Adani Ports and Special Economic Zone Limited (APSEZ) Q3 FY26 Earnings Call Summary

Summary

Adani Ports and Special Economic Zone Limited - Q3 FY26 Earnings Call Summary Tuesday, February 03, 2026, 5:00 PM IST

Event Participants

Executives 4 Ashwani Gupta (CEO & Whole-Time Director), D. Muthukumaran (CFO), Divij Anil Taneja (CEO, Logistics), Rahul Agarwal (Head of IR & ESG)

Analysts 11 Achal Lohade, Ankita Shah, Anshul Agarwal, Kalpit Sabhaya, Ketan Jain, Manish Somaiya, Nidhi Shah, Parash Jain, Priyankar Biswas, Pulkit Patni, Rajarshi Maitra, Sumit Kishore

Financials & KPIs

Geographic & Segment Commentary

• Domestic Ports: Delivered record 9-month container share of 45.6%. Realization increased 9% YoY due to a mix of price hikes, favorable cargo mix, and “take-or-pay” charges where volumes were lower but revenue was protected. Mundra remains the flagship, transitioning focus toward container and liquid cargo as thermal coal imports remain flat.
• International Ports: Revenue reached ₹1,000 crores for the quarter. Quarterly volumes stood at 5.4 MMT for Colombo, 2.1 MMT for Haifa, and 3.1 MMT for Tanzania. NQXT (Australia) consolidation begins Jan 1, 2026, contributing ~₹300 crores to Q4 EBITDA.
• Logistics: Revenue grew 62% YoY to ₹1,121 crores. The segment is shifting toward an integrated “port-to-factory” model. While rail container volumes grew 11% YoY, management is targeting sustained double-digit growth despite the commissioning of the Dedicated Freight Corridor (DFC).

Company-Specific & Strategic Commentary

• Vizhinjam Phase II Expansion: Announced a ₹16,000 crore investment to expand capacity to 5.7 million TEUs by FY29. The site is positioned as a global transshipment hub with bunkering facilities for LNG in partnership with BPCL.
• Asset Reclassification: Certain dredging assets were moved to a subsidiary (Shantisagar), shifting related revenue/EBITDA to the “Others” segment for tax and structural optimization.
• NQXT Acquisition Structure: Management successfully dissolved $2.54 billion in non-core liabilities associated with the North Queensland Export Terminal (NQXT) within one month of acquisition, leaving only port-related debt on the books.
• Sustainability Benchmarks: APSEZ became the first Indian company in its sector to adopt the Taskforce on Nature-related Financial Disclosures (TNFD).

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Impact of Dedicated Freight Corridor (DFC)

• Question: Will the DFC take business away from Mundra due to improved connectivity for competitors? (Sumit Kishore)
• Answer: Negligible impact. Mundra maintains a 300-350 km distance advantage (5-6 railway slabs), making it ₹1,000s cheaper per TEU than competitor ports even with DFC efficiency gains. Mundra’s competitiveness is driven by draft and vessel turnaround time (Ashwani Gupta).

Vizhinjam Competitive Positioning

• Question: How will Vizhinjam compete with Colombo on pricing? (Parash Jain)
• Answer: Pricing is a function of supply/demand. Colombo is nearing capacity constraints. Vizhinjam offers superior draft and integrated EXIM services, currently facing no pricing pressure from competitors (Ashwani Gupta).

Financial Consolidation of NQXT

• Question: What is the impact of NQXT on the balance sheet and margins? (Ankita Shah)
• Answer: NQXT operates at ~65% EBITDA margins. Revenue is expected to be ~₹450-500 crores in Q4. While debt was added, the net leverage remains low at 1.8x. Contract resets in FY28/29 will drive absolute EBITDA from $230M to $400M (D. Muthukumaran).

Cargo Mix Diversification

• Question: How much will coal contribute to the total mix in 5 years? (Pulkit Patni)
• Answer: Thermal coal will likely settle at 20-22% of total cargo (down from 30% in FY24). This is a result of container and oil/gas volumes growing at a much faster rate than coal (D. Muthukumaran).

Key Takeaway

APSEZ delivered a robust Q3 FY26, characterized by a significant upward revision of FY26 EBITDA guidance to ₹22,800 crores. The company demonstrated strong momentum across its four pillars, with international port revenue hitting a ₹4,000 crore annual run rate and domestic container market share reaching a record 45.6%. Strategic focus remains on the ₹16,000 crore Vizhinjam Phase II expansion and the integration of NQXT Australia, which bolsters international EBITDA. Despite heavy inorganic investments, the balance sheet remains disciplined with a net leverage of 1.8x. Management reiterated its “Vision 2029” targets of ₹36,500 crores EBITDA, pivoting away from thermal coal toward high-margin container and liquid cargo. The transition of CFO D. Muthukumaran to a Group role and the appointment of Mr. Krishna as his successor marks a planned leadership shift as the company tracks toward its 1 billion metric ton cargo goal by 2030.