Adani Green’s margin jumps 9.76 points, but stock falls 4.51%
Consolidated revenue grew +26.53% QoQ as expense growth was -2.19%; interest rose +23.06% and other income made up 19.53% of pre-tax profit.
Filed 22 Jul 2026, 14:13 IST · Adani Green Energy Ltd (ADANIGREEN)
Key takeaways
- Consolidated operating margin expanded 7.63 percentage points sequentially as revenue grew 26.53% while expenses fell 28.06%.
- Net profit rose 91.25% sequentially, but a higher 21.11% tax rate and interest growth of 23.06% limited the conversion of operating gains.
- The stock fell 4.51% on the results day, well below the 1.84% median absolute move after its past eight results.
Price around the results
Operating leverage lifted the consolidated quarter
Adani Green's consolidated revenue rose 26.53% sequentially, while expenses declined 28.06%, driving a 38.27% increase in operating profit. The resulting 89.93% operating margin was 7.63 percentage points higher than in Q4FY26. Among 22 Utilities peers that had reported, the company's margin was 58.34 percentage points above the 31.59% median.
Interest and tax absorbed part of the operating gain
Interest expense increased 23.06% sequentially and depreciation rose 15.93%, even as operating profit expanded. The tax rate also increased 11.29 percentage points to 21.11%, so net profit growth of 91.25% lagged the 118.60% rise in profit before tax. Other income accounted for 23.11% of pre-tax profit, making it a material part of reported earnings quality.
Margin recovered after two quarterly declines
The operating margin had narrowed from 86.54% in Q2FY26 to 85.60% in Q3FY26 and 82.30% in Q4FY26. Q1FY27 therefore marked a reversal in the recent sequential direction, with the margin reaching 89.93%. There is no year-on-year comparison in the reported results.
The market reaction was unusually negative
The stock declined 4.51% on the results day and was down 10.51% on the following day; the five-day move stood at -10.95%. That was weaker than the stock's mixed history after eight results, which shows four up moves and four down moves, with a median absolute move of 1.84%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹4,431 cr | ₹3,502 cr | +26.53% |
| Other income | ₹288 cr | ₹199 cr | +44.72% |
| Expenses | ₹446 cr | ₹620 cr | -28.06% |
| Operating profit | ₹3,985 cr | ₹2,882 cr | +38.27% |
| Operating margin (%) | 89.93% | 82.30% | — |
| Interest | ₹2,001 cr | ₹1,626 cr | +23.06% |
| Depreciation | ₹1,026 cr | ₹885 cr | +15.93% |
| Profit before tax | ₹1,246 cr | ₹570 cr | +118.60% |
| Tax | ₹263 cr | ₹56 cr | +369.64% |
| Net profit | ₹983 cr | ₹514 cr | +91.25% |
| EPS (₹) | ₹5.05 | ₹2.33 | +116.74% |
Operating margin of 89.93% compares with a Utilities sector median of 31.59% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.51% | -3.72% |
| Next session | -10.51% | — |
| 5 sessions | -10.95% | -11.21% |
Volume on the results session was 1.42× its 20-day average.
What to watch
- Whether operating margin holds above 89.93%.
- Whether interest growth moderates from 23.06% sequentially.
- Whether other income's contribution falls from 23.11% of pre-tax profit.