Adani Enterprises Q3 Results: Profit Plunges 97% to Rs 58 Crore, Revenue Declines 9%
Adani Enterprises, the flagship company of the Adani Group, has reported a sharp decline in its financial performance for the third quarter of fiscal year 2025 (Q3 FY25). The company's profit attributable to owners was nearly wiped out, falling by 97% year-on-year. The decline is attributed to a high notional forex MTM loss in the finance cost of its Australian mining operations due to the depreciation of the Australian dollar (AUD).
Financial Performance Overview
For the quarter ended December 2024, Adani Enterprises reported a profit after tax (attributable to owners) of Rs 58 crore, a drastic drop from Rs 1,888 crore in the same period last year. Revenue from operations declined by 9% year-on-year to Rs 22,848 crore. EBITDA for the quarter also fell by 5% year-on-year to Rs 3,071 crore.
On a sequential basis, the profit after tax dropped by 97% from Rs 1,742 crore in Q2 FY25. Revenue, however, showed a marginal increase of 1% quarter-on-quarter.
Key Financial Highlights (YoY)
- Profit After Tax (Attributable to Owners): Declined by 97% to Rs 58 crore from Rs 1,888 crore.
- Revenue from Operations: Declined by 9% to Rs 22,848 crore from Rs 25,141.56 crore (adjusted for comparison).
- EBITDA: Decreased by 5% to Rs 3,071 crore from Rs 3,227 crore.
- Other Income: Increased by 33% to Rs 652 crore from Rs 490 crore.
- Total Expenses: Declined by 1% to Rs 22,925 crore from Rs 23,180 crore.
Nine-Month Performance
For the nine months ended December 2024, Adani Enterprises reported a 6% growth in revenue to Rs 72,763 crore. Profit after tax for the period rose by 17% year-on-year to Rs 3,254 crore.
Segment-Wise Performance
Adani New Industries
- Total Income: Grew by 38% year-on-year to Rs 2,941 crore.
- Profit Before Tax (PBT): Increased by 26% year-on-year to Rs 691 crore.
- Solar manufacturing module sales reached 3.3 GW during the nine months, driven by export growth of 20% and a domestic sales increase of 176%.
- EBITDA margins continued to rise due to improved realization and operational efficiency.
- A 3.3 MW WTG model was listed in RLMM, expanding Adani New Industries' wind business offerings to four listed WTG models.
Adani Airports
- Total Income: Rose by 33% year-on-year to Rs 2,939 crore.
- PBT: Surged 2.6 times to Rs 237 crore.
- Navi Mumbai Airport conducted its first commercial flight validation test.
- 14 new routes, 4 new airlines, and 9 new flights were added during the quarter.
Management Commentary
"This exceptional nine-month performance underscores Adani Enterprises Ltd’s position as a powerhouse for nurturing transformative infrastructure and energy transition sectors," said Gautam Adani, Chairman of the Adani Group. "Strong growth across our incubating businesses, from energy transition to logistics and adjacencies, highlights the immense potential of our core plus portfolio. These results are a testament to our focus on execution.”
Following the announcement of the results, Adani Enterprises shares initially dropped by 5% but later recovered slightly, trading at Rs 2,256.6 on the NSE.
Adani Enterprises' Q3 FY25 results reflect a challenging quarter, primarily due to the significant impact of forex losses. However, the company's nine-month performance and growth in key segments like Adani New Industries and Adani Airports demonstrate its underlying strength and long-term potential.
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