Adani Ports, Concor, JSW Infra in focus after Q1: JM Financial lists key stocks to watch in the port sector 

JM Financial’s top picks in port sector after Q1 results

Adani Ports broadly delivered on the brokerage’s projections, reporting double-digit growth in revenue and profit after tax while remaining on course to achieve its FY27 EBITDA guidance. JSW Infrastructure’s revenue growth was largely in line with expectations, although profit declined from a year ago. Concor’s quarterly earnings, however, remained largely unchanged despite the brokerage expecting higher profit growth.

GMR Airports is yet to report earnings, but its latest operating update showed record quarterly passenger traffic at Delhi Airport even as weakness at Hyderabad and overseas airports kept overall traffic broadly flat. Gujarat Pipavav, Aegis Logistics and Aegis Vopak Terminals are still scheduled to announce their June-quarter results.

Adani Ports Q1 in line with JM Financial’s expectations

JM Financial had expected Adani Ports to report nearly 15% growth in EBITDA, supported by similar growth in cargo volumes, while domestic ports and international operations were expected to offset weakness in the logistics business. The brokerage had also said the company could meet or exceed the upper end of its FY27 EBITDA guidance of Rs 25,000-26,000 crore.

The company largely delivered on those expectations. Revenue from operations rose 18.6% year on year to Rs 10,820.8 crore, while profit after tax increased 10.2% to Rs 3,649.5 crore. Operating profitability also improved, with EBITDA margin expanding by 4.38 percentage points sequentially.

The brokerage house is expecting strong growth across  domestic ports, particularly Mundra, Dhamra, Katupalli and Gangavaram, while higher contribution from international ports is expected to offset the decline in logistics EBITDA.

JM Financial on JSW Infrastructure 

JSW Infrastructure meets revenue expectations, but profit declines Before the results, JM Financial had expected cargo volume growth of about 6%, supported by coastal coal movement, captive cargo from JSW Steel and a full-quarter contribution from the rail rake business acquired during the March quarter. JSW Infrastructure reported revenue from operations of Rs 1,444.8 crore, up 18.1% year on year, broadly matching the brokerage’s estimate. EBITDA increased 8.9% to Rs 730.6 crore, while net profit fell 9.9% to Rs 346.6 crore, missing the growth JM Financial had projected.

The brokerage had estimated 18% revenue growth and 12% EBITDA growth, while maintaining that the company could achieve management’s FY27 EBITDA target of Rs 3,000 crore.

According to JM Financial, Coastal coal and captive cargo volumes along with the  rail rake business are expected to be the primary drivers going forward. 

Concor’s earnings fall short of the brokerage’s projections

JM Financial entered the earnings season with a positive view on Concor after export-import handling volumes increased 9.8%, ahead of management’s full-year guidance.

The reported numbers were softer. Consolidated revenue from operations remained largely unchanged at Rs 2,159.8 crore, while consolidated net profit was almost flat at Rs 266.7 crore compared with the year-ago quarter. The board also declared an interim dividend of Rs 1.60 per share.

GMR Airports reports record quarterly traffic before earnings

GMR Airports is yet to announce its June-quarter financial results, but its latest operating update showed mixed traffic trends.

The company handled 30.22 million passengers during the June quarter, its highest-ever quarterly passenger traffic, helped by record domestic traffic at Delhi Airport. Delhi handled 20.4 million passengers during the quarter, while cargo volumes increased 12.3% year on year to about 3.1 lakh metric tonnes. However, weaker traffic at Hyderabad, Mopa, Medan and Cebu meant total passenger traffic excluding Cebu declined 0.3% in June.

Before the results, JM Financial had expected stronger aeronautical revenue per passenger at Delhi Airport to support revenue and EBITDA growth when the company reports its quarterly earnings.

JM Financial’s expectations for Gujarat Pipavav and Aegis companies

Among companies yet to report, JM Financial expects Gujarat Pipavav’s earnings before interest and tax to grow about 14%, although that would remain below management’s earlier expectation of 16-18% because of a steep decline in liquid cargo volumes.

The brokerage also expects lower LPG imports during the June quarter to affect throughput volumes at Aegis Logistics and Aegis Vopak Terminals. Even so, it believes Aegis Logistics’ distribution business could benefit from stronger volumes and profitability following disruption in industrial propane supplies.

“Lower LPG imports are expected to adversely affect throughput volumes at Aegis Vopak Terminals and Aegis Logistics. However, continued disruption in industrial propane supplies should support both volumes and profitability in Aegis Logistics’ distribution business,” JM Financial had said.

Conclusion 

With most large players having either reported or released operating updates, the June quarter has produced a mixed picture for the sector. Adani Ports largely matched JM Financial’s expectations, JSW Infrastructure delivered healthy revenue growth despite lower profit, while Concor’s earnings were softer than the brokerage had projected. The focus now shifts to Gujarat Pipavav, Aegis Logistics and Aegis Vopak Terminals, where JM Financial continues to expect cargo trends and business mix to play a key role in the June-quarter performance.

Disclaimer: This analysis of corporate earnings and brokerage estimates is intended for informational and reporting purposes only and does not constitute financial or investment advice. Readers are advised to consult a qualified financial advisor before making any investment or trading decisions based on market performance reports.

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