Adani Enterprises Ltd (AEL) reported a consolidated net loss of ₹221 crore for the March quarter, compared with a profit of ₹3,845 crore a year earlier, as higher depreciation and the absence of one-off gains weighed on the bottom line.

Total income for the quarter rose 20% year-on-year to ₹33,187 crore, driven by growth across its infrastructure and incubation businesses.

However, EBITDA increased at a slower pace, rising 3% to ₹4,479 crore, indicating pressure on operating leverage.

Margins contract despite topline growth

The company’s EBITDA margin narrowed to about 13.5% in Q4 FY26 from nearly 15.7% a year earlier, reflecting a shift in business mix and cost pressures.

While revenue growth remained strong, profitability was impacted by the increasing share of infrastructure incubation businesses, which are still in ramp-up phase and carry higher costs.

Depreciation from new assets hits bottom line

A key drag on earnings during the quarter was higher depreciation, particularly from recently commissioned assets.

“Q4 FY26 results were affected by depreciation on recently commissioned assets of Navi Mumbai [airport] and copper plant,” the company said.

This led to a sharp decline in profit before tax, which fell 86% year-on-year to ₹729 crore.

Base effect from last year’s exceptional gains

The year-ago quarter had benefited from exceptional gains, which did not recur this quarter.

In FY26, the company recorded exceptional gains of ₹9,215 crore from stake sale and asset transfers, compared with ₹3,946 crore in FY25, distorting comparability.

The absence of such gains in the March quarter further accentuated the decline in net profit.

Shift to infra-led model continues

The company highlighted a structural transition in its business model, with a growing share of earnings coming from infrastructure and utility platforms.

“With close of fiscal 2026, AEL has transitioned to a core infrastructure-led model, with 80% of its EBITDA coming from mature, long-term and contracted businesses,” the company said.

Chairman Gautam Adani said the company is entering a phase of more stable earnings generation.

“Adani Enterprises has delivered yet another year of disciplined execution, stable EBITDA and continued momentum across our core infrastructure and incubation platforms,” he said.

Incubation businesses drive long-term growth

The company continued to invest heavily in emerging infrastructure platforms, including airports, roads, data centres and green hydrogen.

Airports business saw strong momentum, with EBITDA rising sharply on improved aero and non-aero revenue streams, while the Adani New Industries (ANIL) ecosystem continued to scale.

However, these businesses remain capital-intensive and are yet to fully stabilise, impacting near-term profitability.

Despite near-term pressure on profitability, the company said its earnings profile is becoming more stable, with a larger share of EBITDA coming from long-term contracted assets.

“What is particularly encouraging is that majority of the EBITDA is now led by our core infrastructure incubating businesses and stable mining services, reflecting the maturity and scale of our operating portfolio,” Adani said.

Shares of Adani Enterprises ended 0.63% lower at ₹2,410.50 apiece on the NSE on Thursday. The stock has risen over 8% in the past year, outperforming the benchmark Nifty 50 index, which has declined nearly 1.5% during the same period.