28-Oct-2026 22:37:18
ADANI ENTERPRISES LTD Q2 CONCALL: ₹35,000–40,000 CR ANNUAL CAPEX PLAN, DATA CENTER CAPACITY TARGET OF 500 MW IN 12–18 MONTHS, COPPER UTILIZATION GUIDANCE OF 80–85% & NAVI MUMBAI AIRPORT EXPANSION
• MANAGEMENT EXPECTS AN ANNUAL CAPITAL EXPENDITURE RUN RATE OF APPROXIMATELY ₹35,000–40,000 CR OVER THE NEXT COUPLE OF YEARS, PRIMARILY ACROSS AIRPORTS, DATA CENTERS, PVC & OTHER INFRASTRUCTURE PROJECTS • MANAGEMENT EXPECTS DATA CENTER OPERATIONAL CAPACITY TO REACH APPROXIMATELY 120–150 MW BY FY27-END, SUPPORTED BY ONGOING PROJECT COMMISSIONING • MANAGEMENT TARGETS APPROXIMATELY 500 MW OF OPERATIONAL DATA CENTER CAPACITY OVER THE NEXT 12–18 MONTHS, SUBJECT TO CONSTRUCTION & CUSTOMER HANDOVER TIMELINES • MANAGEMENT HIGHLIGHTED MORE THAN 1.2 GW OF CONTRACTED DATA CENTER CAPACITY, PROVIDING LONG-TERM REVENUE VISIBILITY • MANAGEMENT INDICATED APPROXIMATELY 1.4 GW OF DATA CENTER PROJECTS WERE UNDER CONSTRUCTION, SUPPORTING FUTURE CAPACITY EXPANSION • MANAGEMENT EXPECTS DATA CENTER GROWTH TO BE DRIVEN BY HYPERSCALE CUSTOMERS, CLOUD INFRASTRUCTURE DEMAND & AI-RELATED COMPUTING REQUIREMENTS • MANAGEMENT INDICATED A DATA CENTER PROJECT FINANCING STRUCTURE GENERALLY INVOLVING 20–30% EQUITY & 70–80% DEBT • MANAGEMENT EXPECTS CAPITAL-COST INFLATION TO BE INCORPORATED INTO NEW DATA CENTER CONTRACT NEGOTIATIONS TO PROTECT TARGETED RETURNS ON CAPITAL • MANAGEMENT IS EXPLORING A PARTNERSHIP WITH JABIL FOR MANUFACTURING AI RACKS, SERVERS & RELATED DATA CENTER EQUIPMENT IN INDIA • MANAGEMENT CLARIFIED THAT THE JABIL ARRANGEMENT REMAINS AT THE MEMORANDUM-OF-UNDERSTANDING STAGE, WITHOUT DEFINITIVE AGREEMENTS OR CONFIRMED INVESTMENT COMMITMENTS • MANAGEMENT EXPECTS NAVI MUMBAI INTERNATIONAL AIRPORT TO REACH AN ANNUALIZED PASSENGER RUN RATE OF APPROXIMATELY 20 MILLION BY FY28-END • MANAGEMENT INDICATED THE CURRENT NAVI MUMBAI AIRPORT CAPACITY COMPRISES APPROXIMATELY 15 MILLION DOMESTIC & 5 MILLION INTERNATIONAL PASSENGERS ANNUALLY • MANAGEMENT EXPECTS NAVI MUMBAI AIRPORT PHASE 2 CONSTRUCTION TO BEGIN IN NOVEMBER 2026, FOLLOWING ONGOING DESIGN & PLANNING ACTIVITIES • MANAGEMENT EXPECTS ADDITIONAL AIRLINE ROUTES & TRAFFIC TRANSFERS TO SUPPORT NAVI MUMBAI AIRPORT'S PASSENGER RAMP-UP • MANAGEMENT INDICATED MUMBAI AIRPORT TERMINAL 1 REDEVELOPMENT IS SCHEDULED TO BEGIN IN APRIL 2027, INCREASING THE IMPORTANCE OF NAVI MUMBAI CAPACITY • MANAGEMENT PLANS FURTHER AIRPORT TERMINAL, HOTEL & CITY-SIDE DEVELOPMENT ACROSS AHMEDABAD, JAIPUR, THIRUVANANTHAPURAM, MUMBAI & OTHER LOCATIONS THROUGH 2029–2030 • MANAGEMENT EXPECTS AIRPORT PROFITABILITY TO BENEFIT FROM HIGHER NON-AERONAUTICAL REVENUE, PREMIUM RETAIL, LOUNGES, DIGITAL SERVICES & GROUND HANDLING • MANAGEMENT EXPECTS APPROXIMATELY 2 GW OF SOLAR MODULE SALES IN Q3 FY27, SUPPORTED BY THE RECENT MANUFACTURING CAPACITY EXPANSION • MANAGEMENT TARGETS COMMISSIONING OF 6 GW SOLAR CELL MANUFACTURING CAPACITY BY FY27-END, STRENGTHENING BACKWARD INTEGRATION • MANAGEMENT PLANS ADDITIONAL INGOT & WAFER MANUFACTURING CAPACITY BY 2028, BUILDING ON EXISTING CAPACITY OF APPROXIMATELY 2.2 GW • MANAGEMENT INDICATED SOLAR & WIND MANUFACTURING CAPACITY WAS FULLY BOOKED, ALTHOUGH THE EXACT ORDER BOOK VALUE WAS NOT DISCLOSED • MANAGEMENT EXPECTS KUTCH COPPER CAPACITY UTILIZATION TO REACH APPROXIMATELY 80–85% BY FY27-END, COMPARED WITH 64% IN Q2 FY27 • MANAGEMENT EXPECTS LONG-TERM COPPER EBITDA MARGINS TO NORMALIZE TOWARD APPROXIMATELY 4–6%, COMPARED WITH RECENT MARGINS OF AROUND 7–8.5% • MANAGEMENT CAUTIONED THAT RECENT COPPER PROFITABILITY BENEFITED FROM FAVORABLE SULFURIC ACID & OTHER BY-PRODUCT PRICES, WHICH MAY NOT BE SUSTAINABLE • MANAGEMENT EXPECTS HIGHER COPPER PLANT UTILIZATION TO SUPPORT ABSOLUTE EBITDA GROWTH, EVEN IF PERCENTAGE MARGINS MODERATE • MANAGEMENT INDICATED LONG-TERM RAW-MATERIAL CONTRACTS COVER APPROXIMATELY 50–60% OF COPPER REQUIREMENTS, WITH ADDITIONAL SHORT-TERM CONTRACTS COVERING AROUND 20% • MANAGEMENT EXPECTS INTERNAL JOINT-VENTURE OFFTAKE TO ACCOUNT FOR APPROXIMATELY 12–15% OF COPPER CAPACITY • MANAGEMENT EXPECTS FY27 MINING SERVICES VOLUMES TO BE AT LEAST 10–15% HIGHER THAN FY26 LEVELS, SUPPORTED BY OPERATING SCALE & PROJECT EXECUTION • MANAGEMENT EXPECTS ROAD TRAFFIC PERFORMANCE TO IMPROVE OVER THE NEXT TWO QUARTERS, FOLLOWING MONSOON & FLOOD-RELATED DISRUPTIONS • MANAGEMENT EXPECTS THE FIRST PORTION OF THE MUNDRA PVC PROJECT TO BE COMMISSIONED DURING FY28, SUBJECT TO CONSTRUCTION & INSTALLATION PROGRESS • MANAGEMENT EXPECTS THE PVC PROJECT TO REQUIRE APPROXIMATELY 6–9 MONTHS OF STABILIZATION AFTER INITIAL COMMISSIONING • MANAGEMENT IS DEVELOPING APPROXIMATELY 1 MILLION TONNES OF ANNUAL PVC CAPACITY, WITH TOTAL PROJECT CAPEX ESTIMATED AT AROUND ₹26,000 CR • MANAGEMENT INDICATED APPROXIMATELY 60% PROJECT PROGRESS FOR THE PVC & RELATED CHLOR-ALKALI CHEMICALS DEVELOPMENT • MANAGEMENT DID NOT PROVIDE SPECIFIC CONSOLIDATED FY27 OR FY28 EBITDA, PAT OR MARGIN GUIDANCE • MANAGEMENT DID NOT PROVIDE A COMPLETE CONSOLIDATED NET DEBT FORECAST, PRECISE FY27 FREE CASH FLOW GUIDANCE OR DETAILED SEGMENT-WISE FUTURE CAPEX SCHEDULE • H1 FY27 CONSOLIDATED TOTAL INCOME INCREASED 62% YOY TO ₹71,569 CR, REFLECTING STRONG GROWTH ACROSS INFRASTRUCTURE & MANUFACTURING BUSINESSES • H1 FY27 EBITDA INCREASED 56% YOY TO A RECORD ₹11,958 CR, SUPPORTED BY AIRPORTS, COPPER, RENEWABLE MANUFACTURING & OTHER BUSINESSES • H1 FY27 PROFIT BEFORE TAX FROM CONTINUING OPERATIONS INCREASED 45% YOY TO ₹3,297 CR • H1 FY27 AIRPORT EBITDA INCREASED 52% YOY TO ₹3,275 CR, REFLECTING IMPROVING OPERATING PERFORMANCE • H1 FY27 KUTCH COPPER EBITDA REACHED APPROXIMATELY ₹2,033 CR, SUPPORTED BY PLANT RAMP-UP & FAVORABLE BY-PRODUCT REALIZATIONS • Q2 AIRPORT INCOME INCREASED 20% YOY TO ₹3,786 CR, WHILE AIRPORT EBITDA GREW 55% YOY TO ₹1,641 CR • Q2 AIRPORT PASSENGER TRAFFIC REACHED APPROXIMATELY 21.3 MILLION, REFLECTING THE SCALE OF THE COMPANY'S AIRPORT NETWORK • ADANI AIRPORT HOLDINGS OPERATES EIGHT AIRPORTS, ACCOUNTING FOR APPROXIMATELY 23% OF INDIA'S PASSENGER TRAFFIC & 29% OF AIR CARGO VOLUME, ACCORDING TO MANAGEMENT • NON-AERONAUTICAL AIRPORT REVENUE INCREASED APPROXIMATELY 57% YOY, SUPPORTED BY RETAIL, LOUNGES, DIGITAL TRANSACTIONS & GROUND-HANDLING SERVICES • APPROXIMATELY 25% OF NON-AERONAUTICAL TRANSACTIONS WERE CONDUCTED DIGITALLY, REFLECTING INCREASING CUSTOMER ADOPTION • GROUND HANDLING CONTRIBUTED APPROXIMATELY ₹339 CR REVENUE DURING H1 FY27 • MANAGEMENT INDICATED A HANGAR SALE AT NAVI MUMBAI CONTRIBUTED TO Q2 NON-AERONAUTICAL REVENUE & SHOULD BE DISTINGUISHED FROM RECURRING OPERATIONS • DATA CENTER OPERATIONAL CAPACITY REACHED APPROXIMATELY 94.6 MW IN Q2 FY27, INCLUDING AN ADDITIONAL 29.2 MW HANDED OVER DURING THE QUARTER • MANAGEMENT CONFIRMED SIGNING A NEW 240 MW HYPERSCALE DATA CENTER CONTRACT, STRENGTHENING ITS LONG-TERM CONTRACTED PIPELINE • SOLAR & WIND MANUFACTURING Q2 INCOME REACHED ₹3,669 CR, WITH EBITDA OF APPROXIMATELY ₹1,094 CR • SOLAR MODULE MANUFACTURING CAPACITY REACHED 10 GW FOLLOWING COMPLETION OF THE EXPANSION ON 31 AUGUST 2026 • Q2 SOLAR MODULE SALES INCREASED 35% YOY TO APPROXIMATELY 1,478 MW, WITH AROUND 56% DIRECTED TOWARD THE ROOFTOP MARKET • Q2 WIND TURBINE SALES INCREASED 25% YOY TO 35 SETS, REFLECTING GROWING MANUFACTURING ACTIVITY • KUTCH COPPER Q2 REVENUE REACHED ₹14,843 CR, WITH EBITDA OF APPROXIMATELY ₹1,283 CR • Q2 COPPER SALES REACHED APPROXIMATELY 80.6 THOUSAND TONNES, WITH PLANT UTILIZATION AT AROUND 64% • INTEGRATED RESOURCE MANAGEMENT Q2 REVENUE STOOD AT ₹7,169 CR, WITH EBITDA OF ₹654 CR & TRADING VOLUME OF 7.4 MILLION METRIC TONNES • MANAGEMENT DID NOT PROVIDE FIRM ANNUAL INTEGRATED RESOURCE MANAGEMENT VOLUME GUIDANCE DUE TO COAL MARKET VOLATILITY • MINING SERVICES Q2 REVENUE REACHED ₹998 CR, WITH EBITDA OF ₹407 CR & DISPATCH VOLUMES OF 10.7 MILLION METRIC TONNES • ROADS EBITDA IMPROVED TO ₹354 CR IN Q2 FROM ₹288 CR IN Q1, TAKING H1 EBITDA TO APPROXIMATELY ₹642 CR • CARMICHAEL COAL MINE EBITDA REACHED APPROXIMATELY ₹470 CR IN Q2 & ₹840 CR IN H1, SUPPORTED BY FAVORABLE COAL PRICES & PLANT UTILIZATION • THE COMPANY RECEIVED A CARE AAA/STABLE CREDIT RATING UPGRADE IN OCTOBER 2026, REFLECTING THE RATING AGENCY'S ASSESSMENT OF ITS CREDIT PROFILE • KEY RISKS INCLUDE HIGH ANNUAL CAPEX REQUIREMENTS, DEBT-FUNDED PROJECT EXPANSION, COPPER MARGIN NORMALIZATION, DATA CENTER EXECUTION, AIRPORT TRAFFIC RAMP-UP & COMMODITY PRICE VOLATILITY • OVERALL OUTLOOK REMAINS POSITIVE, WITH KEY MONITORABLES INCLUDING 120–150 MW DATA CENTER CAPACITY BY FY27-END, APPROXIMATELY 500 MW OVER 12–18 MONTHS, 6 GW SOLAR CELL COMMISSIONING, 80–85% COPPER UTILIZATION, NAVI MUMBAI AIRPORT RAMP-UP & EXECUTION OF THE ₹35,000–40,000 CR ANNUAL CAPEX PROGRAMME
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