Adani Enterprises Q2 profit falls 64 per cent as revenue jumps 75 per cent year on year

MUMBAI: Adani Enterprises has hit the accelerator on revenue, but its profits have lost altitude. The flagship company of the Adani Group reported a sharp fall in consolidated earnings for the September quarter, even as a surge in revenue and a Rs 15,000 crore fundraising exercise strengthened its financial position.

For the quarter ended 30 September 2026, consolidated revenue from operations rose 75.2 per cent year on year to Rs 37,215.62 crore, against Rs 21,248.51 crore in the corresponding quarter last year. Total income reached Rs 38,023.11 crore.

Yet the stronger topline failed to translate into higher profits. Consolidated profit after tax (PAT) fell 64.2 per cent to Rs 1,220.99 crore from Rs 3,414.43 crore a year earlier. Profit before tax (PBT) declined to Rs 2,002.02 crore from Rs 4,397.63 crore.

The results, approved by the board on 28 October 2026, underline the challenge facing Adani Enterprises as it expands across infrastructure, resources, airports and new energy while managing substantial costs and continuing legal proceedings.

Consolidated total expenses climbed to Rs 36,021.09 crore in Q2 FY27 from Rs 21,029.72 crore a year earlier. Material costs accounted for Rs 16,858.10 crore, while purchases of stock-in-trade stood at Rs 8,685.55 crore.

For the first half of FY27, revenue from operations rose to Rs 70,139.60 crore from Rs 43,209.71 crore in the year-earlier period. However, the company reported a consolidated loss after tax of Rs 240.55 crore for the six months ended 30 September 2026, against a profit of Rs 3,414.43 crore in the corresponding period of the previous year.

The half-year loss reflects the impact of the first quarter, when the company recorded a loss of Rs 1,461.54 crore following exceptional settlements. The return to quarterly profitability in Q2 was therefore not enough to erase the earlier damage.

The company’s diversified portfolio delivered mixed contributions, with copper, integrated resources management, new energy and airports among the key businesses.

The copper segment generated gross revenue of Rs 14,772.36 crore in Q2 and a segment result of Rs 1,038.11 crore. Its total assets stood at Rs 33,845.46 crore.

Integrated Resources Management recorded revenue of Rs 7,096.99 crore and a segment result of Rs 542 crore. The new energy ecosystem generated Rs 3,571.78 crore in revenue and a segment result of Rs 779.37 crore.

The airports business contributed revenue of Rs 3,698.41 crore, with a segment result of Rs 509.59 crore. Commercial mining generated Rs 2,489.46 crore, while mining services added Rs 985.22 crore. The roads business contributed operational revenue of Rs 430.07 crore.

The figures highlight the breadth of Adani Enterprises’ operations, although segment performance alone does not capture the financing costs and other expenses that ultimately determine consolidated profitability.

Adani Enterprises completed a qualified institutional placement (QIP) during the quarter, issuing 52,029,136 equity shares at Rs 2,883 apiece to raise Rs 15,000 crore.

The fundraising provides additional capital as the company pursues its infrastructure and energy investments. Separately, Adani Enterprises and its subsidiary Adani Airport Holdings Limited signed a shareholders’ agreement to issue shares in the airport subsidiary to selected investors, potentially reducing their stake by up to 5.54 per cent.

As of 30 September 2026, consolidated assets stood at Rs 2,94,858.06 crore, while consolidated equity reached Rs 1,03,713.28 crore. The consolidated debt-to-equity ratio was 0.94 times, compared with 0.12 times on a standalone basis.

Other consolidated indicators included an interest service coverage ratio of 3.04 times, a debt service coverage ratio of 2.36 times and a current ratio of 1.17 times.

The company also reported security cover exceeding 110 per cent for Rs 3,800 crore of rated, listed non-convertible debentures, which carry CARE AA and ICRA AA- ratings.

While several legal matters have seen developments, unresolved proceedings continue to feature in the auditors’ review of the company’s financial statements.

Shah Dhandharia & Co LLP issued a modified review conclusion, flagging historical matters and ongoing proceedings. These include investigations relating to Mumbai International Airport Limited (MIAL), where allegations concern the use of Rs 845.76 crore in contracts under its previous management. The net book value of the property, plant and equipment involved was reported at Rs 409.28 crore.

Adani Enterprises is also contesting customs duty demands of Rs 863.62 crore relating to coal imports. The company has paid Rs 460.61 crore under protest.

In the United States, the company disclosed that a district court dismissed a Department of Justice indictment against an executive director with prejudice on 10 August 2026 and disposed of a civil complaint brought by the Securities and Exchange Commission following a penalty payment. Separately, Adani Enterprises paid a settlement of Rs 2,644.02 crore to the US Office of Foreign Assets Control during the quarter ended 30 June 2026.

The company also cited developments involving the Securities and Exchange Board of India, including the closure of show-cause notices concerning historical related-party transactions in September 2025 and settlement orders in September 2026 relating to auditor peer certificates and shareholding categorisations.

These developments do not remove every legal uncertainty. The outstanding proceedings and the auditors’ qualifications remain important considerations for investors assessing the group’s financial and governance risks.

On a standalone basis, Adani Enterprises reported total income of Rs 7,130.41 crore in Q2 FY27, up from Rs 5,610.21 crore in the corresponding quarter last year. Standalone PAT stood at Rs 1,224.45 crore, while standalone net worth reached Rs 78,299.38 crore.

The standalone performance provides a more profitable counterpoint to the consolidated half-year loss, reflecting the distinction between the parent company’s results and those of its wider portfolio of businesses.

Adani Enterprises has the revenue momentum, capital-raising capacity and diversified operations to keep expanding. But the next leg of its journey will depend on whether that growth can deliver more consistent profits, while keeping financing demands and legal risks firmly in check.