitments. A source quoted by Bloomberg suggested Adani’s team is pushing for dismissal, arguing the allegations “lack jurisdictional basis” after recent US court precedents. If the Justice Department insists on penalties, the negotiations could stretch beyond the current quarter.
Meanwhile, attention shifts to the Supreme Court of India, which is slated to hear a petition on 15 May seeking a court monitored probe into the same bribery allegations. A domestic investigation could proceed even if US prosecutors drop charges.
Investor takeaway
For shareholders the twin catalysts of stronger earnings and a potential legal overhang resolution have restored some confidence in Gautam Adani led companies, which endured a short seller rout in 2023 and choppy trade through 2024. Analysts at two Mumbai brokerages upgraded Adani Enterprises to “outperform” on Monday, citing improved cash flows and the likelihood that US charges will be settled on manageable terms.
Still, investors should watch three risk factors: the Supreme Court hearing on 15 May, progress of US talks over the next four weeks, and global bond market conditions that influence Adani Group refinancing costs. Until clarity emerges, traders may see wider intraday swings than the broader market.
Sources
Bloomberg report on Adani aides meeting US officials, published 5 May 2025 Bloomberg
Reuters follow up on US lobbying effort, 5 May 2025 Reuters
Times of India market wrap on Adani stock surge, 5 May 2025 The Times of India
Moneycontrol price action report, 5 May 2025 Business News Today
Adani Enterprises FY25 earnings release, 1 May 2025 Construction World Adani Enterprises Ltd
