Adani Ports margin slips as expenses outpace revenue growth
Consolidated revenue rose 23.70% YoY, but higher depreciation and tax rates kept net-profit growth below pre-tax profit growth.
Filed 28 Oct 2026, 12:41 IST · Adani Ports & Special Economic Zone Ltd (ADANIPORTS)
Key takeaways
- Consolidated revenue rose 23.70% YoY, but expenses grew 25.34%, taking operating margin down 0.52 percentage points.
- Lower interest expense of -17.73% YoY supported profit before tax, while a 2.09-point tax-rate increase limited net-profit growth to 18.02%.
- At 60.02%, operating margin remained 14.48 percentage points above the 45.54% median for 11 reported Services peers.
Price around the results
Revenue growth did not cover the cost increase
Adani Ports’ consolidated revenue grew 23.70% YoY, while expenses increased faster at 25.34%, narrowing operating margin by 0.52 percentage points. The same pattern appeared sequentially: revenue rose 4.80%, but expenses grew 5.92%, reducing margin by 0.42 percentage points. Even after the decline, the 60.02% margin was 14.48 percentage points above the 45.54% median for 11 Services peers that had reported.
Interest savings offset part of the earnings pressure
Interest expense fell 17.73% YoY, supporting the 21.01% increase in profit before tax despite depreciation rising 35.57%. Other income declined 39.64% YoY and contributed 8.47% of pre-tax profit, making it a limited earnings contributor this quarter. The tax rate rose 2.09 percentage points YoY to 17.54%, so net profit grew more slowly than pre-tax profit at 18.02%.
Margin recovered from Q4 but eased for a second quarter
Operating margin fell from 60.44% in Q1FY27 to 60.02% in Q2FY27, following the sharper drop to 56.06% in Q4FY26 and subsequent recovery in Q1. This quarter therefore extends the sequential decline from the Q1 peak, but the margin remains above the 59.62% recorded in Q3FY26. Sequential net-profit growth was only 0.90%, despite profit before tax rising 3.68%, reflecting the higher tax rate.
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 | ₹11,340 cr | ₹10,821 cr | +4.80% | +23.70% |
| Other income | ₹378 cr | ₹565 cr | -33.09% | -39.64% |
| Expenses | ₹4,534 cr | ₹4,280 cr | +5.92% | +25.34% |
| Operating profit | ₹6,807 cr | ₹6,541 cr | +4.07% | +22.64% |
| Operating margin (%) | 60.02% | 60.44% | — | — |
| Interest | ₹1,006 cr | ₹1,087 cr | -7.46% | -17.73% |
| Depreciation | ₹1,713 cr | ₹1,711 cr | +0.10% | +35.57% |
| Profit before tax | ₹4,466 cr | ₹4,307 cr | +3.68% | +21.01% |
| Tax | ₹783 cr | ₹658 cr | +19.08% | +37.41% |
| Net profit | ₹3,682 cr | ₹3,650 cr | +0.90% | +18.02% |
| EPS (₹) | ₹15.72 | ₹15.71 | +0.06% | +9.24% |
Operating margin of 60.02% compares with a Services sector median of 45.54% across 11 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 60.02% after the 0.42-percentage-point sequential decline.
- Whether expense growth moderates from 25.34% YoY relative to revenue growth of 23.70%.
- Whether the tax rate moves away from 17.54% after rising 2.09 percentage points YoY.