Adani Energy July-September Net Profit Falls 21% on Higher Tax Expense; Revenue Up 7%

Adani Energy Solutions Ltd. reported a sharp year-on-year fall in its September quarter consolidated net profit due to higher tax expense, even as revenue posted steady growth.

The company’s net profit for the July–September fell nearly 21% on year to ₹5.34 billion from ₹6.75 billion, though it rose over 4% sequentially. Revenue increased 7% on year to ₹65.96 billion.

The fall in profit came after four consecutive quarters of annual growth. However, this marked the 18th straight quarter of year-on-year revenue growth. In the June quarter, net profit stood at ₹5.1 billion, compared with a loss of ₹8.2 billion a year earlier.

Tax expenses surged to ₹1.87 billion in July–September, against a tax reversal of ₹1.80 billion in the same quarter last year. The company noted that last year’s profit included a deferred tax reversal, which boosted reported earnings. Adjusting for that one-time item, net profit for July–September rose 21% on year to ₹5.57 billion.

Operational earnings before interest, tax, depreciation, and amortisation increased 9.5% on year to ₹18.25 billion, led by higher contribution from the transmission and smart meter businesses. Operating margin improved to 29.7% from 27.7% a year ago.

For the first half of 2025-2026, consolidated net profit was ₹10.46 billion, against a loss of ₹1.49 billion a year earlier, while revenue rose 16% on year to ₹134.15 billion.

Segment Performance
Transmission revenue rose 3% on year to ₹23.72 billion, distribution revenue climbed over 3% to ₹31.18 billion, while trading revenue dropped 60% to ₹2.01 billion.

Capital expenditure increased to ₹37.52 billion in the September quarter from ₹30.31 billion a year earlier, and totalled ₹59.76 billion in April–September, up 1.4 times.

Smart metering capex grew 2.4 times on year to ₹10.74 billion on the back of strong installations, while distribution capex rose 1.7 times to ₹3.6 billion. Transmission capex was ₹23.18 billion, slightly lower than a year earlier.

Smart meter installations rose sharply to 1.8 million in the September quarter from 380,000 a year ago. In 2025-2026 so far, the company has installed 4.24 million meters, taking total installations to 7.37 million.

Chief Executive Officer Kandarp Patel said the company commissioned three new transmission lines during the first half and achieved an industry-leading pace of smart meter rollouts. He added that strong regulatory stability and the ongoing energy transition are expected to drive higher capex and project bidding activity in the coming quarters.