Adani Ports Q2 FY27 Results Analysis: Revenue Jumps 23.7%, Leverage Improves to 1.86x (ADANIPORTS)

Adani Ports & Special Economic Zone Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 11,340.40 Cr (+23.70% YoY) and PAT growth of +18.02% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q2 FY27 delivered 23.70% revenue growth and 22.64% EBITDA growth with H1 tracking within all four assessable FY27 guidance ranges (revenue, EBITDA, leverage, capex). Cash conversion was strong (CFO/PAT 1.82x) and leverage improved to 1.86x net debt/EBITDA, though logistics margins compressed to 7.08% and capex is running ahead of the full-year guidance pace. No guidance beat is evident — results are in-line with management's own targets.

Key Investment Insights

Key Positives

• Revenue grew 23.70% YoY to Rs.11,340.40 crore; H1 is 49.2–51.5% of the FY27 guidance range of Rs.43,000–45,000 crore
• EBITDA grew 22.64% YoY to Rs.6,806.65 crore; H1 is 51.3–53.4% of the FY27 guidance range of Rs.25,000–26,000 crore
• Port & SEZ result margin expanded ~281 bps YoY to 51.80%
• JV income swung +Rs.349.70 crore YoY (Rs.139.51 crore inflow vs Rs.210.19 crore loss year-ago)
• CFO/PAT of 1.82x in H1 with FCF of Rs.2,805.05 crore after Rs.10,521.49 crore capex
• Net debt/EBITDA of 1.86x vs 2.5x policy ceiling; debt-equity improved to 0.56 from 0.76
• Finance costs fell 17.73% YoY to Rs.1,006.05 crore including a Rs.149.15 crore net derivative gain
• Standalone PAT grew 64.48% YoY to Rs.940.97 crore

Risk Factors

• Others (logistics) segment result margin fell to 7.08% from 10.93% YoY despite revenue growth of 25.5%
• Other income collapsed 67.80% YoY to Rs.269.37 crore, a dividend/investment-income timing swing
• Operating expenses grew 29.08% YoY, faster than revenue, giving up ~52 bps of EBITDA margin
• Current ratio fell to 0.78 from 1.11 year-ago; current borrowings rose to Rs.14,250.30 crore from Rs.4,678.81 crore
• Net profit margin declined to 32% from 34% year-ago