Is the israel -ran war a billion-dollar threat to adani ports & sez?

A less days ago, Tension Between India and Pakistan Flared Up after 26 People was killed in a terrist attack in pahalgam. India launched Operation Sindor.

For a brief moment, there was a serial apprehension that Both India and Pakistan could go to war. But both sides agreed to a ceasefire, which reduced stress.

But cool in south asia has been affected by a more explosive conflict in the middle East. On 13 June 2025, Israel Launched a Military Campaign Against Iran, Targeting Major Military and Nuclear Sites.

Since then, the israel -ran conflict has entered its fourth day, with no signs of de-design. Overnight Missile Exchanges have intensified, with Iran Striking an Israeli Oil Refinery and Cripping Parts of Its Power Grid.

In this geopolitical story, Adani Ports and Special Economic Zone (Apsez) Ltd Has emerged as a company of keen interest on Dalal Street.

Apsez is the largest commercial ports operator in indiaAccounting for Nearly One-Frusth of the Country’s Cargo Movement.

It has a presence in 13 domestic ports in Seven Maritime States: Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu, and Odisha.

Through its subsidiya adani logistics, apsez operates three logistics parks located at patli in haryana, kila–raipur in Punjab, and kishangarh in rajasthan.

The company is engaged in developing, operating, and maintaining ports, development ports-Related infrastructure, and developing infrastructure in people economic zones.

On 16 June 2025, Shares of Apsez WERE IN FOCUS AMID The Ongoing Conflict Between Israel and Iran. Some reports suggested that the conflict between the two counts caused damage to the haifa port in israel.

Late on Saturday Night, Tensions in the Middle East ESTERER AS IRAN FIRED MISSILES AT Israel’s Haifa Port and a Nearby Oil Refinery. Debris from the Attack Reported in the Chemical Terminal of the Port, While other Projectles Hit The Oil Refinery.

While the incident raised immediative concerns, especially for adani group’s operations in the region, media reports state the adani-operated section of the awareness Port was not impacted.

However, Jugeshinder Robbie Singh, The Adani group cfo, refuted the reports and said the damage reports was False. News AgencyPtiReported on Sunday that the group’s port was unaffeted.

Despite the tense situation, it’s business as usual at the port for now. As per reports, eight ships remained docked and cargo handling continued smoothly. Operations styed on track, with no damage to infrastructure or logistics.

For now, Adani’s Key International Port Remains Safe, even as the Region Braces for What Comes Next.

Adani Ports’ Stake in the Haifa Port

In 2023, the Adani group Made a high-profile interactive expansion by acquiring a 70% stake in israel’s hai-has a port for $ 1.2 billion, in partnership with Israel’s Gadot Group, Which Holds The Remaining 30%. The joint venture is set to operate the strategic port until 2054.

Haifa services as a vital maritime gateway for israel, handling more than 30% of the country’s imports. While it contributes Nearly 5% to Apsez’s Revenue, It Accounts For Less Than 2% of the Total Cargo Volume Managed by the company.

Apsez, which handles Around 10.57 Million Tonnes of Cargo Overall, Has Always Positioned Haifa as a long-term strategic asset rather than a Volume Play.

However, the recent escalation in The Israel-Aran Conflict Has cast a shadow over the investment. The fear is that Ongoing Hostilations Could Delay Cargo movements at Haifa and potentially disrupt global shipping routes.

The impact was already visible in the market on Friday. Shares of Adani Ports – One of the Group’s Most Profitable Businesses Dropped More Than 3% INTRADAY to 1,396 before recovering slightly to close at 1,405.25, a 2.71% decline.

While Haifa May REPRESENT A Small Port of the Group’s Operations, The Geopolitical Risk It Carries Now Looms Large.

What If Adani’s Haifa Port Takes A Hit?

At the moment, Adani’s Haifa Port is Still Up and Running, with Cargo Ships Docked and Operations Going on as Usual. But there’s a growing sense of Unease.

What Happens If Things take a turn for the WorsE?

If the port was to suffer serial damage, the impact on adani ports count be significant. Early Estimates Sugged Losses Could Range Between $ 1.9 bn and $ 2.9 bn.

That incisions the original $ 840 million (m) poured into the deal, around $ 50-100 m in annual revenue, and a potential hit of $ 1-2 bn in market value.

The longer the conflict continues, the more uncertain the return on adani’s overseas bet solcome, raising the question of whose question of whose bolder this bold global execution will deliver long-term gains or Turn Mistake.

Scaling up vizhinjam

Apsez is set to investment 13,000 Crore to expand the vizhinjam international deepwater seaport in Kerala’s Thiruvananthapuram.

This Next Phase of Growth, Fully Self-Funded, Comes on the Back of Successful Trial Runs and Growing Demand.

The port is alredy operating at 90% capacity, having handled 280 ships and 620,000 teus since trial operations began in June 2024.

With an initial 7,000 Crore Alarady Investigated, The Port’s Expantion is aimed at Keeping Up with Rising Transaction Traffic and Unlocking Its Full Potential.

3x global operations by 2030

Looking overseas, Apsez is laying out bold plans to triple its International Operations by 2029-30.

With Major Investments in Israel, Tanzania, and Sri Lanka, The Company is Aiming to Handle 140–150 Million Metric Tonnes (MMT) of Cargo Globally by the End of the Decade. Domestic volumes are also expected to grow steadily, with capacity projection to Reach 820-850 mmt.

To fuel this amabition, Apsez is Doubling Down on Key Global Assets, Including Israel’s Haifa Port, The Under-Construction Port in Tanzania, and Colombo West International Terminal in Sri Lanka.

Conclusion

Indian Port Industry will grow at the rate of 4-7% over the next five years, supported by rain imports, a decline in freight costs, and the normalization of the normalization of global supply chains, Acoring to Acord By Motilal Oswal.

Along with its expansion plans, adani ports’ is set to Benefit from the growth of the industry as well.

But with the Ongoing Conflict in the Middle East and UncertainTies Surrounding Its Haifa Port Investment, All Eyes are on the Company’s Global Impact.

It’s important to conduct thorough research on Financials and Corporate Governance Before Making Investments Decisions, Ensuring them Align with your Financial Goals and Risk Tolerance.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com,