Adani Power margin rebounds to 36.02%, but stock falls 3.69% next day
Revenue growth outpaced expenses, while a higher tax rate reduced the flow-through from a 49.86% rise in pre-tax profit to net profit.
Filed 22 Jul 2026, 13:52 IST · Adani Power Ltd (ADANIPOWER)
Key takeaways
- Consolidated operating margin rose 9.78 percentage points sequentially as revenue grew 32.90% and expenses grew 15.28%.
- Consolidated net profit increased 47.24% year on year, although tax grew 72.55% and the tax rate rose 3.24 percentage points.
- The stock fell 3.69% by the next session, versus a 1.17% median absolute move after the company’s past eight results.
Price around the results
Operating margin recovered from the Q4FY26 low
Adani Power’s consolidated revenue grew 32.90% sequentially, while expenses rose 15.28%, lifting operating margin by 9.78 percentage points. Year on year, revenue increased 33.97% against expense growth of 27.27%, expanding margin by 3.37 percentage points. This marks a sharp recovery from the 26.24% margin reported in Q4FY26.
Profit growth outpaced the tax burden year on year
Consolidated profit before tax rose 49.86% year on year, but tax increased 72.55% as the tax rate moved up 3.24 percentage points. Sequentially, the tax rate rose 22.06 percentage points from the unusually low Q4FY26 level, yet net profit still grew 13.93% because operating profit increased 82.42% and interest expense fell 6.81%. Other income contributed 6.67% of pre-tax profit, so it was not the main source of earnings.
Margin now matches the Utilities peer median
The 36.02% consolidated operating margin matched the median for the seven Utilities peers that had reported the same quarter. The quarter also interrupts the sequential margin decline seen from Q1FY26 through Q4FY26, when margin fell from 32.65% to 26.24%.
The market reaction was weaker than Adani Power’s usual pattern
The stock fell 1.55% on the results date and was down 3.69% by the next session. That compares with five down moves and three up moves across the past eight results, with a median absolute move of 1.17%, making the latest next-session decline larger than the stock’s typical reaction.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹18,902 cr | ₹14,223 cr | +32.90% | +33.97% |
| Other income | ₹420 cr | ₹1,766 cr | -76.19% | -9.50% |
| Expenses | ₹12,094 cr | ₹10,491 cr | +15.28% | +27.27% |
| Operating profit | ₹6,808 cr | ₹3,732 cr | +82.42% | +47.79% |
| Operating margin (%) | 36.02% | 26.24% | — | — |
| Interest | ₹901 cr | ₹967 cr | -6.81% | +5.19% |
| Depreciation | ₹1,167 cr | ₹1,147 cr | +1.74% | +7.22% |
| Profit before tax | ₹6,300 cr | ₹4,384 cr | +43.72% | +49.86% |
| Tax | ₹1,552 cr | ₹113 cr | +1278.20% | +72.55% |
| Net profit | ₹4,867 cr | ₹4,271 cr | +13.93% | +47.24% |
| EPS (₹) | ₹2.49 | ₹2.08 | +19.71% | -71.11% |
Operating margin of 36.02% 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 | -1.55% | -0.76% |
| Next session | -3.69% | — |
Volume on the results session was 1.46× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 36.02%.
- Whether the consolidated tax rate remains near 24.63% rather than returning to the 2.57% Q4FY26 level.
- Whether other income stays close to its 6.67% share of pre-tax profit.