Adani Enterprises Ltd (AEL) reported a steep 50% year-on-year drop in consolidated net profit to Rs. 734 crore for the quarter ended June 2025 (Q1 FY26). The group had posted a net profit of Rs. 1,454 crore in the same quarter last year.
This drop follows softening in the coal trading operation, accounting for the company’s top line. The sector suffered from lower instances of summer weather, premature monsoons, and declining industrial production. This reduced the demand for coal-fired electricity by a large degree.
AEL’s revenue on a consolidated basis declined 14% year-on-year to Rs. 21,961 crore in Q1 FY26, compared with Rs. 25,438 crore in Q1 FY25. The decline in topline was primarily because of the declining trend in the Integrated Resources Management (IRM) business, which deals in coal trading.
The IRM segment alone posted a 27% revenue dip and a 45% drop in sectoral profit, indicating the general pressures on conventional energy sources.
The coal business was the most considerable drag, and AEL’s new-age infrastructure businesses bore the brunt. The green energy vertical comprising solar and wind assets recorded an 11% decline in revenue and a 34% decrease in pre-tax profit.
Higher input costs and slower execution of projects were the major reasons quoted. Other infrastructure entities, such as Adani Airports and Adani Roads, were steady but did not experience sufficient expansion to balance out the losses from the energy sector.
The market reacted negatively to the earnings announcement. Adani Enterprises’ shares declined by about 4% in early trade following the results, despite rising about 13% for the quarter based on solid infrastructure hopes and softer regulatory fears.
Also Read: Adani Power Share Price Steady at Rs. 590.80 Ahead of Key Board Meet on Stock Split
The subdued Q1 performance may be a short-term aberration for AEL, which is at the core of Adani Group’s expansion strategy in airports, roads, and clean energy. However, the earnings indicate that diversified conglomerates like Adani are subject to significant influences from global commodity cycles, weather patterns, and policies related to energy transition.
Despite the current slump, the company remains heavily committed to investing in infrastructure and renewable assets. Its analysts point out that future quarters may witness a revival, especially if coal demand steadies and green energy deployment increases.