Aegis Logistics

Aegis Logistics achieved its highest-ever Q1 EBITDA of ₹250 crores, driven by a 38% surge in the liquid division's EBITDA to ₹108 crores. The LPG logistics segment also performed strongly, with throughput volumes rising 15% YoY to 10.12 lakh metric tons. However, the LPG distribution segment faced a temporary headwind^📎, with volumes dropping to 1.29 lakh metric tons as industrial customers in the Morbi cluster shifted to natural gas due to 'suicidal' pricing by Gujarat Gas. Management noted that natural gas prices have already begun to rise in July, which should normalize LPG distribution volumes in the coming quarters.

The company is halfway through its ambitious ₹4,500 crore capex program slated for completion by FY27. Key projects include the expansion of LPG capacity at Pipavav (45,000 metric tons) and Mangalore (85,000 metric tons), both expected to be commissioned in Q1 FY26. Additionally, Aegis announced a new ₹250 crore liquid storage terminal in Mumbai with 150,000 kiloliters of capacity. Management signaled that the capex run-rate might increase from ₹900 crores to over ₹1,000 crores annually beyond FY27 as they explore further opportunities in the pipeline.

Aligning with India's energy transition, Aegis is diversifying into ammonia logistics. The company plans to commence construction of its first ammonia terminal in Gujarat during this fiscal year. Management's goal is to become vertically integrated in the ammonia business, similar to their successful LPG model. They are also exploring opportunities for an ammonia terminal in Gopalpur, Odisha, which remains in the exploratory stage.

A major highlight of the call was the discussion on the Mangalore terminal's competitive advantage. Unlike existing competitors who use pressurized spheres with low unloading rates (under 400 tons/hour), Aegis's new 82,000-ton cryogenic terminal will unload VLGCs at 2,000 tons/hour. This efficiency allows a VLGC to be evacuated in 24-36 hours compared to several days at pressurized terminals, potentially saving customers up to ₹100 crores in logistics inefficiencies and demurrage.

Management clarified a discrepancy where standalone profit appeared higher than consolidated profit. This was due to a ₹180 crore gain from selling CCPS in the AVTL subsidiary to Royal Vopak, which Indian accounting standards require to be recognized in standalone results but not in consolidated P&L. Furthermore, management addressed analyst concerns regarding potential capital raises at the subsidiary level (AVTL), stating that while they explore all funding possibilities, no final decisions have been made, and they will prioritize the best path for the company's growth.