In a significant development for one of India’s most scrutinized conglomerates, S&P Global Ratings on Monday revised its rating outlook for three major Adani Group companies, citing continued access to funding and strong operational performance. The move comes even as regulatory investigations, both international and domestic, continue to cloud the business environment for the Gautam Adani-led empire.
S&P has revised the outlooks for Adani Electricity Mumbai Ltd. and Adani Green Energy Ltd. Restricted Group 2 to “Stable” from “Negative”, while Adani Ports and Special Economic Zone Ltd. has seen its outlook lifted to “Positive” from “Negative”. In all three cases, the global rating agency has affirmed the entities’ existing credit ratings, with Adani Electricity and Ports retaining ‘BBB-‘, and Adani Green Energy holding at ‘BB+’.
The review comes against the backdrop of an ongoing U.S. Securities and Exchange Commission (SEC) indictment against two Adani family executives and a continuing probe by India’s market watchdog, SEBI. Yet, S&P noted there are no signs of material impact on the group’s funding access or operations due to these probes.
“We haven’t seen any indications that the group companies’ funding access or costs have been materially hit,” the report observed. It added that key regulatory approvals and business concessions remain intact, allowing the companies to operate without disruption. The rated entities are not themselves under investigation, and any potential fines arising from the SEC action are unlikely to affect them directly.
Over the past six months, Adani group companies have secured more than $10 billion in new credit lines, constituting a significant portion of the group’s overall $30 billion debt as of March 2025. These loans have come from a mix of domestic and international banks, Indian public finance bodies such as REC Ltd. and LIC, and even private credit investors.
Notably, the report confirmed there has been no significant uptick in borrowing costs for the group, and recent credit agreements do not carry stipulations linked to the SEC case. Additionally, the Adani family infused $1.1 billion in equity into Adani Green Energy in July 2025, demonstrating internal support for the group’s green arm.
However, S&P did highlight the risks associated with concentrated promoter control, frequent related-party transactions, and past practices of share pledging and opaque financing mechanisms. It warned that any substantiated allegations of wrongdoing at the shareholder level could once again trigger rating pressures.
Operationally, the group appears to be on solid ground. S&P projects Adani Electricity will maintain a healthy operating cash flow-to-debt ratio of 12–15% through FY26 and FY27, thanks to robust power demand and tariff adjustments. Adani Ports, which has tightened its leverage policy to a 2.5x net debt-to-EBITDA ratio, is expected to absorb capital expenditure without compromising financial health. Adani Green Energy’s Restricted Group 2 is also expected to maintain strong debt service coverage due to consistent performance and timely receivables.
Still, the path ahead remains dotted with uncertainties. While 23 of the 24 SEBI allegations from a 2023 short-seller report have been cleared, the last one remains under investigation. In addition, media reports have hinted at a possible sanctions violation involving Iran, a claim the Adani Group strongly denies.
A webinar discussing the rating action is scheduled for August 6, and further updates are likely to follow pending the regulatory outcomes.
Even amid the ongoing scrutiny, the S&P report signals cautious confidence in the group’s operational and financial resilience. Whether that stability holds will depend largely on the trajectory of investigations still unfolding in India and abroad.
