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 widened 9.76 percentage points QoQ to 66.78% as revenue growth reached +26.53% and expense growth was -2.19%.
- Net profit rose +91.25% QoQ despite interest costs increasing +23.06%, while other income contributed 19.53% of pre-tax profit.
- The stock returned -4.51% on results day and -10.51% in the next session, well beyond its 1.84% median move after recent results.
Price around the results
Revenue rebound lifted Q1FY27 margin
Adani Green’s consolidated revenue grew +26.53% QoQ, while expense growth was -2.19%. That operating leverage lifted operating profit by +48.17% and widened operating margin by 9.76 percentage points to 66.78%. The margin was 30.76 percentage points above the 36.02% median for seven Utilities peers that had reported the quarter.
Interest and other income shaped profit quality
Higher operating profit did not flow through in full because interest costs rose +23.06% and depreciation increased +15.93% QoQ. Pre-tax profit nevertheless grew +143.44%, while the tax rate increased 10.66 percentage points to 22.14%, so the net-profit gain was not helped by a lower tax rate. Other income accounted for 19.53% of pre-tax profit, making it a material part of reported earnings.
Margin recovery extended for a third quarter
Operating margin has risen from 51.76% in Q3FY26 to 57.02% in Q4FY26 and 66.78% in Q1FY27. This is the third consecutive quarter of improvement, although the wider trend remains volatile, with margin at 58.81% in Q2FY26 before the Q3FY26 decline. Sequentially, EPS rose +116.74% to Rs 5.05.
Results-day fall was unusually large for the stock
The stock returned -4.51% on the filing day, with a 1.42 times volume ratio, and was down -10.51% in the next session. Its recent results history is evenly split at four rises and four falls, but the median absolute move was 1.84%, making the latest reaction substantially larger than usual. The filing-day move also lagged the market by 3.72 percentage points.
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 | ₹232 cr | ₹225 cr | +3.11% |
| Expenses | ₹1,472 cr | ₹1,505 cr | -2.19% |
| Operating profit | ₹2,959 cr | ₹1,997 cr | +48.17% |
| Operating margin (%) | 66.78% | 57.02% | — |
| Interest | ₹2,001 cr | ₹1,626 cr | +23.06% |
| Depreciation | ₹1,026 cr | ₹885 cr | +15.93% |
| Profit before tax | ₹1,188 cr | ₹488 cr | +143.44% |
| 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 66.78% compares with a Utilities sector median of 36.02% across 7 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.51% | -3.72% |
| Next session | -10.51% | — |
Volume on the results session was 1.42× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 66.78%.
- Whether interest-cost growth moderates from +23.06% QoQ.
- Whether other income remains below or moves above 19.53% of pre-tax profit.