Adani ports & sez has received a top-tier ESG rating from CARE ESG Ratings Limited, marking a significant achievement in the company's sustainability and governance practices. The rating was disclosed to stock exchanges on March 20, 2026, in compliance with regulatory requirements.

ESG Rating Details

CARE ESG Ratings Limited has assigned a 'Care EDGE – ESG 1+' rating to Adani Ports and Special Economic Zone Limited. This rating represents the highest tier of ESG performance evaluation by the rating agency.

The rating symbol Care EDGE – ESG 1+ specifically denotes a leadership position in managing ESG risk through best-in-class disclosures, policies and performance, highlighting the company's commitment to environmental, social, and governance excellence.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement also references the SEBI Master Circular bearing reference number HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Company Secretary Kamlesh Bhagia signed the disclosure document digitally on March 20, 2026, ensuring proper documentation and compliance with regulatory requirements. The formal communication was addressed to both BSE Limited and National Stock Exchange of India Limited, maintaining transparency with all stakeholders.

Corporate Governance

This ESG rating assignment reflects Adani Ports and Special Economic Zone Limited's ongoing efforts in sustainable business practices and corporate governance. The 'Care EDGE – ESG 1+' rating positions the company among industry leaders in ESG performance, demonstrating its commitment to responsible business operations and stakeholder value creation.

Adani Ports & SEZ has received a revised assessment from global brokerage HSBC, which maintained its Buy recommendation while adjusting the target price downward. The brokerage firm has reduced its target price from Rs 1850 to Rs 1800, reflecting concerns about the company's Middle East exposure amid ongoing geopolitical tensions.

Key Rating Parameters

Risk Factors and Offsetting Elements

HSBC identified Middle East exposure as the primary risk factor influencing the target price revision. However, the brokerage noted several positive developments that partially offset these concerns:

• Higher thermal coal volumes: Increased coal handling capacity supporting revenue growth
• Rerouted containers: Benefiting from global supply chain adjustments
• Capacity expansion: Ongoing infrastructure development projects
• Take-or-pay contracts: Providing revenue stability and predictable cash flows

Financial Outlook Adjustments

Investment Rationale

Despite the EBITDA estimate reductions for FY26-28e, HSBC remains optimistic about the company's long-term prospects. The brokerage expects improving Return on Capital Employed (ROCE) to support potential rerating of the stock. This improvement in capital efficiency metrics could drive investor confidence and valuation expansion despite near-term headwinds from geopolitical risks in the Middle East region.

The combination of operational diversification through thermal coal handling, container rerouting benefits, and strategic capacity expansion initiatives positions the company to navigate current challenges while capitalizing on emerging opportunities in the logistics and port infrastructure sector.