Adani Enterprises is in the business of providing “needs” infrastructure that provides “basic necessities” to individuals, companies, and governments. In blunt terms, the company ventures only into businesses that are extremely necessary in everyone’s life. As of September 2022, it owns and operates the following businesses:
Coal (procurement and logistics)
Mining (coal mining)
Solar panel manufacturing and EPC
Generating green energy (solar, green hydrogen, etc.)
Road, metro, and rail infrastructure
Defense and aerospace manufacturing
Coal Management (Integrated Resources Management)
The majority of Adani Enterprises’ revenues are generated by its coal management vertical. Basically, the company imports coal or sources it domestically and executes the logistics (procurement and delivery). This vertical is also termed as the Integrated Resources Management by the company.
In Q2 2023, revenues from Adani’s Integrated Resources Management was a massive 80% of total revenues (Rs 30,435 crores out of Rs 38,175 crores). So, if you’re looking for the answer to how Adani Enterprises currently makes its money, the answer is from coal imports and logistics (as of October 2022).
This business generates a profit before interest and tax of Rs 1069 crores per quarter (approximate), or just 3.5% of revenues. Keep in mind that these are pre-interest-and-tax margins.
As of September 2022, coal mining contributed just 5% of Adani Enterprises’ total revenues. This vertical’s pre-tax-and-pre-interest profit was just Rs 53.90 crores, or 1.9% of its revenues.
New Energy (Solar, Green Hydrogen, Other Renewables, Etc.)
This business contributed Rs 609 crores, which made up just 1.6% of total revenues. Its profit before tax and interest was 0.80% of its revenues.
The Airports vertical contributed Rs 1,292 crores, or 3.4%, to total revenues. Its profit before tax and interest was Rs 201 crores, which translated to a healthy pre-interest-and-tax margin of 15.55%.
Adani’s Other Businesses (Data Centers, Wastewater Treatment, etc.)
All the other businesses put together contributed Rs 5,137 crores or 13.45% to the total revenues. The pre-interest-and-tax profit was just Rs 9.08 crores (0.18% of the vertical’s revenues).