From cement to solar: How GST 2.0 could reprice Adani stocks

The government’s second phase of goods and services tax (GST) reforms, set to roll out on September 22, is drawing close attention to Adani Group companies. From cements, renewable energy, to ports, a host of analysts suggest that Adani companies could benefit from the rejig.

The GST Council has slashed tax rates on cement from 28% to 18%, cut levies on renewable energy equipment from 12% to 5%, and removed the compensation cess on coal while standardizing GST at 18%. The changes are widely seen as easing input costs for infrastructure and energy players, experts say.

Shares of Adani-owned Ambuja Cements and ACC have been largely unchanged since the announcement, but analysts say both could benefit from stronger demand and improved margins under the revised tax structure. Analysts at ICICI Securities said this is a “long-awaited fix.”


Domestic brokerage JM Financial reiterated a Buy on Ambuja with a target price of Rs 675 (18.4% upside from the last close) while maintaining a Hold on ACC. Analysts estimate that lower GST could reduce retail cement prices by Rs 25–30 per bag, potentially spurring housing and infrastructure demand. While much of the benefit may be passed on to consumers, higher volumes are expected to lift margins.

Adani Green Energy (AGEL) is also expected to benefit, with project costs likely to fall about 5% due to lower taxes on solar modules and wind turbines. Industry estimates suggest tariffs could decline by 10–15 paise per unit, improving returns and competitiveness in upcoming auctions. Though brokerages have not issued new ratings yet, the reforms are seen as strengthening the company’s expansion pipeline, analysts said.

Adani Power is set to gain from lower coal costs after the removal of the compensation cess. Analysts estimate landed coal prices could fall 8–10%, translating into a tariff benefit of Rs 10–12 paise per unit under long-term contracts. This is expected to improve cost pass-through and profitability.

Adani Ports & Special Economic Zones has not seen any direct changes, but analysts point to higher cargo volumes as construction and cement demand pick up, leading to a

At about 11 am, ACC and Ambuja Cement shares were trading higher by 0.7 and 04%, respectively. Meanwhile, Adani Ports, and Adani Power were up over 1% each, while the flagship firm, Adani Enterprises, traded marginally in the green.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)