Anchored to ‘The New India‘: Adani Enterprises Ltd | Asia Pacific

Research evidence excerpt

Anchored to ‘The New India‘: Adani Enterprises Ltd | Asia Pacific

FoundationM

Executive Summary

Why should investors own AEL?

Well positioned to play the "New India" theme: We expect India's economy to remain

one of the fastest-growing large economies, driving sustained demand for energy,

transportation, and self-reliance across multiple sectors. AEL has a strong portfolio

spanning: a) transport infrastructure, with a premier airport platform (eight airports, with

the government looking to privatize more) and a growing roads portfolio across

diversified contract models (hybrid annuity, build-operate-transfer, and toll-operate-

transfer), b) digital infrastructure supported by data localization mandates and AI/ML

workload growth, with AEL building data centres for hyper-scalers); c) energy transition,

through green energy equipment manufacturing supported by domestic content

requirements; and d) manufacturing self-reliance, through copper, PVC, mining, and

defence. This positions AEL at the center of India’s capex cycle and gives investors multi-

year earnings visibility.

Earnings inflection in incubated businesses: In F26, 80% of AEL's EBITDA already comes

from its core incubating portfolio (infrastructure and utilities), compared with the trading

business accounting for 36% four years ago. We see stronger earnings contributions from

four businesses: 1) AEL's airport platform, which handled 95.5mn pax and had 23% market

share in F26, should benefit from the recently commissioned Navi Mumbai International

Airport (capacity: 20mn pax); 2) AEL's new energy business should see strong earnings

growth over F27-28, driven by solar cell and module capacity additions (4GW → 10GW in

F27); 3) tolling commencement at Ganga Expressway (in Q1) should drive EBITDA of