Adani Enterprises reports sharp profit surge in Q2, shares gain on strong results

Adani Enterprises Limited (AEL) posted a remarkable increase in its net profit for the September quarter, reporting a 664.52% year-on-year growth. Net profit for Q2 rose to ₹1,741.7 crore, a significant leap from ₹227.82 crore in the same quarter of the previous year, bolstered by robust project execution and strategic investments.

The company’s revenue saw a solid 15.66% year-over-year rise, reaching ₹22,608 crore in the latest quarter, up from ₹19,546 crore in Q2 FY2023. A substantial increase in EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) was also recorded, climbing 46% year-over-year to ₹4,554 crore, with EBITDA margins improving to 16.7% from 10.79% in the previous year’s quarter.

In addition to its financial results, Adani Enterprises announced the board’s approval of issuing non-convertible debentures (NCDs) valued at ₹2,000 crore, aiming to support its expansive projects and growth strategy across sectors.

Adani Group Chairman Gautam Adani credited the exceptional performance to advancements in several large-scale projects. “Our focus on executing greenfield projects through Adani New Industries Ltd (ANIL) across giga-scale integrated manufacturing plants, alongside the accelerated development of Navi Mumbai International Airport, has fueled these robust results,” said Adani. He emphasized that AEL’s diversified portfolio, including sectors like data centers, road infrastructure, and specialized manufacturing, is set for continued expansion with innovative technology driving high-growth outcomes.

Following the announcement, Adani Enterprises’ shares rose 2.22% to ₹2,862.35 on the Bombay Stock Exchange (BSE), up from the previous close of ₹2,800.45. The firm’s market capitalization reached ₹3.29 lakh crore, underscoring investor confidence in the company’s growth trajectory.