Adani Enterprises: Stock in focus as AEL denies Iran LPG link, US probe

Shares of Adani Enterprises Ltd (AEL) were in the spotlight on Tuesday after the company strongly rejected a Wall Street Journal (WSJ) report alleging links between Adani entities and Iranian liquefied petroleum gas (LPG). AEL labeled the report as "baseless and mischievous," asserting it has no knowledge of any investigation by US authorities.

“Adani categorically denies any deliberate involvement in sanctions evasion or trade of Iranian-origin LPG,” the company said in a statement. It emphasized that any claim suggesting the group knowingly violated U.S. sanctions is “false, defamatory, and intended to damage the Adani Group’s reputation.”

The conglomerate added that it does not handle Iranian cargo at any of its ports—this includes shipments from Iran or vessels flying the Iranian flag. It also does not manage or facilitate any ships owned by Iranian entities.

Adani Enterprises shares are up 2.8 per cent in the past one month compared with 0.71 per cent rise in the BSE Sensex during the same period.

AEL noted that its LPG business is a very small part of its overall operations, contributing just $171.2 million, or 1.46 per cent, of its $11.73 billion total consolidated revenue in FY2025.

“All LPG transactions by Adani entities comply fully with domestic and international laws, including U.S. sanctions,” the company stated. It said LPG is sourced from reputable international suppliers, with thorough due diligence and KYC checks to ensure none are on the U.S. Office of Foreign Assets Control (OFAC) sanctions list.

The logistics, AEL explained, are handled by independent third-party suppliers and logistics providers who adhere to global compliance standards. Contracts include clauses requiring LPG to originate from non-sanctioned countries.

Adani said it verifies shipping activity through S&P Global’s Market Intelligence Network (MINT) to ensure vessels are not flagged for violations. In response to the WSJ’s allegations, the company stated the shipment in question was a regular commercial transaction facilitated by third-party logistics, with Sohar, Oman, listed as the port of origin.

Finally, Adani Enterprises clarified that it does not own, operate, or track the vessels cited in the report, such as SMS Bros or Neel, and cannot comment on their operations.

“We have met all obligations expected of a bona fide importer,” the company concluded.