Adani Ports Shares Rise Following Q2 Earnings and Brokerage Upgrades

Shares of Adani Ports and Special Economic Zone (APSEZ) saw a sharp increase on Thursday, trading at ₹1,851 on the NSE by mid-morning. The stock climbed ₹68.40, or 3.88 per cent, from its previous close of ₹1,761.30 following the announcement of its Q2 FY27 financial results.

Trading activity was brisk, with the stock opening at ₹1,797 and touching an intraday high of ₹1,840. By noon, the counter recorded trades worth ₹778.73 crore with over 42 lakh shares changing hands. Buy orders outpaced sell orders, accounting for 50.94 per cent of the quoted quantity.

The market response follows multiple brokerage upgrades and target price revisions. Motilal Oswal retained a Buy rating with a target of ₹2,130, projecting a revenue, EBITDA, and PAT CAGR of 17 per cent, 18 per cent, and 21 per cent respectively through FY28. JM Financial upgraded the stock to Buy with a target of ₹2,065, pointing to higher-than-expected international port profitability and Mundra's performance. Elara Securities also upgraded its rating to Buy, raising its DCF-based target to ₹2,107 from ₹1,883 and lifting FY28 and FY29 earnings estimates.

The positive sentiment is backed by APSEZ's consolidated financial performance for Q2 FY27. Revenue rose 24 per cent year-on-year to ₹11,340 crore, while EBITDA climbed 23 per cent to ₹6,807 crore. Profit after tax increased by 18 per cent to reach ₹3,682 crore.

A major highlight of the quarter was the international ports segment. EBITDA for this division surged 236 per cent year-on-year, with margins reaching 47.7 per cent. This growth was supported by the ramp-up of the Colombo West International Terminal and consolidated contributions from the North Queensland Export Terminal in Australia.

Reflecting confidence in ongoing operations, management raised its FY27 revenue guidance by ₹1,000 crore to ₹44,000–46,000 crore. EBITDA guidance was revised to ₹26,000–27,000 crore, and capital expenditure guidance was lifted by ₹3,000 crore to ₹15,000–17,000 crore.

At the current trading price of ₹1,851, APSEZ has a trailing P/E of 29.66 and trades approximately 2 per cent below its 52-week high of ₹1,891.10 recorded in July.

"The strong market reaction to Adani Ports' Q2 results highlights the importance of operational diversification and international expansion. A 236 percent surge in international port EBITDA demonstrates how cross-border assets can significantly strengthen a company's financial profile. When core domestic operations are complemented by profitable global terminals and upwardly revised guidance, institutional investor confidence naturally follows. This performance underscores the value of disciplined execution and scalable infrastructure investments in driving long-term enterprise growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes