Adani Enterprises Posts Loss on OFAC Settlement, Record EBITDA

New Delhi, Jul 29 (PTI) Adani Enterprises Ltd reported a consolidated net loss for the second straight quarter on Wednesday after booking a one-time charge related to a settlement with the US Treasury's OFAC, even as the flagship Adani Group company posted record quarterly operating profit on the back of growth in its airports and copper businesses.

The company reported a consolidated net loss of Rs 1,160 crore for the quarter ended June 30, compared with a profit of Rs 885 crore a year earlier, after recording a one-time charge of Rs 2,644 crore related to the Office of Foreign Assets Control (OFAC) settlement.

Profit before tax, excluding the exceptional item, fell about 12 per cent year-on-year to Rs 1,295 crore, according to a company statement. Revenue from operations rose about 50 per cent to Rs 33,546 crore, while EBITDA climbed 49 per cent to a record Rs 5,642 crore.

Adani Enterprises said first-quarter results were "impacted due to higher operating cost on account of increased fuel prices due to global volatility".

During the quarter, Adani paid USD 275 million relating to alleged sanctions violation in processing Iranian-origin LPG. This payment was recorded as a one-time exceptional item in the company's financial results.

Total expenses rose about 54 per cent to Rs 32,252 crore, driven by a sharp increase in the cost of materials consumed, which climbed to Rs 14,255 crore from Rs 3,393 crore a year earlier. Interest and finance costs rose 59.8 per cent, while employee benefit expenses increased 13.6 per cent.

Revenue growth was led by the company's copper business, where capacity ramp-up drove a multifold increase in sales. The airports business posted more than a 35 per cent increase in quarterly revenue and a 49 per cent rise in EBITDA to Rs 1,633 crore. Revenue from the company's coal trading business fell 7 per cent, while its new energy business, comprising solar manufacturing and wind turbine operations, declined 2 per cent.


Operationally, airport passenger traffic rose 3 per cent year-on-year to 24.2 million, copper sales increased more than fourfold to 64.7 kilotonnes, and wind turbine generator deliveries rose 83 per cent to 64 sets.

During the quarter, Adani New Industries commissioned a new 1.7-GW solar module manufacturing line, taking total module capacity to 5.7 GW. The company also said its data centre business secured a new 400-MW hyperscale order, Navi Mumbai International Airport commenced international operations on July 15, and toll collections began on the Ganga Expressway project on May 15.

"Adani Enterprises has begun FY27 with an exceptionally strong performance, delivering its highest-ever quarterly EBITDA of Rs 5,642 crore, driven by the growing scale and maturity of our infrastructure and incubation platforms," Chairman Gautam Adani said.

"The commencement of international operations at Navi Mumbai International Airport, toll collections on the Ganga Expressway, the expansion of our solar module capacity and a major new hyperscale data center order mark important milestones in our growth journey.

"The successful Rs 15,000 crore QIP further reflects strong institutional confidence in our strategy and execution capabilities. As India's infrastructure requirements expand, we remain focused on building globally competitive businesses that advance national priorities and create enduring value for all our stakeholders."

AEL said the current quarter results reflect the strength of AEL's diverse portfolio of established and incubating businesses, which provides both stability and growth. On the back of strong performance from established businesses and continued momentum of incubating businesses, AEL reports its highest ever quarterly EBITDA with y-o-y increase of 49 per cent.

Having established a strong foundation of infra-platform through disciplined investment cycle, AEL is now poised to witness the phase where capacity utilization of its assets and operational efficiencies will translate into meaningful financial outcomes for its shareholders, the statement added.

Separately, the company said it raised Rs 15,000 crore through a qualified institutional placement in July, with bids amounting to 3.8 times the base issue size.