Adani Ports' margin rebounds, but net profit growth trails operating gains
Consolidated revenue rose +18.57% YoY, but higher interest and a 1.31-point tax-rate increase limited net-profit growth to +10.24%.
Filed 29 Jul 2026, 12:32 IST · Adani Ports & Special Economic Zone Ltd (ADANIPORTS)
Key takeaways
- Consolidated revenue grew +18.57% YoY while operating margin widened only 0.22 percentage points as expenses rose +17.89%.
- Net profit rose +10.24% YoY to Rs 3,649.5 cr, trailing PBT growth of +11.95% as interest increased +28.48% and the tax rate rose 1.31 percentage points.
- Operating margin rebounded 4.38 percentage points QoQ to 60.44% after expenses fell -9.28% while revenue grew +0.78%.
Price around the results
Q1FY27 margin recovery lifts operating profit
Adani Ports reported consolidated revenue growth of +18.57% YoY, with expenses increasing slightly slower at +17.89%, allowing operating profit to rise +19.02%. Sequentially, revenue grew +0.78% while expenses fell -9.28%, widening operating margin by 4.38 percentage points to 60.44%. The margin was 36.09 percentage points above the 24.35% median for nine Services peers that had reported.
Interest and tax reduced profit conversion
Higher operating profit did not flow through fully to net profit because interest expense rose +28.48% YoY and depreciation increased +36.37%. The tax rate also rose 1.31 percentage points YoY, so PBT growth of +11.95% translated into net-profit growth of only +10.24%. Other income contributed 13.12% of PBT, making it a material part of reported pre-tax earnings.
Margin rebounds after the Q4FY26 dip
Operating margin had declined to 56.06% in Q4FY26 from 59.62% in Q3FY26, but recovered to 60.44% in Q1FY27. It is now close to the 60.54% recorded in Q2FY26, indicating a rebound rather than a continuation of the preceding quarterly decline.
Past result reactions have been evenly split
Across eight recent post-results sessions, the stock rose four times and fell four times. The median absolute move was 2.07%, while the six most recent moves ranged from -2.22% to +9.10%, showing that the historical response has been mixed.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹10,821 cr | ₹10,738 cr | +0.78% | +18.57% |
| Other income | ₹565 cr | ₹900 cr | -37.21% | +24.66% |
| Expenses | ₹4,280 cr | ₹4,718 cr | -9.28% | +17.89% |
| Operating profit | ₹6,541 cr | ₹6,020 cr | +8.65% | +19.02% |
| Operating margin (%) | 60.44% | 56.06% | — | — |
| Interest | ₹1,087 cr | ₹1,605 cr | -32.27% | +28.48% |
| Depreciation | ₹1,711 cr | ₹1,615 cr | +5.98% | +36.37% |
| Profit before tax | ₹4,307 cr | ₹3,700 cr | +16.42% | +11.95% |
| Tax | ₹658 cr | ₹392 cr | +67.95% | +22.50% |
| Net profit | ₹3,650 cr | ₹3,308 cr | +10.31% | +10.24% |
| EPS (₹) | ₹15.71 | ₹14.45 | +8.72% | +2.41% |
Operating margin of 60.44% compares with a Services sector median of 24.35% across 9 peers that have reported Q1FY27.
What to watch
- Whether consolidated operating margin holds above 60.44%.
- Whether interest growth moderates from +28.48% YoY.
- Whether other income remains near 13.12% of PBT.