Adani Ports Q2 Profit Jumps 18%, Hero MotoCorp Misses Estimates
Two very different earnings stories hit the market on 28 October 2026. Adani Ports and Special Economic Zone (APSEZ) raised its full-year guidance after a strong September quarter, while Hero MotoCorp grew revenue sharply but saw margins squeezed by higher costs. Here is what both results mean, and how the market reacted on 29 October.
Market context on 29 October: Sensex rebounds after Fed hold
The US Federal Reserve held its benchmark rate at 3.75% to 4.00% on 28 October, as widely expected, saying inflation remained elevated. Indian benchmarks opened flat on 29 October and then moved higher: the Sensex rose over 500 points in late-morning trade to around 73,796, while the Nifty reclaimed 22,850. Foreign investors were net buyers of about ₹872 crore on 28 October, their second straight session of buying, though they have still sold about $3.74 billion in October. The rupee opened 5 paise stronger at 95.17 per dollar on 29 October, after closing at 95.22 on 28 October. Brent crude remained elevated near $114 a barrel, keeping cost pressure on oil-sensitive sectors.
Adani Ports Q2 FY27: profit up 18% to ₹3,682 crore
APSEZ, India's largest private port operator, reported consolidated results for the quarter ended 30 September 2026 on 28 October. Revenue from operations rose 24% year-on-year to ₹11,340 crore, EBITDA rose 23% to ₹6,807 crore, and consolidated profit after tax (PAT) rose 18% to ₹3,682 crore, from ₹3,120 crore a year earlier. Total income was ₹11,609.77 crore, up from ₹10,004.06 crore a year earlier.
| APSEZ metric | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue from operations | ₹11,340 crore | ₹9,167 crore | +24% |
| EBITDA | ₹6,807 crore | ₹5,550 crore | +23% |
| Profit after tax | ₹3,682 crore | ₹3,120 crore | +18% |
| Total income | ₹11,609.77 crore | ₹10,004.06 crore | +16.1% |
Growth was broad-based across the business:
- Domestic ports revenue rose 13% to ₹7,177 crore, handling 118 million metric tonnes of cargo.
- International ports revenue jumped 71% to a record ₹1,839 crore.
- Logistics revenue rose 21% to ₹1,273 crore, and marine revenue grew 57% to ₹1,007 crore.
For the first half of FY27, revenue from operations rose 21% to ₹22,161 crore and PAT rose 14% to ₹7,332 crore. Buoyed by the half-year performance, APSEZ raised its FY27 guidance by ₹1,000 crore each: revenue is now guided at ₹44,000–46,000 crore and EBITDA at ₹26,000–27,000 crore. On 29 October, Adani Ports was among the top Sensex gainers, up about 3–4.5% in morning trade.
Hero MotoCorp Q2 FY27: revenue up 21%, but margins shrink
Hero MotoCorp, India's largest two-wheeler maker, reported standalone results for the September quarter on 28 October. Revenue from operations jumped 21.1% to ₹14,687 crore, beating estimates, but standalone PAT rose only 4.6% to ₹1,456 crore, missing analyst estimates of around ₹1,490–1,531 crore. Total expenses rose 23.2% to ₹12,942 crore, outpacing revenue, as raw-material costs rose 26.2%.
| Hero MotoCorp metric (standalone) | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue from operations | ₹14,687 crore | ₹12,126 crore | +21.1% |
| EBITDA | ₹1,967 crore | ₹1,823 crore | +7.9% |
| EBITDA margin | 13.4% | 15.0% | −160 bps |
| Profit after tax | ₹1,456 crore | ₹1,392–1,393 crore | +4.6% |
Volumes remained resilient: Hero sold 1.87–1.9 million motorcycles and scooters, up about 10% year-on-year. Scooter dispatches rose 47% to 2,40,000 units, and its electric brand VIDA grew retail sales 76% to 66,531 units. On a consolidated basis, revenue rose 23% to ₹14,971 crore and PAT jumped 41% to ₹1,861 crore, helped by a ₹397 crore gain from an associate after a capital raise. The board also approved up to ₹300 crore additional investment in its Netherlands subsidiary for international expansion.
What the two results tell investors
- Ports and logistics are firing on all engines: APSEZ's international, logistics and marine arms are growing much faster than its already-large domestic ports base, and the guidance upgrade signals management confidence.
- Two-wheeler demand is strong, but costs bite: Hero's 21% revenue growth shows festive demand held up, yet steel and copper costs cut margins by about 160 basis points.
- The contrast matters for the market: earnings leaders with pricing power and volume growth are being rewarded, while margin squeezes are punished even when revenue beats estimates.
For context, other Q2 results reported around the same time included Bajaj Finance's 29% profit jump and the big private banks' September-quarter results covered in our bank Q2 FY27 roundup. The broader market backdrop, including crude near $114 and the Fed on hold, was covered in our 28 October market update.
FAQs
Q: How much did Adani Ports' profit rise in Q2 FY27?
A: Consolidated PAT rose 18% year-on-year to ₹3,682 crore in the September 2026 quarter.
Q: Why did Hero MotoCorp miss profit estimates despite 21% revenue growth?
A: Higher input costs — raw-material costs rose 26.2% — pushed total expenses up 23.2%, faster than revenue, and EBITDA margin fell to 13.4% from 15%.
Q: Did Adani Ports raise its FY27 guidance?
A: Yes. It raised revenue guidance to ₹44,000–46,000 crore and EBITDA guidance to ₹26,000–27,000 crore, each up ₹1,000 crore.
Q: What did the Fed do on 28 October 2026?
A: It held its benchmark rate at 3.75% to 4.00%, citing elevated inflation, and gave little hint about its next move.
Conclusion
Adani Ports delivered a clean beat with a guidance upgrade, while Hero MotoCorp showed that strong demand alone is not enough when commodity costs surge. With crude still near $114, US yields around 5% and the Fed on hold, the next leg of the market will likely depend on whether more companies can protect margins in the December quarter. This article is for information only and is not investment advice.