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Informist, Monday, Aug. 4, 2025

 

By Sunil Raghu

 

AHMEDABAD – Adani Ports and Special Economic Zone Ltd. is expected to report a year-on-year decline in consolidated net profit for the June quarter, despite higher cargo volumes handled at its ports. The increase in volumes is likely to drive revenue growth. A shift in the cargo mix at ports owned or managed by the company may weigh on profit margins and net profit, analysts said.

 

The company's consolidated net profit for the June quarter is expected to decline 4.7% on year to INR 29.7 billion, according to the average of the estimates from four brokerages. On a trailing basis, net profit is seen falling 1.6%. The company's revenue for the quarter is likely to rise 14.9% on year to INR 86.9 billion. On a trailing basis, the port company's revenue in the June quarter is likely to rise 2.4%.

For Jan-Mar, the company's consolidated net profit was INR 30.1 billion on revenue of INR 84.9 billion.

 

Elara Securities (India) Pvt. Ltd. has the lowest net profit estimate for Adani Ports at INR 27.9 billion while Kotak Institutional Equities estimated it the highest at INR 31.0 billion. As for revenue, Nuvama Wealth Management Ltd. has the highest estimate of INR 90.0 billion and Elara Securities has the lowest at INR 85.2 billion.

 

Adani Ports owns 15 ports across India with a cumulative capacity of 633 million tonnes. It also operates ports across Israel, Tanzania and Sri Lanka. The company handled 120.6 million tonnes of cargo in the June quarter, up 11% on year and 2.4% on a trailing basis. The rise in cargo was led by a 19% rise in container traffic.

 

The estimates of revenue growth for Adani Ports in the June quarter are almost similar. Elara sees it rising by 22% on year to INR 85.2 billion, while Motilal Oswal expects it to rise 23% on year to INR 85.8 billion. Kotak Institutional Equities has pencilled in Adani Ports' revenue growth at 13% on year. Analysts see three segments of ports, marine and logistics as key drivers for revenue growth. The marine operations include port-led services such as dredging, towage and pilotage, while the integrated logistics solutions include rail, warehousing and inland transport.

 

The average of the estimates of earnings before interest, tax, depreciation and amortisation by the four brokerages is INR 58.6 billion, with Kotak Institutional Securities projecting it at INR 51.1 billion and Elara Securities at INR 80.6 billion. The sharp variance in the estimates in EBITDA margins is primarily due to the change in the cargo mix handled.

 

Adani Ports will detail its earnings for the June quarter Tuesday.

 

The brokerages will keep a close watch on steps initiated by Adani Ports management to improve its port utilisation, growth in the logistics business, and details of capital expenditure plans. Adani Ports plans to invest INR 650 billion to INR 750 billion as capital expenditure till 2028-29 (Apr-Mar). Of this, INR 450 billion-INR 500 billion will be spent on domestic ports, INR 150 billion-INR 200 billion on logistics and the remaining INR 50 billion as maintenance capex. They will also be keen to know the status of the acquisition of the NQXT Terminal at Abbot Point Port in Queensland in Australia.

 

On Monday, shares of Adani Ports ended 3.1% higher at INR 1388.90 on the National Stock Exchange. The stock is up 9.6% since the company announced its March quarter results on May 1.

 

Of the eight research reports on the company available with Informist, seven brokerages have a ‘buy' or equivalent rating, with an average target price of INR 1,731 and one has a ‘hold' call for the stock.

 

Following are the June quarter earnings estimates for Adani Ports based on reports from four brokerage firms in descending order of the estimate of net profit (in INR million):

 

Brokerage firm	Net sales (in INR million)	Net profit (in INR million)	EBITDA (in INR million)
Kotak Institutional Equities	86,439	31,008	51,122
Motilal Oswal Financial Services Ltd	85,838	30,791	51,589
Nuvama Wealth Management Ltd	90,028	28,993	51,098
Elara Securities (India) Pvt Ltd	85,212	27,854	80,576
Average	86,879.25	29,661.50	58,596.25

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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