Aegis Vopak Terminals Limited — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Aegis Vopak Terminals Limited (AVTL) delivered a strong Q1 FY26 performance, characterized by significant deleveraging and aggressive capacity expansion. The company utilized IPO proceeds to clear ₹2,016 crores of debt, which will substantially boost future profitability through interest savings. With the tripling of LPG capacity and a clear roadmap for $5 billion in capex by 2030, management is positioning AVTL as a dominant player in India's energy storage infrastructure, specifically targeting LPG, liquids, and green ammonia.

Highlights

  • Revenue from operations reached ₹164 crores, a sequential increase of 4.5%.

  • Operating EBITDA stood at ₹119.9 crores, up 3.1% quarter-on-quarter.

  • Profit After Tax (PAT) grew 85.1% YoY and 15.4% QoQ to ₹47.7 crores.

  • Successfully repaid ₹2,016 crores of bank debt using IPO proceeds, leading to a 37% sequential reduction in interest costs.

  • LPG static storage capacity nearly tripled from 70,800 MT to 200,800 MT following new terminal additions.

  • Announced a massive aggregate capex target of $5 billion by 2030, funded through equity, internal accruals, and debt.

  • Commissioned two major cryogenic LPG terminals at New Mangalore (82,000 MT) and Pipavav (48,000 MT).

  • Signed a non-binding MoU with L&T for green ammonia terminals at Kandla Port.

Key financials

  1. Revenue ₹164 Cr +4.5%QoQ
  2. Operating EBITDA ₹119.9 Cr +3.1%QoQ
  3. PAT ₹47.7 Cr +85.1%YoY
  4. LPG Static Capacity 2,00,800 metric tons +183.6%QoQ

What they filed

Q1 FY27: revenue up 12.5%, net profit down 12.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue149 162 199 208 188 +26%239 +48%243 +22%234 +13%
EBITDA109 119 144 155 137 +26%179 +50%179 +24%179 +15%
Net profit22 38 64 79 54 +145%89 +134%74 +16%69 −13%
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
₹164 Cr Total
  • Liquid Terminaling ₹96.9 Cr 59.1%
  • Gas Terminaling ₹67.1 Cr 40.9%

Guidance & targets

Capex

  • Aggregate Capital Expenditure Capex · by 2030 · Medium confidence $5 billion
    we are targeting to reach a $5 billion aggregate capital expenditure by 2030

    — Raj Chandaria, Chairman and Managing Director

  • Cumulative Capex Capex · by next year · High confidence $1.2 billion
    we have already reached the capital expenditure of $1.2 billion by next year

    — Raj Chandaria, Chairman and Managing Director

  • JNPA Port Project Capex Capex · next few years · High confidence ₹1,675 crores
    the AVTL board has approved on this additional land a capital expenditure of INR1,675 crores towards setting up terminals for liquids, LPG as well as an LPG bottling plant.

    — Raj Chandaria, Chairman and Managing Director

Profitability

  • Post-tax IRR Profitability · ongoing · High confidence 15%
    Payback, we always follow an IRR of 15% post-tax.

    — Murad Moledina, Non-Executive Director

Debt

  • Debt Gearing Ratio Debt · ongoing · High confidence 0.6x to 3.5x EBITDA
    funded by a mix of equity, internal accruals and utilization of -- prudent utilization of debt with a debt gearing ratio of 0.6 times capped to a 3.5 times of EBITDA.

    — Raj Chandaria, Chairman and Managing Director

Capacity

  • Ammonia Terminal Commissioning Capacity · Q1 next fiscal year · High confidence Q1 FY27
    This project is expected to be completed before Q1 of the next fiscal year

    — Raj Chandaria, Chairman and Managing Director

Risks & concerns

  • Gas Terminal Utilization Ramp-up

    medium

    Gas terminals take 5-7 years to reach 100% utilization, starting at 25-30% in the first year.

    Management acknowledged

  • Pipeline Connectivity Delays

    medium

    Full utilization step-ups at ports like Mangalore depend on pipeline connections (e.g., Mangalore-Hassan-Chirapuri), which can take 15-18 months post-commissioning.

    Both acknowledged

  • Macroeconomic Sensitivity

    low

    A decline in India's GDP growth to 5% could lead to customers reducing throughputs.

    Management acknowledged

Areas of evasion (2)

  • Specific throughput volume guidance for the current year.
  • Detailed split of the $5 billion capex between liquid, gas, and ammonia.

Q&A highlights

3 direct
Liquid Realization Trends Direct
And we start with a lower basket of type that we store. But gradually, you will see more as we change the type of mix, you will see the realization improve. I think H2 would be the right time to look at the realization for CBM in liquid

Explains why new capacity didn't immediately spike realizations; management expects a richer product mix to drive margins in the second half of the year.

Asked by Vishal Mehta, IIFL Capital

Capex Funding and Equity Dilution Direct
The second dilution will happen sometime from now, until three years... Another is, of course, internal accrual and then, as you are aware that as the bank borrowings have become zero, we again have the ability to fund by debt also

Clarifies that while further equity dilution is legally required (up to 25%), the company has significant debt headroom to fund its $5 billion capex plan.

Asked by Aniket Nikumb, ABN Capital

Ammonia Terminal Economics Direct
ammonia terminal is the revenue realizations are three times of almost three times of LPG... however, the turnaround... is almost one-third than what can happen in LPG terminal. So it almost equates itself.

Provides rare unit economic insight into the new ammonia segment, suggesting it is comparable to LPG in profitability but with lower capex costs.

Asked by Chirag Vekaria, Budhrani Finance

2 min read 5 chapters

Detailed narrative

Deleveraging and Interest Savings

AVTL utilized ₹2,016 crores from its IPO proceeds to entirely repay bank borrowings. This move resulted in a 37% sequential reduction in interest costs for Q1, despite only one month of savings being captured in June. Management expects the full impact of these savings to be visible from Q2 FY26, significantly improving profit after tax and earnings per share.

LPG Capacity Expansion and Connectivity

The company's LPG static storage capacity grew from 70,800 MT to 200,800 MT following the commissioning of terminals at New Mangalore (82,000 MT) and Pipavav (48,000 MT). While these terminals currently rely on road tankers, a rail LPG gantry at Mangalore is expected within 9-12 months. Full utilization is anticipated once the Kandla-Gorakhpur and Mangalore-Hassan-Chirapuri pipelines are fully operational.

Strategic Pivot to Ammonia and New Energy

AVTL is aggressively entering the ammonia terminaling space, with India's first independent ammonia terminal at Pipavav (36,000 MT) expected to be commissioned by Q1 FY27. The project already has a 15-year take-or-pay contract with Hindustan Zinc. Additionally, a non-binding MoU with L&T for green ammonia facilities at Kandla highlights the company's focus on the government's national green hydrogen mission.

Aggressive 2030 Capex Roadmap

Management outlined a bold vision to reach $5 billion in aggregate capital expenditure by 2030. This expansion will be funded by a mix of equity (including a mandated dilution to 25% within three years), internal accruals, and prudent debt. Key upcoming projects include a ₹1,675 crore investment at JNPA for liquids and LPG, and a ₹525 crore ammonia project at Pipavav.

Operational Efficiency and Product Mix

Liquid terminaling revenue grew 4.8% sequentially to ₹96.9 crores, driven by higher volumes and capacity additions. Management noted that while initial realizations on new capacities might be lower as they start with basic products, they expect realizations to improve in H2 FY26 as they graduate to more complex liquid products. Occupancy in the liquid segment remains healthy at around 80%.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Oil, Gas & Consumable Fuels earnings calls