Adani Ports & SEZ 's airport division, Adani Airports, has announced an ambitious plan to invest Rs 20,000 crore in city-side infrastructure development across its airport portfolio, aiming to significantly boost its non-aeronautical revenue. The strategic move comes as the company reported strong financial performance, with revenue reaching Rs 2,715.00 crore in the latest quarterly results, marking a 25% year-on-year growth.

Investment Focus

The lion's share of the investment, approximately 70%, will be allocated to Mumbai and Navi Mumbai airports. This concentrated approach underscores the company's commitment to developing these key metropolitan hubs.

Non-Aeronautical Revenue Target

Adani Airports has set an aggressive target to increase its non-aeronautical revenue to 70% of total revenue by 2030. This ambitious goal represents a significant leap from the current industry average of 50%, highlighting the company's focus on diversifying its revenue streams.

Navi Mumbai International Airport Development

A cornerstone of the expansion plan is a 240-acre mixed-use development at Navi Mumbai International Airport. The first phase, covering 50 acres, is scheduled for completion by 2031 and will include:

• Hotels with 1,000 rooms
• Shopping malls
• Office towers
• Service apartments

This development is expected to be a major driver of non-aeronautical revenue growth.

Financial Performance and Funding

Adani Airports' recent financial results demonstrate strong growth, with quarterly revenue reaching Rs 2,715.00 crore, a 25% increase year-on-year. To support its expansion plans and refinance existing debt, the company successfully raised $750.00 million in June through external commercial borrowings. These funds will also be utilized to expand retail, food & beverage, and duty-free operations across its airport portfolio.

Conclusion

Adani Airports' substantial investment in city-side infrastructure and its focus on non-aeronautical revenue streams signal a strategic shift in its business model. By leveraging its prime airport locations for mixed-use developments, the company aims to create additional value and diversify its income sources. The success of this ambitious plan could potentially reshape the airport infrastructure landscape in India and set new benchmarks for the industry.

Adani Ports & SEZ , India's largest private port operator, has reaffirmed its commitment to meeting its fiscal year 2026 goals, as announced by the company's CEO. This confirmation comes alongside impressive first-quarter results that showcase the company's robust growth trajectory.

Strong Q1 Performance

Adani Ports and Special Economic Zone Limited (APSEZ) reported a significant 21% year-on-year increase in revenue for the first quarter, reaching ₹9,126 crore. This growth was primarily driven by exceptional momentum in the company's Logistics and Marine businesses, which saw revenue increases of 2x and 2.9x, respectively.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 13% to ₹5,495 crore, while Profit After Tax (PAT) grew by 7% to ₹3,311 crore.

Key Business Segment Performance

Operational Highlights

• Total cargo volume handled increased by 11% year-on-year to 121 MMT.
• Container volume grew by 20% to 3.45 million TEUs.
• All-India cargo market share increased to 27.8% from 27.2% in the previous year.

Strategic Developments

APSEZ has made significant strides in expanding its operations:

1. Commenced operations at the Colombo West International Terminal, a fully automated, natural deep-water port in Sri Lanka.
2. Opened a new export berth at Dhamra port and began construction of two additional berths.
3. Vizhinjam port completed its first year of operations, achieving 100% utilization in its ninth month.
4. The Board approved the acquisition of NQXT Port in Australia, subject to regulatory approvals.

Financial Management

As part of its long-term capital management plan, APSEZ has:

• Increased average debt maturity from 4.3 years to 5.2 years.
• Reduced yield across all bond issuances by up to 116 basis points.
• Issued ₹5,000 crore in 15-year Non-Convertible Debentures to Life Insurance Corporation of India.
• Launched a tender offer to buy back up to US$450 million of outstanding USD Bonds.

Outlook

APSEZ's CEO, Ashwani Gupta, expressed confidence in the company's trajectory, stating, "With expanding Trucking and International Freight Network services and fast growing, diversified marine fleet in the MEASA region, we are deepening our integrated transport utility approach and extending our value chain from port gate to customer gate. Coupled with cargo growth and market share gains in the domestic ports business, and higher revenue and improving EBITDA in international ports, we remain firmly on track to meet our FY26 guidance."

The company's performance and strategic initiatives underscore its commitment to maintaining its position as a leading integrated ports and logistics company, with a focus on expanding its service offerings and geographical presence.

As APSEZ continues to execute its growth strategy, investors and industry observers will be keenly watching the company's progress towards its ambitious FY26 targets.