Detailed Narrative
All Four Business Pillars Deliver Double-Digit Growth
Q2 FY26 demonstrated the integrated transport utility strategy firing on all cylinders. Domestic ports grew 15%, international ports hit lifetime high revenue of INR 1,077 crores, logistics surged 79%, and marine grew 237%. Consolidated ROCE improved to 16% from 15% in FY25, while leverage remained disciplined at 1.8x. The diversified growth profile validates management's shift from a port-volume story to a multi-pillar platform.
Domestic Port Pricing Power Drives Record Margins
Despite all-India cargo growth of only 4.3%, APSEZ grew 6.9% with market share rising to 28%. More impressively, domestic port EBITDA margin hit a record 74.2% in H1 FY26, up from lower levels a year ago. ROCE surged to 24% from 21% in FY25. The margin expansion is driven by operating leverage, price increases linked to FX, and favorable cargo mix (higher-value fertilizers, containers).
Colombo Ramp-Up Exceeds Expectations
Colombo delivered its third consecutive month of 100,000+ TEUs, validating the fully automated port model. International ports overall EBITDA improved 969 bps QoQ to hit a lifetime high of INR 261 crores. Management expects Colombo EBITDA margins to reach 50% at stabilization, Haifa 30-40%, and Australia 65%, targeting a blended 45% international EBITDA margin.
Logistics Growth Story Validated by Numbers
Logistics revenue at INR 1,055 crores grew 79% YoY driven by asset-light trucking and international freight network. ROCE improved from 6% in FY25 to 9% in H1 FY26. Management targets 40-45% EBITDA margin for non-IFN/non-trucking logistics over time. The trucking and freight forwarding businesses are still in gestation but providing strategic cargo control.
Marine Fleet Scales to 127 Vessels at Premium Returns
Marine revenue grew 237% to INR 641 crores with ROCE at 15%, above the 14% threshold. Vessel count rose to 127 from 75 a year ago. The business operates in Middle East and West Africa with plans to expand to Southeast Asia. India domestic marine is at 75% market share with 8 new tugs ordered for delivery in 2027-2028.
1 Billion Ton by 2030 Target Gets Detailed Bridge
Management provided the clearest bridge yet to the 1 billion ton target: international at 150-160 MMT from 4 existing ports, domestic 840 MMT from organic expansion. Current capacity of 633 MMT to expand to 1.1-1.2 billion MMT via INR 45,000-50,000 crores port capex. Container remains the #1 growth driver followed by coastal coal and liquid.