Aegis Logistics

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.

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.

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.

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.

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.