New Delhi : The Adani Group has reportedly lowered its revenue growth target and is planning to delay new capital expenditures as it seeks to restore investor confidence. According to sources cited by Bloomberg, the conglomerate originally aimed for a 40% increase in revenue for the upcoming fiscal year, but has now reduced its target to 15-20%. The decision to scale back capital expenditures is said to prioritize financial stability over rapid expansion.

The Adani Group has faced significant financial losses in recent weeks, with a market value decrease of over $120 billion following the publication of a damaging report by Hindenburg Research on January 24, 2023. The report accused the company of accounting fraud and stock manipulation.

The group’s decision to temporarily hold back on investments could save them up to $3 billion, which could be used to reduce debt or increase their cash reserves, according to the Bloomberg report. The plans are still being reviewed and are expected to be finalized in the coming weeks.

Barclays Plc analysts warned in a February 10 report that the Adani Group’s pullback in investments could have a wider impact on India’s economy, stating that “a disruptive outcome of the situation or a sharp pullback in the group’s investments could have implications for India’s capital expenditure cycle.”