The agency simultaneously upgraded the rating on APSEZ’s senior unsecured notes to ‘BBB’ and assigned a stable outlook, citing its expectation that net debt-to-EBITDA will hold at approximately 2.6 times over the next 12 to 24 months, a sharp improvement from nearly 4x in FY23. Management’s revised leverage target of around 2.5x, down from its earlier tolerance of 3.0–3.5x, also factored into the decision.
Despite the upgrade, APSEZ faces a steep capital expenditure cycle ahead. Annual capex is projected to rise to approximately ₹180 billion in FY27 and FY28, increasing further to ₹200 billion in FY29, against roughly ₹130 billion in recent years. Around two-thirds of this investment will go towards expanding domestic container terminals, with the remainder directed at logistics, marine services and international opportunities.S&P forecasts cargo volumes to grow approximately 18% in FY27, supported by capacity ramp-ups at Vizhinjam and Colombo ports and a full-year contribution from the recently acquired North Queensland Export Terminal (NQXT) in Australia, followed by 7–8% growth annually over the subsequent two years.
For context, APSEZ handled a record 450+ million metric tonnes of cargo in FY26 and remains India’s largest private port operator, giving it significant scale advantages over most domestic peers.APSEZ’s long-term target is to grow domestic port capacity to 1 billion metric tonnes by 2030, from the current 653 million metric tonnes.
The upgrade suggests S&P believes the company can pursue this ambitious expansion while keeping debt at manageable levels—a key concern for infrastructure investors.
The stable outlook is contingent on APSEZ maintaining disciplined leverage and avoiding significant related-party transactions outside normal business operations.
Also read: Adani Group AGM 2026: Top 10 highlights from Gautam Adani’s address
APSEZ shares are trading at ₹1,804.70 on the NSE on Thursday, June 25, down 0.47%.
First Published: Jun 25, 2026 3:38 PM IS
