Adani Enterprises Q2 FY27 Earnings Call: Record H1 EBITDA Jumps 56%, Landmark AA Rating Upgrade (ADANIENT)

Adani Enterprises Ltd held its Q2 FY27 earnings call on October 28, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record H1 Profitability and a Landmark Rating Upgrade

• H1 FY 2026-2027 EBITDA of Rs.11,958 crore, +56% YoY — AEL's highest-ever half-yearly EBITDA; consolidated total income rose 62% YoY to Rs.71,569 crore and continuing PBT rose 45% YoY to Rs.3,297 crore.
• Upgraded to AA (stable) by CARE in the first week of October 2026 — management framed it as the company's highest-ever long-term rating and independent validation of disciplined capital management.
• Phase transition flagged — management stated FY 2026-2027 results will reflect value unlock from prior investments, moving progressively from build-out to value realization, backed by the ramp-up of newly commissioned Adani New Industries module lines; no numeric forward guidance was given.
• Primary industry EBITDA of ~Rs.5,000 crore in Q2 FY 2026-2027, driven primarily by copper, with integrated resource management and mining services as the other major contributors.
• Other expenses of Rs.6,500 crore in Q2 FY 2026-2027 — the lowest in 3 years, attributed by Manan Vakharia to Ind AS service concession accounting that grosses up road construction revenue and expenses.
• JV/associate investments of ~Rs.2,400 crore in H1 FY 2026-2027 — similar to the level deployed across full FY 2025-2026, primarily toward the data center business (equity-accounted).

Navi Mumbai International Ramp-Up Powers Non-Aero Surge

• Q2 FY 2026-2027 airport EBITDA of Rs.1,641 crore, +55% YoY on total income of Rs.3,786 crore (+20% YoY); 21.3 million passengers handled; aero and non-aero revenue grew 9% and 57% YoY respectively; 8 new routes and 4 new airlines added.
• H1 FY 2026-2027 AAHL EBITDA of Rs.3,275 crore, +52% YoY — close to full-year FY25 EBITDA; growth was achieved despite elevated fuel prices and airspace disturbances weighing on passenger traffic.
• Navi Mumbai international operations commenced 15 July 2026 (commercial international operations from 26 July 2026); Indigo announced 12 new international routes (rolling out from December 2026 through the April 2027 summer schedule), Air India Group 7, and Akasa 1 additional — a total of 19 international routes per management.
• Three domestic carriers shifting 18 international flights from existing Mumbai airport to Navi Mumbai, catering to roughly 3 million passengers in yearly volume; management expects to conclude discussions with remaining airlines within one month ahead of the Mumbai T1 redevelopment starting from the April 2027 summer schedule.
• Capacity guidance: management guides NMIAL will exit FY 2027-2028 (calendar Q1 2028) at a run rate of 5 million passengers per quarter — full utilization of its 20 million maximum annual capacity (5 million international, 15 million domestic).
• Non-aero drivers: ~25% of Q2 FY 2026-2027 non-aero transactions occurred over digital channels via the revamped Adani One App; premiumization of shops and new lounges added further; a one-off Navi Mumbai hangar sale was recorded in Q2 FY 2026-2027 financials.
• Heavy aeronautical capex pipeline through FY 2029-2030: new Terminal 2 at Navi Mumbai (Phase 2 work starting November of FY 2026-2027), Mumbai T1 redevelopment from Q1 FY 2027-2028, a new integrated terminal at Ahmedabad aligned to the Commonwealth Games hosted by the city in October 2030, plus capacity additions at MIAL T2, Trivandrum, and a new Jaipur terminal.

1.2+ GW Contracted; Jabil MOU Adds Manufacturing Angle

• Cumulative contracted capacity of 1.2+ GW after Adani Connects signed a new 240 MW hyperscale contract; 29.2 MW handed over to customers in Q2 FY 2026-2027, taking operational capacity to 94.6 MW, with 1.4 GW under construction.
• Ramp guidance reiterated from the Q1 FY 2026-2027 call: 120-150 MW operational by exit of FY 2026-2027, ramping to close to 500 MW operational and billing over the next 12-18 months (spanning FY 2027-2028 into early FY 2028-2029).
• Jabil partnership still at MOU stage — AEL and Jabil look to manufacture AI racks, data servers and related equipment in India, with definitive agreements targeted around Q3-Q4 FY 2026-2027; this is separate from the existing Adani Connects JV (with Edge Connects), a pure data-center build/core & shell/MEP play.
• Capex intensity of Rs.60-80 crore per MW (as of Q2 FY 2026-2027) drew concern from Prateek Singh (IIFL Capital) on commodity inflation; management said increased capex will be factored into billing for new hyperscaler sign-ups to protect targeted ROCE, with rates "more or less stable."
• Funding structure of ~20:80 to 30:70 expected for data center projects; scope is primarily core & shell, MEP and structure, with server installation outside AEL's scope.
• Disclosure planned: data center financials, including segment breakups, to be publicly disclosed towards the end of FY 2026-2027; majority of revenue and EBITDA expected via a lease rental mechanism with offtake taken up by hyperscalers. Take-or-pay specifics to be confirmed after contract and legal review.

10 GW Module Capacity Complete; Order Books Full

• 10 GW total module line capacity completed — the remaining 4.3 GW commissioned on 31 August 2026 (Q2 FY 2026-2027); on schedule to commission the 6 GW solar cell line by end of FY 2026-2027.
• Domestic module sales of 1,478 MW in Q2 FY 2026-2027, +35% YoY — strong domestic demand has fully absorbed the export intake; 56% of Q2 solar sales went into the rooftop market; wind turbine sales of 35 sets, +25% YoY.
• Q2 FY27 total income of Rs.3,669 crore and EBITDA of Rs.1,094 crore for Adani Solar; higher EBITDA per unit despite lower QoQ volumes was aided by an ~Rs.89 crore impact from closure of certain advanced authorizations, as flagged in the Q1 FY 2026-2027 results.
• Run-rate of about 2 GW expected in Q3 FY 2026-2027 with newly commissioned module capacity; as cell capacity arrives, DCR content will increase, raising rooftop volumes, with additional capacity expected to be used considerably for captive offtake over Q3-Q4 FY 2026-2027.
• 2.2 GW ingot-wafer capacity in place as of Q2 FY 2026-2027; the balance of "a bit more than 6 GW" under development, to come up by 2028 aligning with the ALMM 3 policy — sized slightly above cell capacity given an industry-wide global yield factor of ~87-88% of nameplate.
• Both solar and wind order books full as of Q2 FY 2026-2027 — exact order book values were not disclosed. Industry recognition: Adani Solar featured in the Elite list of top 10 global solar module manufacturers; Adani Wind is the only Indian company among the top 15 global wind turbine manufacturers.

Copper Margins Elevated; Carmichael EBITDA Flows; PVC 60% Complete

• Copper EBITDA margin at 7-8.5% of revenue in Q1-Q2 FY 2026-2027, aided by elevated byproduct prices (notably sulfuric acid); management guided long-term EBITDA margin to 4-6% (period unspecified) as margins normalize.
• Q2 FY 2026-2027 copper sales volume of 80.6 kilo tonnes at 64% utilization; revenue of Rs.14,843 crore and EBITDA of Rs.1,283 crore; KCL Copper reported H1 FY 2026-2027 EBITDA of Rs.2,033 crore; utilization guided to 80-85% by close of FY 2026-2027.
• Procurement insulated despite tight global concentrate availability — ~50-60% of long-term copper requirement tied up on long-term contracts plus ~20% short-term; two copper tube JVs provide offtake assurance for ~12-15% of capacity; management not concerned on remaining offtake given India's demand-heavy market.
• Carmichael mine EBITDA of ~Rs.470 crore in Q2 FY 2026-2027 and ~Rs.840 crore cumulatively in H1 FY 2026-2027, aided by good coal prices and optimum-capacity running; the H1 figure already matches the mine's earlier expected annual run rate (period unspecified).
• PVC plant at Budhra: 1 million metric tonne capacity with ~Rs.26,000 crore capex — ~60% of project spend and on-ground construction completed as of Q2 FY 2026-2027; first part of the overall capex expected to be commissioned in FY 2027-2028, stabilizing over the following 6-9 months. Analyst Deval Shah (RBSA Investment Manager) noted ~18-20% of capital deployed; management confirmed scope covers PVC plus chlor-alkali and related chemicals.
• Mining services Q2 FY 2026-2027: dispatch volumes of 10.7 million metric tonnes, revenue of Rs.998 crore, EBITDA of Rs.407 crore; integrated resource management traded 7.4 million metric tonnes with revenue of Rs.7,169 crore and EBITDA of Rs.654 crore. Full-year volumes expected at least 10-15% higher than FY 2025-2026; coal trading outlook difficult to give as it is market-driven amid the country's coal shortage.

Roads Normalizing; ~Rs.40,000 Cr Capex Run-Rate; No Profit Guidance

• Roads EBITDA of Rs.354 crore in Q2 FY 2026-2027 vs Rs.288 crore in Q1 FY 2026-2027, taking H1 FY 2026-2027 to ~Rs.642 crore; management agreed to disclose operational EBITDA in the investor PPT going forward.
• Toll ramp-up "slightly off the mark" vs company estimates — attributed to Q2 FY 2026-2027 seasonality (rainy season) plus heavy floods in northern India; catch-up expected over Q3-Q4 FY 2026-2027 as traffic builds on newly commissioned routes including the Ganga Expressway; YoY revenue variability will persist due to IND-AS service concession accounting.
• Bangalore tunnel remains at L1 stage with no further development — the latest known from the authorities, status unchanged as of Q2 FY 2026-2027.
• Capex outlook reaffirmed from the Q1 FY 2026-2027 call: run rate of ~Rs.40,000 crore, possibly Rs.35,000-40,000 crore, expected to continue over the next couple of years (FY 2027-2028 onward), with airports, data centers and PVC doing the "heavy lifting."
• No profit guidance: management declined to give specific EBITDA guidance for FY27 or margin guidance for FY27-28, stating it refrains from providing any specific financial guidance.
• JAL NCLT assets confirmed outside AEL: Manan Vakharia clarified the implementing agency for the JPA assets (hotels, F1, Greater Noida land) was Adani Infra India Limited — nothing remains with AEL, it is "completely off the table," and AEL has not contributed any equity or funding.
• Ground handling: ~Rs.339 crore revenue in H1 FY 2026-2027 via 100% subsidiary AGH Port (Mumbai, Ahmedabad, Navi Mumbai); insourced mid-November of FY 2025-2026, so absent from the year-ago base.