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Multiple growth engines, one integrated platform

* Adani Enterprises (AEL) is uniquely positioned to benefit from India’s next capex cycle, with exposure across airports, roads, data centers, new energy, mining, copper, and strategic manufacturing. Its diversified portfolio provides multiple avenues to participate in infrastructure build-out, energy transition, digitalization, and India’s push towards domestic manufacturing.

* We view AEL as a differentiated infrastructure incubator, combining established businesses that provide stability with high-growth platforms that can drive the next leg of earnings. Its ability to identify emerging opportunities, build scale and market leadership, and subsequently monetize mature platforms creates a repeatable model for capital recycling.

* AEL is entering a phase of accelerated earnings growth, with EBITDA expected to rise from ~INR140b in FY26 to ~INR299b by FY29E, implying a ~29% CAGR. Growth should be driven by the commissioning of Navi Mumbai Airport, capacity expansion at Adani New Industries Ltd. (ANIL), commencement of tolling on key road projects, and continued momentum across its primary businesses.

* The portfolio is increasingly moving from capital deployment to value creation, with airports, new energy, and data centers entering their scaling phase and mature businesses providing cash generation. As capex intensity moderates and incubated businesses move towards monetization, rising cash generation should support faster deleveraging and further capital recycling. ? We initiate coverage on AEL with a BUY rating and an SoTP-based TP of INR3,880. We believe its market leadership, superior scale, diversified growth portfolio, and proven incubator model position AEL to emerge as a leading global infrastructure platform.

* Key risks: Execution delays, higher-than-expected capex, regulatory/policy changes, commodity price volatility, and slower ramp-up of new businesses.

Positioned at the heart of India’s next capex cycle

* We believe AEL is uniquely positioned to benefit from India’s structural investment theme, with exposure to multiple long-term growth areas spanning transport infrastructure, digitalization, energy transition, and domestic manufacturing.

* Its portfolio offers exposure to several large and underpenetrated opportunities, including an eight-airport platform with significant growth potential; a diversified roads portfolio spanning HAM, BOT, and TOT models; rapidly expanding data centers aided by rising AI/ML workloads; and green-energy equipment manufacturing benefiting from domestic content requirements.

* Beyond infrastructure, AEL is building strategic businesses in copper, PVC, mining, and defense manufacturing, positioning it to benefit from India’s broader push towards self-reliance and import substitution. We believe this diversified incubator model places AEL at the intersection of India’s infrastructure, manufacturing, and energy-transition upcycle, providing multiple avenues for sustained growth and earnings visibility.

Valuation and View: A value-unlocking story

* In our view, AEL’s expansion across verticals, rising contribution from incubated businesses, and robust demand outlook provide strong visibility on earnings growth and cash flow generation over the near and long term. We forecast its consolidated revenue/EBITDA/PAT to grow at ~22%/29%/82% over FY26-29, aided by growth, margin expansion, and increasing contribution from high-margin verticals.

* We initiate coverage on AEL with a BUY rating and an SoTP-based TP of INR3,880. Our recommendation is underpinned by AEL’s market leadership, differentiated portfolio, superior scale, and proven ability to incubate and scale new businesses, positioning it to emerge as one of the world’s leading integrated infrastructure platforms.

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