Adani Enterprises Airports, New Energy and Roads to Drive FY29 Earnings

Investment View

In its August 27, 2026 initiating-coverage report, Motilal Oswal Financial Services views Adani Enterprises (AEL) as a differentiated infrastructure incubator with exposure to airports, roads, data centres, new energy, mining, copper and strategic manufacturing.

The broker’s positive view rests on AEL’s demonstrated ability to identify emerging opportunities, build businesses to scale and monetise mature platforms, enabling capital recycling. Established businesses are expected to provide stability, while incubated platforms drive the next phase of earnings growth.

Financial Outlook

Motilal Oswal forecasts consolidated revenue, EBITDA and adjusted PAT to grow at compound annual growth rates of about 22 per cent, 29 per cent and 82 per cent, respectively, between FY26 and FY29E. EBITDA is projected to rise from about Rs 140 billion in FY26 to about Rs 299 billion in FY29E, while EBITDA margin is expected to improve from 13.9 per cent to 16.4 per cent.

The broker expects the earnings mix to shift towards higher-margin infrastructure-led businesses, particularly Airports, New Energy and Roads.

Core Growth Platforms

Airports and Roads

Airports are expected to be the largest contributor to EBITDA growth, supported by passenger-traffic ramp-up at Navi Mumbai Airport, tariff resets at other airports and growing non-aeronautical revenue. Adani Airport Holdings operates eight airports. Phase I of Navi Mumbai International Airport was commissioned in December 2025 with initial capacity of 20 million passengers per annum.

Roads should contribute more meaningfully as BOT projects commence tolling. The portfolio comprises more than 20 projects covering over 5,500 lane-km across HAM, BOT and TOT models.

New Energy

The New Energy business, housed in Adani New Industries Limited (ANIL), is expected to benefit from solar-module demand, manufacturing scale-up, PM Surya Ghar Muft Bijli Yojana support and ALMM List-III implementation for ingots and wafers from June 2028.

AEL has operational solar-cell capacity of about 4 GW, module capacity of 5.7 GW, ingot-wafer capacity of 2 GW and wind-turbine manufacturing capacity of 2.25 GW. The report also notes a 5 GW per year electrolyser hub under development at Mundra.

Additional Growth Drivers

Data Centres

AdaniConneX, AEL’s 50:50 joint venture with EdgeConneX, had more than 65 MW of operational data-centre capacity and over 960 MW of tied-up capacity. Motilal Oswal expects operational and billable capacity expansion, with billing realisation of around Rs 100 million per MW, to become a meaningful revenue driver.

Copper, IRM and Mining Services

Copper is another growth lever. Kutch Copper’s Phase I refined-copper capacity is 0.5 MTPA, with expansion planned to 1 MTPA. Core IRM and mining-services businesses are expected to continue providing cash flows, although FY26 IRM volumes declined 21 per cent year-on-year.

Capital Expenditure and Leverage

Motilal Oswal assumes annual capex of about Rs 400 billion during the forecast period, including management guidance of about Rs 400 billion for FY27 and roughly Rs 170 billion for airports.

Despite continued investment, the broker expects net debt to EBITDA to moderate from 5.4 times in FY26 to about 4.5 times in FY29, supported by estimated operating cash flow of about Rs 569 billion through FY29.

Valuation

The Rs 3,880 target price is based on a sum-of-the-parts valuation using September 2028 EBITDA and segment-specific EV/EBITDA multiples.

Key Risks

• Project execution delays and cost overruns.
• Higher capex and leverage, along with refinancing and interest-rate sensitivity.
• Policy and regulatory changes.
• Commodity-price volatility.
• Slower passenger traffic or non-aeronautical airport monetisation.
• Slower data-centre billing-capacity ramp-up.
• Weaker utilisation or margins in copper.