Adani Enterprises’ Profits Plunge 97%: What This Means for Investors

Shares of Adani Enterprises fell by 5% on Thursday, going down to Rs 2,202 on the BSE. This drop came after the company announced a huge fall in its profits for the third quarter ending in December 2024. Adani Enterprises’ profit for this quarter was just Rs 58 crore, which is a 97% drop compared to Rs 1,888 crore in the same quarter last year.

The company’s revenue from its operations also fell by 9% to Rs 22,848 crore. Their earnings before interest, taxes, depreciation, and amortization (EBITDA) also declined by 5% to Rs 3,071 crore, down from Rs 3,227 crore a year ago. When compared to the previous quarter, the profit after tax dropped sharply by 97% from Rs 1,742 crore, although revenue slightly increased by 1%.

Despite the drop in profit, Adani Enterprises had more income from other sources, which rose 33% to Rs 652 crore compared to last year. Their total expenses decreased by 1% to Rs 22,925 crore this quarter.

Looking at the nine-month period, Adani Enterprises saw a 6% rise in revenue to Rs 72,763 crore, and its profit grew by 17% to Rs 3,254 crore, thanks to strong performance in infrastructure and energy sectors. Gautam Adani, the Chairman, emphasized that the company is doing very well in these areas.

In specific segments, Adani New Industries reported a 38% increase in income to Rs 2,941 crore, and their profit before tax increased by 26% to Rs 691 crore. The solar manufacturing branch saw a rise in sales thanks to more exports and sales in India. They also expanded their wind energy business by listing a new wind turbine model.

Adani Airports also had a good quarter, with total income increasing by 33% to Rs 2,939 crore, and profit jumping 160% to Rs 237 crore. The Navi Mumbai Airport is getting closer to starting operations after testing its first commercial flight, and the company added new routes and airlines during this period.

Overall, these results show that Adani Enterprises is focusing on innovation, sustainability, and operational excellence, proving its potential in various growing sectors.