Shares of Adani Ports and Special Economic Zone Ltd (APSEZ) saw a significant uptick on Thursday, October 29, 2026, hitting a high of Rs 1,839.80. This rally came a day after the Adani Group firm announced its second-quarter (Q2 FY27) earnings, which surpassed market expectations.
Multiple brokerages have maintained their optimistic outlook on the stock, attributing their positive views to the stronger-than-expected financial performance. Macquarie noted that Adani Ports' September-quarter EBITDA exceeded Bloomberg consensus estimates, prompting management to increase its full-year FY27 revenue guidance by 2 percent and EBITDA guidance by 4 percent.
Robust Volume Growth Drives Performance
Overall port volumes for APSEZ climbed approximately 15 percent year-on-year (YoY) to 142 million metric tonnes (MMT). This growth was significantly boosted by international operations, which saw volumes increase 2.4 times YoY. Domestic volume growth, while more modest, improved marginally to 3.5 percent YoY at 118 MMT, with Mundra volumes rising 8 percent, offsetting flat performance in non-Mundra regions.
EBITDA margins remained strong, with domestic margins holding steady at 72.5 percent. International EBITDA surged 3.4 times YoY, pushing the international margin to a record high of around 48 percent, a notable increase from approximately 42 percent in Q1 FY27 and 24 percent in Q2 FY26.
Increased Guidance and Capital Expenditure
Following strong execution in the first half of FY27, Adani Ports' management revised its financial guidance upwards. The company now anticipates full financial year revenue to be between Rs 44,000-46,000 crore, reflecting a 14-19 percent YoY growth. EBITDA guidance was also raised to Rs 26,000-27,000 crore, indicating 14-18 percent growth.
Furthermore, APSEZ increased its FY27 capital expenditure guidance by Rs 3,000 crore, setting it at Rs 15,000-17,000 crore. Of this, Rs 10,500 crore has already been deployed in the first half of FY27, signaling aggressive expansion and development plans.
Brokerages React with Higher Price Targets
Several prominent brokerages have updated their ratings and price targets for Adani Ports:
- Macquarie: Maintained an 'Outperform' rating with a 12-month target price of Rs 2,100.
- Jefferies: Reaffirmed its 'Buy' rating, raising its target price to Rs 2,180 from Rs 2,160. Jefferies views Adani Ports as a high-conviction play on India's trade and logistics transformation, projecting free cash flow (FCF) growth exceeding 20 percent over FY26-31.
- JP Morgan: Reiterated an 'Overweight' rating, increasing its price target to Rs 2,076 from Rs 2,000, citing higher EBITDA estimates. The brokerage considers APSEZ its preferred pick in its coverage.
- Kotak Institutional Equities: Revised estimates towards the higher end of the company's updated EBITDA guidance range, setting a fair value of Rs 2,075 and retaining a 'Buy' rating.
- Nuvama Institutional Equities: Noted a decent Q2 performance and projects the company to achieve a revenue, EBITDA, and profit after tax (PAT) compound annual growth rate (CAGR) of 16 percent, 15 percent, and 14 percent, respectively, over FY26-29. Nuvama increased its December 2027 target price to Rs 2,170 from Rs 2,000, maintaining a 'Buy' rating.
The consensus among analysts reflects strong confidence in Adani Ports' operational efficiency and strategic positioning within the Indian and international logistics landscape.