IGI Logo

We expect our Ports coverage universe to report Revenue/EBITDA/PAT growth of 16.2%/14.1%/5.1% YoY (-1.2%/-2.6%/-8.0% QoQ) in Q2FY27, supported by resilient container and international cargo volumes, partially offset by weakness in select commodities and weather-related disruptions in India. ADSEZ continued robust volume during the quarter, aided by sustained container throughput and healthy international volumes across CWIT and NQXT, while cyclone-related disruptions on the East Coast and moderation in liquid and imported thermal coal volumes negated domestic cargo to some extent. JSWINFRA is expected to report subdued consolidated volume growth as Fujairah remains impacted and group’s steel unit ramping up post debottlenecking. Domestic operation is expected to deliver higher single digit volumes aided by Jaigarh and Dharamtar, while improving logistics business to support cons revenue.

H2FY27 is likely to see gradual normalization in cargo flows, although elevated freight rates and weather-related disruptions remain near-term headwinds. Importantly, both companies are expected to retain their FY27 volume outlook, with stronger international volumes at ADSEZ and accelerating rail/logistics operations at JSWINFRA providing improving visibility into H2FY27. Planned capacity additions remain on track and should support medium-term growth. We remain constructive on the Ports sector, supported by rising containerization, integrated logistics and healthy capacity expansion. Top Pick: ADSEZ.

Volumes - International growth offsets commodity weakness

Universe volumes are expected to grow 13.3% YoY (+2.2% QoQ) to 172.9mmt, primarily aided by strong container and international volumes at ADSEZ, while JSWINFRA’s domestic operations remain healthy despite continued disruptions at Fujairah.

ADSEZ volumes are expected to increase 15.8% YoY (+3.7% QoQ) to 143.3mmt, led by sustained container throughput, strong dry/liquid cargos and healthy international volumes. Cyclone-related disruption is expected to impact Dhamra and Gangavaram, with second-order impact on Krishnapatnam, while ongoing moderation in liquid, iron ore and imported thermal coal could partially offset the strong container performance.

JSWINFRA volumes are expected at ~29.6-30mt, up ~3% YoY but down 4.5% QoQ due to Fujairah. Indian operations excluding Fujairah are expected to grow ~7-8% YoY, led by Jaigarh and Dharamtar ports.

Please refer disclaimer at https://www.plindia.com/disclaimer/

SEBI Registration No. INH000000271