Jefferies has trimmed its price target on Adani Enterprises to Rs 2,600 from Rs 2,750, but continues to rate the stock a ‘Buy’ with an implied upside of about 22%.
The brokerage attributes the downgrade in target to weaker near-term airport traffic and a slower than earlier expected ramp up in the copper business, which together led to a 3% to 7% reduction in its earnings before interest, tax, depreciation and amortisation estimates for FY26 to FY28. Even so, Jefferies maintains that a broad-based scale-up across airports, new energy, roads and copper from FY27 should drive a sharp recovery in earnings, supporting its positive stance.
Jefferies on Adani Enterprises: Near-term pressure from airports
Jefferies points to softer passenger traffic as a key drag in the current year, especially due to disruptions that have weighed on travel demand.
The report notes that traffic remained largely flat through FY26 after handling about 94 million passengers in FY25, with similar trends seen across peers. This has pushed back expectations around the pace at which Navi Mumbai International Airport will scale up.
“Multiple disruptions through FY26, including Middle East-related softness, weighed on airport traffic,” Jefferies said.
Even so, the brokerage sees some support from non aeronautical revenue streams such as retail, cargo and ground handling, which are expanding across key airports. It also points to the company’s focus on monetising airport led real estate developments in cities like Mumbai and Ahmedabad as a longer term lever.
Jefferies on Adani Enterprises: Copper ramp up slower than expected
Another factor behind the target price cut is the slower build up in the copper segment, which only began operations recently and is still facing industry headwinds.
The Kutch copper smelter, with a capacity of 0.5 million tonnes per annum, started operations in mid 2025. However, weak treatment and refining charges have affected profitability in the initial phase.
“The business is currently operating in a weak industry environment, with depressed margins weighing on near term profitability,” Jefferies says.
The brokerage expects improvement only as utilisation levels rise and raw material sourcing becomes more stable, supported by recent agreements for long term concentrate supply.
Jefferies on Adani Enterprises: FY27 seen as the turning point
Despite the near term setbacks, Jefferies continues to see FY27 as a key year when multiple businesses start contributing meaningfully.
The brokerage estimates about 30% year on year growth in earnings before interest, tax, depreciation and amortisation in FY27, driven by a simultaneous scale up across segments.
“While FY26 EBITDA would likely be flat or lower year on year, in FY27 the company would see ramp up across airports, copper, roads and solar expansion,” Jefferies said.
This includes contributions from the Navi Mumbai airport, higher output from the copper plant, full year benefit from road projects such as the Ganga Expressway and expansion in solar manufacturing capacity.
Jefferies on Adani Enterprises: New energy remains a core growth driver
Jefferies continues to place significant weight on the company’s new energy business, especially solar manufacturing and the broader push towards energy security.
The brokerage notes that policy support and global supply concerns are accelerating investments in domestic renewable capacity.
“Energy security is emerging as a sharper policy focus amid global disruptions, driving a push toward domestic renewables and local supply chains,” Jefferies adds.
Adani Enterprises plans to expand its solar photovoltaic manufacturing capacity at Mundra from 4 gigawatt to 10 gigawatt, with phased commissioning expected in the second half of FY27. This expansion is expected to contribute to earnings growth over FY27 and FY28.
Jefferies on Adani Enterprises: Roads and infrastructure add momentum
The roads business is another segment where Jefferies expects visible gains starting FY27.
The company is commissioning its largest project, the Ganga Expressway, which will begin contributing for a full year from FY27. In addition, it has secured new projects across roads and water infrastructure with a combined order book of around Rs 20,000 crore.
“The company is commissioning its largest road project and will see full year benefit in FY27,” Jefferies says.
Investments in these projects will be spread over the next three to four years, which should support revenue visibility over the medium term.
Jefferies on Adani Enterprises: Valuation still backed by core businesses
Jefferies values the company using a sum of the parts approach and notes that a large share of its value comes from a few key segments.
Airports and the new energy business together account for about 75% to 80% of the company’s total enterprise value, according to the brokerage’s estimates. This means the long term investment case remains closely tied to how these segments scale up.
“We believe the new businesses will emerge as industry leaders and that the company will be a key beneficiary of green energy, aviation growth and digital infrastructure,” Jefferies says.
The brokerage continues to assign higher valuation multiples to these segments, indicating their expected growth trajectory.
Conclusion
Jefferies’ decision to cut the target price on Adani Enterprises is rooted in near term operational challenges rather than any structural change in its view on the business. Softer airport traffic and a gradual start in copper have led to lower earnings estimates in the short run, but the broader growth story remains intact. With multiple verticals set to scale up from FY27, the brokerage continues to back the stock with a Buy rating, expecting earnings momentum to return as these businesses mature.
Disclaimer: The investment analysis and price targets mentioned in this report are based on a specific brokerage’s estimates and should not be construed as an offer or solicitation to buy or sell securities. Given the volatility inherent in large-cap infrastructure and diversified conglomerates, readers are advised to consult with a SEBI-registered investment advisor before making any financial decisions. The views expressed are based on current market data and are subject to change without notice.
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