Adani Ports and Special Economic Zone Ltd (APSEZ)—India’s largest port developer—has released robust operational numbers for May 2025, even as it finds itself at the centre of a controversy involving the US Department of Justice. The company reported a record 41.8 million metric tonnes (MMT) of cargo handled, registering a 17% growth from the same period last year. The increase was attributed to strong momentum in container and dry cargo volumes.

The latest operational update comes just a day after Adani Ports’ board approved a $1 billion fundraising plan, aimed at supporting future expansion, and shortly after a Wall Street Journal (WSJ) report alleged that the company might have imported Iranian-origin liquefied petroleum gas (LPG) in violation of US sanctions—allegations that the Adani Group has categorically denied.

Cargo Performance: May 2025 Sees Strong Growth

According to the filing made with stock exchanges, Adani Ports handled 41.8 MMT cargo in May 2025, up from approximately 35.7 MMT in May 2024. This marks a 17% year-on-year growth, a healthy figure that reflects strong demand across India’s trade hubs.

• Container volumes surged 22%, driven by increased exports and imports in key segments.

• Dry cargo volumes rose 17%, showing continued strength in sectors like coal, fertilisers, and grains.

For the year-to-date (YTD) period ended May 2025, cumulative cargo volumes stood at 79.3 MMT, up 10% from the same period last fiscal.

This performance reinforces Adani Ports’ position as a logistics backbone for India, particularly through its flagship Mundra Port in Gujarat, the country’s largest commercial port.

Logistics Volumes Show Steady Growth

Apart from port cargo, the company’s logistics division also posted gains:

• Rail volumes reached 0.06 million twenty-foot equivalent units (Mn TEUs) in May 2025, up 13% year-on-year.

• Under the General Purpose Wagon Investment Scheme (GPWIS), volumes reached 2.01 MMT, registering a 4% increase.

For the April–May YTD period, Adani’s logistics operations recorded:

• Rail volumes at 0.12 Mn TEUs, a 15% jump from last year, and

• GPWIS cargo at 3.8 MMT, up 4% YoY.

These figures reflect the strengthening rail-port connectivity in India and Adani’s push to diversify beyond traditional port handling.

Board Approves $1 Billion Fundraising Plan

As part of its strategic roadmap, Adani Ports’ board on June 2 approved a fundraising proposal for up to $1 billion. The funds will be raised via issuance of senior notes in one or more tranches over the next six quarters.

Senior notes are secured debt instruments that get priority during repayment in case of liquidation, reflecting investor confidence and a strong financial profile.

The capital raise is aimed at expanding cargo capacity, upgrading infrastructure, and funding ongoing acquisitions to solidify Adani Ports' leadership across Indian and global markets.

This move also comes at a time when Indian infrastructure companies are seeing rising demand from multinational clients and domestic exporters.

US Scrutiny Over Alleged Iranian LPG Imports

Despite the operational high, the Adani Group finds itself embroiled in a new controversy following a report by the Wall Street Journal dated June 2, 2025. The WSJ article claims that Adani entities may have imported Iranian-origin LPG into India via the Mundra port, potentially violating US sanctions.

The report cites shipping patterns, routes, and transponder behaviours of tankers frequently plying between Iran and India that allegedly indicate sanction evasion tactics.

According to the WSJ, vessels arriving at Mundra port showed behaviour that is often associated with attempts to conceal cargo origin, including turning off tracking systems and circuitous navigation paths.

Adani Group Issues Strong Denial

In response to the WSJ report, the Adani Group issued an official statement calling the claims “baseless and mischievous.”

"The Wall Street Journal’s story of 2nd June 2025, by Ben Foldy and Dave Michaels, alleging links between Adani entities and Iranian LPG, is baseless and mischievous. Adani categorically denies any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG," the group stated.

It added that no Adani entity is aware of any US-led investigation regarding this matter.

“The WSJ’s story appears to be based entirely on incorrect assumptions and speculation. Any suggestion that Adani Group entities are knowingly in contravention of US sanctions on Iran is strongly denied. Any assertion to the contrary would not only be slanderous but also an intentional act to injure the reputation and interests of the Adani Group.”

This firm stance comes at a time when Adani is still rebuilding investor confidence post-Hindenburg allegations in 2023, which had led to significant scrutiny on its financial and governance practices.

Market Reaction and Share Movement

Amidst the double developments—positive cargo and logistics growth but negative sentiment due to US scrutiny—shares of Adani Ports and SEZ were trading 2.21% lower at ₹1,435.5 apiece at 1 PM on Tuesday, June 2, 2025.

The dip reflects market caution amid global regulatory concerns, despite the company's strong operational performance and ambitious expansion plans.

What This Means for Investors and Trade Stakeholders

For stakeholders, the developments suggest a mixed outlook:

• On one hand, Adani Ports continues to deliver on operational performance, aided by container traffic growth, logistics diversification, and port-led development.

• On the other hand, global scrutiny and regulatory headlines could weigh on investor confidence, especially among institutional players with ESG mandates or exposure to US regulatory environments.

Still, the $1 billion fundraising approval signals long-term confidence, and continued capex is expected to add capacity and strategic edge to its integrated logistics model.

Final Thoughts

Adani Ports' performance in May 2025 confirms its leadership in India’s logistics sector, with strong cargo growth, consistent rail and GPWIS expansion, and a forward-looking capital raise plan. However, the renewed geopolitical scrutiny over Iranian LPG allegations serves as a reminder of the vulnerabilities that come with global scale.

As the situation evolves, investors will likely focus on regulatory clarity, operational consistency, and management communication to navigate these uncertain waters.

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