Adani Ports — Q2 FY26 earnings call

Call held 4 Nov 2025

Management summary

APSEZ delivered another record quarter with 30% revenue growth driven by strong performance across all four business pillars. Domestic ports achieved record H1 EBITDA margin of 74.2% with market share rising to 28%. International ports EBITDA margin improved 969 bps with Colombo delivering 100,000+ TEUs for three consecutive months. Logistics and Marine showed exponential growth from new strategy execution. Consolidated ROCE improved to 16% from 15% in FY25.

Highlights

  • Q2 revenue hit INR 9,167 crores, up 30% YoY

  • EBITDA at INR 5,550 crores, grew 27% YoY

  • Net profit at INR 3,120 crores, up 29% YoY

  • Domestic Ports EBITDA margin at record 74.2% for H1 FY26

  • Domestic Ports ROCE improved to 24% in H1 vs 21% in FY25

  • Logistics revenue grew 79% YoY to INR 1,055 crores

  • Marine revenue grew 237% YoY to INR 641 crores; vessel count at 127

  • Net debt/EBITDA at 1.8x; Fitch revised outlook to Stable from Negative

Key financials

  1. Revenue ₹9,167 Cr +30%YoY
  2. EBITDA ₹5,550 Cr +27%YoY
  3. Net Profit ₹3,120 Cr +29%YoY
  4. Domestic Port EBITDA Margin 74.2%
  5. Consolidated ROCE 16%
  6. Net Debt/EBITDA 1.8×

What they filed

Q1 FY27: revenue up 18.6%, net profit up 10.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue7,067 7,964 8,488 9,126 9,167 +30%9,705 +22%10,738 +27%10,821 +19%
EBITDA4,367 4,802 5,006 5,495 5,340 +22%5,786 +20%6,020 +20%6,253 +14%
Net profit2,413 2,518 3,023 3,311 3,120 +29%3,043 +21%3,308 +9%3,650 +10%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹9,124 Cr Total
  • Domestic Ports ₹6,351 Cr 69.6%
  • International Ports ₹1,077 Cr 11.8%
  • Logistics ₹1,055 Cr 11.6%
  • Marine ₹641 Cr 7.0%

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · High confidence INR 36,000-38,000 crores
    FY26 guidance maintained

    — Ashwani Gupta, CEO

Profitability

  • FY26 EBITDA Profitability · FY26 · High confidence INR 21,000-22,000 crores
    full-year EBITDA guidance is nearly INR 21,000, INR 22,000 crore

    — Ashwani Gupta, CEO

Margin

  • International Ports EBITDA Margin (Stabilized) Margin · Medium term · Medium confidence ~45% blended (Colombo 50%, Haifa 30-40%, Australia 65%)
    we expect the EBITDA margin when all these operations are stabilized to go from 26% to somewhere between, around 45%

    — D. Muthukumaran, CFO

  • Domestic Ports EBITDA Margin Margin · Long term · Medium confidence 75-77%
    75% is what we have shown this year... we expect that to be somewhere in the region of 75% to 77%

    — D. Muthukumaran, CFO

  • Logistics EBITDA Margin (non-IFN, non-trucking) Margin · Medium term · Medium confidence 40-45%
    Logistics business to give 40% to 45% margin on the non-IFN and the non-trucking business

    — D. Muthukumaran, CFO

Volume

  • FY26 Cargo Volume Volume · FY26 · High confidence ~510 MMT
    this year-round number going to do 510 million metric tons this year as we close the year

    — D. Muthukumaran, CFO

Capex

  • 5-Year Capex Plan Capex · 5 years · High confidence INR 75,000 crores
    in line with our 5-year CAPEX plan of Rs 75,000 crores

    — Ashwani Gupta, CEO

Capacity

  • Total Port Capacity Capacity · 5 years · High confidence 1.1-1.2 billion metric tons

    From 633 MMT current today

    we have a capacity of 633. The next 5 years, we will take up the capacity between 1.1 to 1.2 billion metric tons

    — Ashwani Gupta, CEO

Debt

  • Net Debt/EBITDA Policy Debt · Ongoing · High confidence 2.5x average
    we would like to actually have a policy of average net debt to EBITDA of 2.5x

    — D. Muthukumaran, CFO

Risks & concerns

  • Operation Sindoor disrupted Q1 container volumes at Mundra

    medium

    Geopolitical event caused cargo redefinition; Mundra container recovery visible month-on-month with October at 720,000+ TEUs

    Management acknowledged

  • Coal import structural decline continues

    medium

    EXIM coal all-India declined; iron ore nearly vanished; offset by coking coal market share gain (36.5% to 41.9%) and coastal coal (27.8% to 31.1%)

    Both acknowledged

  • Tariff and geopolitical supply chain disruption

    medium

    Management notes exports to non-US countries increased significantly; views supply chain reset as opportunity not risk

    Analyst downplayed

  • Moody's negative outlook still pending

    low

    CFO expects all rating agencies to reflect stable outlook in coming months based on financial performance

    Analyst acknowledged

Areas of evasion (1)

  • Refused to comment on potential guidance revision despite strong H1 tracking

Q&A highlights

3 direct
Domestic port volume growth muted despite record financials Direct
all India cargo growth is 4.3%, whereas APSEZ has grown by 6.9%... container market share has grown from 44.4% to 45.9%

Reveals gap between muted volume growth (4.3% all-India) and strong financial performance driven by mix improvement and pricing power

Asked by Alok Deora, Motilal Oswal

Volume bridge to 1 billion ton target by 2030 Direct
International is about 150 to 160 MMT... current portfolio mix to remain the same... Dhamra to 90-100 million tons

Management provided first detailed bridge showing international 150-160 MMT + domestic 840 MMT from existing portfolio expansion

Asked by Parash Jain, HSBC

International port margin trajectory Direct
Colombo will be around 50%; Haifa will be around 30% to 40%; and Australia will be around 65%

First port-specific long-term margin targets for international business, giving visibility into a blended 45% EBITDA margin target

Asked by Alok Deora, Motilal Oswal

2 min read 6 chapters

Detailed narrative

All Four Business Pillars Deliver Double-Digit Growth

Q2 FY26 demonstrated the integrated transport utility strategy firing on all cylinders. Domestic ports grew 15%, international ports hit lifetime high revenue of INR 1,077 crores, logistics surged 79%, and marine grew 237%. Consolidated ROCE improved to 16% from 15% in FY25, while leverage remained disciplined at 1.8x. The diversified growth profile validates management's shift from a port-volume story to a multi-pillar platform.

Domestic Port Pricing Power Drives Record Margins

Despite all-India cargo growth of only 4.3%, APSEZ grew 6.9% with market share rising to 28%. More impressively, domestic port EBITDA margin hit a record 74.2% in H1 FY26, up from lower levels a year ago. ROCE surged to 24% from 21% in FY25. The margin expansion is driven by operating leverage, price increases linked to FX, and favorable cargo mix (higher-value fertilizers, containers).

Colombo Ramp-Up Exceeds Expectations

Colombo delivered its third consecutive month of 100,000+ TEUs, validating the fully automated port model. International ports overall EBITDA improved 969 bps QoQ to hit a lifetime high of INR 261 crores. Management expects Colombo EBITDA margins to reach 50% at stabilization, Haifa 30-40%, and Australia 65%, targeting a blended 45% international EBITDA margin.

Logistics Growth Story Validated by Numbers

Logistics revenue at INR 1,055 crores grew 79% YoY driven by asset-light trucking and international freight network. ROCE improved from 6% in FY25 to 9% in H1 FY26. Management targets 40-45% EBITDA margin for non-IFN/non-trucking logistics over time. The trucking and freight forwarding businesses are still in gestation but providing strategic cargo control.

Marine Fleet Scales to 127 Vessels at Premium Returns

Marine revenue grew 237% to INR 641 crores with ROCE at 15%, above the 14% threshold. Vessel count rose to 127 from 75 a year ago. The business operates in Middle East and West Africa with plans to expand to Southeast Asia. India domestic marine is at 75% market share with 8 new tugs ordered for delivery in 2027-2028.

1 Billion Ton by 2030 Target Gets Detailed Bridge

Management provided the clearest bridge yet to the 1 billion ton target: international at 150-160 MMT from 4 existing ports, domestic 840 MMT from organic expansion. Current capacity of 633 MMT to expand to 1.1-1.2 billion MMT via INR 45,000-50,000 crores port capex. Container remains the #1 growth driver followed by coastal coal and liquid.

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