ADANIPORTS - Adani Ports

📊 NSE: ADANIPORTS 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 17:50

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 30% YoY to INR 9,167 Cr in Q2 FY26. Segment growth: Domestic Ports grew 16% to INR 6,351 Cr; International Ports grew 35% to INR 1,077 Cr; Logistics grew 79% to INR 1,055 Cr; and Marine services grew 237% to INR 641 Cr. H1 FY26 total revenue reached INR 18,294 Cr, a 25% YoY increase.

Geographic Revenue Split

Domestic operations contribute the majority of revenue, with Domestic Ports accounting for 69% (INR 6,351 Cr) of Q2 FY26 revenue. International Ports contributed 11.7% (INR 1,077 Cr), showing a significant increase from 11.3% in the previous year due to the commencement of Colombo operations and improved margins in Tanzania and Israel.

Profitability Margins

Consolidated EBITDA margin remained healthy at ~60-61%. Domestic ports achieved a record H1 FY26 EBITDA margin of 74.2% (up from 72.7% in H1 FY25). Logistics RoCE improved significantly to 9% in H1 FY26 from 6% in FY25, driven by higher capacity utilization in trucking and warehousing.

EBITDA Margin

Consolidated EBITDA for Q2 FY26 was INR 5,550 Cr, up 27% YoY. H1 FY26 EBITDA rose 20% to INR 11,046 Cr. The margin expansion is supported by operational efficiencies, with Mundra port maintaining a 74% EBITDA margin and international operations improving from 11% to 16% margin visibility.

Capital Expenditure

Planned capex for FY26 is guided at INR 11,000 - 12,000 Cr. Long-term capex guidance for FY25-FY29 is set at INR 65,000 - 75,000 Cr, with INR 45,000 - 50,000 Cr allocated to domestic ports and INR 15,000 - 20,000 Cr for logistics expansion.

Credit Rating & Borrowing

Maintains top-tier ratings: [ICRA]AAA (Stable) and [CARE]AAA (Stable). International ratings include Fitch at BBB- (Stable) and S&P at BBB- (Positive). Net debt-to-EBITDA stood at 1.82x as of September 2025, well below the internal cap of 2.5x.

⚙️ Operational Drivers

Raw Materials

As a service utility, primary operational costs are Fuel (Diesel/Bunker oil) for vessel and truck operations (~10-15% of logistics/marine costs) and Energy/Power for port equipment and cold storage.

Import Sources

Fuel and energy are sourced domestically within India for port operations, while international port assets in Israel, Tanzania, and Sri Lanka source utilities locally in their respective regions.

Key Suppliers

Specific suppliers are not disclosed, but the company procures marine vessels from global manufacturers and maintains a trucking fleet of 937 units for its logistics division.

Capacity Expansion

Current domestic cargo volume was 227 MMT in H1 FY26 (+7% YoY). The company targets 505-515 MMT for FY26 and has a long-term goal of 850 MMT domestic cargo volume by 2030. Capacity was recently bolstered by the addition of Gopalpur, Vizhinjam, and Dar-es-Salaam ports (53 MMT combined).

Raw Material Costs

Operating expenses are managed through high efficiency, reflected in a turnaround time of 0.7 days compared to 2 days for state-owned ports. Logistics costs are being optimized through an integrated 'port-gate to customer-gate' model.

Manufacturing Efficiency

Port efficiency is industry-leading with 0.7 days turnaround time. Container market share increased to 45.5% in H1 FY26 from 45.1% YoY.

Logistics & Distribution

Distribution is handled via an integrated network of 937 trucks and a growing rail fleet, providing end-to-end solutions that increase customer stickiness to 56%.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Growth will be achieved through the 'Integrated Transport Utility' model, scaling the logistics segment (92% H1 growth) and marine business (213% H1 growth). Strategic acquisitions like Gopalpur Port and Astro Offshore, alongside the operationalization of the Vizhinjam transshipment hub and Colombo terminal, are key drivers.

Products & Services

Port handling and storage, marine support services (tugging/dredging), rail and truck logistics, warehousing, and international freight forwarding.

Brand Portfolio

Adani Ports, Ocean Sparkle, Astro Offshore, Shanti Sagar International Dredging.

New Products/Services

Expansion into West Africa waters via Platform Supply Vessels (PSVs) and the ramp-up of the International Freight Network which contributed to the 92% growth in logistics revenue.

Market Expansion

Expanding presence in the MEASA region (Middle East, Africa, South Asia) and the East-West trade corridor. Target to reach 850 MMT domestic cargo by 2030.

Market Share & Ranking

Ranked #1 private port operator in India with a 28% overall market share and 45.5% container market share.

Strategic Alliances

Partnerships include a 49% stake divestment in Adani Ennore Container Terminal to strategic partners and JVs for international port operations in Colombo and Haifa.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated logistics (port-to-hinterland). APSEZ is positioned as a leader in this transition, moving from a pure port operator to an integrated transport utility with a 28% market share.

Competitive Landscape

Competes with state-owned major ports and other private operators like DP World and PSA, but maintains a lead through lower turnaround times (0.7 days) and superior infrastructure.

Competitive Moat

Moat is built on 'sticky' cargo (56%), strategic locations of ports (Mundra, Vizhinjam), and integrated logistics infrastructure (rail/trucks/warehousing) which creates high switching costs for customers.

Macro Economic Sensitivity

Highly sensitive to India's GDP growth and global EXIM trade volumes. Port volume growth typically tracks at 2x-3x of industry growth.

Consumer Behavior

Increased demand for end-to-end supply chain visibility and faster turnaround is driving customers toward integrated players like APSEZ.

Geopolitical Risks

Trade route disruptions and local geopolitical issues in regions like Israel or East Africa could hamper volume growth or delay project execution.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Major Port Authorities Act (for certain terminals) and environmental norms for coastal zones. Pricing is flexible at most locations except three regulated terminals.

Environmental Compliance

Targeting Net Zero by 2040. Ranked in the Top 5% of Global Transportation companies by S&P Global CSA for ESG performance.

Taxation Policy Impact

Subject to standard corporate tax rates in India and international jurisdictions; benefits from SEZ tax incentives at specific locations like Mundra.

Legal Contingencies

Investigations by the US SEC and US DoJ regarding certain matters remain sub-judice. Any adverse outcome is a key monitorable for credit ratings.

⚠️ Risk Analysis

Key Uncertainties

Global trade volatility (impact 5-10% on volumes), geopolitical instability in international markets, and the outcome of pending legal investigations.

Geographic Concentration Risk

Mundra Port remains a significant contributor (handling ~200 MMT of 450 MMT total group cargo in FY25), though concentration is reducing through diversification.