Adani Ports warns of muted FY 2027 growth amid Gulf war disruptions

Adani Ports and Special Economic Zone reported a 9% y-o-y rise in consolidated net income to INR 33.1 bn (USD 356 mn) and a 26% y-o-y increase in revenues in 4Q (ending 31 March) FY 2026, led by strong cargo volumes and improved realizations, according to a company press release.

The company closed FY 2026 with a 16% y-o-y rise in its bottom line and 25% y-o-y growth in annual revenue. The acquisition of the North Queensland Export Terminal in Australia added about 35 mn tons to its cargo capacity, contributing significantly to its revenue growth.

The shipping major has warned that its core earnings growth will moderate in FY 2027 as global trade disruptions from the US-Iran war and tariff pressures weigh on volumes. The blockade of the Strait of Hormuz has disrupted global shipping routes, while US tariffs have dampened trade flows.

Why it matters: Between 2023 and 2026, Adani Ports executed a multi-bn-USD international buying spree, anchored by the USD 1.1 bn acquisition of Israel’s Haifa Port and the USD 800 mn deep-water Colombo West Terminal in Sri Lanka. The network was fortified by a 30-year concession for Dar es Salaam’s Container Terminal in Tanzania, where it partnered with the Emirates' AD Ports Group. Having successfully captured these strategic gateways, Adani is pivoting to a defensive, asset-light approach, as the conflict stalls trade across the corridor.

What’s next: The company is projecting core earnings growth of up to 14% for FY 2027, cooling from the 20% y-o-y growth recorded in the previous year. Revenue is projected to grow in the 11-16% range. Consequently, the firm is tightening its belt, with capital expenditure set to decline to roughly USD 1.4 bn in FY 2027 on the back of the muted earnings projection.