Adani Enterprises Q1FY26 profit slumps 49.5pc, incubating businesses show resilience amid volatility

THEBUSINESSBYTES BUREAU

AHMEDABAD, JULY 31, 2025

Adani Enterprises Ltd (AEL), the flagship company of the Adani Group, reported a 49.5 per cent decline in its consolidated net profit to Rs 734.41 crore for the first quarter of FY26, compared to Rs 1,454.50 crore in the same period last year. The sharp drop in profitability comes on the back of a high base effect and the absence of exceptional gains recorded in the previous quarter.

On a sequential basis, profits saw a steeper decline of over 80 per cent, following an extraordinary income of Rs 3,286 crore in Q4 FY25. Despite the fall in bottom-line figures, the company posted a 9.7 per cent year-on-year increase in consolidated revenue from operations, reaching Rs 27,961 crore, compared to Rs25,472 crore in Q1 FY25. Quarter-on-quarter revenue growth stood at 3.6 per cent.

However, total consolidated income dipped 13.7 per cent year-on-year to Rs22,436.62 crore, impacted by subdued trade volumes and pricing volatility in the Integrated Resource Management (IRM) and commercial mining segments. Consolidated EBITDA also declined 12 per cent to Rs 3,786 crore. Notably, 74 per cent of this EBITDA, amounting to Rs 2,800 crore, came from AEL’s incubating businesses, which include green hydrogen, airports, roads, and data centres. These emerging segments recorded a 5 per cent growth in EBITDA over the previous year.

Gautam Adani, Chairman of the Adani Group, emphasized the strategic strength of the company’s diversified portfolio. “Adani Enterprises has established itself as one of the world’s most successful infrastructure incubators. The substantial rise in EBITDA contribution from our incubating businesses reflects the strength and scalability of our operating model. This performance has been led by our Airports business, which delivered an exceptional 61 per cent year-on-year growth in EBITDA,” he said.

He further added that major upcoming assets such as the Navi Mumbai International Airport, the Copper Plant, and the Ganga Expressway are poised to become operational soon, reinforcing the company’s vision of creating globally benchmarked, technologically advanced infrastructure platforms essential to India’s economic progress.

As of June 2025, the company’s net external debt stood at Rs 52,667 crore, rising from Rs 49,306 crore in March. About 60 per cent of this debt has been invested in infrastructure projects — airports, roads, and new industrial ventures — that are projected to begin generating cash flows from FY26 onward. Despite near-term pressure on margins, Adani Enterprises continues to maintain its focus on long-term value creation through infrastructure-led growth.