Detailed Narrative
Strong Financial Performance in FY26 and Q4
Aegis Logistics delivered an outstanding FY26, with revenues growing 23% year-on-year to INR8,333 crores. Normalized EBITDA rose 36% to INR1,599 crores, and Profit After Tax increased 41% to INR1,107 crores, marking the first time the company crossed the INR1,000 crores PAT milestone. The fourth quarter was particularly strong, with revenue up 52%, EBITDA up 54%, and PAT up 43% year-on-year, reflecting the compounding power of diversified operations.
Significant Capacity Expansion and Infrastructure Development
The company is undertaking substantial expansion projects across its port network. In Mumbai, an additional 64,000 kilolitres of liquid storage is being developed at a cost of INR125 crores, targeted for commissioning in H1 FY27. At JNPT, a major expansion with 318,100 cubic meters of additional liquid storage and 77,236 metric tons of LPG capacity, with a total capital outlay of INR1,675 crores, is underway, with the first phase of liquid capacity expected in H1 FY27.
Robust LPG Business Growth and Sustainable Margins
The LPG business delivered its highest ever revenue of INR7,689 crores in FY26, a 26% year-on-year increase, with EBITDA growing 68% to INR1,131 crores. This was driven by record logistics and distribution volumes, which surged 45% to 7.54 lakh metric tons. Management expects the INR7,000-odd margins achieved in the gas segment to be sustainable, supported by procurement efficiencies from increased distribution volumes, targeting 2 million tons by FY28.
Strategic Entry into Ammonia Business and Diversification
Aegis is advancing India's first independent ammonia terminal at Pipavav, a 36,000 metric ton static capacity terminal backed by a 15-year take-or-pay agreement, with commissioning targeted for H1 FY27. The company expects ammonia distribution to start at 200,000 tons, growing 20-30% year-on-year, with throughput margins of INR2,500-3,000 and distribution margins up to INR5,000. This move positions Aegis well in the energy transition opportunity.
Strong Balance Sheet and Disciplined Capital Allocation
The company's cash and investments on the balance sheet reached INR5,939 crores in FY26, a significant increase from INR150 crores in FY22. This strong financial position supports a cumulative capex plan of approximately $1.2 billion by March '27, INR5,000 crores by March '28, and $5 billion through 2030, funded through a balanced mix of equity, internal accruals, and debt, targeting a gearing ratio of approximately 0.6x.
Geopolitical Impact and Supply Chain Resilience
While the Middle East situation caused some disruptions, leading to a 30% shortfall in LPG volumes in May (down from 50% in April), management expects normalcy to return by Q2 FY27. The company emphasized its ability to source LPG from alternative global suppliers (Canada, America, Argentina, Nigeria), reducing dependency on any single region and strengthening supply chain resilience.