Adani Green profit rebounds, but costs outpace revenue growth
Consolidated net profit rose from Rs 5 cr to Rs 514 cr sequentially, while operating margin slipped as expenses grew nearly twice as fast as revenue.
Filed 24 Apr 2026, 14:10 IST · Adani Green Energy Ltd (ADANIGREEN)
Key takeaways
- Consolidated revenue rose +33.77% sequentially, but expenses grew +64.46%, narrowing operating margin by 3.30 percentage points.
- Net profit recovered to Rs 514 cr from Rs 5 cr in Q3FY26, helped by a 105.80-percentage-point fall in the reported tax rate to 9.82%.
- The stock gained +1.78% on results day, close to its 1.84% median move after the past eight results, despite five of those reactions being negative.
Price around the results
Revenue momentum returned in Q4FY26
Consolidated revenue increased +33.77% sequentially to Rs 3,502 cr, lifting operating profit +28.60% to Rs 2,882 cr. The gain was not enough to prevent margin pressure because expenses grew +64.46%, faster than revenue. Operating margin therefore fell 3.30 percentage points to 82.30%.
Tax reversal drove the profit recovery
Profit before tax improved from a loss of Rs 32 cr in Q3FY26 to Rs 570 cr, while interest expense fell -4.24% to Rs 1,626 cr and depreciation was broadly unchanged. The reported tax rate dropped 105.80 percentage points to 9.82%, which supported the rebound in net profit. Other income contributed 34.91% of pre-tax profit, making it a material part of earnings quality this quarter.
Margin remains above Utilities peer median
The 82.30% operating margin was 47.11 percentage points above the 35.19% median for the 17 Utilities peers that had reported the same quarter. The sequential decline follows a rise to 86.54% in Q2FY26 and 85.60% in Q3FY26, so this was the first margin fall after two consecutive quarters of expansion in the available trend.
The initial market reaction was ordinary
The stock gained +1.78% on the results date, with a +0.65% opening gap and volume at 2.27 times its reference level. That first-day move was close to the 1.84% median absolute reaction across the past eight results, when the stock rose after three and fell after five. The gain widened to +6.30% after five sessions and +12.75% after 15 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹3,502 cr | ₹2,618 cr | +33.77% |
| Other income | ₹199 cr | ₹311 cr | -36.01% |
| Expenses | ₹620 cr | ₹377 cr | +64.46% |
| Operating profit | ₹2,882 cr | ₹2,241 cr | +28.60% |
| Operating margin (%) | 82.30% | 85.60% | — |
| Interest | ₹1,626 cr | ₹1,698 cr | -4.24% |
| Depreciation | ₹885 cr | ₹886 cr | -0.11% |
| Profit before tax | ₹570 cr | ₹-32 cr | — |
| Tax | ₹56 cr | ₹-37 cr | — |
| Net profit | ₹514 cr | ₹5 cr | +10180.00% |
| EPS (₹) | ₹2.33 | ₹-0.38 | — |
Operating margin of 82.30% compares with a Utilities sector median of 35.19% across 17 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.78% | +2.92% |
| Next session | +1.28% | — |
| 5 sessions | +6.30% | +6.53% |
| 15 sessions | +12.75% | — |
| 30 sessions | +26.38% | — |
Volume on the results session was 2.27× its 20-day average.
What to watch
- Whether operating margin holds above 82.30% after the sequential decline.
- Whether interest expense remains below Rs 1,626 cr.
- Whether other income stays below its 34.91% share of pre-tax profit.