How transshipment shielded Adani Ports from war headwinds in March

Adani Ports and Special Economic Zone Ltd stock has fallen by about 10% to ₹1,376 since the West Asia conflict began on 27 February. The fall would have been steeper if not for the company’s business updates highlighting that it had clocked 11% year-on-year growth in cargo volumes to 46 million tonnes (MT) in March.

Riding on the strong showing in March, FY26 volume growth came in at 11% to 501 MT, slightly lower than management’s guidance of 505-515 MT.Analysts from JM Financial Institutional Securities and Nomura Financial Advisory and Securities (India) believe Adani Ports overcame the estimated loss of container volumes linked to Mundra Port in March with gains from transshipment volumes, as many international ports shied away from Middle-East-bound cargo owing to congestion worries. The analysts noted that about 15% of Mundra Port’s container traffic is linked to the Middle East.Against the backdrop of the ongoing conflict, the company’s international ports business has stayed resilient.

Volumes at the Haifa port in Israel increased month-on-month from 0.59 MT to 0.77 MT. Haifa’s March volumes grew even after adjusting for fewer days in February.

While the Haifa port contributes just about 2% of Adani Ports’ total volumes, the trend highlights the war has had no impact on volumes so far. Similarly, the Colombo terminal handled the highest ever monthly volume at 134,960 twenty-foot equivalent units.

Logistics rail volume and wagon volumes, primarily based in India, grew month-on-month by 6% and 18%, respectively, in March.Adani Ports has deftly navigated war-related volume growth concerns in March. While a prolonged conflict in the Middle East could prove a headwind to container-linked volumes, there is a tailwind