Revenue Down, ADHI Profit Rises 12.5%, Here's Why

Jakarta, CNBC Indonesia - State-owned construction issuer PT Adhi Karya (Persero) Tbk. (ADHI) recorded a profit for the year attributable to owners of the parent entity of Rp8.49 billion in the first half of 2026. This profit rose 12.57% compared to the same period last year, which was Rp7.54 billion.

In fact, operating revenue until the first half of this year fell 18.35% to Rp3.11 trillion, down from Rp3.81 trillion in 2025.

However, ADHI managed to reduce its cost of revenue to Rp2.41 trillion from Rp3.24 trillion, a decrease of 25.50%. The larger decline in cost of revenue compared to the drop in revenue caused gross profit to soar 22.28% to Rp700.42 billion, compared to Rp572.87 billion in the same period last year.

On the operational side, total operating expenses were slightly reduced to Rp384.25 billion. In detail, selling expenses increased 12.15% to Rp6.51 billion from Rp5.80 billion, while general and administrative expenses edged down 0.14% to Rp377.74 billion from Rp378.21 billion.

This efficiency drove operating profit up significantly to Rp316.17 billion, surging 67.69% compared to the first half of 2025, which was Rp188.85 billion.

Additionally, the contribution from the share of profit of joint ventures also increased to Rp188.41 billion from Rp186.24 billion, a rise of approximately 1.17%.

Nevertheless, the positive performance at the operational level was held back by swelling non-operational items. The share of loss of associates increased sharply to Rp23.92 billion from Rp3.36 billion in the same period the previous year, a jump of around 611.59%.

Furthermore, finance costs rose to Rp349.17 billion from Rp339.81 billion, an increase of 2.75%. The company also recorded net other expenses of Rp35.83 billion, a reversal from the previous year which still recorded net other income of Rp75.24 billion, thereby putting significant pressure on profit.

As a result, profit before tax fell to Rp20.56 billion from Rp24.80 billion in the first half of 2025, a contraction of 17.11%. Meanwhile, non-final income tax expense decreased to Rp3.04 billion from Rp5.21 billion, a reduction of 41.59%, so the total net income tax expense also fell by the same percentage.

Ultimately, the company’s profit for the year was recorded at Rp17.51 billion, down 10.52% compared to Rp19.59 billion in the first half of 2025.

ADHI’s assets as of the first half of this year fell to Rp27.5 trillion from Rp28.7 trillion at the end of 2025.