New Delhi : The outlook of Adani Ports and Special Economic Zone Limited (APSEZ) has been revised by Fitch Ratings to Stable from Negative. It has also affirmed its Long-Term Foreign-Currency Issuer Default Rating (IDR) and unsecured note rating at ‘BBB-‘.
The revision reflects easing contagion risk associated with APSEZ, as the group has demonstrated access to diversified funding sources, despite the November 2024 US indictment related to certain board members of Adani Green Energy Limited.
Fitch stated “The Stable Outlook reflects Fitch’s views on easing contagion risk associated with APSEZ, as Adani group has demonstrated access to diversified funding sources, despite the November 2024 US indictment”.
Fitch said the group continues to invest in projects, with capital expenditure (capex) rising in the first half of FY26.
The rating firm also noted that the Securities and Exchange Board of India (SEBI) ruled in September 2025 that the Adani group did not violate disclosure norms or manipulate the market as alleged in a 2023 short seller report.
According to Fitch, APSEZ’s liquidity and funding are expected to remain adequate for its ratings, supported by strong cash flows from a diversified portfolio of ports, operational flexibility, and proven credit market access. Although the timing and outcome of the US investigation remain uncertain, the risks are expected to be manageable for APSEZ in the near term.
Fitch said APSEZ’s financial profile is stronger than what is typical for its rating level but remains constrained by India’s ‘BBB-/Stable’ Country Ceiling.
The company benefits from diversified port locations, advanced connectivity, and high customer retention due to its integrated infrastructure capable of handling multiple cargo types.
APSEZ operates 15 ports and terminals across India, handling about a quarter of the country’s seaborne cargo. Its east-coast terminals now account for over 40 per cent of total throughput.
The company also enjoys flexibility in setting tariffs, particularly at its non-major ports, and maintains several long-term take-or-pay contracts that reduce revenue volatility.
The company’s capex plan focuses on expanding port capacity and enhancing logistics infrastructure, with annual spending estimated between Rs 120 billion and Rs160 billion over the medium term.
The rating firm stated that the APSEZ maintains a strong record in managing investments that can be deferred without major operational impact.
Fitch expects APSEZ’s debt structure, which mainly includes fixed-rate US dollar and rupee bonds, to remain manageable with limited refinancing risk.
Nearly one-third of its revenue is in US dollars, providing a natural hedge for its dollar-denominated debt.
Under the base case, Fitch projects annual cargo growth of 10-15 per cent and tariff growth of 2-3 per cent, with EBITDA margins of about 55 per cent.
APSEZ’s throughput rose 7 per cent in FY25, while revenue from operations increased 14 per cent, supported by growth at Mundra Port and the consolidation of Astro Offshore and Gopalpur Port.
The company held a cash balance of Rs 170 billion as of June 2025, sufficient to meet Rs 90 billion of debt maturities during FY26 and fund capex. (ANI)
