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.