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(Bloomberg) — Adani Green Energy Ltd., one of the seven listed units of Gautam Adani’s ports-to-renewables empire, has seen its debt-to-equity ratio balloon to the second-highest in Asia, raising alarm over whether the billionaire’s aggressive expansion plans has over-leveraged his businesses. 

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The Gujarat-based company’s debt-to-equity ratio of 2,021% is only behind China’s Datang Huayin Electric Power Co., which has a ratio of 2,452%, among 892 listed companies in Asia, according to data compiled by Bloomberg. Adani Green Energy is the most leveraged of the companies in the tycoon’s empire by this metric as it takes on debt to fund the conglomerate’s $70 billion pivot toward renewable energy.

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The eye-popping ratio adds to concern over the tycoon’s fast rise and ambitious growth plans. Adani has been on a diversification spree, expanding an empire centered on ports and coal mining to include airports, data centers and cement as well as green energy. 

These moves have not only boosted Adani’s stature in India, but his fortune, with his net worth touching almost $135 billion, making him the richest person in Asia. Yet questions are growing over whether the rise is sustainable, with a CreditSights report on Tuesday describing the business as “deeply overleveraged,” and at risk of a debt trap and default in the worst-case scenario. 

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Adani’s Empire Is ‘Deeply Overleveraged,’ CreditSights Warns

The negative sentiment led to a drop in the shares of Adani Green and Adani Power Ltd. in Wednesday trading, outpacing the B&P Sensex. Adani Green Energy’s 4.375% September 2024 dollar bonds are trading near their lowest level in about a month, set to decline for a second straight week and the biggest weekly loss since five days ended June 24, according to data compiled by Bloomberg. 

The conglomerate has shrugged off concerns thus far, and has continued apace with its acquisition agenda: On Tuesday it launched a hostile bid for New Delhi Television Ltd. as part of a plan to expand its footprint into media and broadcasting. 

“The group’s aggressive growth is mainly debt-funded, though it has a track record of obtaining third-party investments, such as TotalEnergies’ $2.5 billion investment in Adani Green Energy,” wrote Bloomberg Intelligence analyst Sharon Chen in a July 18 note.