Aegis Vopak Terminals Limited — Q2 FY26 earnings call

Call held 7 Nov 2025

Management summary

AVTL delivered a strong Q2 FY26 performance characterized by robust double-digit growth in both liquid and gas segments. The company is benefiting significantly from its debt repayment strategy, which led to a massive jump in net profit. Management is aggressively pursuing a multi-port expansion strategy under 'Project GATI', with significant new capacities in LPG, Ammonia, and liquids slated for commissioning over the next 12-18 months.

Highlights

  • Revenue from operations grew 26.2% YoY to ₹187.6 crores in Q2 FY26.

  • Operating EBITDA increased 25.8% YoY to ₹137.4 crores, driven by capacity additions.

  • Profit After Tax (PAT) surged 141.8% YoY to ₹53.9 crores, aided by a 61% reduction in interest costs.

  • Liquid terminalling revenue rose 28.3% YoY to ₹106 crore with improved realizations of ₹2,500 per CBM.

  • Gas terminalling revenue increased 23.7% YoY to ₹81.5 crore; throughput reached 0.68 million metric tons.

  • Announced proposed acquisition of 75% stake in Hindustan Aegis LPG Limited (HALPG) to enter the East Coast market.

  • Management reiterated a massive ₹10,000 crore (USD 1.2 billion) capex target by FY27 and USD 5 billion by 2030.

Key financials

  1. Revenue ₹187.6 Cr +26.2%YoY
  2. Operating EBITDA ₹137.4 Cr +25.8%YoY
  3. PAT ₹53.9 Cr +141.8%YoY
  4. Gas Throughput 0.68 million metric tons +30.7%QoQ
  5. Liquid Revenue Realization ₹2,500 +11.1%YoY

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
₹187.5 Cr Total
  • Liquid Terminalling ₹106 Cr 56.5%
  • Gas Terminalling ₹81.5 Cr 43.5%

Guidance & targets

Capex

  • Cumulative Capital Expenditure Capex · by December 2026 · High confidence USD 1.2 billion
    1.2 billion is Rs. 10,000 crores... all of this put together will take us to Rs. 10,000 crores very easily which is 1.2 billion by December 26 or March 27.

    — Murad Moledina, Non-Executive Director

  • Aggregate CAPEX Capex · by 2030 · Medium confidence USD 5 billion
    We remain on track to reach a cumulative capital expenditure of USD 1.2 billion by next year and aim to achieve an aggregate CAPEX of around USD 5 billion by 2030.

    — Raj Chandaria, Chairman & Managing Director

Capacity

  • Liquid Storage Capacity Capacity · by December 2026 · High confidence 3 million CBM

    From 1.7 million CBM today

    We would be jumping to 2.5 million and then probably by December 26, maybe 3 million odd.

    — Murad Moledina, Non-Executive Director

  • Ammonia Terminals Capacity · by 2030 · Medium confidence 8-10 terminals
    We probably would have around 8-10 terminals by 2030 as far as Ammonia is concerned.

    — Murad Moledina, Non-Executive Director

Debt

  • Gearing Ratio Debt · current · High confidence 0.6x
    with a target gearing ratio of 0.6x currently, and a maximum cap of 3.5x EBITDA.

    — Raj Chandaria, Chairman & Managing Director

Risks & concerns

  • Pipeline Connectivity Delays

    medium

    Full utilization of new LPG terminals at Pipavav and Kandla depends on the operationalization of KGPL and JLPL pipelines, expected by Q4 FY26.

    Both acknowledged

  • Land Allotment Timing

    medium

    Aggressive liquid capacity targets (3m CBM) rely on finalizing two more land parcels and a new port.

    Management acknowledged

  • Increased Depreciation and Lease Rents

    low

    JNPA expansion carries higher lease rents under INDAS 116, which increases non-cash depreciation and interest costs.

    Analyst acknowledged

Areas of evasion (1)

  • Refused to provide specific volume numbers for liquid terminalling, stating it is 'not relevant' compared to capacity.

Q&A highlights

3 direct
EBITDA split and unit realizations Direct
The gas EBITDA per ton remains just a shade under 1100... The liquid realization, if you look at the revenue, we have improved to 2500 now, as against around 2250 the previous quarter.

Provides the unit economics necessary to model future profitability as new capacities come online.

Asked by Neeloptal Sahu, JM Financials

Subdued throughput turns in Gas Direct
You will see that from Q4 onwards... because then JLPL and a bit of KGPL will come into play as well as VLGC in Kandla.

Explains the temporary dip in gas throughput efficiency and sets a clear timeline (Q4 FY26) for a rebound.

Asked by Koundinya, Jeffries

Nature of Other Comprehensive Income (OCI) Direct
Other comprehensive income is the margin which the parent is charging on the Pipavav Terminal... it is a shade about 20% margin for the infrastructure development that we do.

Clarifies accounting treatment of inter-company margins and asset valuation during consolidation.

Asked by Neeloptal Sahu, JM Financials

2 min read 5 chapters

Detailed narrative

Aggressive Expansion via Project GATI

AVTL is executing a large-scale expansion program to solidify its position as India's largest independent tank storage operator. Key projects include the ₹1,675 crore expansion at JNPA, which adds 318,100 CBM of liquid and 77,286 MT of LPG capacity. The company is also entering the East Coast through the 75% acquisition of HALPG in Haldia, adding 25,000 MT of LPG capacity and an exclusive agreement with HPCL until 2038.

Financial De-leveraging Drives PAT Surge

A standout feature of the Q2 results was the 141.8% YoY growth in PAT to ₹53.9 crores. This was primarily driven by a 61% reduction in interest costs following substantial repayment of bank borrowings. Management maintains a disciplined financial profile with a target gearing ratio of 0.6x and a maximum EBITDA cap of 3.5x, ensuring that the massive ₹10,000 crore capex plan remains sustainable.

Gas Division Poised for Step-Up Growth

While gas throughput was 0.68 million tons in Q2, management expects a significant 'step-up' from Q4 FY26. This optimism is tied to the operationalization of the Kandla-Gorakhpur (KGPL) and Jamnagar-Loni (JLPL) pipelines. Once fully connected, Kandla alone will have access to 12 million tons of pipeline evacuation capacity, which management believes will necessitate further tank expansions by 2028-29.

Strategic Pivot to Green Ammonia

AVTL is diversifying into the green energy value chain, starting with India's first independent Ammonia terminal at Pipavav (36,000 MT capacity). This ₹525 crore project is backed by a 15-year take-or-pay agreement with Hindustan Zinc. Management aims to scale this to 8-10 Ammonia terminals by 2030, positioning the company to benefit from India's green hydrogen mission.

Long-term Infrastructure Roadmap to 2030

The company has set an ambitious target of USD 5 billion in aggregate capex by 2030. This includes expanding from 6 ports currently to potentially 12 ports. A major pillar of this growth is a non-binding MoU to invest ₹20,000 crores in the upcoming Vadhavan Port. Liquid capacity is projected to grow from the current 1.7 million CBM to 3 million CBM by December 2026, driven by new land allotments in Kochi, Mangalore, and Haldia.

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