Synopsis: Analysts remain bullish on Adani Ports & SEZ following its Q2FY26 results, citing a strong balance sheet, diversification, and volume growth visibility. Goldman Sachs, Jefferies, Macquarie, and CLSA maintained positive ratings with upsides up to 30 percent.
Adani Group’s logistics flagship witnessed mixed second-quarter results, prompting analysts to weigh in with their updated outlooks and target price revisions. While the company’s growth momentum moderated sequentially, long-term prospects remain supported by its strong balance sheet, integrated logistics strategy, and new port additions that could drive sustained Ebitda growth in the coming quarters.
Adani Ports and Special Economic Zone Ltd, with a market capitalisation of Rs. 3,12,680.11 crore, opened at Rs. 1,454.95 after a previous close of Rs. 1,444.30. The stock touched an intraday high of Rs. 1,466.75, marking a gain of 1.55 percent from the previous close.
Financial Snapshot – Q2FY26
Quarter-on-Quarter (QoQ): Revenue rose marginally by 0.45 percent to Rs. 9,167 crore in Q2FY26 from Rs. 9,126 crore in Q1FY26. Operating profit declined by 2.82 percent to Rs. 5,340 crore from Rs. 5,495 crore, while operating margin contracted from 60 percent to 58 percent. Profit before tax dropped 4.11 percent to Rs. 3,690 crore compared to Rs. 3,848 crore in the previous quarter. Net profit fell 5.77 percent to Rs. 3,120 crore from Rs. 3,311 crore, and earnings per share declined to Rs. 14.39 from Rs. 15.34.
Year-on-Year (YoY): Revenue surged 29.68 percent to Rs. 9,167 crore in Q2FY26 from Rs. 7,067 crore in Q2FY25. Operating profit increased 22.28 percent to Rs. 5,340 crore from Rs. 4,367 crore, while operating margin narrowed from 62 percent to 58 percent. Profit before tax grew 27.90 percent to Rs. 3,690 crore from Rs. 2,885 crore a year earlier. Net profit climbed 29.31 percent to Rs. 3,120 crore from Rs. 2,413 crore, and earnings per share rose to Rs. 14.39 from Rs. 11.32 in the same period last year.
Analysts’ Views
Goldman Sachs maintained a Buy rating and raised its target price to Rs. 1,540 from Rs. 1,510, implying a potential upside of 6.62 percent from the previous close. The brokerage noted that second-quarter results were in line with expectations and added that the company’s risk-reward remains attractive, with growth recovery expected in the second half of FY26. It also highlighted that a stronger balance sheet positions the company for further organic and inorganic expansion opportunities.
Jefferies maintained a Buy rating and increased its target price to Rs. 1,880 from Rs. 1,815, implying a potential upside of 30.16 percent from the previous close. The firm said that new port additions are supporting volume growth, with a strategy focused on driving absolute Ebitda growth through integrated logistics. Capital allocation discipline remains a key focus area.
Macquarie retained its Outperform rating with a target price of Rs. 1,760, implying an upside of 21.85 percent from the previous close. The brokerage stated that the company’s second quarter performance was in line and the outlook remains positive, adding that Adani Ports is well positioned to achieve its FY26 volume guidance. It remains optimistic on the company’s long-term prospects, citing diversification, execution track record, and expansion supported by strong cash flows.
CLSA also maintained an Outperform rating with a target price of Rs. 1,764, implying a potential upside of 22.13 percent from the previous close. It stated that the company delivered a strong all round performance, with strategic expansion and deleveraging strengthening fundamentals. Diversification into logistics and asset acquisitions have begun yielding results, and rising operating cash flows have brought leverage to a nine-year low in the second quarter.
About the Company
Adani Ports and Special Economic Zone Ltd is India’s largest integrated transport and logistics company, offering seamless port-to-customer connectivity supported by advanced digital systems. The company’s core vision is to emerge as the world’s leading Integrated Transport Utility by providing customer centric and technology driven services across its operational ecosystem.
-Manan Gangwar
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