Summary:
Adani Ports has agreed to acquire European liquid-storage operator Evos for €2.56 billion. Evos reported a 56% EBITDA margin in CY25. The deal expands APSEZ’s global footprint but lifts pro-forma net debt-to-EBITDA to 2.76x before expected deleveraging.
The deal expands APSEZ’s footprint to 28 terminals across 10 countries and brings 56% EBITDA margins, but leverage will tick up temporarily.
Adani Ports and Special Economic Zone agreed on November 5, 2026, to acquire 100% of Evos B.V., Europe’s second-largest independent liquid storage operator, for an enterprise value of €2.56 billion. The equity check is €1.18 billion, or roughly 11.7 times Evos’s calendar-2025 EBITDA. Shares closed about 1.3% lower after the announcement, having earlier touched a 52-week high.
Evos runs eight port-based terminals across the Netherlands, Germany, Spain, Belgium and Malta. It holds 6.3 million cubic metres of storage capacity and handled 37 million metric tonnes of throughput in 2025. Revenue that year was €392 million and EBITDA €219 million, for a 56% margin. Commercial occupancy averages 99%. A large share of revenue sits under take-or-pay contracts with CPI linkage.
Why the Multiple Looks Reasonable
Infrastructure assets of this type routinely clear 10-12 times EBITDA when occupancy is locked in and cash flows are hard-currency. Evos’s margin sits well above the 44.8% EBITDA margin APSEZ reported for its international ports business in the first half of FY27. The portfolio also includes jet fuel, marine fuels and a growing slice of sustainable aviation fuel, biofuels and methanol. That mix gives the buyer exposure to Europe’s energy transition without betting the entire return on green volumes arriving on schedule.
The infrastructure itself is not trivial. Evos operates 452 tanks and 63 vessel and barge berths, with pipeline connections that include Schiphol Airport and the Central Europe Pipeline System. Those links raise the switching cost for customers and support the take-or-pay structure. For APSEZ, the addition lifts its global count from 20 to 28 ports and terminals across 10 countries and adds another 37 MMT of annual throughput to a business that already handled more than 500 MMT in FY26.
Leverage and Funding
The transaction is all-cash and debt-funded. MUFG has committed up to €2.8 billion of financing. On a pro-forma basis that combines APSEZ’s FY26 numbers with Evos’s CY25 figures, net debt-to-EBITDA moves from 1.9 times to 2.76 times. Management expects the ratio to settle near 2.5 times by FY27 as the acquired cash flows come through and residual cash is applied. That is still inside the company’s stated policy ceiling of 2.5 times, but the temporary step-up is the clearest near-term cost of the deal.
APSEZ finished FY26 with revenue of ₹38,736 crore and EBITDA of ₹22,851 crore. Adding Evos’s roughly ₹2,300 crore of EBITDA would lift the combined EBITDA base by about 10%. The contribution is smaller on revenue because of the high margin, which is precisely the point. Investors who already own the stock for its Indian volume growth now get a higher-quality European cash-flow stream without a dramatic change in the overall growth algorithm.
What the Stock Already Prices
At a close near ₹1,885, APSEZ trades at roughly 30-32 times trailing earnings and a market capitalisation of about ₹4.3-4.4 lakh crore. The stock had already re-rated on the back of volume growth past 500 MMT and a clean balance sheet. The Evos acquisition does not invent a new growth story; it adds duration and hard-currency diversification to one that the market has already begun to accept. The 1.3% decline on the day is consistent with investors marking the near-term leverage increase rather than questioning the strategic logic.
Completion is expected to take around 15 months, subject to regulatory clearances and works-council consultation. Until those close, the deal remains an option on European energy logistics rather than a closed acquisition. Integration risk is low relative to a greenfield port build; Evos already runs at high occupancy under long-term contracts but any delay in approvals or unexpected capex at the terminals would push the leverage path longer than management currently sketches.
Deal Snapshot
| Metric | Figure |
| Enterprise value | €2.56 billion (~₹27,200 crore) |
| Equity value | €1.18 billion |
| CY25 EV/EBITDA | 11.7x |
| Evos CY25 EBITDA | €219 million (56% margin) |
| Pro forma ND/EBITDA | 2.76x (expected ~2.5x by FY27) |
What Investors Should Watch
• Regulatory and works-council timelines. A slip beyond the indicated 15 months keeps the leverage elevated longer and delays the cash-flow contribution.
• Actual versus expected occupancy and contract renewals. The 99% figure and CPI linkage are central to the multiple paid; any erosion would change the return math.
• Volume of transition fuels. SAF, biofuels and methanol are the strategic upside; conventional fuels remain the base case. The mix will determine whether the European platform grows faster or slower than the Indian ports business.
• Net-debt trajectory through FY27. Management’s 2.5x target is achievable if Evos cash flows arrive on schedule and residual free cash flow is used to pay down the acquisition debt. Any large new greenfield commitment would compete for that cash.
The acquisition does not transform APSEZ overnight. It does give the company a second, higher-margin cash-flow engine in a hard-currency market while the Indian volume story continues. At current multiples the stock already embeds steady growth; the Evos deal adds quality and geographic spread rather than a step-change in near-term earnings power. Investors who own the stock for the Indian ports franchise should view the transaction as a modestly dilutive near-term leverage event that improves the long-term earnings mix.
