Adani Ports and SEZ (APSEZ) has reported a series of impressive operational milestones for the fiscal year 2025, showcasing robust growth across its port operations and logistics segments.

Record-Breaking Monthly Performance

In March 2025, APSEZ handled its highest ever monthly cargo volume of 41.50 MMT, representing a significant 9% year-over-year increase. This exceptional performance was primarily driven by substantial growth in two key segments:

• Container handling surged by 19% compared to the previous year
• Liquids and gas volumes rose by 5% year-over-year

Mundra Port's Historic Achievement

The crown jewel in APSEZ's portfolio, Mundra Port, has etched its name in Indian maritime history by becoming the first port in the country to surpass the 200 MMT cargo threshold in a single fiscal year. For FY2025, Mundra Port handled an impressive 200.70 MMT of cargo, setting a new benchmark for port operations in India.

Fiscal Year 2025 Performance

For the entire fiscal year 2025, APSEZ reported handling a total cargo volume of 450.20 MMT, marking a 7% increase compared to the previous year. The growth was led by:

• A robust 20% year-over-year increase in container volumes
• A 9% year-over-year rise in liquids and gas handling

Logistics Segment Growth

APSEZ's logistics arm also demonstrated strong performance in FY2025:

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Vizhinjam Port Milestone

Adding to the list of achievements, Vizhinjam port crossed the 100,000 TEUs milestone in March 2025, indicating growing operational capabilities and market presence.

Slight Miss on Guidance

Despite the impressive growth figures, it's worth noting that the total cargo volume of 450.20 MMT for FY2025 fell slightly short of the company's previously provided guidance range of 460-480 MMT. However, this shortfall does not overshadow the significant achievements and growth demonstrated across various segments of APSEZ's operations.

Conclusion

Adani Ports and Special Economic Zone continues to strengthen its position as a leading port operator in India, with its diversified portfolio of ports and logistics services contributing to its robust performance in FY2025. The record-breaking cargo volumes and historic milestones achieved during this period underscore the company's operational efficiency and its crucial role in India's maritime trade infrastructure.

Adani Ports and Special Economic Zone Limited (APSEZ) received a vote of confidence from Fitch Ratings, as the global credit rating agency affirmed the company's rating at 'BBB-' and removed it from Rating Watch Negative. This development signals a stabilization in APSEZ's credit profile and suggests that Fitch no longer perceives an immediate risk of downgrade for the port operator.

Rating Affirmation

The decision by Fitch Ratings to maintain APSEZ's 'BBB-' rating is significant for the company, especially considering the recent volatility surrounding Adani Group companies. The 'BBB-' rating is the lowest investment-grade rating, indicating that the company has adequate capacity to meet its financial commitments.

Removal from Rating Watch Negative

Perhaps more noteworthy is Fitch's decision to remove APSEZ from Rating Watch Negative. This action suggests that the immediate concerns that had placed the company's rating under scrutiny have been addressed or mitigated to some extent.

Implications for APSEZ

The affirmation of the 'BBB-' rating and the removal from Rating Watch Negative could have several positive implications for APSEZ:

1. Improved Investor Confidence: This rating action may help restore some investor confidence in APSEZ, potentially leading to improved market sentiment towards the company's securities.

2. Stable Outlook: The removal from Rating Watch Negative indicates a more stable outlook for APSEZ's credit profile in the near term.

3. Financing Opportunities: A stable investment-grade rating could help APSEZ maintain access to financing at more favorable terms, which is crucial for a capital-intensive business like port operations and development.

4. Business Operations: The rating affirmation suggests that Fitch views APSEZ's business fundamentals and operations as relatively stable, despite recent market turbulence.

Considerations for Investors

While this news is positive for APSEZ, it's important to note that a 'BBB-' rating still indicates a level of vulnerability to adverse economic conditions. Investors and stakeholders will likely continue to monitor the company's financial performance and market position closely in the coming months.

Broader Implications

As India's largest private port operator, APSEZ's financial health and credit rating have significant implications not only for the company but also for the broader Indian infrastructure and logistics sectors. The company's ability to maintain its investment-grade rating will be crucial as it continues to expand its operations and navigate the complex global trade environment.