Prabhudas Lilladher has raised its target price for Adani Ports & SEZ to ₹2,248 following strong second-quarter operational performance. The brokerage highlighted a 23% increase in operating profit, driven by significant gains in the international segment. Investors may monitor the company’s ability to manage weather-related disruptions and execute its long-term capacity expansion plans.
Prabhudas Lilladher has updated its outlook on Adani Ports and Special Economic Zone, setting a target price of ₹2,248 per share. This adjustment comes after the company reported solid operational growth in the second quarter of the 2027 fiscal year, characterized by an overall increase in operating profit (EBITDA) of 23% compared to the same period last year.
The company’s performance highlights a contrast between its domestic and international operations. While domestic cargo volumes saw a modest increase of 3.8% to 118.5 million metric tonnes, the growth was affected by cyclonic weather disruptions at the Gangavaram and Krishnapatnam facilities. In contrast, the international segment proved to be a major growth engine, with cargo volumes jumping 147% to 24 million metric tonnes. Key assets such as the Colombo West International Terminal (CWIT) and North Queensland Export Terminal (NQXT) were significant contributors to this performance.
Financial margins have also shown improvement, with international port margins climbing to 47.7% from 41.8% in the previous quarter. Analysts at the brokerage have consequently increased their EBITDA estimates for fiscal years 2027 and 2028 by about 2%. Looking ahead, the company aims to reach a domestic port capacity of 1 billion tonnes by the end of fiscal year 2031. Achieving this will require consistent investment and operational efficiency, which remains a key focus area for the company’s balance sheet.
Investors should consider that the company’s performance is subject to operational risks such as weather disruptions, which can impact port throughput and cause temporary slowdowns, as seen in the recent quarter. Additionally, the broader Adani group has historically faced regulatory and governance scrutiny, which influences investor sentiment and valuation. Managing debt levels while funding large-scale capacity expansions is another factor that market participants track closely. The company's ability to maintain high margins in its international portfolio while stabilizing domestic volume growth will be the primary indicator for its financial health in the coming quarters.