Adani Power profit jumps as tax swing adds to 44.45% revenue growth
Costs grew slower than revenue and interest fell, but the negative tax rate was the biggest factor behind the 141.51% year-on-year net profit increase.
Filed 23 Oct 2026, 14:36 IST · Adani Power Ltd (ADANIPOWER)
Key takeaways
- Consolidated revenue rose 44.45% year on year, while expenses grew 34.92%, lifting operating margin by 4.07 percentage points.
- Net profit increased 141.51% year on year, helped by a tax rate of -3.4% versus 26.72% a year earlier.
- Operating margin recovered to 42.34% but remained 0.54 percentage points below the 42.88% median for four reporting Utilities peers.
Price around the results
Revenue growth widened the operating spread
Adani Power's consolidated revenue grew 44.45% year on year, while operating profit rose faster at 59.82%. Expenses increased 34.92%, below revenue growth, which lifted operating margin by 4.07 percentage points to 42.34%. Sequentially, revenue rose 2.84% and operating profit increased 3.56%, extending the operating improvement from the previous quarter.
Tax benefit did much of the work in net profit
The tax rate fell to -3.4% from 26.72% a year earlier and from 24.17% in Q1FY27, contributing to the 141.51% year-on-year rise in net profit. Interest expense also fell 9.67% year on year and 15.66% sequentially. Other income was 7.5% of pre-tax profit, so it supported earnings but was not the main driver of the quarter.
Margin recovery has continued, but peer position is mixed
Operating margin had declined from 40.29% in Q1FY26 to 33.27% in Q4FY26 before recovering to 42.05% in Q1FY27 and 42.34% now. The latest margin was 0.54 percentage points below the 42.88% median of four Utilities peers, ranking Adani Power second from the bottom among those reporters.
Past result reactions have mostly been negative
Across the eight most recent results, the stock rose after two releases and fell after six. The median absolute move was 1.29%, with the recorded moves ranging from -3.59% to +1.17% in the latest six observations.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹19,439 cr | ₹18,902 cr | +2.84% | +44.45% |
| Other income | ₹509 cr | ₹538 cr | -5.43% | -40.20% |
| Expenses | ₹11,207 cr | ₹10,953 cr | +2.32% | +34.92% |
| Operating profit | ₹8,231 cr | ₹7,949 cr | +3.56% | +59.82% |
| Operating margin (%) | 42.34% | 42.05% | — | — |
| Interest | ₹760 cr | ₹901 cr | -15.66% | -9.67% |
| Depreciation | ₹1,191 cr | ₹1,167 cr | +2.06% | -0.18% |
| Profit before tax | ₹6,789 cr | ₹6,418 cr | +5.77% | +71.16% |
| Tax | ₹-231 cr | ₹1,552 cr | — | — |
| Net profit | ₹7,019 cr | ₹4,867 cr | +44.23% | +141.51% |
| EPS (₹) | ₹3.59 | ₹2.49 | +44.18% | +134.64% |
Operating margin of 42.34% compares with a Utilities sector median of 42.88% across 4 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.48% | +1.80% |
Volume on the results session was 1.00× its 20-day average.
What to watch
- Whether operating margin holds above 42.34% after its recovery from 33.27% in Q4FY26.
- Whether the tax rate moves back from -3.4% toward the 24.17% reported in Q1FY27.
- Whether interest expense remains below the Q1FY27 level after falling 15.66% sequentially.