Aegis Logistics Limited — Q2 FY26 earnings call

Call held 7 Nov 2025

Management summary

Aegis Logistics delivered a record-breaking second quarter, characterized by significant volume growth in both liquid and gas segments and a sharp expansion in margins. The company is aggressively scaling its infrastructure with a $5 billion roadmap through 2030, focusing on multi-modal evacuation (pipelines and rail) and new energy frontiers like ammonia. Management's tone was exceptionally bullish, backed by high utilization across terminals and the successful commissioning of the Mangalore cryogenic terminal.

Highlights

  • Consolidated revenue grew 31% YoY to ₹2,294 crores, driven by volume expansion.

  • Normalized EBITDA increased 46% YoY to ₹347 crores; PAT surged 61% to ₹244 crores.

  • LPG throughput volumes reached an all-time high of 1.41 million tonnes, up 32% YoY.

  • LPG distribution volumes grew 49% YoY to a record 1.92 lakh metric tons.

  • Management raised confidence in exceeding the previously guided 25% CAGR for 2022-2027.

  • Announced a massive long-term capex plan of $5 billion by 2030, including a ₹20,000 crore investment in Vadhavan Port.

  • Gas distribution margins reached ₹4,000 per tonne, which management deems sustainable.

  • Construction of India's first ammonia terminal (36,000 MT) at Pipavav is on track for Q1 FY27 completion.

Key financials

  1. Revenue ₹2,294 Cr +31%YoY
  2. Normalized EBITDA ₹347 Cr +46%YoY
  3. PAT ₹244 Cr +61%YoY
  4. LPG Throughput 1.41 million tonnes +32%YoY
  5. LPG Distribution Volume 1.92 lakh metric tons +49%YoY

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
₹2,294 Cr Total
  • LPG Segment ₹2,139 Cr 93.2%
  • Liquid Segment ₹155 Cr 6.8%

Guidance & targets

Capex

  • Aggregate Capital Expenditure Capex · by 2030 · High confidence $5 billion
    Our capital expenditure plan will continue to be funded through a mix of internal accruals and prudent debt... with a long-term plan to reach $5 billion by 2030.

    — Raj Chandaria, Executive Chairman

  • JNPA (J2) Project Cost Capex · by December 2026 · High confidence ₹1,675 crores
    We expect all of that to finish by December '26... the CAPEX relating to this particular project? INR 1,675 crores.

    — Murad Moledina, CFO

Profitability

  • Annual Growth CAGR Profitability · 2022-2027 · High confidence >25%

    Previously 25% → >25%

    We would exceed the 25% CAGR, which way back we gave as a guidance to our investors from 2022 to 2027.

    — Murad Moledina, CFO

Volume

  • LPG Distribution Volume Growth Volume · FY26 & Ensuing Years · Medium confidence 30%
    I think this year, we would more than achieve that [30% CAGR]. And in ensuing years also, we expect to continue delivering at least a 30% growth.

    — Murad Moledina, CFO

Risks & concerns

  • Pipeline Connectivity Delays

    medium

    The full benefit of Kandla (KGPL) and Mangalore (Hassan-Cherlapally) depends on external pipeline hookups, some of which are slated for late FY26 or FY27.

    Both acknowledged

  • Large Project Execution Risk

    medium

    The ₹20,000 crore Vadhavan Port project is massive; management emphasizes it will be phased and funded prudently.

    Analyst downplayed

  • Ammonia Market Transition

    low

    Starting with gray ammonia while waiting for green ammonia demand to mature; requires flexible infrastructure.

    Management acknowledged

Areas of evasion (1)

  • Specific quarterly volume guidance for FY26 was avoided, citing it 'depends on a lot of things'.

Q&A highlights

3 direct
Sustainability of High Gas Distribution Margins Direct
This time, it was around INR 4,000. And we expect, I think, to sustain in ensuing quarters also.

Investors were concerned if the jump in distribution profitability was a one-off; management confirmed it is sustainable due to logistics efficiencies and scale.

Asked by Vibhav Zutshi, JP Morgan

Pipavav Jetty Capacity Constraints Direct
We are confident that there will not be a constraint till the new jetty comes in to handle the increased volume. We have already... stepped up by 10%, 15% in spite of KGPL hookup still to happen.

Clarifies that evacuation infrastructure (pipelines/rail) is the real bottleneck, not the jetty itself, and Aegis is optimizing these ancillaries.

Asked by Vishal Mehta, IIFL Capital

Financial Structure of the J2 (JNPT) Project Direct
This INR 500 crores is 30% of INR 1,675 crore infrastructure cost that we are building in JNPA... in advance for this infrastructure development that ALL is doing from AVTL.

Explains the cash flow between the parent (Aegis Logistics) and the JV (AVTL), confirming a 20-25% margin for the parent on project execution.

Asked by Anil Sarin, K16 Advisors

2 min read 5 chapters

Detailed narrative

Record-Breaking Operational Performance

Aegis achieved its highest-ever Q2 revenue and EBITDA in both the Liquid and Gas segments. LPG throughput volumes reached 1.41 million tonnes, a 32% YoY increase, while distribution volumes surged 49% to 1.92 lakh metric tons. This performance was bolstered by the operationalization of the Mangalore cryogenic terminal and improved logistics efficiencies at Kandla and Pipavav.

Aggressive $5 Billion Infrastructure Roadmap

The company unveiled a massive capital expenditure plan aiming for $5 billion in total outlay by 2030. A significant portion of this includes a non-binding MOU for a ₹20,000 crore investment in the proposed Vadhavan Port. Management intends to maintain a conservative debt gearing ratio of 0.6x, capped at 3.5x EBITDA, funding growth primarily through internal accruals and prudent debt.

Strategic Pivot to Ammonia and Green Energy

Aegis is constructing India's first ammonia terminal at Pipavav with a 36,000 MT capacity, expected to be operational by Q1 FY27. The company is also exploring a green ammonia terminal at Kandla in partnership with Larsen & Toubro. Management views ammonia as a 'new energy' vertical that will be vertically integrated, similar to their successful LPG business model.

Multi-Modal Evacuation to Unlock Volume

A key theme of the call was the shift toward pipeline and rail evacuation to bypass jetty constraints. The KGPL pipeline at Kandla and Pipavav is expected to be operational by Q4 FY26, while the JLPL connection at Kandla is targeted for Q3 FY26. Additionally, a new rail gantry at Mangalore is expected to 'transform' terminal performance within the next 12 months, mirroring the success seen at Pipavav.

Sustainable Margin Expansion in Distribution

Gas distribution margins reached a high of ₹4,000 per tonne this quarter. Management attributed this to procurement efficiencies and the scale provided by two new large cryogenic terminals. They expressed high confidence that these margins are sustainable as volumes continue to grow at a targeted 30% CAGR.

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