Brokerage firm Nomura expects Adani Ports and JSW Infrastructure to see double-digit profit growth in Q1 FY27. Higher container volumes are helping these companies overcome weaker demand for coal and oil cargo, signaling a shift in port activity across India.
Major Indian port operators Adani Ports and Special Economic Zone (APSEZ) and JSW Infrastructure are expected to report strong performance for the first quarter of fiscal year 2027. According to analysis by Nomura Securities, these companies are set to benefit from an 8% increase in national container volumes, which is helping to offset slower demand for traditional bulk commodities like coal and petroleum.
Growth Drivers and Container Traffic
The shift toward containerization is becoming a key driver for the port sector. Nomura projects that Adani Ports could see a 16% year-on-year growth in EBITDA, which is a measure of a company's core operating profitability. For JSW Infrastructure, the projected EBITDA growth stands at 12%. This performance is largely fueled by the companies' ability to capture higher container traffic, which grew significantly faster than the national average in recent months.
Adani Ports reported a 15% increase in total traffic to 138 million tonnes, aided by the new NQXT terminal. Its container traffic growth, estimated between 17% and 18%, suggests the company is increasing its market share compared to the industry average. Meanwhile, JSW Infrastructure is focused on expanding its presence in this segment through a 30-year project at the Kolkata port. This project is expected to add 0.93 million TEU of capacity, nearly doubling its container-handling capability to 1.8 million TEU.
Strategic Partnerships and Operational Focus
Adani Ports is also strengthening its global connectivity through a strategic partnership with the Mediterranean Shipping Company (MSC). MSC has committed $1.4 billion for a 49% stake in the Vizhinjam port project. For investors, this collaboration is meaningful because it helps ensure a steady flow of cargo and reduces the risk that the port might not be fully used after completion. By aligning with a major global shipping player, the company aims to improve operational efficiency and secure better positioning on international trade routes.
Risks and Market Monitorables
While the outlook for container traffic is positive, investors should be aware of the sector's dependence on global trade patterns. A slowdown in international manufacturing or trade could dampen container volume growth. Additionally, the port sector is capital-intensive, meaning that large-scale infrastructure projects require significant money spent on expansion, which can impact cash flow or debt levels if cargo volumes do not meet expectations. The 3% dip in petroleum and 4% fall in coal shipments highlight the sector's sensitivity to energy demand cycles. Investors will likely track how these companies manage their capital spending in coming quarters, as well as the actual speed at which new terminal capacity is put into full use and starts generating profit.