Elara Capital expects strong Q3 growth for ports and logistics, led by Adani and JSW. Top sector picks revealed.
Port operators are set to outpace road transport companies during the quarter ending. This growth is anticipated to be fuelled by high container volumes, a resurgence in iron ore exports, and the expansion of global port facilities, alongside the strengthening of shipping fleets and integrated logistics networks.
In contrast, road-based logistics demand is projected to remain stable. This stability is primarily supported by the consumer retail sector, which benefited from peak festive season shopping and recent reductions in GST. Additionally, rail-based international trade volumes are expected to rise due to sustained export and import momentum.
The brokerage firm has issued “Buy” recommendations for its preferred sector stocks:
- Adani Ports & SEZ: Valuation target of ₹1,700
- JSW Infrastructure: Valuation target of ₹362
- Delhivery: Valuation target of ₹593
Revenue bolstered by volume; margin outlook remains varied. Analysts project that Adani Ports & SEZ will report a 17 per cent annual increase in revenue for the third quarter of the 2026 financial year. This is expected to be driven by a 10 per cent rise in cargo handling, reaching approximately 123 million tonnes. Growth factors include the scaling up of operations at international hubs in Sri Lanka and Tanzania.
SOURCE – BUSINESS STANDARDS
