Shaping the Future Ahead

Dear Stakeholders,

It is with immense pride that I present the Annual Report for the fiscal year 2025-26. This has been a landmark year for Adani Ports and Special Economic Zone Ltd. (APSEZ) as our port business crossed 500 MMT of cargo handling. We have not only delivered a record-breaking performance but have also accelerated our transformation from India’s largest port operator into a truly integrated global transport platform.

Our strategy is anchored in building a comprehensive, end-to-end logistics ecosystem. This ecosystem is designed to enhance our customers’ competitiveness, fuel India’s economic engine, and create sustainable, long-term value for you, our stakeholders. Through strategic investments in capacity, technology, and partnerships, we are solidifying our role as a pivotal force in global trade and commerce.

Navigating Global Maritime Dynamics

The global port infrastructure sector represents a significant and expanding opportunity, with the market currently valued at approximately USD 174 billion. Supported by sustained growth in global trade and increasing investments in port modernization, the sector is projected to expand steadily over the long term. By 2035, the market is expected to reach USD 289 billion, growing at a CAGR of 5.2%. This growth underscores the sector’s structural resilience and its critical role in global supply chains. This steady upward trajectory underscores the enduring demand for high-capacity maritime infrastructure across container, bulk, and energy segments, affirming the long-term value of our strategic asset base.

However, the current operating environment is increasingly defined by geopolitical volatility, particularly within critical maritime corridors like the Strait of Hormuz and Red Sea. These disruptions have reshaped global trade flows, leading to extended transit times and freight rate charges along those routes. To navigate these headwinds, we are prioritising operational agility. By reinforcing our logistics resilience and optimising our capabilities, we continue to safeguard trade continuity and uphold economic stability despite the evolving global pressures.

India: A Beacon of Growth in the Global Economy

In a year marked by volatility across the globe, India continued to shine brightly, reinforcing its status as a powerful engine for worldwide growth. The Indian government’s strong thrust on monetary stability, fiscal prudence and structural reforms have helped India navigate the stormy waters of massive geopolitical tensions in both our neighbourhood and across the world.

As India cements its position as a global manufacturing hub, the demand for efficient and integrated logistics infrastructure has never been more acute. In FY 2025-26, India’s maritime sector witnessed robust expansion, reflecting the nation’s growing economic resilience and expanding trade footprint. Capitalising on this strong domestic momentum, APSEZ delivered exceptional volume growth, once again outpacing the broader industry and reaffirming our position as the premier gateway for India’s global commerce. By aligning our strategy with transformative government initiatives like PM Gati Shakti and the Maritime Amrit Kaal Vision 2047, we are creating integrated solutions that drive efficiency from the factory floor to the global marketplace.

Agile Capital Performance

During the year, we maintained a steadfast focus on financial discipline and proactive capital optimisation. Our robust operational performance is reflected in our healthy liquidity position, with a cash balance of ₹12,193 crore against a gross debt of ₹55,103 crore. A testament to our strong cash generation and prudent leverage management is our Net Debt to EBITDA ratio, which stands at an impressive 1.9x. Furthermore, we successfully executed significant capital optimisation initiatives, completing two major bond buyback programs in August 2025 and March 2026, repurchasing a total of over USD 585 million. These strategic efforts have materially de-risked our balance sheet, extending our average debt maturity period from 4.3 years at the close of FY 2024-25 to 5.4 years as of March 31, 2026.

Global Confidence and Rating Upgrades

Our unwavering commitment to strong fundamentals and sustainable growth continues to be recognised by premier global and domestic rating agencies. In a strong endorsement of our business model, CareEdge Global assigned us a long-term rating of “BBB+/Stable”, while Japan Credit Rating Agency (JCR) assigned an “A-/Stable” rating, notably placing APSEZ a notch above India’s sovereign rating. These resounding validations from the global financial community reinforce our strategic direction and our ability to consistently deliver long-term value to our stakeholders.

Elevating our ESG Credentials

Our commitment to Environmental, Social, and Governance (ESG) principles is the bedrock of our business. We take immense pride in our role as a leader in sustainability and responsible industry practices. For us, a robust governance framework is not merely a matter of compliance but is fundamental to our operations, ensuring unwavering adherence to ethical practices, transparency, and accountability in all business and environmental matters.

Our dedication to ESG continues to earn global recognition. In FY 2025-26, we received multiple top-tier ESG ratings, including an 'Excellent' ESG Rating, with a score of 76 from ESG Risk Assessments and Insights Limited and a 'Care EDGE – ESG 1+' rating from CARE ESG Ratings Limited, placing us in "Leadership" band for ESG risk management. These ratings, along with our consistently high rankings from DJSI and Sustainalytics, validate our low-risk profile and affirm that our growth is both responsible and sustainable.

Our dedication to ESG continues to earn global recognition. In FY 2025-26, we received multiple top-tier ESG ratings, including an ‘Excellent’ ESG Rating of 76 from ESG Risk Assessments and Insights Limited and a ‘Care EDGE – ESG 1+’ rating from CARE ESG Ratings Limited, placing us in a leadership position for ESG risk management.

We are proud to announce that APSEZ has become the first transport utility in India to join the UN-backed Taskforce on Nature-related Financial Disclosures (TNFD).

This pioneering step signifies our dedication to integrating nature-related risks and opportunities into our core strategy, and we will begin our first disclosures from FY 2025-26. Our journey to Net Zero by 2040 is well underway, marked by significant investments in renewable capacity and the greening of our transportation fleet. We have taken active steps such as electrification of our cranes, mechanisation of berths and transition of our diesel ITV fleet to eITVs, ensuring minimum carbon footprints arising from our operations. These efforts have already led to measurable reductions in our use of fossil fuels, electricity, and water, alongside marked improvements in waste and plastic management across all our sites.

Positioning for Scale and Agility

The outlook for the Indian economy remains exceptionally strong, with analysts forecasting robust GDP growth for the upcoming fiscal year. The government’s continued emphasis on capital expenditure, a resurgence in the private capex cycle, and improved business sentiments are creating powerful tailwinds for growth. To capitalise on these opportunities and drive our next phase of growth, we are building a more agile, technologically advanced, and future-ready enterprise. Digital transformation is at the core of this vision. By leveraging AI-driven analytics and automated processes, we aim to create a logistics ecosystem that is predictive, self-optimising, and capable of delivering unprecedented value to our customers.

Further, to accelerate our reflexes and move decision-making closer to the point of action, we are redesigning our organisation. We are moving toward a leaner three-layer corporate structure designed to flatten hierarchy and empower our frontline leaders. This strategic shift is about fostering a culture of empowerment and accountability to build a truly low-friction organisation.

A Stronger Tomorrow

We are confident in our growth trajectory for the upcoming fiscal year. For the upcoming fiscal year, we project a significant revenue increase of 11-16%, targeting ₹43,000–45,000 crore, and an EBITDA growth of 9-14%, reaching ₹25,000–26,000 crore. Our planned capital expenditure of ₹12,000–14,000 crore will be directed towards strategic initiatives to fuel our expansion. We will continue our disciplined approach to financial management, maintaining our Net Debt to EBITDA ratio up to 2.5x.

The milestones we have achieved are a testament to the collective spirit and relentless drive of our team, the trust of our customers, and the steadfast support from you, our shareholders. I thank you all for being a part of this incredible journey.

Looking forward, we are inspired by the possibilities that lie ahead. We are not simply participants in India’s growth story; we are committed to being one of its primary authors. Our vision is clear, our strategy is sound, and our resolve is firm. Let us continue to build a future of shared prosperity together.

Karan Adani

Managing Director