Adani Enterprises Ltd (NSE: ADANIENT) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Unidentified Speaker
Analysts:
Mohit Kumar — Analyst
Mahesh Patil — Analyst
Manish Somaiya — Analyst
Prateek Kumar — Analyst
Dhananjay Mishra — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Adani Enterprises Limited Q3 and FY26 earning conference call hosted by ICICI Securities Limited. As a reminder, all participant line will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation. Conclude, should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you. And over to you sir.
Mohit Kumar — Analyst
Thanks. Danish. Good evening. On behalf of ICICI securities would like to welcome you on the earnings call of Adani Enterprises Limited for Q3FY26. Today we have with us from the senior management Mr. Ravi Singh, Chief Financial Officer, Adani Enterprise Limited. Mr. Ajesh Podar, Chief Financial Officer, Adani Airport Holdings Limited. Mr. Manna Makariya, Head of Finance, Adani Enterprises. And Mr. Jiten Khalia, Investor Relations, Adani Enterprises. We’ll start with a brief opening remarks which is followed by Q and A. Thank you. And over to you sir.
Unidentified Speaker
Thank you so much. Mike. Welcome. Good evening everyone. Thank you for joining us today for Adani Enterprise earning call. As you all know now, AEA’s portfolio is categorized into our incubating portfolio spread across energy, utilities, transport, logistics and our established businesses which is traditional mining, trading and now metals. Straight off. I would just. I’m very pleased to share with you all that Adani Solar, which is part of Adani New Industries was recognized as world’s top 10 solar manufacturers. It’s the only Indian company in the top 10 in the world. This feat was achieved on the back of more than 15 gigawatt cumulative shipments, excellent vertical integration and maintaining a high capacity utilization.
Furthermore, over the last nine months, as you have seen in the various. Press. Release and announcements over the period of time our aerospace, technology and defense business is taking shape. You would have seen two recent announcements on the development of regional civilian transport with umbrella and helicopter ecosystem within India with Leonardo. Over the coming few years we will continue to inform the market on the development in the aerospace, technology and defense area. And now that business has taken certain shape, we will also from mid this year we have a section in IT to update you on the status of that business. As we go forward. In addition to defense, we’ve also set up Adani’s Global Capability center within AEL GCC which we call Adani Capability center.
And over the coming period you would see additional development in that space including and not limited to the development of activities within GCC which pertain to artificial intelligence and the changeover into a genetic workforce model. Coming back to this quarter, the key aspect has been the of project execution and operations for aea. During the quarter gone Adani Airport commissioned Navimbai Airport and also the integrated new terminal at Guwahati. The Navimbai Airport is of immense strategic importance for Mumbai as a second airport and for Adani Airports. This is a significant addition to its regulatory asset base.
The road business completed the two more HAM projects takes the operational road projects to nine. More importantly though, the largest road project that we have in the portfolio which is Ganga Expressway is set to go live in this quarter. Ganga expressway is roughly 18,000 crore asset and is a traffic risk project. So it will add significantly to Dani Road’s revenue and EBITDA. In ANIL module sales continue to track over 1 gigawatt per quarter despite the turbulence in global markets as we had flagged in last month. There’s a small variation on realization you have but nevertheless the robustness of the business continues.
The wind division has started shipping the 3.3 megawatt wind turbine on to financial performance in the coming period. First AEL will unlock EBITDA from Mummy, Mumbai, Kutchkopar and Ganga Expressway. Post stabilization, these three assets are expected to add well over 3,000 crore to EBITDA. The consolidated results for nine months with total income at 69,756, cr, EBITDA at 11,985 and profit before tax at 3,581. This excludes 1 of gain on sale of assets of 9,215 crores. Incubating businesses had a 7% year on year and now the EBITDA at 8,224. On capital management positioning AES balance sheet for the next phase of growth we completed the rights issue raising 24,930 crore.
Additionally in January we also further issued 1,000 crore of NCDs. This was third in series of NCDs. Now as a showcase given the scale of airport business which is now already tracking over 5,200 crore of EBITDA annually. This is without counting navium based assets that will come online this year. The airport now contributes about 23% to India’s passenger traffic and roughly 29% of their cargo volumes. This just underscores the key scale and strategic importance that this asset represents to India and its aviation industry. Financial and operational performance for the last nine months passenger traffic tracks at about 71 million passengers which is close to.
We expect Crown to number just short of 100 million for the year income which up 31% to 9652 crores and EBITDA has already surpassed the full year 25 EBITDA and is for the nine months is at 3724. As I mentioned before, on 25th December 2025 Greenfield Namibai Airport commenced operations which we expect will be meaningfully change the overall financial performance of Adani Airports going forward. It’s a regulatory asset base provisionally.
In t he high teens and the expected rate of return on assets of this type is in the range of 12 to 14%. On the strategic front, Karlani Airports acquired 100% stake in AGH Port Aviation Services. This acquisition provides Ghani Airports with full operational control and strengthen our presence in the airport ground handling. Overall, these strong operating metrics, strategic initiatives and infrastructure additions position Ghani Airport for sustained growth and value creation over the years ahead. Within our core traditional businesses we have a portfolio of 17 MDO service agreements with a peak capacity of 143 million tons per annum.
We are currently operating at a run rate of 45 million tonnes from six contract. Which is approximately 31% of the potential of this business. The six operating contracts which are currently operating at 45 million tonnes have a notional capacity of 63 million tons. So the additional and further ramp up in this business will continue. During the nine months the dispatch volume of the business is up 14% to 33.3 million tonnes and revenue is up 29% and consequently EBITDA is up 29% to 14,24 crores. Our Integrated Resource Management portfolio the volume should at 35.3 with an EBITDA of 2069.
With this we will end our initial briefing and we are open for questions. Thank you.
Questions and Answers:
operator
Thank you so much, sir. Ladies and gentlemen, we’ll begin with a question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are request to use answers while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. Our first question comes from the line of Mahesh from ICICI securities. Please go Ahead.
Mahesh Patil
Yeah. Hi sir. So my first question is on the defense side. Is it possible to help prevent the top line and the investment we have done till date in defense?
Unidentified Speaker
I think we will. Thank you for the question. We will update on defense.
operator
I’m sorry to interrupt you sir, but there is a disturbance from your line.
Unidentified Speaker
I said in the on the defense side. We will update fully as a segment in detail from the first half of next year. So post the September results.
Mahesh Patil
Okay. And sir, on the 6 GHz module line. When do we expect the commissioning of this line?
Unidentified Speaker
We. The new lines will be expected to be ready by 30th September this year.
Mahesh Patil
Okay. Enter on the games that we have booked in this quarter. What will be the tax impact for this game?
Unidentified Speaker
It will be taxed at 15%.
Mahesh Patil
Okay. Lastly on the airport business. Right. So can we. Can you help us with these commissioned assets in the last 12 months?
Unidentified Speaker
Can you please repeat the question?
Mahesh Patil
The assets commissioned in the airport business over the last 12 months.
Unidentified Speaker
There’s no commissioning as such on airport. Airport only asset we added was N.
Mahesh Patil
Okay. And so for this Navi Mumbai airport. Right. For FY27 arrow and non arrow side. How one should model for this and related question is do you expect losses in the interim till the traffic picks up in this airport?
Unidentified Speaker
No. Airport is a regulatory asset. So there’s no question of any losses on the air side. The way to model it is to take the regulatory asset base provisionally. It will be high scenes close to in fact close to 20,000 crore. And on a regulatory asset the weighted average rate of return is expected to be around 12 to 14%. And that return is calculated in the following manner. The RAM works in the following way. You take the operating cost efficiently incurred. Then capital return which is depreciation and amortization. Then basic average cost of capital that gives you plus notional tax to be paid.
Rate of return on the regulatory asset tax obviously gets paid. Cost goes into running of the airport. And what you are left with is a small capital return plus the rate of return on the asset. So. So there is. On a regulatory asset until unless there is a serious issue. There is no, not. Not a question of a loss.
Mahesh Patil
Okay. Thank you. Thank you.
operator
Our next question comes from the line of Manish Somaya from center. Please go ahead.
Manish Somaiya
Thank you for taking my questions. Good afternoon. Good evening. I just had a question on the airport business. I see that the growth slowed from the second quarter to the third quarter. Maybe if you can just talk about that and then also just touch on when we should start seeing any improvements in the integrated resource management mining some of the legacy businesses which obviously have been under pressure. So maybe if you can just give us some context around airports what happened in 3Q? Obviously we all know about the Indigo fiasco. I don’t know if it had anything to do with that.
And then also if you can just switch to the legacy businesses and help us understand when we should mark an improvement.
Unidentified Speaker
No, actually the growth is well over 30%. It’s just that we have the numbers that we mentioned. We’ve taken out a one time element. There’s no specific issue regarding Indigo in relation to the airports business. If even if you look at segmental part of airport. If you look at individual growth in relation to on, on our presentation deck on page 23 of the presentation, you’ll see that it’s gone from 1100 on a quarterly basis to 1568. And and the underlying, even if you look at the, the non aero breakdowns, they’re all plus 25% growth and we expect that to continue in the air.
Manish Somaiya
What I was looking at was the sequential growth. So when I look at the airport revenues that you had in the second quarter, it had year over year growth of 43%. You know we’re at 30. Of course, you know, we’re dealing with perhaps law of large numbers. As growth increases the growth rate will come down. But you know, again I’m just trying to reconcile if there’s anything we should take away from the sequential portion. The 42% in 2Q 26 versus 32% in 3Q.
Unidentified Speaker
No, I think what you will see is that actually that number will again accelerate only because it is a timing of various accounting of regulatory assets. So as the regulatory assets kick in you will see that you will have the revenue from those regulatory assets come in at different times. And they can be small changes in terms of mid period determination of regulatory rate of return. Because currently arrow is still a big part of the portfolio. And so you can see some of those changes because various regulatory assets come online at different times. So for example the determination, if you look at the effective date of regulatory determinations the periods are different.
So somewhere where we filed a middle mid review, it’s in December and so on so forth. Some we filed in January this year itself. So those assets will make a difference but we don’t see the overall you can have at a very large number like 40% growth and growth growth number where the growth can will moderate to some degree. It’s not likely that a 40% growth continues at 40% but we will have jumps. Mumbai Airport itself will add on a regulatory basis a regulatory aero side EBITDA itself of once we fully account for the timing difference but on a normalized run rate basis of about just over 2,000 crore to the EBITDA line itself against a current EBITDA of around annualized ebitda of around 5200.
So just just one asset will add about 40%.
Manish Somaiya
Right. And then switching to the legacy businesses. Maybe if you can just help us understand the pluses and minuses of what’s going on in those businesses.
Unidentified Speaker
The thing there is that as you know that we’ve flagged it last time also a ramp up, slight delay in the ramp up of Touch Copper. But we expect that now the full utilization should start over the next two to three months. So you start seeing the numbers in the first quarter of the following financial year which you haven’t seen the impact in this quarter. But I can share with you that we will see the numbers showing for Kutch Copper in the very first quarter next financial year and at various utilization rates. Say if it is 70% then we will have roughly, it will add roughly 2,800 crores.
If it is 80% around 3,000 and then there’s a further refining element to it where the EBITDA can go up by another 20%. But assuming that secondary refining is not there then we are confident of utilization rates of between 70 to 80%. So that should give a high 2000cr increase EBITDA addition in that business. The main variability for us in that business always remains the integrated resource management. Given the continuing sort of global domestic interplays and that part of the that core IRM business overall this, this year is around 11% less than what we were last year.
But as you always flagged that there is an inherent, it’s a profitable business by itself but there’s an inherent variation fluctuation in that business by the very nature. Otherwise we otherwise our MDO business is on track. It’s grown to 25 odd percent. It’ll it in its current contract it has the capacity to grow by another 25%. And then from where we are, because of the existing contract that has not yet activated, it has got a growth potential of another 31%. So we expect that business to keep ramping up. And as MDO and mining itself become a bigger part and metals become a bigger part of this business, the variability element that is now outsized because of the IRM being a bigger EBITDA contributor to the business will become less and less.
So we expect the variability itself as a percentage to decline as we go forward.
Manish Somaiya
Okay, and if you can just touch on the data center partnership with Google. I believe on the last call we had talked about the partnership and I think you’d mentioned that you would give more details around spending and other metrics. Hopefully on this call.
Unidentified Speaker
Just to give you an idea, we are just currently working through with the relevant agreements and so they are nothing that we can share which would be complete and naturally we have to also work jointly with the counterparty in that case. But we expect to have a much clearer rollout and take up planning from the likes of Google and other partners. Are there others also? Probably, I think given their timelines and what we are aware of, probably say it’s about another quarter to four months away before we can be able to publicly share the rollout plans.
Manish Somaiya
Okay, that’s helpful. And then just lastly you’ve been very busy on the capital markets front. If you can just give us a sense of what else we should be expecting and then I think what would be helpful is to have a pro forma capital structure. I think you gave the figures for 1231. But just to understand, you know, even with the current financing that was just completed in the last week or so, if you can just give us a sense of, you know, what the debt stack looks like at this point.
Unidentified Speaker
Yeah, we will actually provide lot more detail but just basically our total external debt now is roughly around 36, just over 36,000 cr external debt and then we have, sorry 36 that is allocated to our incubating businesses. And overall just to give you a basic long term debt number, the gross long term debt is about 78,000 cr. So give or take. Eight.
Just under $9 billion. We have still some shareholder loan outstanding of about, about just under $2 billion. So the external debt of that would be 62,000 crore. So 78 being the total debt, 16 being shareholder loans giving us a total external debt of about 62. Of this 62, the majority of 37 is just allocated to the is actually airports, rose touch copper and the current PVC under construction. What we can do is if we can give you a performer also post the post, we can actually will note down the question, we’ll provide that publicly and we can put it on the website itself.
Manish Somaiya
Okay, that’ll be super helpful just so that you know we have a better sense of what we should have in our models. But thank you so much for all. The answers.
Unidentified Speaker
Look at that. You can always look at page 26 but if anything further you can please reach out. So we will put further details if required.
Manish Somaiya
Wonderful. Thank you so much.
operator
Thank you. A nice question come from the line of Pratik Kumar from Jeffries. Please go ahead.
Prateek Kumar
Yeah. Good evening sir. I have few questions. Firstly can you discuss like if airport segment EBITDA grew like 40 year on year. There’s a mention of non recurring item also in that number related to lease income. What is that number? And.
Unidentified Speaker
220 cr one off.
Prateek Kumar
And this will be related to leasing what.
Unidentified Speaker
Non recurring. Just one second. This is largely a like for the specialist hanger development and advance received against that. So that’s how it gets accounted for.
Prateek Kumar
Okay, so next quarter we will have like like let’s say 220 crores lesser than current quarter plus additional business from the new airport which is Navy airport as a new run rate.
Unidentified Speaker
Correct?
Prateek Kumar
Right. Also on Navimbay airport like we started like 25th December in terms of ATMs and daily flights and probably to move to like a 24 hour airport sooner. Earlier we were doing like I think in the start 5,000 passengers per day. How has the run rate of passengers improved? Because there seems to be like a challenge on constrained capacity environment at this point. And how are you looking at FYI27 in terms of volumes for Mumbai and Navi Mumbai combined airports.
Unidentified Speaker
I think we will actually the volume details and movement we will. We will confirm and we’ll provide between the two airports as part of our annual results. But just to give you an idea, the second phase construction will start just after the monsoons this year itself 2026 it’s already the slots are fully taken up by the airlines at the Ambibai airport. So in fact phase two construction will start. And so but in terms of the overall system wide traffic impacts and everything we will provide much more detailed and clear outlines as part of the annual results.
And because we have a couple of steps to do in relation to capitalization of the asset in relation to the provisional RAB which we will do this quarter.
Prateek Kumar
Okay. And just to revisit you expecting some shift of traffic from Mumbai to Navi Mumbai airport here. And also related question, I know that we had like pushed out Namibia, the Mumbai airport renovation of Terminal 1 later date. Is there any update on that?
Unidentified Speaker
No, not on that. Our first priority is to stabilize the two airport operations from operations perspective which we expect to do and start the second phase construction at Namib Mumbai. And then we will look at Terminal 1 post that.
Prateek Kumar
Moving on to other segment like road segment has been doing ebitda of like 15002000 crore in like past two years. With the commissioning of Ganga Expressway soon how do we expect this business to ramp up in FY27?
Unidentified Speaker
Basically ganga expressway should just double the size of ebitda of this business.
Prateek Kumar
Sure.
Unidentified Speaker
1500 will 1500 EBITDA that sort of run rate. There are two new assets have also come in in hand but we will be closer to 3,000 with one accessory.
Prateek Kumar
Sure. And you talked about Adani GCC. Is this for like internal businesses of the Adani Group? And is this going to be a meaningful revenue or profit contributor to the business or just a support business for the group? And what are we, I mean you talked about AI and gentech AI we are like looking to develop.
Unidentified Speaker
Yeah. So it is, it is internal currently internal to the group and because it will become the lab through which the agentic AI will get deployed across the group.
Prateek Kumar
Okay, and last question on your coal to PVC timelines and can you discuss where is that project? How much is the capital employed till now? What is the total project CapEx and the timeline?
Unidentified Speaker
I think from a revenue perspective we should look at calendar year 28 and completion point of view base completion towards end of this year and then ramp up which will continue in that business. You can estimate. Roughly six to nine months. We obviously will provide a lot more detail closer to the event. But currently our CAPEX that has already been expensed on that business is in the vicinity of about 9,000 CER. So just over a third of the capex.
Prateek Kumar
Sorry, one last question on your total capex target for FY20 and how much has been till in first nine months?
Unidentified Speaker
So our total target that we had outlined was roughly 36,000 Siya and we have already done just about 25,200.
Prateek Kumar
Thank you sir. These are my questions.
operator
Thank you so much. Ladies and gentlemen. Anyone who wishes to ask a question, press star and one. Next question come from the line of Dhananjay Mishra from Sunidi Securities. Please go ahead.
Dhananjay Mishra
Hello. Are we expecting any contribution from copper side in Q4 as well or. It will only start from Q1 next year. Q1. Okay. And this provisional completion certificate will come in this in next two months. It will come in the next month itself. Oh so no, I mean in terms of toll collection and all it will start from T1 only. Not. Not material. In. No, no no no no no. Not material at all in. In. In Q4 and this lastly the 6 gigawatt this cell and module capacity which is going to be completed by June.
I saw your last timeline. So what is the CAPEX required for this? The total CAPEX for this project is around 10,000 cr and it is on scheduled completion. So we expect it to be ready and producing by September 2026. And do we have enough order once we have this 10 gigawatt capacity? Because currently we are run rate is about 4,000 megawatts. So for at least capacity only we have enough order. Okay, so we can supply once we have this capacity run, it could be 2,000 megawatt.
Unidentified Speaker
Yes.
Dhananjay Mishra
Thank you.
operator
Thank you so much. Ladies and gentlemen, that was the last question for today. I would like to hand the conference over to the management for the closing comments. Thank you. And over with you.
Unidentified Speaker
Thank you so much. And Mohit, thank you so much for organizing the call and everyone who participated. And if there’s any further questions, you please reach out to the team, our investor relations team, and they will respond. And we’ve noted one question which we will based on Cantos, which we’ll put on the website and you can always look at that answer on that question. Thank you.
operator
Thank you so much. Ladies and gentlemen, on behalf of ICICI securities, that concludes this conference, thank you for joining us and you may now disconnect your lines.