What began as a banner year is turning into a reckoning for Adani Enterprises Ltd., the flagship arm of India’s richest man Gautam Adani, which needs to deliver on multiple infrastructure projects to fulfill its earnings promise.

Shares of Adani Enterprises have tumbled more than 20% from their peak in July, when it raised $1.6 billion from investors, wiping out almost $10 billion in market value. The retreat follows a 43% rally earlier this year after the ports-to-power conglomerate settled multiple regulatory and legal cases in India and the US.

Adani Enterprises will report its second-quarter earnings on Wednesday, with analysts expecting it to return to profit after the US legal settlement led to losses. The growth prospects for its airport and copper businesses, as well as its joint venture with Jabil for AI and data center equipment manufacturing will be in focus, with consensus expectations for the stock to rally more than 40% in the next 12 months.

The earlier rally “priced in stronger institutional support, fresh capital and faster earnings growth across Adani Enterprises’ emerging businesses,” said Gary Tan, a portfolio manager at Allspring Global Investments, which holds the stock. Now investors have shifted their focus “from growth potential to earnings delivery,” he said.

The company’s airports unit separately raised about $1 billion in September from investors including Alpha Wave Global, Temasek Holdings Pte and BlackRock Inc.-managed funds. Investors will also focus on the conglomerate’s focus on expansion beyond aviation, including building integrated city-side developments across its network.

At the same time, the company’s debt continues to grow. Its gross debt stood at 976.2 billion rupees ($10.3 billion) as of June, up almost 13% from a year ago, according to its earnings presentation. This raises concerns over financing costs during a period of rising bond yields.

“Everyone knows the bull case, so a beat has to be clean to restart the rally, while a miss or cautious guidance would accelerate the selloff,” Maxence Visseau, chief investment officer and founder of Arkevium Fzco, said. “Any comment on the Jabil timeline, the copper ramp or passenger volumes will move the stock,” Before the stock fell from its July high, at least three brokerages, including Morgan Stanley, had initiated coverage with buy calls. None has changed their recommendation so far.

The rally-and-retreat pattern is not unusual for the stock, which entered India’s benchmark NSE Nifty 50 gauge in 2022. The stock’s reversal as a valuation reset also mirrors the decline in the broader market. The Nifty 50 Index has slipped almost 13% this year, heading for its first annual drop since 2015.

That has not deterred institutional investors, who swarmed back to the stock earlier this year as the group removed regulatory overhangs by settling multiple probes, including those by India’s securities regulator and the US Treasury Department. Capital Group, Goldman Sachs Group Inc. and SBI Funds Management Ltd. were among those that participated in a stock sale in July. However, GQG Partners, the Adani conglomerate’s long-time backer, trimmed its holdings this year.

“Adani was a relatively big exposure,” said Rajiv Jain, co-founder at GQG Partners. “The stock had appreciated in value. We reduced our exposure to keep the position size reasonable.”The Miami-headquartered fund reduced its holding in the Adani flagship to 1.82% at the end of September compared to 3.9% in March, regulatory filings show.

Still, there’s “zero decline in our enthusiasm” for infrastructure bets in the country as demand continues to be unabated, Jain added.