Adani Ports and Special Economic Zone (ADSEZ) is strategically positioned to benefit from India’s long-term growth trajectory, according to a report by Macquarie Equity Research.
The report identified ADSEZ’s diversified port operations, robust cargo mix, and integrated logistics network as key strengths contributing to its resilience and capacity for long-term expansion. It stated, “ADSEZ is well positioned to capitalise on India’s long-term growth potential due to its businesses’ thematic alignment with the nation’s development.”
Macquarie initiated coverage on ADSEZ with an “Outperform” rating, highlighting the company’s ability to generate stable and recurring operating cash flows. The report noted that ADSEZ’s partnerships and business mix provide strong revenue visibility, ensuring consistent growth in the future.
ADSEZ has outlined a capital expenditure (capex) plan of Rs 800 billion for the period FY25-FY29. This is significantly higher than the Rs 420 billion spent on organic growth between FY15 and FY24.
The investment will primarily target the expansion of domestic ports, allocated Rs 450-500 billion, and the logistics business, receiving Rs 200-250 billion. The company is also exploring international port expansion opportunities as part of its long-term strategy.
By 2030, ADSEZ aims to handle 800-850 million metric tonnes (MMT) of domestic cargo, which corresponds to an estimated 11 per cent compound annual growth rate (CAGR) between FY24 and FY31.
The report anticipates ADSEZ’s revenue to grow at a CAGR of 14 per cent over FY24-FY27, driven by a 12 per cent CAGR in domestic port revenue and a 25 per cent CAGR in its expanding logistics segment.
The report emphasised the benefits of ADSEZ’s cargo diversity, strategic port locations, strong hinterland connectivity, and early-mover advantage. It stated, “We believe the diversity of cargo handled, the locations of its ports, hinterland connectivity, customer partnerships, and its early-mover advantage are favourable factors.”
While EBITDA margins are expected to remain stable over FY25-FY27, the increasing contribution of the logistics segment, which operates at relatively lower margins, will influence overall profitability.
With a strong foundation and ambitious expansion plans, ADSEZ is positioned to leverage India’s economic growth and enhance its presence in both domestic and international markets, according to the report.
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