In a major development for Adani Group, Adani Ports & SEZ (APSEZ), a major profit contributor, has secured a AAA rating from Care Ratings, the highest rating possible bestowed by Indian credit-rating agencies. This rating underscores APSEZ's robust creditworthiness and its ability to meet investor obligations.

This achievement carries substantial importance within India's private infrastructure realm as APSEZ becomes the first and sole private infrastructure developer of its scale to attain such recognition. Additionally, Adani Energy Solution's two transmission assets, WTGL (West Transmission Gujarat Limited) and Alipurdwar, have also been awarded AAA ratings by India Ratings, though APSEZ's company-level rating stands out as a pioneering accomplishment.

The ratings elevation primarily stems from APSEZ's resilient business model, marked by substantial operational growth, healthy profitability metrics, strong liquidity position, and minimal leverage. The CARE report noted that the ratings derive strength from healthy growth in scale of operations, steady PBILDT margins, demonstrated execution capabilities of APSEZ in the port sector, and robust liquidity.

APSEZ's financial health has seen notable improvements, with its leverage ratio (net external debt/PBILDT) decreasing from 3.62 times as of March 31, 2021, to 2.41 times by December 31, 2023, following strategic measures like progressive bond buybacks.

Moreover, the report commended APSEZ's adeptness in revitalising port assets post-acquisition, its integrated business model encompassing ports and logistics, which has propelled a 15 per cent compounded annual growth rate (CAGR) for FY19-FY24, contrasting starkly with the 4 per cent CAGR for Indian ports overall.

The company's expansive portfolio, spanning 14 ports across India's coastline, from just two ports in 2011, is indicative of its growth trajectory. APSEZ's operational efficiency, strategic port placements, and comprehensive service offerings, including SEZ and logistics, have been instrumental in securing a notable 27 per cent volume market share.

Notably, Mundra Port, part of APSEZ, stands as India's largest commercial port in cargo handling, further solidifying APSEZ's position as India's premier port developer and operator by volume, with a total capacity of 607 MMT.