Adani Ports Jumps 4% on Strong Q2, Raises FY27 Guidance

Adani Ports Lifts Growth and Investment Plans After a Strong Quarter

A stronger first half has prompted higher FY27 targets, with expansion spending rising alongside the company’s growth ambitions.

International operations and marine business lead revenue growth

Consolidated revenue rose 24% year on year to ₹11,340 crore in the September quarter. International ports revenue increased 71%, while the marine business grew 57%, making these the strongest contributors to the quarter’s reported growth. The company also recorded 15% year-on-year growth in cargo volumes, alongside annual price revisions.

EBITDA increased 23% to ₹6,807 crore and profit after tax rose 17% to ₹3,682 crore. The EBITDA margin, however, narrowed by 52 basis points to 60%. That aggregate movement sits alongside a marked improvement in international ports’ EBITDA margin, which reached 47.7%, compared with 24.2% a year earlier. The differing trends make the mix and profitability of individual businesses important to watch in coming quarters.

Higher guidance reflects first-half momentum

Following its strong first-half performance, APSEZ raised FY27 revenue guidance by ₹1,000 crore to ₹44,000–₹46,000 crore and EBITDA guidance by the same amount to ₹26,000–₹27,000 crore. The company expects momentum to continue in the second half, an expectation that will be tested by cargo volumes, pricing and the contribution from its international operations.

The company also raised FY27 capital expenditure guidance by ₹3,000 crore to ₹15,000–₹17,000 crore, from the earlier range of ₹12,000–₹14,000 crore. It said the higher spending reflects an acceleration of investment across its growth initiatives. For investors, the increase is both a signal of expansion plans and a reminder that delivery and returns on capital will matter alongside headline growth.

Expansion plans stretch towards the FY31 ambition

APSEZ has set an FY31 ambition of ₹91,500 crore in revenue and ₹52,000 crore in EBITDA, equivalent to 2.4 times and 2.3 times FY26 levels, respectively. Its stated capacity of 671 million metric tonnes is being expanded towards 1 billion metric tonnes. Domestic port investment at Mundra, Dhamra, Hazira and Vizhinjam is among the areas highlighted by analysts.

Analysts also pointed to the company’s integrated logistics strategy and potential overseas acquisitions. Management is evaluating nearly 20 overseas prospects, while emphasising that any assets should be brownfield and meet the group’s long-term return metrics. Those conditions are relevant: capacity growth and acquisitions can support future activity, but their contribution depends on execution and disciplined investment.

Brokerage views are positive, with execution still central

Motilal Oswal retained its FY27 and FY28 estimates, citing international port growth, including Colombo, and the consolidation of NQXT from Q4FY26. It expects 14% cargo-volume growth over FY26–28 and projected revenue, EBITDA and PAT compound annual growth rates of 17%, 18% and 21%, respectively. The brokerage reiterated a Buy rating with a ₹2,130 target price.

JM Financial upgraded the stock to Buy and raised its discounted-cash-flow-based target price to ₹2,065, citing stronger profitability in international business and at Mundra. ICICI Securities highlighted the revised guidance and capacity expansion. These are brokerage assessments, not assured outcomes. The share rose as much as 4% to ₹1,823.15 in intraday trade, with trading volume more than doubling; the move reflected investor response to the results and outlook, but does not by itself establish that future targets will be met.

Key Highlights

• Q2FY27 revenue rose 24% to ₹11,340 crore and PAT increased 17% to ₹3,682 crore.
• EBITDA climbed 23% to ₹6,807 crore, while the consolidated margin eased 52 basis points to 60%.
• FY27 revenue guidance is now ₹44,000–₹46,000 crore; EBITDA guidance is ₹26,000–₹27,000 crore.
• FY27 capex guidance increased to ₹15,000–₹17,000 crore as the company accelerates growth investments.
• Analysts cited cargo growth, international operations and logistics, while pointing to capacity expansion and investment execution as key considerations.

Investor Note: The higher guidance and strong quarterly growth strengthen APSEZ’s expansion case, but investors may also want to track margin trends, cargo volumes and whether stepped-up capital spending delivers the returns management is targeting. Brokerage ratings and target prices are estimates, not guarantees.