Adani Port & SEZ (ADSEZ IN) – Event Update – NQXT in, strong volume & EBITDA/t continue – BUY
Published on 24 Dec 2025
Adani Ports & SEZ (ADSEZ) has completed the acquisition of North Queensland Export Terminal (NQXT), marking a key milestone in its international expansion strategy and strengthening its long-duration, dollar-linked cash flow base. The acquisition adds a high-quality, cash-generative export terminal with take-or-pay contracts, a long remaining lease life (~85 years) and strong growth visibility, while remaining largely balance-sheet neutral given the equity-funded structure. Strategically located along the East–West trade corridor, NQXT meaningfully enhances ADSEZ’s international portfolio and is expected to drive a higher contribution from overseas assets toward incremental growth. With EBITDA margins of ~65%+, NQXT is margin-accretive and should aid a steady improvement in international ports EBITDA margins as the overseas portfolio scales up. We maintain ‘Buy’ with revised TP of Rs1,876 (earlier Rs1,777) valuing at 18x EV of Sep’27E EBITDA. At CMP, the stock is trading at EV of 13.8x/11.4x FY27/28E EBITDA. Maintain Buy.
