Adani Enterprises Limited reported its Q3 FY25 financial results, reflecting a decline in both revenue and profitability, leading to a nearly 4% drop in its share price. The company’s revenue from operations fell 8.79% year-on-year (YoY) to Rs 22,848 crore, down from Rs 25,050 crore in Q3 FY24. Sequentially, revenue improved marginally from Rs 22,608 crore in Q2 FY25. Total income for the quarter stood at Rs 23,501 crore, compared to Rs 25,540 crore YoY.
The company’s total expenses increased to Rs 22,924 crore, up from Rs 20,787 crore in Q2 FY25, driven primarily by higher finance costs and raw material expenses. The cost of materials consumed surged to Rs 2,569 crore from Rs 1,437 crore YoY, while employee benefit expenses rose to Rs 741 crore. Finance costs increased significantly to Rs 2,141 crore, marking a 258% YoY rise, putting pressure on overall profitability.
Profit before tax for the quarter stood at Rs 575 crore, a significant decline from Rs 2,359 crore in Q3 FY24. Net profit for the quarter dropped to Rs 229 crore, marking an 88% YoY decline from Rs 1,972 crore in Q3 FY24. On a sequential basis, net profit also fell from Rs 1,989 crore in Q2 FY25. Adani Enterprises attributed the drop in profitability to higher operational costs and lower realizations in key business segments.
Despite the weak quarterly performance, the company remains optimistic about its long-term growth outlook, supported by ongoing investments and strategic expansions in its infrastructure, energy, and transportation businesses.
Key Financial Highlights:
- Revenue from operations: Rs 22,848 crore (down 8.79% YoY from Rs 25,050 crore, up 1% QoQ from Rs 22,608 crore)
- Total income: Rs 23,501 crore (down 8% YoY from Rs 25,540 crore, up 1% QoQ from Rs 23,196 crore)
- Total expenses: Rs 22,924 crore (up from Rs 20,787 crore in Q2 FY25)
- Profit before tax: Rs 575 crore (down 76% YoY from Rs 2,359 crore)
- Net profit: Rs 229 crore (down 88% YoY from Rs 1,972 crore)
The market reaction reflects investor concerns over declining margins and rising costs. However, the company’s management reiterated its focus on maintaining long-term sustainable growth through strategic projects and operational improvements.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
