Adani Enterprises: record EBITDA on Copper turnaround; YoY PAT dip is a high base effect

Adani Enterprises' consolidated (primary) PAT came in at ₹1,220.99 Cr for Q2 FY27, down 64% YoY from ₹3,414.43 Cr a year ago — but that year-ago base included a ₹2,455.57 Cr post-tax exceptional gain from the AWL Agri Business stake sale, while this quarter carried no exceptional item at all. Adjusted for that one-off, underlying PAT grew ~27% YoY. Revenue from operations jumped 75% YoY (and 13% QoQ) to ₹37,215.62 Cr. Standalone PAT was ₹1,224.45 Cr, down a sharper 71% YoY, because the Parent booked a larger ₹3,221.96 Cr post-tax AWL gain in the year-ago quarter — the wider standalone decline is the same base-effect story, just bigger at the parent level. The swing is best read through Copper. The Kutch Copper smelter ramp-up pushed segment revenue to ₹14,772.36 Cr, up 369% YoY from ₹3,148.31 Cr, now Adani Enterprises' single largest revenue line, ahead of Integrated Resources Management (₹7,096.99 Cr). Segment PBIT flipped from a ₹564.02 Cr loss a year ago to a ₹1,038.11 Cr profit this quarter. That turnaround, alongside growth in Airport (PBIT ₹509.59 Cr, +12% YoY), pushed consolidated EBITDA to a record ₹6,316 Cr — up 12% QoQ from Q1's then-record ₹5,642 Cr and 62% YoY. But the mix shift toward lower-margin Copper volumes diluted the blended operating margin: OPM came in at 14.80%, down from 15.56% a year ago and 15.25% last quarter — real margin compression even as absolute profit expanded. Roads, which management had guided to double its EBITDA, instead posted PBIT of ₹161.88 Cr, down from ₹265.79 Cr a year ago — that leg of the guidance has not delivered. Against our pre-result preview (EBITDA ~₹5,400–5,800 Cr, revenue growth ~35–45% YoY, EPS ~₹5.3), the quarter beat comfortably on EBITDA, revenue growth (75% actual vs 35-45% expected) and EPS (₹11.05 vs ~₹5.3 expected) — but operating margin of 14.80% missed the previewed 30–32% band by a wide margin, reflecting the same Copper-driven mix dilution; a broader web search found no separate third-party consensus PAT/revenue estimate published for this specific quarter. Management's Q1 FY27 concall had guided for a step-up from three mega-projects — Navi Mumbai Airport, Ganga Expressway and Kutch Copper — toward ~₹3,000 Cr of stabilised EBITDA, plus doubling Roads EBITDA; no revised FY27 guidance was issued this quarter. Copper has clearly delivered on that guidance while Roads has not; no standalone management press-release commentary was available in our records to cross-check framing. On the capital side, the Parent completed a ₹15,000 Cr QIP during the quarter (5,20,29,136 shares at ₹2,883/share), and the promoter group added a further 1.46% stake on September 30 — both alongside a Debt-Equity ratio improving to 0.94 from 1.50 a year ago. The company also settled SEBI proceedings for ₹37.05 Lakh and continued its adjacency push, signing an MoU with Jabil for a data-centre JV (October 13) and entering a Shareholders' Agreement to sell up to 5.54% of Adani Airport Holdings to new investors — both non-binding or pre-closing as of this filing. Heading into Q3, the key markers are whether Copper's current run-rate profitability holds as the smelter matures past ramp-up, whether the AAHL stake sale and Jabil JV convert into binding, value-accretive agreements, and whether blended OPM recovers from 14.80%.