Adani Ports & SEZ , India's largest private port operator, has announced strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

• Revenue: Increased by 30% year-over-year to ₹9,167.00 crore
• Net Profit: Rose by 29% to ₹3,120.00 crore, compared to ₹2,413.00 crore in the same period last year
• EBITDA: Grew by 27% to ₹5,550.00 crore
• EBITDA Margin: 60.54%, compared to 61.82% in the previous year

Operational Performance

• Cargo Volume: Handled 124 million metric tonnes (MMT), up 12% year-over-year
• Market Share: Increased to 28.1%, a gain of 70 basis points
• Container Market Share: Reached 45.9%, up 150 basis points

Segment-wise Performance

Key Developments

1. International Expansion: The Board approved the acquisition of NQXT Port in Australia, a deep-water export terminal with 50 MTPA capacity.
2. Marine Fleet Growth: Added 9 new vessels during Q2, expanding the total fleet to 127 vessels.
3. Logistics Growth: Announced plans for a 70-acre logistics park in Kochi with ₹600.00 crore investment.
4. Operational Records:
   • Mundra Port handled 898 double-stacked container rakes in July 2025
   • Loaded 5,612 cars onto a single vessel in under 40 hours in September 2025
5. Subsidiary Merger: The company's Board approved a scheme of amalgamation of its wholly-owned subsidiary Adani Harbour Services Limited with the parent company, subject to regulatory approvals.
6. Debt Management: Completed a tender offer to buy back $386 million worth of senior notes across three tranches during the quarter.

Financial Position

• Debt Management: Net debt to EBITDA ratio at 1.8x
• Cash Balance: ₹13,063.00 crore
• Gross Debt: ₹51,082.00 crore

Half-Year Performance

For the half-year period ended September 30, 2025, net profit rose to ₹6,431.00 crore from ₹5,528.00 crore in the previous year.

Management Commentary

Ashwani Gupta, Whole-time Director & CEO, stated, "Our strong, across-the-board profitable growth momentum truly underscores the success of our unmatched Integrated Transport Utility value proposition. Logistics and Marine businesses have continued their exponential growth trajectory, further reinforcing our port-gate to customer-gate offering."

Outlook

Adani Ports maintains its cargo volume target of 505-515 million tons for the fiscal year and expects capital expenditure between ₹110.00-120.00 billion.

Analyst Perspective

The robust performance of Adani Ports in Q2 FY26 reflects the company's strong positioning in the Indian port and logistics sector. The significant growth in revenue and profitability, coupled with market share gains, indicates the company's ability to capitalize on the growing demand for port and logistics services in India. The focus on expanding its marine fleet and logistics capabilities, along with international acquisitions, suggests a clear strategy for long-term growth and diversification.

Investors should note the company's EBITDA margin and the healthy debt-to-EBITDA ratio, which indicate efficient operations and financial stability. The continued expansion in logistics and marine segments is likely to provide additional growth avenues and reduce dependence on traditional port operations.

However, it's important to monitor global trade dynamics and potential regulatory changes that could impact the port sector. Additionally, the success of international ventures and the integration of new acquisitions will be crucial factors to watch in the coming quarters.

Overall, Adani Ports' Q2 FY26 results demonstrate a strong operational and financial performance, positioning the company well for continued growth in the evolving global trade and logistics landscape.

Fitch Ratings has revised its outlook for Adani Ports and Special Economic Zone Ltd. (APSEZ) from 'Negative' to 'Stable', while maintaining its 'BBB-' rating for both Long-Term Foreign-Currency Issuer Default Rating and unsecured note rating. This upgrade comes amidst a backdrop of easing contagion risk for the Adani Group.

Key Factors Behind the Upgrade

1. Diversified Funding Access: The Adani Group has demonstrated its ability to access diverse funding sources, even in the face of challenges such as the November 2024 US indictment related to certain board members of Adani Green Energy Ltd.

2. Regulatory Clearance: In September, the Securities and Exchange Board of India (SEBI) ruled that the Adani Group did not violate regulatory disclosure norms or engage in market manipulation, as alleged in the 2023 Hindenburg report.

3. Continued Investment: The group has maintained its investment momentum, with increased capital expenditure in the first half of the financial year ending March 2026.

Financial Outlook

Fitch expects APSEZ's liquidity and funding to remain aligned with its current rating. This assessment is supported by:

• Cash flow from a diverse seaports portfolio
• Flexibility in capital expenditure
• Demonstrated access to credit markets

Risk Assessment

While Fitch acknowledges that risks remain, particularly regarding the outcome and timing of the US investigation, they consider these risks manageable within the current rating context.

APSEZ's Competitive Advantages

Adani Ports benefits from several strategic advantages:

These factors contribute to APSEZ's strong position in the port and logistics sector, supporting its stable outlook despite broader challenges faced by the Adani Group.

The upgrade in outlook reflects growing confidence in APSEZ's operational strength and financial stability. However, stakeholders will likely continue to monitor developments closely, particularly regarding ongoing investigations and the group's overall financial health.