Mumbai: Gautam Adani has resigned as Executive Chairman at Adani Ports and Special Economic Zone, with effect from August 5. He would cease to be a key managerial personnel of the company, according to sources.
The board approved the “re-designation of Gautam S Adani from Executive Chairman to Non-Executive Chairman with effect from August 5, 2025 and consequently he would cease to be key managerial personnel of the company”, the sources said quoting the company as saying on Tuesday.
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05 Aug 2025
Adani Ports appointed Manish Kejriwal as an Additional Director (Non-Executive, Independent) of the Company for an initial term of three years from August 5, 2025, subject to approval of the shareholders, which will be obtained within three months.
The company that announced its Q1 FY26 results announced a 7 per cent year-on-year increase in net profit for the quarter, reporting a profit of Rs 3,311 crore. This marks a rise from the Rs 3,107 crore recorded in the corresponding period of the previous year.
The company’s revenue surged by 21 per cent year-on-year, reaching Rs 9,126 crore in Q1 FY26, up from Rs 7,560 crore the previous year. EBITDA grew by 13 per cent to Rs 5,495 crore. This financial growth was supported by robust momentum in Adani’s logistics and marine businesses.
Meanwhile, the Adani Group clarified that the decision to re-designate Gautam Adani from Executive Chairman to Non-Executive Chairman of Adani Ports and Special Economic Zone Ltd (APSEZ) was made to comply with corporate governance laws and allow him to focus on other group businesses.
In an exclusive statement to a leading newspaper, the company said: “This change ensures compliance with the applicable provisions of the Companies Act, which restrict key managerial personnel from holding executive positions in more than one company simultaneously.
“Given that APSEZ already has two executive directors, a Managing Director and a Whole-Time Director & CEO, this re-designation will also enable Adani to devote greater attention to the strategic direction and growth of other entities within the Adani Group. Adani continues to serve as the Chairman of APSEZ.”
What does this mean?
The move is in line with Section 203 of India’s Companies Act, 2013, which places strict limits on key managerial personnel (KMPs) holding multiple executive roles. The law states that a whole-time KMP—such as a CEO, Managing Director, or Whole-Time Director, cannot simultaneously occupy a similar position in more than one company, with limited exceptions.
One such exception allows a KMP to hold an executive position in a subsidiary company. Additionally, a person may serve as a managing director or manager in up to two companies, but only if approved unanimously by their Board of Directors. However, these restrictions do not apply to non-executive roles, which is why Adani’s transition to a non-executive chairman position at APSEZ remains fully compliant.
These provisions are intended to ensure that top-level executives can dedicate adequate attention to a company’s governance and day-to-day operations. Non-compliance with these rules can lead to legal penalties for both the company and the individuals involved.
