Ladies and gentlemen, good day, and welcome to the Adani Enterprises Q2 FY2027 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. I now hand the conference over to Mr. Alok Deora. Thank you, and over to you.
Thank you. Good evening, everyone. On behalf of Motilal Oswal, I welcome you all to the 2Q FY2027 Earnings Call of Adani Enterprises. We have with us the senior management from the company led by Mr. Arun Bansal, Chief Executive Officer, Adani Airport Holdings; Mr. Muralee Krishnan, Chief Executive Officer,
Adani New Industries, Solar Manufacturing; Mr. Rajesh Poddar, CFO, Adani Airport Holdings; Mr. Manan Vakharia, Head of Finance, Adani Enterprises; and Mr. Jitendra Khyalia, Investor Relations, Adani Enterprises. I would now hand over the call to Mr. Arun Bansal to provide opening remarks, and then we can take up the Q&A. Thank you, and over to you, sir.
Thanks, Alok. Good evening, everyone. Thank you for joining us today for Adani Enterprises Earnings Call for the quarter and half year ended September 30, 2026. AEL's portfolio comprises primarily of infrastructure-focused businesses, which spans across energy and utilities, transport and logistics, and primary industry. It is my pleasure to inform you that AEL achieved credit rating upgrade to AA; Stable by CARE during the first week of October 2026, its highest-ever long-term rating in its credit history.
This upgrade serves as an independent validation of AEL's disciplined capital management and tight fiscal prudence. As we informed in our earlier discussions, AEL's current fiscal results will reflect value unlock from investments made over the last few years and moving progressively from build-out phase to value realization phase. AEL has reported its highest-ever half-yearly EBITDA of INR 11,958 crore.
The strong EBITDA delivered is testimony of incubation business model and its strength of our diversified business platform. Backed by strong operating fundamentals, increasing asset maturity, and the ramp-up of newly commissioned Adani New Industries module line capabilities. AEL is now well-positioned to sustain this growth trajectory going forward. Moving to our half-yearly financial performance on consolidated basis.
Total income increased to INR 71,569 crore, an increase of 62% year-over-year. EBITDA increased to INR 11,958 crore, an increase of 56% year-over-year. Continuing profit before tax increased to INR 3,297 crore, an increase of 45% year-over-year. Adani Airport Holdings Limited EBITDA reported growth of 52% year-over-year to INR 3,275 crore. Kutch Copper EBITDA reported EBITDA of INR 2,033 crore.
Now let me move to business-wide update. Our data center business, AdaniConneX has signed up a new hyperscaler contract of 240 MW capacity, taking cumulative contracted capacity to 1.2-plus gigawatt. During the quarter, we handed over additional 29.2 MW data center to customers, taking operational capacity to 94.6 MW Moving to airport business, Adani Airports is one of India's largest private airport platforms, operating a portfolio of 8 airports, including the greenfield Navi
Mumbai International Airport, and contributing approximately 23% of India's passenger traffic and 29% of country's air cargo volume, underscoring our scale and strategic importance in India's aviation ecosystem. Adani Airports delivered a resilient performance during first half of this fiscal and achieved highest ever half-yearly EBITDA of INR 3,275 crore, which is close to full-year EBITDA of FY 2025.
This growth is achieved despite industry headwinds like elevated fuel prices and airspace disturbances, which have weighed negatively on passenger traffic. The effort put in over the last few years in developing non-aero strategy and ecosystem have provided resilience in this atmosphere. Our greenfield development of Navi Mumbai International Airport commenced its international operations effective 15th July 2026.
Indian domestic airlines IndiGo, Air India, and Akasa Air have recently announced their operational plans to commence international operations and progressively expand from Navi Mumbai Airport. Moving on to financial and operational performance during Q2 FY 2027. We handled passenger traffic of 21.3 million passengers. Total income of INR 3,786 crore, up by 20% year-over-year. EBITDA of INR 1,641 crore, up by 55% year-over-year. Aero and non-aero revenue delivered year-over-year growth of 9% and 57% respectively.
During the quarter, we added 8 new routes and 4 new airlines. If I move to mining services portfolio, during the quarter, we dispatched volume up. It stood at 10.7 million metric ton, while revenue stood at INR 998 crore and EBITDA of INR 407 crore. In integrated resource management business portfolio, during the quarter, trading volume stood at 7.4 million metric ton, and revenue stood at INR 7,169 crore, and EBITDA of INR 654 crore.
In copper business, we are now seeing capacity ramp-up. During the quarter, copper sales volume of 80.6 kiloton with capacity utilization increased to 64%. Revenue increased to INR 14,843 crore, and EBITDA increased to INR 1,283 crore. With this, now I hand over the call to my colleague, Muralee Krishnan, CEO of Adani Solar. Over to you, Muralee.
Thank you, Arun. Good evening, ladies and gentlemen. Adani New Energy ecosystem is developing an end-to-end integrated ecosystem for manufacturing solar modules and wind equipments. As all of you know, Adani Solar has featured in the elite list of top 10 global solar module manufacturing, and Adani Wind became the only Indian company in top 15 global wind turbine manufacturers.
I am happy to inform you that we have commissioned the remaining module line capacity of 4.3 gigawatts on 31st of August, 2026, completing our expansion to 10 gigawatt module line capacity. We are on schedule to commission the solar cell line of 6 gigawatt by end of this financial year. During the quarter, domestic module sales have increased to 1,478 MWs, up by 35% year-on-year basis. This demonstrates strong demand of Adani Solar modules in domestic market, which has fully absorbed the export intake.
Now moving into the financials and operational performance of Q2 FY 2027. The module sales was 1,478 MW, up by 35% year-on-year. Wind turbine sales was to 35 sets, up by 25% year-on-year. Total income stood at INR 3,669 crores with an EBITDA at INR 1,094 crores. This session is open for question and answer.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question on the line of Manish Somaiya from Cantor. Please go ahead.
Good evening. Can you hear me?
Yes, we can hear you, Manish.
Okay, wonderful. I wanted to ask my first question on the airport business, specifically on Navi Mumbai. Perhaps if Arun can talk about the key traffic yield and cost milestones over the next 12-15 months that we should be thinking about as that airport ramps up. What are some of the meaningful contributions to profitability and cash flow that we should think about?
No, thanks for your question. NMIA, as I said in my commentary, we started the commercial international operations from 26th of July. As you might have seen recently, together with Indian carriers IndiGo, Akasa Air, and Air India, we have announced the new international routes. IndiGo has announced 12 new routes from Navi Mumbai, starting from December up to April, summer schedule 2027. Air India Group has announced seven international routes from Navi Mumbai, and Akasa Air has announced one additional.
That makes 19 international routes. One is existing from Navi Mumbai. Domestic also, we see a proportionate growth. Our guidance is that we will exit next financial year with full capacity at Navi Mumbai. Navi Mumbai, as you know, the capacity we can handle is max 20 million, which is 5 million international and 15 domestic. We will exit next financial year, i.e., Q1 2028, with a run rate of 5 million per quarter.
Okay. That's helpful. On data centers, it's obviously great to see the tie-up with a new hyperscaler. The capacity is now 1.2 gigawatts plus. If you guys can help us understand how we should think about the commissioning schedule and what level of equity and CapEx we should be baking in as we think about that.
Hi, Manish.
Manan, over to you.
So in terms of data center, we will stick to what we discussed in terms of our earning call discussion during Q1, where we are expecting in the range of 120 to 150 MW of operational capacity as a capacity of when we exit FY2027, the current fiscal. Over the next 12 to 18 months, we will significantly ramp up all the remaining projects and we should be expecting close to 500 MW of operational capacity, which we will start billing to the customers.
In terms of the CapEx and equity requirement is something where we expect this project to be funded approximately 20/80 to 30/70 kind of scenario. We will have the same CapEx numbers as generally are there for any other players. We are primarily in the core and shell MEP and all the structure, and we are not a full play where we install our servers also, because that is in the scope of customers.
Okay. Thank you, Manan. Lastly on roads for me. Now that Ganga Expressway is operational, how should we think about the recurring toll and annuity income becoming sort of the dominant force when it comes to earnings? Because that is something that I think we have yet to see. I am hoping you can help us with some of the key milestones we should be watching for over the next few quarters.
I think, starting last quarter, we have fairly entered into an area where the numbers in the P&L or the reported numbers reflect the annuity income as well as the ongoing toll income. What we should expect going forward is the increase or the optimum utilization of the roads, where the toll incomes are to be generated. Whereas the traffic grows and as the traffic picks up across the lines of newly commissioned toll roads, including Ganga Expressway, you will see those ramp-up numbers coming in.
But when you compare year-over-year, because of how the accounting works for the service concession accounting, you will see some kind of variability in the revenue numbers. I understand pretty much that is your question. Otherwise, you will see the normalization has already happened, and you will see this continue for a few quarters in the next period. But as the construction has started for the new projects, you will see that again being reflected in the P&L.
Okay. That is super helpful. I will get back in the queue and I appreciate the time. Thank you.
Thank you. We have the next question from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yeah. Good evening, and thank you for taking my question. My first question is on the Bangalore tunnel project. I think we are L1. Is there any update on that project that you can share?
No. It is at the same level. That is what we know from the authorities, that we are L1. There is no further development there as of.
Understood. Coming back, one suggestion for the road EBITDA. Of course, we understand that we are doing SCA accounting. Is it possible to share the operational EBITDA going forward, given that, of course, our last three projects have got operational for Ganga Expressway. Is it possible to share the operational EBITDA going forward in the PPT? That will be helpful for us.
Sure, Mohit. We can include this, but for your reference and for the benefit of everybody, we will share the numbers over the call as well. Our EBITDA for roads business for Q2 is INR 354 crore, and Q1 was INR 288 crore. That takes us to a half-yearly number of around INR 642 crore of EBITDA for roads.
Understood. Going back to the airport business, I think we are expecting to commence the work on phase II of Navi Mumbai. Can you just update us on that given that, of course, the traffic is below par? Are we postponing that CapEx? The second question on the airport business is, over last year, if you look at the non-aero business, I think we took over the ground handling. I think somewhere in Q1 FY 2026, right? That particular revenue is not present in the base quarter. While you see that number is present in the Q1 and Q2 FY 2027. Can you help us understand that line item?
I will take the first question, Arun, here, and then Rajesh will help you with the second question on exact numbers. Phase II of Navi Mumbai has already kicked off. We have already onboarded the international consultant and the design work is ongoing. We are also in the process of finalizing the GC contractor, which will be onboarded very, very soon. Phase II of terminal 2 of Navi Mumbai, the actual work will start within the month of November. This year.
Understood. The ground handling, sir?
Yes, sir. Rajesh here. In case of ground handling, we had commenced our operations at Mumbai, Ahmedabad, Navi Mumbai through 100% subsidiary, AGHPort. During this particular H1, we have earned a revenue of around INR 339 crore for the six months period.
This was not present last fiscal completely. Is that right?
Yeah. It was not a part of last fiscal.
Yeah. Mohit, the entity was acquired and insourced somewhere in the middle of November. It actually was present for approximately three or four months in the last financial year. Yes, if you look at the half year number, it was not materially there.
Understood. My question on the solar and wind. On this particular quarter, do you have any idea how much is sold in the rooftop? Are you thinking about setting up ingot and wafer now?
There are two questions. One is that on the rooftop, actually 56% of our sale was into the rooftop market.
I see.
And in terms of ingot wafer, I would say that we already have 2.2 gigawatt of ingot wafer capacity, and the balance capacity will come up by 2028, which we are already working on. The engineering work is already started. That will well align with the ALMM List-III policy.
So you've commenced work on the balance 8 gigawatt of ingot and wafer. Is that understanding correct, sir?
Yeah, it will be actually a bit more than 6 gigawatt because if you look at technically, the yield factor is approximately around 7% to 88% to the nameplate capacity world over. So accordingly, the capacity installed will be slightly higher than the cell capacity what we have already in hand.
Understood. Is it possible to share the solar order book and the wind order book at the end of Q2?
Our capacity is already booked for it, both for wind as well as solar. We will not be in a position to give you the exact numbers at this point in time, but I can assure you that the order book is already full.
Understood, sir. Last question, sir. How much are CapEx done in H1, and is it possible to give us the broad breakup the CapEx segment-wise?
Mohit, what we have done is, we have included standard FAQs as a part of our earnings presentation, where we have included full breakup in the appendix for the CapEx, sir.
Sure. Understood. Sir, one more question, if I may ask. In your PPT for data center, I think there was a contract reservation, which was 1.2 gigawatt. This was shared, I think, by end of FY 2026. Do we have similar number by end of Q2 FY 2027?
Sorry, come again.
Sir, in an investor PPT, which you had shared earlier, there was a data center capacity of 1.2 gigawatt, which was under contract reservation. Can you help us understand the definition of contract reservation and what is that number at the end of Q2 FY 2027?
You can refer to our data center slide, what we have included as a part of our presentation. We are constructing data centers of 1.4 gigawatt capacity already.
Correct.
Those are at various stages. Out of this, the capacity of 1.2 gigawatt is already tied up and is at a different level of implementation in the project construction. The remaining capacity is open, and which can be taken up by anybody.
Understood. Maybe I will take it offline. I will speak to you, sir, later. Okay. Thank you. Thank you very much for my question. Thank you. Bye-bye.
Thank you. We have the next question on line of Prateek Kumar from Jefferies. Please go ahead.
Yeah, good evening. Congrats for great set of results. My first question is on airport business. Sir, can you discuss progress on real estate, CapEx, and any specific milestone you are looking at by end of FY 2027, FY 2028 for city-side development?
Yeah. City-side developments, we have signed the contract, the HMA for all the hotels we are building, basically with our partners. The work is ongoing at five assets: Mumbai, Navi Mumbai, Ahmedabad, Lucknow, and Guwahati. The work at Jaipur will start very soon. The phase 1, as I call it, we will be live at Ahmedabad by October 29, at Mumbai and Navi Mumbai by March 2030. Then we are undertaking some major CapEx project on aeronautical side.
As I said before, we are building a completely new terminal, Terminal 2 at Navi Mumbai. We are doing a redevelopment of Terminal 1 at MIAL, which will start from Q1 next year. We are building a completely new integrated terminal at Ahmedabad in line with the Commonwealth Games, which Ahmedabad city will host in October 2030. So that terminal will be ready. We are doing some minor additions of capacity at Terminal 2 in MIAL, building additional capacity at Trivandrum, and a new terminal at Jaipur. There are a lot of CapEx, heavy CapEx items which are work in progress from now until 2029, 2030.
Sure. In the data center business, can you discuss the recent joint venture with Jabil-Adani, Jabil partnership? What is the scope of the business, and is this a new CapEx which the company is envisaging? The other question on data center is, we do read about a lot of position for data center setup, particularly in Vizag and Navi Mumbai, and where we are looking to set up large projects. Can you discuss the status of land acquisition or whatever is required for these projects, which just suggests that our projects are on time, and we are looking at 2 GW of capacity by probably FY 2030.
Hi, Prateek. Thank you. You have two parts in your data center questions. I will take first on Jabil. Yes, the present joint venture, which is with EdgeConneX, is completely a data center play in terms of it operates in building and constructing the data centers, core and shell, MEP solutions, and other related stuff, which you know about this. What goes inside the data center is generally within the scope of customers.
Now, what we seek to do with Jabil is that it is a completely new development, different and separate from AdaniConneX, where Adani Enterprises and Jabil are looking to manufacture the AI racks and the data servers and the related equipments. The manufacturing facility will be set up in the country. So, it is still at an MOU stage, and we are looking to finalize the definitive agreement over a few months.
Once we have those signed, we will come up with the proper disclosure in line with the regulatory requirement, and we will have the details included in our CapEx and other segments. So that was part one of your question. On part two, yes, the various data center locations which we have defined in our earnings presentation, we have access to majority of those lands and are already acquired and/or are in the very advanced stage of completing the acquisition. So we are very confident that these projects will be completed as planned and as envisaged.
Just to confirm, you said the operational capacity moves from current 95 to 125 to 150 by 2027 and 500 by FY 2028. Is that the number you said?
500 over the next, yeah, 18 months. Yeah. So practically, yes.
Sure. On road segment, the performance or progress or the ramp-up at the new projects seems a bit slow. Is that underwhelming versus company's own estimates? How do you see progress on a quarterly basis?
I think it is progressing well. They are slightly off the mark where we would otherwise like those numbers to be in terms of the capacity ramp-up at the toll projects. This is practically due to being a seasonally rainy season, plus the heavy floods and the situation in the north part of the country, so we will discount that. As we speak today, we are seeing good progress at the increase towards what we are expecting the number to be. Yes, it is slightly off the mark currently, but yes, we will catch up in the next two quarters.
Last two questions. Firstly, on ANIL. We have commissioned new capacity of module. What is the run rate of volumes with the significant increase in capacity which we have now over the next few quarters?
Yeah, we are expecting about 2 gigawatts for the next quarter, and that will be the run rate at which we will be going with the new capacity coming in.
Thank you, sir. In this, what is the mix of volumes, like rooftop to captive volumes will it significantly increase to Adani Green, or how do you expect to sell these volumes?
As I have already mentioned previously that the capacity for the cell is expected to be commissioned during this financial year, towards the back end of this financial year. As the cell capacity coming in, actually, the DCR content will be increasing, and that will increase the rooftop because that requires the DCR requirements. We will be also having non-DCR capacity, which will be used for the captive in the next two quarters considerably.
Sure. Last question on mining service and IRM. These two segments have also seen slower volumes recently. How should we look at the annual volumes for these two segments?
I think seasonally, these two quarters are comparatively lower. But we expect them to grow from here in the remaining two quarters, and we should be at least 10% to 15% higher than where we ended last year.
Sure. Thank you for answering all my questions.
Yeah. For mining services particularly and coal trading, or the IRM is typically, it is more of a market-driven thing. It will be difficult to give you any outlook given the coal shortage situation in the country.
Sure. Thank you all for answering all my questions.
Thank you. Participants who wish to ask a question may press star and one on your touchtone telephone. We have the next question from line of Biplab Debbarma from Emkay Global. Please go ahead.
Good evening, everyone, and congratulations on the excellent numbers. My first question is on the non-aero revenue that saw significant year-on-year jump. Could you please highlight what led to such significant jump in non-aero revenue?
Thanks for the question. Non-aero, our strategy has been threefold, basically. Number one, we are heavily investing in digitization. We are working with Adani OneApp, which we have revamped to focus only on airports, and hence we are able to increase the penetration year-over-year. This quarter, we had almost 25% of our non-aero transactions happened over digital. As a result of that, we are able to increase the average transaction value per passenger.
We are able to increase the penetration. The third thing is we are able to premiumize most of our shops. We have brought in new lounges on board. Of course, Navi Mumbai initial ramp-up also helped because Navi Mumbai there was no non-aero revenue last year. Combination of all those has helped. Partly also the ground handling services, as one of the colleague asked, there was no ground handling last year, which got incorporated this year. Multiple factors contributed to a strong non-aero growth.
Okay.
Mr. Biplab, request you to come kindly closer to the microphone as we are unable to hear you very clearly.
Okay. Hello, is it okay now?
This is much better. Yes.
Okay. Thank you. My second question is on the CapEx commitment. You have quite significant CapEx expected in airports, in data centers, I think even in defense. Could you give us some kind of color on the CapEx commitment over the next three to five years, and which business segment will have significant CapEx? That is my second question.
Hi, Biplab. We have given the CapEx, which is already incurred as a part of our standard details in the presentation itself. In terms of the outlook, we will stick to what we outlined in our earnings call during Q1. We expect to do the CapEx at a run rate of around INR 40,000 crore. We may be somewhere in the INR 35,000 crore-INR 40,000 crore, and which is a run rate we expect to continue over next couple of years.
Sorry-
And the heavy lifting
35,000 to 40,000?
Yeah, 35,000 to 40,000. The heavy lifting will be done obviously by Adani Airports, data center and PVC.
Okay. That is good. Just wondering, sir, you had an excellent result. What kind of EBITDA do you think in FY 2027 we will end up with, and the kind of margin that we think that we will do in FY 2027, 2028?
I think, Biplab, we refrain from maybe giving any specific financial guidance. My apologies for not being able to answer this.
That is fine. Thank you, and all the best, and congratulations again.
Thank you. We have the next question from line of Alok Deora. Please go ahead.
Sir, good evening, and congratulations on decent numbers. Sir, just had couple of questions. The copper business has seen significant traction. Do we see this run rate continuing or would we even see better run rate in coming quarters? That is question one. The second question is that we have been seeing that airlines being little hesitant to move from T1, T2 airport to Navi Mumbai. What kind of implications can it have on us? If you can just throw some light on that, or is there any impact at all?
Let me answer the airline question, and then Manan, my colleague, will answer the copper question. Airlines, of course, this is a very consultative and long-drawn process where we need to get the confidence of airline that infrastructure is ready at Navi Mumbai, and it always happens whenever new infrastructure comes in.
As you would have seen on this Sunday and Monday between three domestic carriers, we have announced the movement between those three, 18 international flights from existing Mumbai to Navi Mumbai that cater for roughly yearly volume of 3 million. We are in discussion with more airlines to move the traffic for us to be able to redevelop the T1. We are fairly confident, as I said earlier, that we will end financial year 2027 to 2028 with a run rate of 20 million, which is the peak capacity of Navi Mumbai. Over to Manan for copper question.
Thank you, sir. Hi, Alok. Copper is, yeah, so we have two very good quarters in terms of Q1 and Q2, and the Q2 has been very good. If you look at the margins that we make on our revenue, so EBITDA as a percent of revenue, it has been around 7% to 8.5% is the range where we have operated during. But on a long-term basis, our estimate is because this is very commoditized business and the prices have ramped up in some of the by-products like sulfuric acid.
That is something which have contributed to the good set of numbers. But on a long-term basis, yes, our utilization of the plant and the ramp-up will increase from 64% in Q2 to around 80%, 85% as we close this current financial year. The absolute number will definitely increase in terms of revenue, but our operating range for current fiscal may be slightly higher. But yes, on a long-term basis, it will be around 4%-6% is the range where we will operate as a margin. But yes, as we increase our plant utilization, the absolute number can be around the same number where we are.
Got it, sir. Sir, just one follow-up on the airlines answer which you had given. Just wanted to understand if there is any delay in remaining airlines willing to shift the operation. Does it have any implication on us, or it really does not change anything as far as we as an airport operator is concerned?
No, so you know, the timeline to start the redevelopment or demolishing part of T1 is fixed. We will start from summer schedule, which is April 2027. So airlines will have to make a choice, certain airlines, not all. Either they move to Navi Mumbai or temporarily stop flying to Mumbai. These are, I'm mainly talking about international airlines.
But there are very few discussions left, and I'm fairly confident that collaboratively in next one month, we would be able to come to a conclusion with those airlines also. There might be one or two airlines who decide not to operate from Mumbai for a couple of years, but that will have almost no impact on the overall passenger count.
Got it, sir. That's very helpful. Thank you, sir. All the best.
Thank you. We have the next question on the line of Prateek Singh from IIFL Capital. Please go ahead.
Hi, good evening. Thanks for the opportunity. The first question is on the solar business. Just looking at it looks like realizations have fallen on a QOQ basis, but EBITDA margins or EBITDA per unit have gone up. What are the key two, three parameters which are driving it?
Yeah. If you look at the Q1 results what we have given, as well as in the earnings call, we mentioned that we have closed some of the advance authorizations, which is approximately around INR 89 crores impact that has come up. That is one of the main reason for this impact. Does it answer your question?
Yeah, understood. Now second, on the data center business, as you are incrementally signing pre-lease contracts with multiple hyperscalers sequentially every quarter. On a like-to-like basis, I understand it might be difficult, but on a like-to-like basis, are you seeing an increase in rental rates over time in dollar terms?
We can get you the specific details and come back on this. Broadly, there have been some increase in the rates over last six months, but they are not material in terms of where we are looking at those numbers. Broadly, the ROCE or the return on capital we were making earlier are stable in terms of the data center. That is our scope of work in the AdaniConneX.
Understand. Given that we lock in capital INR 60 crores-INR 80 crores per MW, and we have seen commodity price inflation, there is a tightness in equipment supply as well. There might be a risk that CapEx per MW would be going above what we earlier thought maybe six, seven months back. Is this something when we negotiate with hyperscalers, they agree and they agree to our rates, or we are still in the process where we want to lock in as much capacity as possible and at slightly higher rates than needed?
When I answered you earlier, what I meant was we protect our what the return on capital employed that we want to make as a part of this business. Wherever we are seeing the increased CapEx, that will be factored in when the billing is considered for the new sign-off or the new sign-up of the project which we are doing. Given that, discounting for that, everything, the rates are more or less stable in the broad same range where we were operating earlier.
Understood. My third question is on the copper business. We have been hearing a lot of TC/RC negative. Availability of concentrates is very tight globally. Have you been facing any issues sequentially in procuring supply, or things are fine right now and we are able to procure supply at decent costs?
So far as the procurement of raw material is concerned, we have not seen any significant challenge in terms of what we are hearing otherwise in the market, because we have some of the long-term contracts tied up to a significant part of our requirement. That insulates us from such variations in the market. As of now, we have not seen any situations where we are not able to procure the copper concentrate.
Thanks. Just two bookkeeping questions very quickly. Your investments in JVs and associates is around INR 2,400 crores in first half, similar level which we did in the entire FY 2026. So safe to assume it is largely data center?
It is primarily data center, yes. You are saying investment in equity accounted as investments, right?
Correct.
Yeah. So that is the data center.
Okay. The last question, I can take it offline also. The other expenses line item in our P&L at INR 6,500 crores this quarter is the lowest in three years. What exactly is driving it?
That will boil down to, again, India's accounting of the service concession contracts, where the construction of road activities are generally passed through P&L. That is why you see the P&L bloated to the extent of revenue and expenses both, because the construction expenses are passed through your P&L, and that is something which is causing the variation in the other expense line item.
Oh, very well. That explains it. Thanks. Thanks a lot, and all the best.
Thank you. We have the next question from the line of Kartik Kohli from Kotak Securities. Please go ahead.
Hello, sir. Thank you for taking my question. My question is more into the non-aero part of the business, where we have seen very strong growth. Is there an element of fixed portion of this non-aero revenue being accounted for, which is related to new shops being opened at, let us say, Navi Mumbai Airport or, say, the newer renovated shops opened at Mumbai Airport. Is there a fixed element in this which is contributing to the growth on a year-over-year basis? That will be my first question.
No, thanks for the question. There is one element which was specific to Q2, and that is the new hangar sale we have done at Navi Mumbai, which got recorded in Q2 financials. Rest all, the new opening of shops, new lounges, everything, is a recurring business which will continue.
My second question is on data centers. It is more on the broader business sense. We wanted to understand that since you are signing up with hyperscaler partners—
You are not clearly audible. Hi, Kartik, you are not clearly audible.
Mr. Kartik, request you kindly come closer to the microphone so that we can hear you loud and clear.
Sure. Is this better?
Yes. We can hear you now.
Yeah. Sorry. The last thing on data centers, we wanted to understand from a broader business perspective, now that you are signing contracts with a lot of hyperscalers across the globe and a lot of these players have undertaken a lot of debt. Is there a fail-safe in your agreement with such hyperscalers in terms of take-or-pay agreements and any such protections that will allow you to recoup at least part of the revenue if such hyperscaler customers end up not taking up capacity in the event of their, at least on their individual finances not working out. Is there a fail-safe for that?
I think it is there as a part of normal contractual commitment. It is always there. There are safeguards and the guardrails which are built out in any agreement. Those general contractual guardrails are there. But on specifics of take or pay, I think we will have to check and come back after the contract and the legal review. Yeah.
Okay. Understood. Secondly, on the services business within AdaniConneX, just wanted to understand what sort of services are being envisaged there and what sort of contribution to overall margins that can come from there. Is there a sense we can get here?
You said AdaniConneX, right?
Yeah. So within the business, there is a managed service element and O&M element. Just wanted to get a sense of what sort of EBITDA contribution or at least on a margin contribution that can come from there.
I think we have not even publicly disclosed as a part of our earning presentation the data center number yet, which we plan to do somewhere towards the end of the year. So we will have the financial disclosure coming up there. So I think that is where we will try to include those breakups as well. But largely, the majority part of the revenue and the EBITDA will flow from the lease rental kind of mechanism, where the offtake is taken up by the hyperscalers.
Understood. Just to slip in one last question, because you mentioned on Kutch Copper that a major chunk of your raw material from the perspective of the copper business is already taken care of. Could you specify to what degree that you have a contract in place for your capacity utilization?
In terms of offtake or the procurement?
Both. Offtake or procurement, whatever numbers that can be provided.
Yes. In terms of offtake, if you really look at it, we have two joint ventures, which are in-house in terms of the copper tube. That gives us assurance of the offtake for around 12%-15% of our capacity. Excluding that, copper is something which gets imported in the country. So we are always demand heavy country against what is the supply available in the country.
That's where we are not very much worried about the offtake is concerned. In terms of procurement, we have already tied up approximately 50% to 60% of our requirement on the long-term basis, and on a short-term basis, another 20% is already contracted. So, we expect the plant to continue to operate towards the end of the year by 80%, 85%, as I highlighted earlier. In that sense, we are fully secure, from the supply chain economics as well as the off-take requirements.
Understood, sir. Thank you so much for the answer.
Thank you. Participants who wish to ask a question may press star and one on your touchtone telephone. We have the next question from the line of Prateek Kumar from Jefferies. Please go ahead.
Yeah, thanks for the opportunity again. Just one question. We had acquired the JAL assets via NCLT route earlier this year. Cement business and power business was divested to other companies. These hotels and F1 and the big land parcel in Greater Noida all remained with Adani Enterprises. What are the plans for all these assets? Will the F1 restart happen in Adani Enterprises itself or in a separate entity?
Hi, Prateek. You are right. The bidding entity was Adani Enterprises, but the implementing agency for it was not Adani Enterprises. It was a private entity called Adani Infra (India) Limited. Nothing of the JAL acquisition remains with us and is completely off the table for Adani so far as AEL is concerned.
The hotel projects and the land parcel all is now off the company's-
Yes.
Okay.
Yeah.
Okay. Thanks for clarifying.
We have not contributed any equity or any funding also in the project. It is completely off for AEL.
Sure. Thank you.
Thank you. We have the next question on the line of Deval Shah from RBSA Investment Management. Please go ahead.
Hello. Hello.
Deval, we are not able to hear you very well. Could you kindly come closer to the microphone?
Yeah. Hello.
Yes.
Hello. Is it audible now? Hello.
Yes, we can hear you now.
Yeah. I just wanted to get some more insight on the primary industry. I see that we have significantly increased our EBITDA, and this includes the metals mining and the and specialized manufacturing. Significantly probably would be contributed by the copper. I just like to get some more insight into this INR 5,000 crores EBITDA.
You are right. Primarily, the increase which you see on the first slide or the second slide of the presentation has come from the copper. Apart from that, the major contributors are integrated resource management and the mining services, for which we disclose the results and the segmental numbers separately.
One more part which is part of the primary industry is Carmichael Mine, and that is where against the last year, because of the coal prices are good and the plant is running at an optimum capacity, the mine is running at an optimum capacity, the EBITDA has started flowing from that mine as well. That is where we have for the quarter 2, we have done an EBITDA of around INR 470 crores.
Cumulatively for the half year, the EBITDA has been at INR 840 crores, which was generally our annual run rate, expected run rate. Because of the good prices, those numbers have come out good. That is what I think will make up for the remaining part which you are looking at.
Okay. About the specialized manufacturing, can you please give some more insight into it and what sort of capital we are committing and the size which probably we are thinking of, so in terms of the revenue and the EBITDA?
The specialized manufacturing is primarily defense that we refer to. In terms of the overall numbers that we are presenting, those are not very significant, and that is why they do not pass the criteria of segment reporting. Hence, those are not separately reported. But yes, we are doing meaningful work there, but nothing which can be reported as of now.
Okay. Since last, what I have seen that we have almost about 18% to 20% of our capital has gone into PVC. Can you please give us more insight on the timelines about the PVC business and where we are? Some more insight into the entire segment.
Yes. We are constructing 1 million metric ton capacity plant at Mundra, and where it's approximately INR 26,000 crore CapEx plant that we are building up there. Out of which, I think we have already closed 60% mark in terms of the project spend as well as the construction on ground, which we propose to do there.
As per timeline, the first part of the overall CapEx is expected to get commissioned in the next fiscal. That's where you will see some kind of numbers coming in days. After it gets commissioned over a period of next six to nine months, the plant will get stabilized and we'll see the numbers flowing in. That's where we are in the PVC. The plant is progressing well and on schedule.
Okay. To our understanding that we only have a plan for manufacturing the PVC, right? Is there anything else on the PVC line, or it's just the PVC or anything else on the chloralkali?
Yes, the chloralkali is also there. PVC and related chemicals and the material stocks around it.
Okay. Thank you.
Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments.
Thank you so much for all the questions and we close this session. Thank you so much.
Thank you. On behalf of Adani Enterprises, this concludes the conference. Thank you for joining us and you may now disconnect your lines.