APSEZ, JSW Infra rally up to 4%; what's driving port services stocks?

Adani Ports, JSW Infra gain: Going forward, thrust of the Indian govt on augmenting multimodal connectivity, planned capex for enhancing ports capacity and rising coastal volumes augur well for ports.

Adani Ports and Special Economic Zone and JSW Infra share price today

 

Shares of Adani Ports and Special Economic Zone (APSEZ) and JSW Infrastructure rallied up to 4 per cent on the BSE in Tuesday’s intra-day trade on strong business growth outlook.

 

JSW Infra gained 4 per cent at ₹313.80 in intra-day trade. Shares of APSEZ were up 2 per cent at ₹1,379 in intra-day deal amid heavy volumes. The average trading volumes at the counter jumped over three-fold with a combined 2.63 million equity shares changing hands on the NSE and BSE. In the past two trading days, the stock price of the Adani Group company has rallied 4 per cent.  CATCH STOCK MARKET LIVE UPDATES TODAY

 

What's driving ports & ports services stocks?

 

Overall cargo throughput at Indian ports is ~1590 MMT for the financial year ended March 31, 2025, representing year-on-year (YoY) growth of ~3 per cent (FY24: 7 per cent). The moderation in growth was due to decline in coal and iron ore volumes which was offset by healthy growth in container volumes. Coal and iron ore commodities constitute ~60 per cent of the coastal cargo movement with an increase in coastal volumes in the last three years ended FY25. 

 

CareEdge Ratings expects marginal growth of 2 per cent in cargo volumes at ports in FY26 considering geopolitical headwinds and decline in coal imports. Going forward, the thrust of the government of India on augmenting multimodal connectivity, planned capital outlay for enhancing ports capacity, rising coastal volumes and planned capacity addition in thermal power sector augur well for the sector.

 

JSW Infra reported a healthy growth in scale of operations in FY25 and Q1FY26, marked by steady increase in cargo volumes due to benefits from completed capacities and inorganic growth through acquisitions.

 

With strengthened financial flexibility and robust cash accruals, JSW Infra has outlined ambitious growth plans with estimated capital outlay of ₹13,500-₹14,000 crore over FY26-FY28, besides discretionary capex in the logistics space. This is expected to scale up operations and leverage synergies with JSW group while diversifying revenue stream.

 

According to CARE Ratings, revenue stream is expected to diversify with JSW Infra’s foray into the logistics space and government’s thrust on multimodal connectivity to enhance India’s competitiveness. Moreover, the regulatory requirement to reduce promoter shareholding to a minimum of 75 per cent by September 2026 is likely to support financial flexibility and provide growth capital for the capex plans.  ALSO READ | Morgan Stanley bullish on JSW Steel with 'Overweight' call, sees 18% upside 

JSW Steel has historically been sourcing almost its majority cargo requirements from JSW Infra and intends to continue to do so considering competitive charges and lower logistics costs due to proximity to its plants in Maharashtra and Karnataka, which provides cargo visibility for the JSW Infra.

 

With strong cash flows, a healthy cash balance of ₹16,900 crore, and net debt to EBITDA at 1.8x, Adani Ports is well-positioned for further expansion. Capacity enhancements at key ports, ongoing infrastructure projects, and global port acquisitions provide visibility for sustained growth in FY26 and beyond, according to analysts at Motilal Oswal Financial Services (MOFSL). 

 

APSEZ’s diversified cargo mix and ongoing infrastructure investments are expected to support its target of 505–515MMT cargo handling in FY26. The brokerage firm expects APSEZ to report 10 per cent growth in cargo volumes over FY25-27. This would drive a compounded annual growth rate (CAGR) of 16 per cent/16 per cent/21 per cent in revenue/EBITDA/PAT over FY25-27. MOFSL reiterates BUY rating with a target price of ₹1,700 (premised on 16x FY27E EV/EBITDA).