Synopsis : Nomura expects a strong Q1FY27 for the ports sector, with Adani Ports and JSW Infrastructure benefiting from robust container traffic despite weakness in coal and petroleum cargo. The brokerage forecasts double-digit EBITDA growth, supported by capacity expansion, strategic investments, and improving logistics performance.
India’s ports and logistics sector is expected to begin FY27 on a solid note, with Adani Ports & Special Economic Zone and JSW Infrastructure emerging as key beneficiaries of strong container demand. According to a recent report by Nomura, an 8% increase in container volumes has helped offset softer demand in coal and petroleum cargo, keeping overall sector performance resilient.
Nomura expects healthy EBITDA growth
The brokerage has maintained a positive outlook for both port operators in the June quarter.
Nomura estimates Adani Ports will report nearly 16% year-on-year EBITDA growth, while JSW Infrastructure is expected to post around 12% EBITDA growth, describing the quarter as operationally smooth despite weakness in some cargo categories.
Adani Ports handled 138 million tonnes of cargo during the quarter, marking 15% year-on-year growth, aided by capacity additions such as the newly commissioned NQXT terminal.
JSW Infrastructure is projected to deliver around 4.5% volume growth, with the brokerage expecting stronger momentum in the second half of FY27.
However, Nomura noted that Adani Ports may witness a slight decline in EBITDA margins because international ports now contribute a larger share of revenue. Since overseas ports generally operate at lower margins than domestic terminals, this mix change could partially offset operational gains.
Container cargo remains the biggest growth driver
India’s overall port traffic increased around 3% year-on-year during the quarter.
Container cargo grew by 8%, helping compensate for weaker performance in other segments. Petroleum, Oil and Lubricants (POL) volumes declined around 3%, while coal volumes slipped approximately 4%.
Adani Ports significantly outperformed the industry, reporting container volume growth of 17–18%, allowing it to gain additional market share in the high-growth container segment.
Nomura believes containerisation continues to be one of the strongest structural growth themes for India's maritime sector.
Vizhinjam partnership strengthens Adani Ports
A major positive highlighted by Nomura is Mediterranean Shipping Company’s (MSC) planned $1.4 billion investment for a 49% stake in the Vizhinjam Port.
The brokerage believes this strategic partnership significantly improves cargo visibility and lowers utilisation risk, as MSC is expected to route a substantial portion of its global cargo through the terminal.
The collaboration is also expected to improve connectivity across important trade routes, including East Africa and Bangladesh, while increasing relay cargo volumes.
JSW Infrastructure expands into container business
JSW Infrastructure is also strengthening its long-term growth strategy by expanding into container handling.
The company has secured a 30-year concession to develop container terminals at Kolkata Port, adding approximately 0.93 million TEUs of capacity.
Once completed, its total container handling capacity is expected to increase to nearly 1.8 million TEUs, supporting greater third-party cargo volumes and strengthening its presence in eastern India.
What investors should monitor
Nomura expects Adani Ports' revenue to grow around 21% year-on-year, although margin pressure from international operations may continue in the near term.
Meanwhile, JSW Infrastructure's EBITDA margin is expected to improve to nearly 49.1%, driven by better profitability in its logistics business, successful integration of recently acquired assets, and continued strong performance from Navkar.
Overall, the brokerage believes container growth, expanding infrastructure and strategic investments remain the key drivers supporting the long-term outlook for India's leading port operators.
Disclaimer : This article is intended for informational and educational purposes only and is based on a brokerage report by Nomura. It should not be considered as investment advice or a recommendation to buy, sell, or hold any security. Stock market investments are subject to market risks, and investors should conduct their own research or consult a SEBI-registered financial advisor before making any investment decisions.
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