Aegis Logistics Limited — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Aegis Logistics delivered a steady Q1 FY26 performance characterized by record LPG throughput volumes and the successful listing of its JV subsidiary, AVTL. While liquid margins saw some sequential softening due to seasonality, management remains highly bullish on long-term growth, backed by a robust ₹4,130 crore cash balance. The company is pivoting toward aggressive infrastructure expansion, including ammonia terminals and a significant US$ 5 billion Capex roadmap through 2030.

Highlights

  • Normalized EBITDA stood at ₹256 crores, representing a 2% YoY increase.

  • Profit After Tax (PAT) increased by 11% YoY to ₹175 crores compared to ₹158 crores in Q1 FY25.

  • LPG throughput volume reached a record Q1 high of 1.16 million tons, up 15% YoY.

  • LPG business revenue grew 8% YoY to ₹1,575 crores, with EBITDA rising 6% to ₹150 crores.

  • Liquid segment revenue stood at ₹144 crores (+1% YoY) with a stable EBITDA of ₹106 crores.

  • Successfully listed subsidiary Aegis Vopak Terminals Limited (AVTL) in June 2025; Aegis retains 44.71% equity.

  • Announced a massive aggregate Capex target of US$ 5 billion by 2030.

  • MSCI ESG rating upgraded from (A) to (AA) during the calendar year.

Key financials

  1. Normalized EBITDA ₹256 Cr +2%YoY
  2. Profit After Tax ₹175 Cr +11%YoY
  3. LPG Throughput Volume 1.16 million tons +15%YoY
  4. Cash Balance ₹4,130 Cr

What they filed

Q1 FY27: revenue up 27.7%, net profit up 471.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue658 672 914 837 1,028 +56%914 +36%1,713 +87%1,069 +28%
EBITDA67 63 246 67 79 +18%89 +41%416 +69%469 +600%
Net profit72 66 226 69 167 +132%183 +177%524 +132%394 +471%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹1,719 Cr Total
  • LPG (Gas) ₹1,575 Cr 91.6%
  • Liquids ₹144 Cr 8.4%

Guidance & targets

Capex

  • Aggregate Capex Capex · by 2030 · High confidence US$ 5 billion
    we expect to reach US$ 5 billion aggregate Capex by 2030 which would be funded by a mix of internal accruals and utilization of debt

    — Raj Chandaria, Chairman & Managing Director

  • Near-term Capex Capex · by end of next year · High confidence US$ 1.2 billion
    we will already reach a Capex of US$ 1.2 billion by the end of next year

    — Raj Chandaria, Chairman & Managing Director

Profitability

  • EPS CAGR Profitability · Year-on-Year · Medium confidence 25%
    the only guidance that we have given is that we strive for a 25% CAGR growth in our EPS year-on-year. That's the bare minimum that we try.

    — Murad Moledina, CFO

Margin

  • LPG Distribution Margin Margin · FY26 · High confidence ₹3,000 - ₹3,500
    we are confident that we will again end between Rs. 3,000 to Rs. 3,500 per metric ton [on a yearly basis].

    — Murad Moledina, CFO

Capacity

  • Mumbai Liquid Capacity Operationalization Capacity · Q2 FY26 · High confidence 50%
    upcoming liquid capacity of 125,000 kiloliters, 50% of which is expected to be operational in the ensuing quarter and the balance by the end of this fiscal year.

    — Raj Chandaria, Chairman & Managing Director

Risks & concerns

  • Utilization ramp-up for new terminals

    medium

    New gas terminals typically start at 25-30% utilization and take 5-7 years to reach 100% capacity.

    Management acknowledged

  • Competition in LPG distribution from City Gas companies

    low

    Management believes new entrants like city gas players will likely need to use Aegis's terminals for storage/trading, turning competitors into potential customers.

    Analyst downplayed

  • Seasonality of Liquid segment

    low

    Q1 and Q2 are historically softer than Q3 and Q4 for the liquid storage business.

    Management acknowledged

Areas of evasion (1)

  • Specific territory-wise volume breakups (e.g., Mangalore specific contribution).

Q&A highlights

3 direct
Sequential decline in liquid revenue and margins Direct
In liquids, every time Q1 is always a little softer... from ensuing quarters, you will see as the product mix improves in the newly commissioned liquid terminals, we would be doing better.

Explains the perceived weakness in the liquid segment as seasonal rather than structural.

Asked by Joylon, Emiral Gestion

Potential overcapacity at JNPT due to competition Direct
There are news items saying that BW has, of course, withdrawn... we are confident of what we are doing at JNPA. We expect good and solid utilization going forward.

Management addresses competitive risks at a key port and highlights the withdrawal of a potential competitor (BW).

Asked by Joylon, Emiral Gestion

Accounting for asset transfers between subsidiaries Direct
When you consolidate all of this, the profits are eliminated... but if you look at the individual companies, you will see those profits. For example, the Mangalore terminal... will be reflected in the Sea Lord Containers Limited.

Clarifies how internal asset sales (slump sales) impact standalone vs. consolidated books, which is critical given the AVTL listing.

Asked by Harsh Shah, Dalal and Broacha

2 min read 5 chapters

Detailed narrative

AVTL Listing and Consolidation Strategy

The successful listing of Aegis Vopak Terminals Limited (AVTL) in June 2025 was a major milestone. Despite holding 44.71% equity, Aegis Logistics maintains management control, ensuring AVTL's financials continue to be consolidated line-by-line. The IPO was described as EPS accretive, aimed at reducing debt and strengthening the balance sheet to support the 'GATI' growth strategy.

Aggressive US$ 5 Billion Capex Roadmap

Management unveiled an ambitious long-term plan to reach US$ 5 billion in aggregate Capex by 2030. In the near term, the company expects to hit US$ 1.2 billion by the end of FY27. This expansion will be funded through a mix of internal accruals and debt, with a commitment to maintain a prudent debt-to-EBITDA ratio capped at 3.5x (currently at 0.6x).

LPG Throughput and Capacity Expansion

LPG throughput reached a record 1.16 million tons in Q1. Significant capacity was added recently, including 82,000 metric tons of cryogenic storage at Mangalore and 48,000 metric tons at Pipavav. While these new terminals currently operate at lower initial utilization (25-30%), they are expected to scale to full capacity over the next 5-7 years, driving long-term volume growth.

Ammonia and New Energy Frontiers

Aegis is aggressively expanding into the ammonia terminal business. India's first independent ammonia terminal at Pipavav (36,000 MT) is slated for completion by Q1 FY27 with a 15-year take-or-pay contract. Additionally, a non-binding MoU was signed with L&T to set up an ammonia terminal at Kandla for their upcoming green ammonia facility.

Distribution Growth and Strategic Partnerships

The LPG distribution segment saw a 13-14% volume increase in Q1. Management announced a new cross-selling fuel agreement with Jio BP, which is expected to enhance the retail distribution business. Despite current Q1 margins of ₹2,500 per ton, management is confident in achieving their full-year target of ₹3,000 to ₹3,500 per ton as they enter new geographies like Mangalore.

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