Adani Ports Q2 Results Beat Estimates, Reaffirms FY26 Guidance; Stock Trades Lower

Adani Ports and Special Economic Zone Ltd (APSEZ) announced its financial results for the second quarter, showcasing robust performance that exceeded market estimates. Net profit surged by 27.2% year-on-year to ₹3,109 crore, up from ₹2,445 crore in the same period last year. Revenue saw a significant jump of 29.7%, reaching ₹9,167.5 crore compared to ₹7,067 crore. The company's operational efficiency is reflected in its Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA), which increased by 27% to ₹5,548 crore from ₹4,369 crore. The operating margin stood at a healthy 60.5%, slightly lower than the previous year's 61.8%. Cargo volumes handled by APSEZ grew by 12% year-on-year, reaching 124 million metric tonnes (MMT) from 111 MMT. Looking ahead, Adani Ports reaffirmed its financial guidance for fiscal year 2026. It projects port cargo volumes between 505-515 MMT, an increase from the 450 MMT expected in FY25. Projected FY26 revenue is between ₹36,000-38,000 crore, with EBITDA expected in the range of ₹21,000-22,000 crore. The company plans a capital expenditure of ₹11,000-12,000 crore and maintains its policy of keeping net debt-to-EBITDA below 2.5x. Furthermore, trucking revenue is anticipated to grow three to four times from FY25's ₹428 crore, and marine services revenue is expected to double from FY25's ₹1,144 crore. Impact: These strong Q2 results and reaffirmed long-term guidance are positive indicators for investors, demonstrating APSEZ's operational strength and strategic growth trajectory. The company's commitment to future volumes and revenue targets suggests sustained business expansion. However, the stock's decline post-announcement highlights the market's sensitivity to expectations and potential short-term trading reactions. Overall, the news reinforces APSEZ's position as a key player in the logistics and infrastructure sector. Impact rating: 7/10 Definitions: EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation): This financial metric measures a company's operating performance by excluding costs associated with financing, taxes, and non-cash expenses like depreciation and amortization. It provides insight into the profitability of the core business operations. MMT (Million Metric Tonnes): A unit of measurement representing one million metric tons. It is commonly used in the logistics and commodities sector to quantify large volumes of cargo such as coal, iron ore, and grains handled at ports.