Adani Ports shares jumped nearly 2 percent in early trade on August 6, a day after the company released its results for the first quarter of the financial year 2026. Brokerages remain bullish on the stock, with target prices implying strong upside potential from current levels.

Adani Ports and Special Economic Zone Ltd (APSEZ) on August 5 reported a net profit of Rs 3,315 crore for Q1 FY26. This marks a 6.5 percent on-year rise from the Rs 3,113 crore net profit reported in Q1 FY25. This is higher than the MC poll estimate of Rs 2,985.40 crore.

The firm's revenue from operations meanwhile rose 31 percent year-on-year to Rs 9,126.14 crore, also beating MC poll estimate of Rs 8,768.10 crore.

Along with the Q1 results, Adani Ports announced that its board has approved the redesignation of Gautam Adani as a Non-Executive Chairman of the company, from his current role as an Executive Chairman. He thereby ceased to be a key managerial personnel of the company effectively from August 5.

Speaking about its Haifa port in Israel, the company said that it operated unhindered throughout, despite significant uncertainties during the rising tensions between Israel and Iran during the quarter under review. "Haifa port operated unhindered throughout and reported 25% YoY growth in container volume and 38% YoY growth in other cargo volume during the quarter, leading to overall volume growth of 29% YoY. This led to the highest quarterly revenue and operating EBITDA for Haifa port since acquisition by APSEZ," said Adani Ports in its press release.

After the release of the results, the shares of the company dropped nearly 2 percent to close at Rs 1,362 apiece on August 5. However, brokerages remain bullish on the stock.

Should you buy, sell or hold?

CLSA has maintained an 'Outperform' rating on the stock, with a target price of Rs 1,764 apiece. This implies an upside potential of nearly 30 percent from the stock's previous closing price. The international brokerage noted that the firm's Q1 traffic was up 11 percent on-year, and it maintained its robust FY26 guidance. The Adani Group company implied an EBITDA growth of 14-20 percent on-year, despite a hazy global trade picture, it added.

CLSA said that the firm's EBITDA margin improved on the back of price hikes, a better cargo mix and rupee depreciation.

Jefferies kept a 'Buy' call on the stock, with a target price of Rs 1,815 per share. This implies an upside potential of more than 33 percent from the stock’s previous closing price. The international brokerage noted that the firm’s quarterly EBITDA was above estimates, while management reiterated its focus on absolute EBITDA growth.

Motilal Oswal Financial Services also kept a ‘Buy’ call on the stock, with a target price of Rs 1,700 apiece. This implies an upside potential of nearly 25 percent from the stock’s previous closing price. The domestic brokerage noted that the firm’s revenue growth was in line with its estimate, while EBITDA and APAT beat expectations.

“APSEZ reported a strong performance in 1QFY26, marked by robust growth in international port operations. Its logistics business emerged as a key growth driver, with significant improvement in network scale and last-mile connectivity, further complementing port operations. The marine business also saw strong traction, reflecting operational scale-up and integration. Overall, with continued market share gains, capacity additions, and expansion in value-added segments like logistics, APSEZ is well positioned to grow faster than the broader industry,” Motilal Oswal said in its latest report.

The shares of the company were trading at Rs 1,384.60 apiece in the early trading hours of August 6. The shares have dropped nearly 4 percent in the past one month, but gained nearly 18.5 percent in the past six months. The stock currently have a P/E ratio of around 27.