Adani Green profit growth trails PBT as quarterly revenue slips
YoY operating leverage lifted margin by 2.63 percentage points, but higher sequential costs and interest cut margin by 0.76 percentage points.
Filed 21 Oct 2026, 14:22 IST · Adani Green Energy Ltd (ADANIGREEN)
Key takeaways
- Consolidated revenue grew 41.56% year on year, lifting operating margin by 2.63 percentage points to 89.17%.
- Sequentially, revenue fell 3.90% while expenses rose 3.36%, narrowing operating margin by 0.76 percentage points.
- Net profit rose 15.99% year on year to Rs 747 cr, despite profit before tax increasing 130.47%, as the tax rate moved up 78.59 percentage points.
Price around the results
Year-on-year growth lifted operating leverage
This consolidated quarter was materially larger than Q2FY26: revenue grew 41.56%, while expenses rose 13.83%. That gap drove a 45.87% increase in operating profit and lifted operating margin by 2.63 percentage points. The sequential picture was weaker, with revenue down 3.90% and operating profit down 4.72%.
Sequential margin slipped as costs and finance charges rose
Expenses increased 3.36% sequentially even as revenue declined, so operating margin narrowed by 0.76 percentage points. Interest costs rose 5.90% to Rs 2,119 cr, adding pressure below operating profit. The five-quarter margin trend had improved from 82.30% in Q4FY26 to 89.93% in Q1FY27 before easing to 89.17% this quarter.
Profit quality was affected by tax and other income
Other income accounted for 36.67% of profit before tax, making it a significant part of reported pre-tax earnings. Year-on-year profit before tax rose 130.47%, but net profit increased only 15.99% as the tax rate moved from -58.23% to 20.36%, a 78.59 percentage-point change. Sequentially, the lower tax rate helped partly offset the 24.72% fall in profit before tax, but net profit still declined 24.01%.
The stock fell more than its typical post-results move
Adani Green shares fell 2.83% on the results date. The stock has declined after five of its last eight results, with a median absolute move of 1.84%, so this reaction was weaker than its typical move but consistent with its historical direction more often being down than up.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,258 cr | ₹4,431 cr | -3.90% | +41.56% |
| Other income | ₹344 cr | ₹288 cr | +19.44% | +26.01% |
| Expenses | ₹461 cr | ₹446 cr | +3.36% | +13.83% |
| Operating profit | ₹3,797 cr | ₹3,985 cr | -4.72% | +45.87% |
| Operating margin (%) | 89.17% | 89.93% | — | — |
| Interest | ₹2,119 cr | ₹2,001 cr | +5.90% | +29.60% |
| Depreciation | ₹1,084 cr | ₹1,026 cr | +5.65% | +29.98% |
| Profit before tax | ₹938 cr | ₹1,246 cr | -24.72% | +130.47% |
| Tax | ₹191 cr | ₹263 cr | -27.38% | — |
| Net profit | ₹747 cr | ₹983 cr | -24.01% | +15.99% |
| EPS (₹) | ₹4.00 | ₹5.05 | -20.79% | +16.28% |
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.83% | -2.49% |
| Next session | -3.49% | — |
Volume on the results session was 0.77× its 20-day average.
What to watch
- Whether operating margin holds above 89.17% after the sequential 0.76 percentage-point decline.
- Whether interest expense moderates from Rs 2,119 cr.
- Whether other income remains below its 36.67% share of profit before tax.