Adani Ports — Q4 FY26 earnings call

Call held 30 Apr 2026

Management summary

Adani Ports delivered a robust Q4 FY26, surpassing its own guidance with strong revenue and EBITDA growth for the full fiscal year. The company achieved a healthy net debt to EBITDA of 1.9x and 16% ROCE, driven by robust domestic and international port performance, and significant growth in logistics. Management outlined a strategic focus on organic growth, asset utilization, and technology to achieve a 18-19% CAGR over the next five years, while adapting to geopolitical challenges and business mix shifts.

Highlights

  • Handled 500 million metric tons of cargo, exceeding guidance.

  • FY26 Revenue grew by 25%, EBITDA by 20%, and PAT by 16%.

  • Net debt to EBITDA improved to 1.9x, demonstrating strong financial discipline.

  • Overall Return on Capital Employed (ROCE) reached 16%, with domestic ports achieving 23%.

  • Logistics business achieved double-digit ROCE of 10% in FY26, ahead of its 3-4 year target.

Concerns

  • Margins experienced seasonality and some individual ports saw drops due to business mix changes (e.g., less imported coal, more coastal coal).

  • Geopolitical issues and the West Asia crisis led to disruptions, impacting container volumes and specific commodities, requiring operational adjustments like extended free storage at Mundra.

  • High freight costs caused exporters to delay decisions, impacting volumes in certain segments.

Key financials

2 periods

Headline

  • Net Debt to EBITDA
    1.9×
  • Overall ROCE
    16%
  • Total Cargo Handled
    500 million metric tons

FY26

  • Revenue Growth
    25%
  • EBITDA Growth
    20%
  • PAT Growth
    16%

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

SegmentRevenue GrowthEBITDA Growth
Domestic Ports13%14%
International Ports34%1.8%
Logistics55%—
Marine1.3%1.3%

Capital allocation

high confidence
  • Capex ₹12,000 Cr New plan — FY26 actual spend was INR 15,000 crores, new guidance for FY27 is INR 12,000-14,000 crores · 60% to 70% of our annual operating cash for organic capex
    • Organic capex (60-70% of annual operating cash)
    • Accelerated expansion in Mundra (CT5, future expansion)
    • Accelerated expansion in Dhamra (volume, RSR, Postal Cargo)
    • Accelerated expansion in Hazira (liquid)
    • Vizhinjam Phase 2 (automated terminal)
    • Automation investments to improve productivity

    Previously planned ₹15,000 Cr

    So first objective for us is to invest in the organic capex, which is between 60% to 70% of our annual operating cash. Slide 26, sorry. I have a different version. 60% to 70%. So that's what we have done. We have found the opportunity.
  • Debt 1.9× EBITDA
    • Repayment Bond buyback in March $199 Mn
    • Repayment Bond buyback in previous year $100 Mn
    APSEZ outperformed the upper end of revenue, EBITDA and capex, while closing with net debt to EBITDA at 1.9x and return on capital employed of 16%, another evidence of our healthy business growth with financial discipline.
  • M&A NQXT Australia Acquisition · Closed

    Led to ramp-up of international ports EBITDA

    Contributed to 180% EBITDA growth in international ports, with only Q4 counted in annual announcements.

    The international ports revenue grew 34% and EBITDA increased 180%, led by ramp-up at CWIT Colombo terminal and completion of NQXT Australia acquisition. But in the annual announcements, we counted only the quarter 4 of the Australia.
  • M&A Astro Acquisition · Closed

    Increased marine fleet

    Acquired 20+ vessels, now has >50 vessels in marine business.

    Now we finished roughly 8% of our business, which is marine now in terms of revenue roughly. And this is a consequence of the strategy which we did. In India, we have 77% market share on the near terms-- then we acquired Astro with more than 20 vessels at that time.
  • Liquidity Liquidity disclosed Management stated they have the money for acquisitions and a buffer for headwinds.
    So any headwind which may come like it came last year with Operation Sindoor and West Asia crisis, definitely, we have a buffer, which we will do in next 5 to 6 years, the acquisitions to cover up. And we have the money to do that, but we have not incorporated in our top line and bottom line and also in the capex front.

Guidance & targets

Volume

  • Total Cargo Handled Volume · FY26 · High confidence 500 million metric tons
    To start with, we said 500 million metric tons, and we delivered it, as we said.

    — Ashwani Gupta

  • India Growth Multiplier (Minimum) Volume · Long-term · High confidence 1.5x India growth
    If India growth goes down because of fuel and so on, we do 1.5x of India growth. That's our minimum. That we do believe whatever happens, we will deliver you 1.5x of India growth.

    — Ashwani Gupta

  • India Growth Multiplier (Optimistic) Volume · Long-term · Medium confidence 1.7x-1.8x India growth
    But if India is optimistic, which you would have seen today, we have this news of crude, we have news of imported coal and many other tailwinds, then India growth will be normal and we can go up to 1.7x, 1.8x without any acquisition.

    — Ashwani Gupta

Profitability

  • Net Debt to EBITDA Profitability · FY26 · High confidence 1.9x
    APSEZ outperformed the upper end of revenue, EBITDA and capex, while closing with net debt to EBITDA at 1.9x and return on capital employed of 16%, another evidence of our healthy business growth with financial discipline.

    — Ashwani Gupta

  • Return on Capital Employed (ROCE) Profitability · FY26 · High confidence 16%

    — Ashwani Gupta

  • EBITDA Growth Profitability · FY26 · High confidence 20%
    FY '26 revenue grew by 25%, EBITDA grew by 20% and PAT grew by 16%.

    — Ashwani Gupta

  • PAT Growth Profitability · FY26 · High confidence 16%

    — Ashwani Gupta

  • Domestic Ports ROCE Profitability · FY26 · High confidence 23%

    Previously 21% → 23%

    The return on capital employed increased to 23% from 21%.

    — Ashwani Gupta

  • Logistics ROCE Profitability · FY26 · High confidence 10%

    Previously 6% → 10%

    The return on capital employed increased to 10% from 6%. So in our Ambition 2030 plan, we said that we will take 3 to 4 years to bring the return on capital employed on Logistics to double digit, but I think in FY '26 itself, we hit 10%.

    — Ashwani Gupta

  • Consolidated ROCE Profitability · Long-term · High confidence 20%
    But to answer to your question, our commitment, our promise is to deliver twice the growth in 5 years with a 20% return on capital at consolidated level.

    — Ashwani Gupta

  • Net Debt to EBITDA Profitability · Long-term · High confidence 2.5x
    And from a guidance perspective, we stay with 2.5x. And while we do that, we will also continue to look for options where we can optimize the debt and the cost profile.

    — Krishna Menon

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 25%
    FY '26 revenue grew by 25%, EBITDA grew by 20% and PAT grew by 16%.

    — Ashwani Gupta

  • Revenue per ton Revenue · Long-term · High confidence Increasing
    So there are three factors in revenue per ton increasing, number one they're adding services, number two the exchange rate and the number three is pricing, exchange rate and there's one more thing. I will come back over this there's three things which are improving the revenue per ton and cost per ton is almost flat.

    — Ashwani Gupta

Growth

  • Overall Growth Growth · Long-term · High confidence Twice in 5 years
    But to answer to your question, our commitment, our promise is to deliver twice the growth in 5 years with a 20% return on capital at consolidated level.

    — Ashwani Gupta

  • CAGR Growth · Next 5 years · High confidence 18-19%
    So with that story in mind, we keep the target of growing at CAGR of 18% to 19%. In good time like last year, we could grow up to 25%, but still we want to keep our foot on the ground and keep delivering between 18% to 19% CAGR, moving forward for next 5 years.

    — Ashwani Gupta

Capacity

  • Domestic Cargo Volume Handled Capacity · by 2030 · High confidence 850 million tons
    But within that 1 billion, you would be able to handle 850. The volume guidance does not change.

    — Ashwani Gupta

  • Total Capacity Capacity · by 2030 · High confidence 1 billion tons
    So, you may be wondering why in 1 month, Mundra is doing 770,000. If you try to calculate the capacity what we have in Mundra and what we are delivering, which is 770,000 in a given month, you will hit 94% utilization.

    — Ashwani Gupta

Cost

  • Cost per ton Cost · Next 5-6 years · High confidence Flat
    And our target is to keep exactly flat for the next 5 to 6 years. How will we do that? By investing in the automation.

    — Ashwani Gupta

Sustainability

  • Ports by Reserve Energy Sustainability · Within 1.5 years · High confidence 100%
    As you know, within 1.5 year, 100% of our ports will be by reserve energy, if we make our own reserve energy, our reserve energy is competitive.

    — Ashwani Gupta

Infrastructure

  • Shore Power Provision for International Vessels Infrastructure · After 2.5 years · High confidence Available
    Now in India do we have the facility for the shore power for example. And we are now making the provisions for the shore power because we know after 2.5 years, international vessels will come to Mundra they will need the shore power and that will become our competitiveness as compared to our competition.

    — Ashwani Gupta

What to watch in Q1 FY27

Business mix change and container volumes

Next 3 months (Q1 FY27)
Current Impacted by free storages and Middle East crisis
Target Improvement in business mix and container volumes

Why it matters

Management expects Q1 FY27 to show improvement in business mix and container volumes, which were impacted by recent disruptions.

I think that all the free storages and everything and the business mix change between the containers and so on may be improved in the next 3 months. So, you may see a change in the container.

Risks & concerns

  • Geopolitical issues and West Asia crisis

    high

    Disruptions from Operation Sindoor, geopolitical issues, and West Asia crisis impacted operations and required adjustments like extended free storage for containers.

    Management acknowledged

  • Seasonality and business mix changes impacting margins

    medium

    Individual port margins saw drops due to changes in business mix (e.g., less imported coal, more coastal coal), but overall port margins remained consistent.

    Management acknowledged

  • High freight costs impacting export decisions

    medium

    Indirect impact on exporters delaying decisions due to high freight costs, with an expectation for this to normalize.

    Management acknowledged

  • Vulnerability of legacy technology systems

    low

    Analyst raised concerns about legacy technology systems being vulnerable, which management acknowledged and committed to studying.

    Analyst acknowledged

Q&A highlights

8 direct
Margins and seasonality Direct
When we talk about margins, you always have a seasonality. But the fundamentals are there, and we are delivering the fundamentals that as you saw that overall port margins remain consistent.

Addresses analyst concern about margin compression, clarifying it's seasonal and due to business mix changes, not fundamental issues.

Asked by Alok Deora

Logistics ROCE and future growth strategy Direct
I think, the result of 10% is not by luck. I mean, we have a strategy. I think 1.5 years before, we explained the strategy of a combination of addressing this business by asset heavy, asset light and asset zero. And this is what we delivered.

Explains the strategic shift that led to early achievement of double-digit ROCE in Logistics and its interlinkage with asset-heavy business.

Asked by Alok Deora

Capacity utilization and volume guidance Direct
You're right. At first, we have to know that when we do the theoretical capacity planning, we always consider 20%, right? Always capacity planning is done at 80%. So if I'm saying that, I have 1 billion, you can see it is at 80% of the total capacity.

Clarifies how the 1 billion ton capacity target translates to actual handled volume (850 million tons) and the role of efficiency improvements.

Asked by Alok Deora

Impact of West Asia crisis on volumes and Q1 outlook Direct
I think that all the free storages and everything and the business mix change between the containers and so on may be improved in the next 3 months. So, you may see a change in the container.

Provides near-term outlook on how the company expects to recover from disruptions caused by the West Asia crisis and related operational adjustments.

Asked by Manish Somaiya

Sustainability of international port margins Direct
Now when we are building up the Phase 2 capacity, which we will be finishing very soon, and so we are getting into the EXIM trade. So, keeping the profitability margins, growing the market share and then introducing the culture of partnership and the leaner organization... will help international operations to deliver more margins than their competitors in that region.

Explains the strategy for sustaining and improving international port margins through capacity expansion, market share growth, and operational efficiency.

Asked by Manish Somaiya

Debt optimization and 2.5x Net Debt to EBITDA target Direct
And from a guidance perspective, we stay with 2.5x. And while we do that, we will also continue to look for options where we can optimize the debt and the cost profile.

Confirms the 2.5x net debt to EBITDA as a ceiling/guidance, but also indicates flexibility for strategic M&A if opportunities arise, implying a dynamic approach to capital structure.

Asked by Luke, Parash Jain

Underlying operating leverage and yield improvement Direct
So there are three factors in revenue per ton increasing, number one they're adding services, number two the exchange rate and the number three is pricing, exchange rate and there's one more thing. I will come back over this there's three things which are improving the revenue per ton and cost per ton is almost flat. When I say almost flat, I'm talking about absolute inflation, right? So this is all offset by productivity. And our target is to keep exactly flat for the next 5 to 6 years.

Details the drivers of revenue per ton growth (services, exchange rate, pricing) and how cost per ton is kept flat through productivity and automation, indicating strong operational efficiency.

Asked by Parash Jain

Shipbuilding opportunity at Mundra Direct
I don't think that's our competency. Our competency is to build the infrastructure ecosystem and to run it efficiently and effectively that's our competency. Our competency is not shipbuilding.

Clearly states management's strategic focus, ruling out entry into shipbuilding and emphasizing core infrastructure and operational expertise.

Asked by Pulkit Patni

3 min read 6 chapters

Detailed narrative

Strong Financial Performance and Guidance Exceeded

Adani Ports delivered a robust Q4 FY26, surpassing its own guidance. The company reported a 25% increase in revenue, a 20% rise in EBITDA, and a 16% growth in PAT for the full fiscal year. Net debt to EBITDA stood at a healthy 1.9x, and the overall Return on Capital Employed (ROCE) reached 16%. Management highlighted the achievement of handling 500 million metric tons of cargo, marking a significant infrastructure milestone for India.

Segmental Growth and Operational Efficiency

Domestic ports handled 451 million metric tons, with revenue and EBITDA growing by 13% and 14% respectively, and market share reaching 27.1%. Domestic ports ROCE improved to 23% from 21%. International ports saw substantial growth, with revenue up 34% and EBITDA soaring by 180%, driven by the ramp-up of CWIT Colombo terminal and the NQXT Australia acquisition. The Logistics business also demonstrated strong performance, with revenue growing 55% and achieving a double-digit ROCE of 10% in FY26, ahead of its Ambition 2030 target.

Strategic Capital Allocation and Debt Management

The company's capital allocation strategy prioritizes organic capex, funded 60-70% by annual operating cash, followed by strategic M&A. FY26 capex was INR 15,000 crores, with a guidance of INR 12,000-14,000 crores for the next fiscal year. Capex acceleration was noted for Mundra (CT5), Dhamra (volume growth), Hazira (liquid), and Vizhinjam (Phase 2). Management reiterated its commitment to maintaining a net debt to EBITDA ratio below 2.5x, demonstrating financial discipline while pursuing growth opportunities, including potential $1 billion acquisitions.

Adapting to Geopolitical Challenges and Business Mix Shifts

Adani Ports navigated challenges such as Operation Sindoor, geopolitical issues, and the West Asia crisis. These events led to business mix changes, including less imported coal and more coastal coal, and required operational adjustments like providing extended free storage for containers at Mundra, utilizing 100 extra acres of land. Management emphasized its resilience and agility in adapting to these disruptions, ensuring continued service and aiming for improved business mix in Q1 FY27.

Focus on Technology, Automation, and Sustainability

The company is investing heavily in technology and automation to enhance productivity and achieve cost efficiencies. Initiatives include replacing diesel GSUs with electric ones, aiming for 100% reserve energy at ports within 1.5 years, and making provisions for shore power for international vessels within 2.5 years. These investments are part of a broader decarbonization and biodiversity strategy (Net Zero 2040, TNF 2050), which also yields economic benefits by keeping cost per ton flat and increasing revenue per ton through services, exchange rates, and pricing power.

Long-Term Growth Ambition and Market Outlook

Adani Ports aims for a 18-19% CAGR over the next five years, targeting to deliver twice the growth in 5 years with a 20% ROCE at a consolidated level. The company projects handling 850 million tons of domestic cargo by 2030 within a theoretical capacity of 1 billion tons, which could potentially expand to 1.1-1.2 billion tons. Management expressed optimism about India's growth trajectory, expecting APSEZ's growth to be 1.5x to 1.8x that of India's GDP, supported by tailwinds in coal demand and new trade routes.

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