Adani Enterp. Q2 FY27 Results (NSE: ADANIENT)
Signal: Growth reaccelerated
The read
The operating recovery is real but not yet clean: revenue accelerated to ₹37,215.62 Cr, up 75.1% YoY, and pre-exceptional profit was ₹2,002.02 Cr, yet a ₹2,644.02 Cr exceptional loss reduced PAT to ₹1,220.99 Cr; gross margin expanded 1,700bps YoY but deteriorated 474bps QoQ, interrupting the recent margin recovery arc.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹37,215.62 Cr | +75.1% | +13.0% |
| Net profit | ₹1,220.99 Cr | -64.3% | |
| EPS | ₹11.05 | -59.8% | |
| EBIT margin | N/A |
P&L walk
Revenue accelerated to ₹37,215.62 Cr, up 75.1% YoY and 13.0% QoQ, while gross margin expanded 1,700bps YoY to 35.3%; however, the ₹2,644.02 Cr exceptional loss reduced PAT to ₹1,220.99 Cr despite ₹2,002.02 Cr profit before exceptional items and tax.
Key positives
- Revenue reached ₹37,215.62 Cr, up 75.1% YoY and 13.0% QoQ, reversing the prior quarter's weaker growth profile.
- Profit before exceptional items and tax was ₹2,002.02 Cr versus ₹814.35 Cr a year ago, showing positive underlying pre-exceptional earnings.
- Gross margin expanded 1,700bps YoY to 35.3%, while employee benefits and operating expenses declined 2.4% YoY to ₹7,630.14 Cr despite 75.1% revenue growth.
- Share of profit from jointly controlled entities and associates rose to ₹166.29 Cr from ₹17.87 Cr a year ago.
Key concerns
- The ₹2,644.02 Cr exceptional loss exceeded pre-exceptional profit of ₹2,002.02 Cr and materially reduced reported PAT to ₹1,220.99 Cr.
- Gross margin fell 474bps QoQ to 35.3%, while raw materials, purchases and inventory changes represented 64.7% of revenue versus 53.6% a year ago; the filing does not disclose the driver.
- EPS of ₹11.05 fell 59.8% YoY to less than half the prior-year ₹27.46, despite revenue growth of 75.1%.
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