Adani Enterprises swings to a Rs 166.79 cr loss despite 20.30% revenue growth
Costs outpaced sales and depreciation rose 70.11% YoY; other income contributed 102.76% of pre-tax profit, while operating margin trailed the peer median by 7.27 points.
Filed 01 May 2026, 12:17 IST · after market close · Adani Enterprises Ltd (ADANIENT)
Key takeaways
- Consolidated revenue grew +20.30% YoY, but expenses grew +23.45%, pulling operating margin down 2.26 percentage points.
- Net profit swung to a loss of Rs 166.79 cr as the 124.28% tax rate more than offset pre-tax profit.
- The stock rose +3.21% on the first trading day after the results, below its 4.03% typical absolute move after recent results.
Price around the results
Revenue growth did not translate into profit
Adani Enterprises reported consolidated Q4FY26 revenue of Rs 32,439.31 cr, up +20.30% YoY, but net profit fell from Rs 1,382.17 cr to a loss of Rs 166.79 cr. Pre-tax profit declined -74.24% YoY to Rs 686.93 cr as other income fell -64.51% to Rs 705.91 cr. Other income represented 102.76% of pre-tax profit, highlighting the weak quality of reported earnings before the tax charge.
Higher costs and depreciation squeezed the quarter
Expenses grew +23.45% YoY against +20.30% revenue growth, reducing operating margin by 2.26 percentage points. Depreciation rose +70.11% YoY, while interest expense fell -8.34%, so the main pressure below operating profit came from depreciation rather than financing cost. The tax rate rose 76.12 percentage points YoY to 124.28%, turning positive pre-tax profit into a net loss.
Margin decline extends into a second straight quarter
Sequentially, revenue grew +30.70% and operating profit rose only +2.45% because expenses increased +35.56%; operating margin narrowed 3.17 percentage points. Margin has now declined for the second consecutive quarter, from 15.56% in Q2FY26 to 14.67% in Q3FY26 and 11.50% in Q4FY26. The company's margin was 7.27 percentage points below the 18.77% median of 51 reported Commodities peers, placing it eighth from the bottom.
Management points to expansion alongside operating setbacks
Management said Adani ConneX had started executing two Navi Mumbai data centre buildings of 30MW and 136MW, and had signed a 358MW hyperscale customer order during the quarter. The presentation said Hyderabad data centre phase II added 4.8MW, taking total operational capacity to over 55MW, while management said Adani ConneX is committed to building a sustainable 2GW platform by 2030. The company also reported that the copper plant operated at approximately 45% of annual capacity, while Carmichael production and IRM volumes fell 37% and 40% YoY respectively in Q4.
Initial share reaction was positive but not unusual
The stock rose +3.21% on the first trading day after the results and was up +3.81% after five trading days. That was below the 4.03% median absolute move across the last eight results reactions, when the stock rose three times and fell five times. The move also overlapped with a corporate action, which makes the immediate market response less clean as an earnings signal.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹32,439 cr | ₹24,820 cr | +30.70% | +20.30% |
| Other income | ₹706 cr | ₹6,488 cr | -89.12% | -64.51% |
| Expenses | ₹28,709 cr | ₹21,178 cr | +35.56% | +23.45% |
| Operating profit | ₹3,731 cr | ₹3,642 cr | +2.45% | +0.56% |
| Operating margin (%) | 11.50% | 14.67% | — | — |
| Interest | ₹1,646 cr | ₹1,626 cr | +1.26% | -8.34% |
| Depreciation | ₹2,103 cr | ₹1,372 cr | +53.34% | +70.11% |
| Profit before tax | ₹687 cr | ₹7,132 cr | -90.37% | -74.24% |
| Tax | ₹854 cr | ₹1,405 cr | -39.24% | -33.52% |
| Net profit | ₹-167 cr | ₹5,727 cr | — | — |
| EPS (₹) | ₹-1.71 | ₹46.78 | — | — |
Operating margin of 11.50% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.21% | +2.70% |
| Next session | +2.23% | — |
| 5 sessions | +3.81% | +4.57% |
| 15 sessions | +18.32% | — |
| 30 sessions | +22.22% | — |
Volume on the results session was 2.25× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Adani Wind supplied 102 WTG sets in Q4-26, up 70% year on year.
- Hyderabad data center phase II added 4.8MW of operational capacity, bringing total operational capacity to over 55MW.
Guidance & outlook
- Adani ConneX is committed to building a sustainable 2GW data center platform by 2030.
- AEL aims to become a net water positive company.
Expansion
- Adani ConneX started execution for two Navi Mumbai data center buildings of 30MW and 136MW.
- Construction of a 1MMTPA PVC plant is listed among the uses of consolidated debt.
New orders
- Adani ConneX signed a 358MW order with a hyperscale customer during the quarter.
New initiatives
- AEL plans to become a signatory to the UN Global Compact.
- AEL aims to achieve no net loss to biodiversity and align with IBBI and TNFD principles.
Problems & risks
- The copper plant operated at approximately 45% of annual capacity during Q4.
- Carmichael mine production fell 37% year on year in Q4 and 11% in FY26.
- IRM volume declined 40% year on year in Q4 and 21% in FY26.
What to watch
- Whether operating margin recovers from 11.50% after the second straight quarterly decline.
- Whether copper plant utilisation improves from approximately 45% of annual capacity.
- Whether Carmichael production and IRM volumes recover from Q4 YoY declines of 37% and 40%.