Adani Enterprises (NSE:ADANIENT) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Adani Enterprises Q2 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in a listen only mode, and there'll be an opportunity for you to ask questions after the presentation concludes. I now hand the conference over to Mr. Alok Diora. Thank you, and over to you. Thank you. Good evening, everyone. On behalf of Motilag Raswal, I welcome you all to the 2Q FY twenty one... Twenty seven earnings call of Adani Enterprises. So we have with us the senior management from the company led by Mr. Arun Vansal, Chief Executive Officer, Adani Airport Holdings Mr. Moli Krishnan, Chief Executive Officer, Adani New Industries Solar Manufacturing Mr. Rajesh Poudar, CFO, Adani Airport Holdings Mr.

0:52 Manan Vakaria, Head of Finance, Adani Enterprises and Mr. Jitendra Kalya, Investor Relations, Adani Enterprises. So I would now hand over the call to mister Adani Enterprises to provide opening remarks, and then we can take up the q and a. Thank you, and over to you, sir. Thanks, Alok. Good evening, everyone. Thank you for joining us today for Adani Enterprise earnings call for the quarter and half year ended 09/30/2026. AES 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 triple AA stable by Care during the first week of October twenty twenty six, its highest ever long term rating in its credit history.

1:47 This upgrade serves as an independent validation of AEL's disciplined capital management and tight fiscal prudence. As we informed in our earlier discussions, AER'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, AAL is now well positioned to sustain this growth trajectory going forward.

2:50 Moving to our half yearly financial performance on consolidated basis, total income increased to 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 Holding Limited EBITDA reported growth of 52% year over year to rupees 3,275 crore.

3:38 And KCR Copper EBITDA reported EBITDA of rupees 2,033 crore. Now let me move to business wide update, our data center business. Adani Connects has signed up a new hyperscale contract of 240 megawatt capacity, taking cumulative contracted capacity to capacity to 1.2 plus gigawatt. During the quarter, we handed over additional 29.2 megawatt data center to customers, taking operational capacity to 94.6 megawatt. Moving to airport business. Adani Airport is one of India's largest private airport platforms, operating a portfolio of eight airports, including the greenfield Nabi 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.

4:49 Adani Airports delivered a resilient performance during first half of this fiscal and achieved highest ever half yearly EBITDA of rupees 3,275 crore, which is close to full year EBITDA of financial year 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 07/15/2026.

5:39 Indian domestic airlines, Indigo, Air India and Akhata have recently announced their operational plans to commence international operations and progressively expand from Navi Mumbai Airport. Moving on to financial and operational bank performance during Q2 financial year twenty seven. We handle passenger traffic of 21,300,000 passengers, total income of INR 3,786 crore, up by 20% year over year EBITDA of INR $16.41 crore, up by 55% year over year and aero and non aero revenue delivered year over year growth of 957%, respectively.

6:31 During the quarter, we added eight new routes and four new airlines. If I move to mining services portfolio during the quarter, we dispatched volume up, stood at 10,700,000 metric ton, while revenue stand at rupees $9.98 crore and EBITDA of INR407 crore. In Integrated Resource Management business portfolio, during the quarter, trading volume stood at 7,400,000 metric tons and revenue stood at 7,169 crore and EBITDA of INR $6.54 crore. In copper business, we are now seeing capacity ramp up.

7:17 During the quarter, copper sales volume of 80.6 kilotonnes with capacity utilization increased to 64%. Revenue increased to INR 14,843 crore, and EBITDA increased to INR $12.83 crore. With this, now I hand over the call to my colleague, Murali Krishnan, CEO of Adani Solar. Over to you, Murali. 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 the wind equipments. As you as you all of you know, Adani Solar has featured in the Allied list of top 10 global solar model manufacturing, and Adani Wind became the only Indian company in top 15 global wind turbine manufacturers.

8:20 I'm happy to inform you that we have commissioned the remaining module line capacity of 4.3 gigawatts on 08/31/2026, completing our expansion to 10 gigawatt module line capacity. We are on schedule to commission the solar cell line of six gigawatt by end of this financial year. During the quarter, domestic module sales have increased to 1,478 megawatts, up by 35 percentage year on year. Now this is the... 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 q two FY twenty seven.

9:09 The module sales was thousand 478 megawatt, up by 35 percentage year on year. Wind turbine sales was to 35 sets, up by 25 percentage year on year. Total income stood at 3,669 crores with an EBITDA at thousand 94 crores. Now this session is open for question and answer. Thank you. We will now begin the question and answer session. If you wish to remove yourself from the question key, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we wait for a moment while the question queue assembles.

10:00 We have the first question from the line of Manish Somaia from Cantor. Please go ahead. Good evening. Can you hear me? Yes. We can hear you, Manish. Oh, 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 twelve, fifteen months that we should be thinking about as that airport ramps up? And and what are sort of some of the meaningful contributions to profitability and cash flow that we should think about?

10:54 No. Thanks for your question. So, NMEL, as I said in my commentary, we started the commercial international operations from July 26. As you might have seen recently, together with Indian carriers, IndiGo, Akasa and Air India, we have announced the new international routes. Actually, IndiGo has announced 12 new routes from Navi Mumbai, starting from December up to April, summer schedule 27. Air India group has announced seven international routes from Navi Mumbai, and Akata has announced one additional. So that makes 19 international routes, one is existing from Navi Mumbai. Domestic also we see a proportionate growth. So our guidance is that we will exit next financial year with full capacity at Navi Mumbai. So Navi Mumbai, as you know, the capacity we can handle is max 20,000,000, which is 5,000,000 international and 15 domestic.

11:54 And we will exit next financial year, I. E. Q1 twenty twenty eight, running with a run rate of 5,000,000 per quarter. Okay. That's helpful. And then 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 you know, we should be kind of baking in as we think about that? Hi, Manish. Man, no. What do you Yeah.

12:40 So in terms of data center, we will stick to what we discussed in terms of our earning call discussed during Q1, where we are expecting in the range of 120 to 150 megawatt of operational capacity as a as a capacity of... When we exit FY '27, the current fiscal. And over the next twelve to eighteen months, we will significantly ramp up all the remaining projects, and we we should be expecting close to 500 megawatt of operational capacity, which will be start... 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 twenty eighty to thirty days, 70 kind of scenario. And we'll still... We'll have the same CapEx numbers as as as generally are there for any other players. Because we are primarily in the core shell, ABB, and all those structure, and we're not a cool player where we install our servers also because that is in the scope of customers.

13:42 Okay. Thank you, Manan. And then just lastly on roads for me. Now that Gangaea Expressway is operational, how should we think about the recurring toll annuity income becoming sort of the dominant force when it comes to earnings? Because that's something that I think we have yet to see. So I'm hoping you can help us with some of the key milestones we should be watching for over the next few quarters. So I think we have starting last quarter, we have fairly entered into an area where the numbers in the P and L or the reported numbers reflect the annuity income as well as the old weight total income. What we should expect going forward is the increase or the optimum utilization of the roads where the toll income are to be generated.

14:38 So where is the traffic growth... As the traffic picks up across the lines of newly committed toll roads, including Ganga Expressway, you will see those ramp up number coming in. But when you compare year over year be... Because of the... How the ADANIENT accounting works for the service considered accounting, you will see some kind of variability in the in the revenue numbers. And I I understand pretty much that is your questions. Otherwise, you will see the normalizes has already happened, and you will see this continue for for a new 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 PLL. Okay. That's super helpful. I'll get back in the queue, and I appreciate time.

15:26 Thank you. Thank you. We have the next question from the line of Mohit Kumar from ICIC Securities. Please go ahead. Yeah. Yeah. Good evening, and thank you for taking my question. My first question is the... On the Bangalore tunnel project, I think, where we are one. Is there any update on that project that you can share? No. So it is at the same level. So that is what we know from the authorities that we are l one. There's no further development there as of. Understood. Coming back, one suggestion for the road road, Of course, we understand that we are doing accounting.

16:16 Is it possible to share the operational EBITDA going forward given that the, of course, for more... The... Our last three projects are... Have got operational for. Is it possible to share the the operational EBITDA going forward in the PPT that we have for us? Yeah. Sure, mate. Well, you can include this. But for the reference... For your reference and for for the benefit of everybody, we will share the numbers over the transcript... Over the call as well. So our EBITDA for road business for q two is $3.54 crore, and the q one was $2.88. So that takes us to half yearly number of around $6.42 crore of EBITDA for roads. Understood. Going back to the airport business, I think... Have you expecting to commence the work on phase two of New Is there any... Yeah.

17:06 Can you just update us on that given that the, of course, the traffic is traffic is below par? Are we are we postponing that debt to debt CapEx? And the and the second question on the airport business is, of last year, if you look at the non aero business, the... I think we took over the ground handling, I think, somewhere in q one FY twenty six. Right? And and and that that particular revenue is not present in the base quarter, while you see that number is present in the q one and q three FY twenty seven. Can you help us understand that line item? So I'll take the first question, Arun here, and then Rajesh will help you with the second question on exact numbers. So phase two 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 DC contractor, which will be onboarded within very, very soon. So phase two of Terminal 2 of Navi Mumbai, the actual work will start within the month of November this year.

18:18 Understood. And on the ground handling, sir? Yes. So in case of ground handling, Rajesh, so in case of ground handling, we had commenced operations at Mumbai, Ahmedabad, Nadi Mumbai through hundred percent subsidiary, AGH port. And during this particular h one, we have earned a revenue of around 339 crore rupees for a six months period. So this was not present last fiscal completely. Is it right? Yeah. It was... Yeah. It was not a part of the past. Yeah. That is right. So, Mohit, the entity was acquired and sourced somewhere in the middle of November. So it actually was present for approximately three or four months in the last financial year. So, yes, if you look at the half year number, it was not particularly there.

19:14 Understood. Understood. My... Another question on the on the solar and wind. So on this particular quarter, do you have any idea how much is sold in the rooftop? And are you thinking about setting up ingot and wave for now? So there are two questions, sir. One is that on the rooftop, actually, 56 percentage of our sale was into the rooftop in the market. That's it. Mhmm. And and and in terms of ingot vapor, I would say that we already have 2.2 gigawatt of ingot vapor capacity, and the balance capacity will come up by 2028, which we are already working on. The engineering work is already started.

20:01 So that will well align with the three policy. So you commenced work on the balance eight gigawatt of internal wafer. Is that understanding correct, sir? Yeah. It will be actually a bit more than six gigawatt because the... In the... If you look at technically, the yield factor is approximately around eight... Seven to 88 percentage 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 q two? So so so in general, I I can only say that our our capacity is already booked for it, both for wind as well as solar.

20:54 We will not be in a position to give you the exact numbers at this point in time, but I can ensure you assure you that the order book is already full. Understood, sir. Last question is how much are CapEx done in h one, and is it possible to give us the broad break of the CapEx segment wise? Mohit, what we have done is we have included the standard FAQs as a part of our earnings presentation, where we have included full breakup of the either FX or the CapEx, sir. Sure. Sure. Understood. So one more question, if I may ask. You know, in in a PPT for data center Mhmm. I think there was a contact reservation, right, which was 1.2 gigawatt. I think this this was shared, I think, by end of year twenty six. Do we have similar number for for by end of q two FY twenty seven?

21:46 Sorry. Come again? There there... In a investor PPT, which was 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 q two FY twenty seven? So see, what... You can refer our data centers like what we have included as a part of our presentation. So we are constructing data centers of 1.4 gigawatt capacity already. Correct. Correct. Correct. So those are at a very steady out of this. So what what the capacity of 1.2 gigawatt is already tied up and is at a different level of implementation and the project construction. And the remaining capacity is open, which can be taken up by anybody.

22:35 Understood. Maybe I'll take it offline. I'll speak to him later. Okay. Thank you. Thank you for answering my question. Thank you. Bye bye. Thank you. We have the next question from the 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. So can you discuss progress on real estate CapEx and any specific milestone you were looking at by end of FY twenty seven, FY twenty eight for city side development? Yeah. So city side development, we have signed the contract, the SMA for all the hotels we are building, basically with our partners. The work is ongoing at five assets, Mumbai, Navi Mumbai, and Babaj, Jaipur... Sorry, Lucknow and Guwahati.

23:27 And the work at Jaipur will start very, very soon. The phase one, as I I call it, we will be live at Ahmedabad by October 29 at Mumbai, in Mumbai by March 2030. Then we are undertaking some major major CapEx project on 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 Mayar, 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. And we are doing some minor additions of capacity at Terminal 2 in Mial, building additional capacity at Trivandrum and the new terminal at Jaipur. So there are a lot of CapEx, heavy CapEx items with our work in progress from now until twenty twenty nine, twenty thirty.

24:32 Sure. In the in the data center business, can you discuss the recent joint venture with Jabil Adani, Jabil partnership? And what is the scope of the business, and what is the... Is this a new apex with the company and the sizing? And the other question on data center is, like, we do read about a lot of position for data center setup, like, particularly in and and where we are, like, looking to set up large projects. And, sir, status of land acquisition or whatever is required for these projects, which is... They suggest that our projects are on time, and we are looking at to be about capacity by probably FY thirty.

25:27 Hi, Prateek. Thank you. So you have two parts in your data set of questions. So I'll take first for Jabir. So, yes, so the present joint venture, which is with EdgeConnect, is completely a data center play in terms of it. It operates in building and constructing the data centers, core and sell, ABB solutions, and other related stuff, which you know about this. And what was inside the data center is generally within the scope of customers. Now what we seek to do with Jabeel is that it's a completely new development, different and separate from Adani Connects, where Adani Enterprises, Jabil, are looking to manufacture the AIREX and the data servers and the related equipments.

26:12 And the manufacturing facility will set up... Will be set up in the country. So the... It is it is still at an MOU stage that we are looking to finalize the definitive agreement over a few months. And once we have those signed, we will come up with the proper disclosure in line with the regulatory requirement, and it will have the details included in our CapEx and other segments. So that was part one of your question. On part two, yes, the the various data center locations which we have defined in our earnings presentation, we have access to majority of those legs 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 as.

27:04 And just to confirm, you said the operation capacity moves from current 95 to one twenty five to one fifty by '27 and 500 by FY '28 and that I remember you said? 500 over next, yeah, eighteen months. Yeah. So practically, yes. Sure. On those segment, the performance or progress or the ramp up at the new project seems a bit slow. Is is that is that underwhelming versus company owned SNS? And how do you see, like, kind of progressing on a quarterly basis? I think it is progressing well, but they are slightly off the park where we would where otherwise like those numbers to be in terms of the capacity ramp up at the toll projects.

27:58 But this is practically Q2 being seasonally rainy season plus the heavy floods and the the situation in the north part of the country. So we will discount it. But we may be... As we speak today, we are seeing a good progress at the increase for... Towards what we are expecting the number to be. So, yes, it's slightly off the back currently, but, yes, we will get the way next two quarters. Last two questions. Firstly, on annual, we have commissioned new capacity of module. What is the run rate of the volumes with the significant increase in capacity which we have now over the next two quarters? Yeah. We we we are expecting about two gigawatts for the next quarter, and that will be the run rate that we should be going with the new capacity coming in.

28:49 Thank you, sir. And in this, what is the mix of volumes, like, a rooftop or to capture volumes selecting significantly increased to Adani Green, or how do you expect to sell this volume? So I have... As I have already mentioned previously that the in... The capacity for the cell is expected to be commissioned during this financial year towards the back end of this financial year. As cell capacity coming in, actually, the DCR content will be increasing, and that will increase the rooftop because that requires the DCR requirements. So we would be also having OCR capacity, which will be used to form the captive in the next two quarters considerably. Sure. Last question on the mining service and, Adam, how how should... I mean, these two segments are also seeing slower volumes recently.

29:45 How should we look at their annual volumes for these two segments? So 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 at least 10 to 15% higher than where we ended last year. Sure. Thank you for answering all my questions. Both mining services particularly and cold ready or the IRM is typically... It's more of a a market driven trade. So it will be difficult to give you any outlook given the given the cold shortage situation in the country. Sure. Thank you all, and answering all my questions.

30:37 Thank you. Participants who wish to ask a question may press star and one on your touch tone telephone. We have the next question from the line of the from MK Global. Please go ahead. Good evening, everyone, congratulations on the excellent numbers. My first question is on the non aero revenue that saw significant year on year jump. So could you please highlight what led to such significant jump in non revenue? Well, thanks for the question. So non aero, our strategy has been threefold basically. Number one, we are heavily investing in digitization.

31:23 So we are working with Adani One app, 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 have happened over digital. As a result of that, we are able to increase the average transaction value per passenger. We are able to increase penetration. And the third thing is we are able to premiumize most of our shops. We have brought in new lounges on board. And, of course, Navi Mumbai initial ramp up also helped because Navi Mumbai, there was no no narrow revenue last year. So combination of all those has helped and partly also the ground handling services as one of the colleague asked, there was no ground handling last year which got incorporated this year. So multiple factors contributed to a strong non aero growth.

32:17 Now Mister, kindly closer to the microphone as you are unable to hear you very clearly. Okay. Hello? Am I is it okay now? This is much better. Yes. Okay. Okay. Thank you. So my second question is on CapEx commitment. You have quite significant CapEx expected in airports, in data centers, I think even in defense. So 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's my second question.

33:07 Vipla. So 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. So we expect to do the CapEx at a 100 of around 40,000 crore. So we will... Maybe somewhere in the 35 to 40,000 crore, which is a 100 we expect to continue and over the next couple of years. And the heavy lifting will be heavy lifting. Years. And the heavy lifting will be done, obviously, by airports that are in PVC. Okay. Okay. That's good. And just wondering, you had an accident result.

33:58 And what kind of EBITDA do you think in FY 2027 will end up with and the kind of margin that we think that will do in FY 2027, '28? I think people have... We refrain from giving any specific financial guidance. So my apologies for what we're able to answer this, but, yeah. That... That's fine. That's fine. Thank you. Thank you. And all the best. And congratulations again. Thank you. We have the next question from the line of. Please go ahead. Sir, good evening, and congratulations on decent numbers. Sir, just had a couple of questions. The copper business has seen significant traction.

34:48 So do we see this run rate kind of continuing? Or would it... Would we even see better run rate in coming quarters? So that's question one. And the second question is that we we have been seeing that airlines being little hesitant to move from that, you know, T 1, T 2 Airport to Navi Mumbai. So what kind of implications can we... Can it have on us? Or if you can just throw some light on that, or is there any impact at all? So let me answer the airline question and then Manan, my colleague will answer the copper question. So airlines, of course, this is a very consultative and long drawn process where we need to then get the confidence of airline that infrastructure is ready at Navi Mumbai, and it always happens whenever new infrastructure comes in.

35:41 As you would have seen on this Sunday and Monday between three domestic carriers, we have announced the movement of... Between those three eighteen international flights from existing Mumbai to Navi Mumbai that cater for roughly yearly volume of 3,000,000. And we are in discussion with more airlines to move the traffic for us to be able to redevelop the T1. And we are fairly confident, as I said earlier, that we will end financial year 'twenty seven, 'twenty eight with a run rate of 20,000,000, which is a 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 q one and q two, and the q two has been very good. So if you look at the margins that we make on our revenues, so EBITDA as a percent of revenue, it has been around 7% to 8.5% is the range where we operated during.

36:41 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 byproducts like sulfuric acid. So 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 q two to around 80, 85% as we close the pie... This current financial year. So the absolute number will definitely increase in terms of revenue, but our operating range for current fiscal will be slightly higher. But, yes, on a long term basis, it will be around four to 6% is the range where we will operate as a as a margin. But, yes, as we increase our flat utilization, the absolute number can be around the same number where we are.

37:32 Got it, sir. So just one follow-up on the airlines answer, you had given. So just wanted to understand if there is any delay in airlines... Airlines willing to shift the operation. So does it have any implication on that, or it it really does not change anything as far as we as a airport operator is concerned? No. So, you know, the timeline to start the redevelopment or demolition part of t one is fixed. We will start from summer schedule, which is April 2027. So airlines still have to make a choice, certain airlines, not all, either they move to Navi Mumbai or temporarily stop flying to Mumbai.

38:19 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 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 from the line of Prateek Singh from IFL Capital. Please go ahead. Hi. Good evening. Thanks for the opportunity. The first question is on the solar business.

39:05 Just looking at it, it looks like relations have fallen on a q o q basis, but EBITDA margins or EBITDA per unit has gone up. So what are the key two, three parameters which are driving it? Yeah. So if you if you look at the q one results, what we have given as well as in the earnings call, we mentioned that we have closed some of the advanced authorizations, which is approximately around 89 crores impact that has come up. So 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 previous contracts with multiple hyperscalers sequentially every quarter, On a like to like basis, I decided it might be difficult, but on a like to like basis, are you seeing an increase in rental rates over time in dollar terms?

40:13 So we will... We can, you know, get to the specific details and come back on this. But 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. But so broadly, the ROCE or the return on capital we we were making earlier are are stable in terms of the data center that we... That is our scope of work in the. Understand. But given that we lock in capital 60 to 80 close per megawatt, and we have seen commodity price inflation, there is a tightness in equipment supply as well. So so there might be a risk that CapEx per megawatt would be going above what we earlier thought maybe six, seven months back.

41:03 So is this something when we negotiate with Apple scalers, they 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 at slightly higher rates than than needed? See, when 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. So wherever that we are seeing the increased CapEx, we... That will be factored in when the when the billing is considered for the... That new sign up or the new sign up of the project which we are doing. So given that that... Okay. Discounting for that, everything... Rates are more or less stable in the broad same rate where we were operating value.

41:53 Understood. My third question is on the copper business. So we have been hearing a lot of the TCRC are 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 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 that it should let us from the such such variations in the market. So as of now, have not stated any situations where we are not able to procure the corporate also.

42:43 Thanks. Just two bookkeeping questions very quickly. Your investments in JVs and associates is around 2,400 crores in first half, similar level which we did in the entire. So is it fair to assume it's largely data center? It's primarily data center. Yes. In which... You are saying investment in equity accounted as well... Investments. Right? Correct. Correct. Yeah. So that is the data center. Okay. And the last question, I can take it offline also. So the other expenses line item in our PNL at 6,500 crores this quarter is the lowest in three years. What exactly is driving it? So that so that will go down to, again, the...

43:29 In that accounting of the service concession contracts where the construction of road activities are generally passed through PNL. That's why you see the PNL bloated to the extent of revenue and expenses both because the construction expenses are passed through your P and L, and that is something which is causing your... The variation in the other expense side. Oh, very well. That that explains it. Thanks thanks a lot, and all the best. Thank you. We have the next question from the line of Kartik Koli from Court of Securities. Please go ahead. Hello, sir. Thank you for taking my question. My my question is more on the non aero part of the... Very strong growth.

44:17 Is there an element of fixed portion of this non aero level being accounted for, which is related to new shops being opened at Mumbai Airport. I'd say the newer renovated shops at the Mumbai Airport. Is there a fixed element in this city contributing to the growth on a YONA base? That will be my first question. No. Thanks for the question. So there is one element which was specific to q two, and that is the new hangar sales we have done at Navi Mumbai, which got recorded in Q2 financials. That's all the new opening of shops, new lounges, everything is a recurring business, which will continue.

45:07 I have second question on data centers. So it is more on the broader business terms. We wanted to understand that since you're styling up with with the. You are not clearly audible. Hi. Hi, Kartik. You are not clearly audible. I Mister Kartik, Rakesh, 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. So the last thing on data center, we will need to understand from a broader business perspective, now that you're signing contracts with, you know, a lot of hyperscalers across the globe and a lot of these players have undertaken a lot of debt.

45:56 So is there a, you know, fail safe in your agreement with such hyperscalers in terms of take or pay agreements and, you know, any such protections that will allow you to, you know, recoup at least part of the revenue with such, you know, hyperscaler customers end up not taking up capacity in the event of their, you know, at least on their individual finance is not working out. Is there a fail safe for that? I think it is there as a part of normal contractual commitment. It is all... Always there. There are safeguards at the guidelines which are built out in any agreement. Those total contractual guidelines are there. But those specifics of take or pay, I think we will have to come back... Check and come back after after the contract is illegally. Yeah.

46:48 Oh, okay. Understood. Secondly, on the services business within Adani Connect, just wanted to understand what sort of services are being in the side there and what sort of, you know, contribution to overall margin that can come from there? Is there a sense we can get here? You said Adani. Right? Yeah. So within the business, there is a managed service element and o and m element. I just wanted to get a sense of what sort of EBITDA contribution on the case on our margin contribution that can come from there. So I think we are not even or publicly disclosed as a part of our, I think, present data... Presentation of the data center number yet, which we plan to do somewhere in 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.

47:42 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 just to slip in one last question because you mentioned on Catch Copper that major chunk of your raw material from that... The perspective of the copper business is already account... 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 number that can be provided. Yes. So offtake... In terms of offtake, if you really look at, we have two joint ventures which are in the house in terms of the corporate. So that gives us assurance of the offtake for around 12% to 15% of our capacity.

48:36 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. So that's why 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 long term requirement of the long term basis. And on a short term basis, another 20% is already contracted. So and we expect the plan to continue to operate towards the end of the year by 80%, 85%, as I highlighted earlier. So that's where I think so in that sense, we are fully secured from the economics as well as the tech requirements. Understood, sir. Thank you so much.

49:27 You. Participants who wish to ask a question may press star and one on your touch tone telephone. We have the next question from the line of Prateek Kumar from Jefferies. Please go ahead. Yeah. Thanks for the opportunity again. I have just one question. We had acquired the JPA assets via MCLT route near this year. You know, cement business and power business were directed to the company. This hotel and and the big land parcel in Daytona, all, like, kind of remained with the Adani Enterprises. What are the what are the plans for all these assets? And that's when we start happening with any enterprise sales for a separate entity.

50:15 Hi, Prateek. So, yeah, you are right. The big entity was ADANI Enterprises, but the implementing agency for... It was not ADANI Enterprises. It was a private entity called Adani Enterprises Limited. So nothing of the sale acquisition remains with us and is completely off the table for Adani so far as AEL is concerned. So the hotel projects and the land parts are all is now off the Yes. Company. Okay. Yeah. Okay. Thanks for clarifying. And we have not contributed any equity or any funding also in the project, so we are committed completely of. Sure. Thank you. Thank you.

51:02 We have the next question on the line of Devil Shah from RDSA Investment Manager. Please go ahead. Hello? Hello? Devil, we're not able to hear you very well. So could you kindly come closer to the microphone? Yeah. Hello? Yes. Hello. Is it audible now? Hello? We can hear you now. Yeah. So 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 iron special... Specialist manufacturing. Significantly, probably would be contributed by the copper, but I want... Just like to get some more insight into this 5,000 crores EBITDA.

51:51 So you are right. Primarily, the increase which you see on the first slide or the second slide of the presentation is cover of 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. And one more part, which is part of the primary industry is Carmichael mine, and that is where against the last year, the... 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 pipe as well. And that is where we have... For the quarter two, we have done an EBITDA of around $4.70 crores. And cumulatively for the half year, if the EBITDA has been at $8.40 crores, which was generally our our our annual run rate expected on that.

52:41 So the... 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. And about the specialist manufacturing, so 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 in terms of the revenue and EBITDA? So the specialized beneficiary is the payers that we refer to. And so in terms of the overall numbers that we are presenting, those are not very significant, and that's why they do not pass the criteria of segment reporting.

53:28 And hence, those are not separately reported. But, yes, we are doing meaningful work there, but nothing which can be reported is okay. Okay. And since last, what I've seen that we have almost about 18% to 20% of our capital has gone into PVC. So can you please give us the more insight on the on the timelines about the PVC business and where we are? Some more insight into the entire segment. So yes. So we are constructing 1,000,000 metric ton capacity plant at Boudra, and very it's approximately 26,000 crore CapEx plant that we are building up there. Out of this, I think we have already closed 60% market in terms of the project spend as well as the construction on ground, which we propose to do there.

54:20 So as per time line, the first part of the overall CapEx is expected to get commissioned in the next fiscal. So that's where you will see some kind of numbers coming in this. And from... After it gets commissioned over a period of next six to nine months, the plant will get stabilized, and we'll we'll see the numbers going in. So that's where we are in the PVCs. So the plant is progressing well and on schedule. Okay. So we have a third... So do our understanding that we only have a plan for manufacturing the PVC. Right? So we anything apart from... Also, is there anything else on the PVC line, or it's just the PVC or anything else on the chlor alkali? So, yes, the chlor alkali is also there. So PVC and related chemicals is the material is out... Around it.

55:10 Okay. 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 the 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.