Adani Enterp. Q1 FY27 Results (NSE: ADANIENT)
Signal: Slipped to loss
The read
Adani Enterprises reported a strong 50% revenue jump but a massive consolidated net loss of ₹1,462 Cr due to an exceptional loss of ₹2,644 Cr, overshadowing healthy core operating profit; the auditor's qualified opinion on MIAL remains a governance overhang.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹32,923.98 Cr | 50% | 1.5% |
| EBIT | ₹3,708.9 Cr | 24.6% | |
| Net profit | ₹-1,461.54 Cr | -249.7% | |
| EPS | ₹-8.91 | -225.1% | |
| EBIT margin | 15.25% |
P&L walk
Revenue rose 50% YoY to ₹32,924 Cr, but gross margin collapsed 1,140bps to 40% as raw material costs surged, reflecting a probable mix shift to lower-margin commodity/copper businesses. EBITDA margin was stable YoY at 15.25% but improved sharply QoQ from 11.5%, indicating cost control. Core operating profit (before exceptional) of ₹1,295 Cr was healthy, but an exceptional loss of ₹2,644 Cr (likely airport-related provisions) swung the group to a net loss of ₹1,462 Cr vs profit of ₹976 Cr last year. EPS loss of ₹8.91 vs profit ₹7.12. Equity base expanded 13% due to rights conversion and QIP.
Key positives
- Revenue grew 50% YoY to ₹32,924 Cr, the highest quarterly revenue in history.
- EBITDA margin (computed) improved to 15.25% from 11.5% sequentially, indicating better operating cost management.
- Core profit before exceptional items was ₹1,295 Cr, up from ₹1,466 Cr in the prior year quarter (excluding exceptional).
Key concerns
- Net loss of ₹1,462 Cr after exceptional items of ₹2,644 Cr, which were not disclosed in detail.
- Gross margin collapsed from 51.4% to 40.0% YoY, likely due to a shift to lower-margin commodity trading or integrated manufacturing.
- Auditor's report qualified due to MIAL investigation (₹845.76 Cr) and emphasis of matter on MIAL arbitration and NMIAL MCA investigation.
- High finance cost of ₹2,414 Cr (+59.8% YoY) and depreciation of ₹1,926 Cr (+50% YoY) weigh on profitability.
Research and educational content only. Not investment advice.