Adani Enterprises stock set for 28% upside, says Jefferies; cites these factors
Airports, Roads, Data Centres, Defence and Adani New Industries Ltd (ANIL) currently form part of Adani Enterprises key incubation portfolio.
- Sep 22, 2026,
- Updated Sep 22, 2026 10:20 AM IST
Shares of Adani Enterprises Ltd (AEL) are likely to see an upside of 28% from the current levels. The Adani Group's flagship firm's stock currently trades at Rs 2991 on BSE. Market cap of the firm is Rs 4.04 lakh crore.
According to global investment bank Jefferies, Adani Enterprises is approaching a potential earnings inflection phase, with its Airports business expected to benefit from the ramp-up of Navi Mumbai International Airport, higher non-aeronautical revenues and growing city-side development opportunities. At the same time, the rapid adoption of artificial intelligence (AI) is opening up significant growth prospects for Adani ConneX, while recent fund-raising initiatives have strengthened AEL’s ability to finance its next phase of expansion.
Incubation-to-demerger remains AEL’s key value-creation strategy
AEL’s management reiterated that its core strategy remains focused on incubating high-growth businesses, scaling them through sustained investments and eventually unlocking value through independent listings.
The company highlighted its track record of developing businesses within the Adani portfolio and subsequently creating standalone listed entities through demergers. Airports, Roads, Data Centres, Defence and Adani New Industries Ltd (ANIL) currently form part of AEL’s key incubation portfolio.
As these businesses mature and achieve greater scale, the Airports business could emerge as one of the first major platforms to be separated into an independently listed entity, potentially unlocking significant value for shareholders.
Airports business poised for multi-year earnings growth
After several years of investment, integration and capacity expansion following the acquisition of its airport assets in 2021, AEL believes its Airports business is nearing a significant earnings inflection point.
Management expects airport EBITDA to record strong growth over the next five years, supported by the ramp-up of Navi Mumbai International Airport, capacity expansion across existing airports and a sustained increase in non-aeronautical revenues.
The capacity constraints at Mumbai airport are expected to create additional growth opportunities for Navi Mumbai, which can provide the region with a sizeable runway for passenger and traffic growth. Meanwhile, businesses such as retail, duty-free stores, cargo, parking and ground handling are expected to contribute increasingly to the airport platform’s overall revenue and profitability.
City-side development could become a major value driver
AEL sees substantial long-term value-creation potential in developing commercial assets around its airport ecosystem, says Jefferies.
The company plans to invest around Rs 200 billion in city-side development as part of its broader airport capital expenditure programme of approximately Rs 1 trillion. Airport operator Adani Airports Holdings Ltd (AAHL) is increasingly looking to develop convention centres, hotels, retail spaces and commercial properties directly.
This strategy could allow the company to capture value at multiple stages by generating development profits while also building a portfolio of assets capable of delivering recurring income over the longer term.
AI boom strengthens Adani ConneX growth opportunity
The rapid adoption of AI is also significantly improving the growth outlook for AEL’s data-centre business, Adani ConneX. Management said the business currently has around 960 MW of contracted capacity and is targeting approximately 3 GW by 2031. Rising demand from hyperscalers and AI-related computing requirements is providing a stronger growth runway for the platform.
The improvement in demand prospects has already encouraged Adani ConneX to pursue a more aggressive expansion strategy than initially envisaged, positioning the business to capitalise on the accelerating requirement for large-scale data-centre infrastructure.
ANIL targeting an integrated new-energy ecosystem
AEL’s new-energy arm, ANIL, is also being developed as an integrated platform spanning the entire renewable-energy value chain rather than being limited to equipment manufacturing.
The company’s plans cover polysilicon, ingots, wafers, cells and modules, along with wind turbines, electrolyzers and green hydrogen. ANIL currently has around 4 GW of cell capacity and 6 GW of module capacity operational, with plans to expand both to 10 GW.
Management believes the integrated manufacturing platform is well placed to benefit from rising domestic solar demand, import substitution and the government’s push towards greater localisation through the Approved List of Models and Manufacturers (ALMM).
Strong access to capital supports expansion plans
AEL has significantly increased its capital expenditure as it has accelerated investments across its incubation businesses. Annual capex has risen from around Rs 85-90 billion in 2022 to approximately Rs 300-350 billion in recent years.
The investment programme has been supported by multiple funding avenues, including preferential share issuances, qualified institutional placements (QIPs) and rights issues. These include the recently completed Rs 150 billion QIP and an airport equity raise of around Rs 95 billion, or $1 billion.
While AEL’s expansion plans continue to require substantial capital, management believes the company is well positioned to fund its growth ambitions through a combination of rising internal cash flows and continued access to domestic and international capital markets.
The funding flexibility is expected to support further investments across its key incubation businesses, including Airports, ANIL, Data Centres and Roads, while allowing AEL to continue pursuing its broader strategy of scaling businesses before eventually unlocking value through independent listings.
Shares of Adani Enterprises Ltd (AEL) are likely to see an upside of 28% from the current levels. The Adani Group's flagship firm's stock currently trades at Rs 2991 on BSE. Market cap of the firm is Rs 4.04 lakh crore.
According to global investment bank Jefferies, Adani Enterprises is approaching a potential earnings inflection phase, with its Airports business expected to benefit from the ramp-up of Navi Mumbai International Airport, higher non-aeronautical revenues and growing city-side development opportunities. At the same time, the rapid adoption of artificial intelligence (AI) is opening up significant growth prospects for Adani ConneX, while recent fund-raising initiatives have strengthened AEL’s ability to finance its next phase of expansion.
Incubation-to-demerger remains AEL’s key value-creation strategy
AEL’s management reiterated that its core strategy remains focused on incubating high-growth businesses, scaling them through sustained investments and eventually unlocking value through independent listings.
The company highlighted its track record of developing businesses within the Adani portfolio and subsequently creating standalone listed entities through demergers. Airports, Roads, Data Centres, Defence and Adani New Industries Ltd (ANIL) currently form part of AEL’s key incubation portfolio.
As these businesses mature and achieve greater scale, the Airports business could emerge as one of the first major platforms to be separated into an independently listed entity, potentially unlocking significant value for shareholders.
Airports business poised for multi-year earnings growth
After several years of investment, integration and capacity expansion following the acquisition of its airport assets in 2021, AEL believes its Airports business is nearing a significant earnings inflection point.
Management expects airport EBITDA to record strong growth over the next five years, supported by the ramp-up of Navi Mumbai International Airport, capacity expansion across existing airports and a sustained increase in non-aeronautical revenues.
The capacity constraints at Mumbai airport are expected to create additional growth opportunities for Navi Mumbai, which can provide the region with a sizeable runway for passenger and traffic growth. Meanwhile, businesses such as retail, duty-free stores, cargo, parking and ground handling are expected to contribute increasingly to the airport platform’s overall revenue and profitability.
City-side development could become a major value driver
AEL sees substantial long-term value-creation potential in developing commercial assets around its airport ecosystem, says Jefferies.
The company plans to invest around Rs 200 billion in city-side development as part of its broader airport capital expenditure programme of approximately Rs 1 trillion. Airport operator Adani Airports Holdings Ltd (AAHL) is increasingly looking to develop convention centres, hotels, retail spaces and commercial properties directly.
This strategy could allow the company to capture value at multiple stages by generating development profits while also building a portfolio of assets capable of delivering recurring income over the longer term.
AI boom strengthens Adani ConneX growth opportunity
The rapid adoption of AI is also significantly improving the growth outlook for AEL’s data-centre business, Adani ConneX. Management said the business currently has around 960 MW of contracted capacity and is targeting approximately 3 GW by 2031. Rising demand from hyperscalers and AI-related computing requirements is providing a stronger growth runway for the platform.
The improvement in demand prospects has already encouraged Adani ConneX to pursue a more aggressive expansion strategy than initially envisaged, positioning the business to capitalise on the accelerating requirement for large-scale data-centre infrastructure.
ANIL targeting an integrated new-energy ecosystem
AEL’s new-energy arm, ANIL, is also being developed as an integrated platform spanning the entire renewable-energy value chain rather than being limited to equipment manufacturing.
The company’s plans cover polysilicon, ingots, wafers, cells and modules, along with wind turbines, electrolyzers and green hydrogen. ANIL currently has around 4 GW of cell capacity and 6 GW of module capacity operational, with plans to expand both to 10 GW.
Management believes the integrated manufacturing platform is well placed to benefit from rising domestic solar demand, import substitution and the government’s push towards greater localisation through the Approved List of Models and Manufacturers (ALMM).
Strong access to capital supports expansion plans
AEL has significantly increased its capital expenditure as it has accelerated investments across its incubation businesses. Annual capex has risen from around Rs 85-90 billion in 2022 to approximately Rs 300-350 billion in recent years.
The investment programme has been supported by multiple funding avenues, including preferential share issuances, qualified institutional placements (QIPs) and rights issues. These include the recently completed Rs 150 billion QIP and an airport equity raise of around Rs 95 billion, or $1 billion.
While AEL’s expansion plans continue to require substantial capital, management believes the company is well positioned to fund its growth ambitions through a combination of rising internal cash flows and continued access to domestic and international capital markets.
The funding flexibility is expected to support further investments across its key incubation businesses, including Airports, ANIL, Data Centres and Roads, while allowing AEL to continue pursuing its broader strategy of scaling businesses before eventually unlocking value through independent listings.