Adani Enterprises swings to Rs 1,461.54 cr loss despite higher operating profit
Revenue rose 49.92% year on year, but interest more than doubled and negative other income pushed pre-tax profit into a loss.
Filed 29 Jul 2026, 14:36 IST · Adani Enterprises Ltd (ADANIENT)
Key takeaways
- Adani Enterprises reported a consolidated net loss of Rs 1,461.54 cr despite operating profit of Rs 5,019.29 cr, as interest rose 133.80% year on year and other income turned negative.
- Operating margin improved 3.75 percentage points sequentially because revenue rose 1.49% while expenses fell 2.80%, but it remained 2.07 percentage points below the 17.32% median for 27 reporting commodities peers.
- Revenue grew 49.92% year on year and operating margin edged up 0.18 percentage points, but the tax rate moved to -17.63% and did not offset the impact of financing costs and negative other income.
Price around the results
Operating recovery did not reach net profit
Consolidated revenue rose 49.92% year on year to Rs 32,923.98 cr, while operating profit increased 51.63% to Rs 5,019.29 cr. That operating gain was outweighed by interest of Rs 2,420.93 cr, depreciation of Rs 1,926.00 cr and negative other income of Rs 1,914.86 cr, resulting in a pre-tax loss of Rs 1,242.50 cr. Other income represented 154.11% of pre-tax profit on the reported measure, making the earnings quality notably dependent on non-operating items.
Margins recovered sequentially, but financing costs rose
Operating margin expanded 3.75 percentage points from Q4FY26 because revenue grew 1.49% while expenses declined 2.80%; this was a cost-led sequential improvement rather than a revenue acceleration. Year on year, expenses grew 49.62%, slightly slower than revenue, so operating margin improved 0.18 percentage points. Interest still increased 47.04% sequentially and 133.80% year on year, while the reported tax rate fell 141.91 percentage points sequentially to -17.63% as the company reported a loss.
Margin is above Q4 but below the sector median
The 15.25% operating margin recovered from 11.50% in Q4FY26, after declining from 15.56% in Q2FY26 to 14.67% in Q3FY26 and 11.50% in Q4FY26. It is now 2.07 percentage points below the 17.32% median among 27 commodities peers that have reported, placing Adani Enterprises eighth from the bottom on this measure. The sequential rebound therefore reverses the latest decline but does not restore the margin to its Q2FY26 level.
Expansion remains concentrated across newer businesses
Management said ANIL commissioned 1.7GW in June 2026, taking module-line capacity to 5.7GW, while ARTL added a 620.6 lane-km operational BOT project on NH-59. The company said WTG supplies rose 83% year on year to 64 sets and that 9.6MW of Pune Phase II capacity was handed over, taking operational capacity to 65.4MW. Management also said ACX signed a 400MW Vizag order with a hyperscale customer and remains committed to building a sustainable 2GW data-centre platform by 2030; it reported that the copper plant operated at approximately 52% of annual capacity during the quarter.
No immediate market reaction is available
The stock's post-results move is not yet available. Across the past eight result reactions, the stock rose four times and fell four times, with a median absolute move of 4.03%, so its historical response has been evenly split rather than consistently positive or negative. The latest six recorded moves ranged from -4.36% to +10.38%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹32,924 cr | ₹32,439 cr | +1.49% | +49.92% |
| Other income | ₹-1,915 cr | ₹706 cr | — | — |
| Expenses | ₹27,905 cr | ₹28,709 cr | -2.80% | +49.62% |
| Operating profit | ₹5,019 cr | ₹3,731 cr | +34.54% | +51.63% |
| Operating margin (%) | 15.25% | 11.50% | — | — |
| Interest | ₹2,421 cr | ₹1,646 cr | +47.04% | +133.80% |
| Depreciation | ₹1,926 cr | ₹2,103 cr | -8.43% | +50.01% |
| Profit before tax | ₹-1,243 cr | ₹687 cr | — | — |
| Tax | ₹219 cr | ₹854 cr | -74.34% | -61.66% |
| Net profit | ₹-1,462 cr | ₹-167 cr | -776.28% | — |
| EPS (₹) | ₹-8.91 | ₹-1.71 | -421.05% | — |
Operating margin of 15.25% compares with a Commodities sector median of 17.32% across 27 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Navi Mumbai International Airport commenced international flight operations on July 15, 2026.
- WTG supply increased 83% year on year to 64 sets in Q1-27.
- AEL handed over 9.6MW of Pune Phase II capacity to the customer, taking operational capacity to 65.4MW.
Guidance & outlook
- ACX is committed to building a sustainable 2GW data center platform by 2030.
- AEL aims to become a net water positive company.
Expansion
- ANIL expanded module line capacity to 5.7GW by commissioning 1.7GW in June 2026.
- ARTL added a 620.6 lane-km operational BOT project connecting NH-59 between Indore and the Madhya Pradesh-Gujarat border.
New orders
- ACX signed a 400MW Vizag order with a hyperscale customer during the quarter.
Competition
- ANIL's wind turbine business was awarded a Gold Medal for manufacturing competitiveness.
Problems & risks
- The copper plant operated at approximately 52% of annual capacity during Q1.
What to watch
- Whether operating margin holds above 15.25% after the 3.75-percentage-point sequential recovery.
- Whether interest growth moderates from +133.80% year on year.
- Whether copper-plant utilisation improves from approximately 52% of annual capacity.