India's Adani Ports sees slower core earnings growth for fiscal 2027

India’s Adani Ports and Special Economic Zone on Thursday flagged slower core earnings growth in fiscal 2027 due to U.S. tariffs and the Iran war, even as the country’s top private port operator posted a 20% rise in quarterly earnings on the same basis.

Shares closed 0.9% higher on Thursday, after falling 3.9% to 1,596.80 rupees earlier in the day.

Global trade flows have been significantly hit due to the U.S.-Iran conflict which began in late February and has led to the blockade of the Strait of Hormuz, a key waterway for world oil trade.

The company’s core earnings for 2026 rose 20% to $2.41 billion from a year ago, while revenue climbed 25% to $4.08 billion.

It said it expects core earnings growth of 9% to 14% in fiscal 2027, slower than the 20% growth recorded in 2026, and forecasts revenue growth of 11% to 16%.

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“Adani Ports’ fiscal 2026 volume and revenue growth was boosted by the acquisition of the NQXT terminal, which added about 35 million tons or roughly 8% to volumes and inflated growth to around 25%,” says Deven Choksey, managing director at DRChoksey FinServ.

The company completed the acquisition of The North Queensland Export Terminal (NQXT), an Australian deep-water coal export terminal, in December 2025.

Going forward, growth is expected to normalize due to the high base effect, limited incremental volume from NQXT, and temporary export disruptions from the war, while domestic demand remains resilient, Choksey added.

Adani Ports, which operates 19 ports across 4 countries said capital spending rose to $2.41 billion in fiscal 2026, exceeding its guidance, but is expected to moderate to $1.26 billion to $1.48 billion in 2027, signaling a return to spending discipline.

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“Disciplined capital allocation will ensure that future capital expenditure needs are funded via internal accruals, while preserving flexibility for selective inorganic growth,” said Ashwani Gupta, Whole-time Director & CEO.

A 13% surge in cargo volumes helped the firm surpass its fiscal 2026 targets, Gupta added.

While the Iran conflict and shipping disruptions could exert margin pressure on shipping companies, ports in Asia are relatively less exposed to the conflict than those in the Persian Gulf.

Shares of Adani Ports have risen about 13% so far this year, outperforming the benchmark Nifty 50 index, which is down roughly 8%.