Aegis Vopak Terminals Limited — Q3 FY26 earnings call

Call held 30 Jan 2026

Management summary

Aegis Vopak delivered a strong Q3 FY26 performance characterized by robust profit growth and significant strategic expansion under 'Project GATI'. The company is successfully transitioning into a multi-product logistics hub with new long-term take-or-pay contracts in ammonia and petroleum. Management's aggressive $5 billion capex plan by 2030 signals high conviction in India's energy and chemical logistics demand.

Highlights

  • Revenue from operations grew 22.3% YoY to ₹197.5 crores in Q3 FY26.

  • Operating EBITDA for Q3 increased 23% YoY to ₹145.9 crores.

  • Net Profit surged 62.7% YoY to ₹61.5 crores for the quarter.

  • Liquid terminalling revenue saw a significant 37% YoY increase to ₹116.5 crores.

  • Management announced a massive ₹20,000 crore investment roadmap for the proposed Vadhavan Port.

  • Secured a 15-year long-term take-or-pay agreement for petroleum products at Pipavav, handling over 0.5 million metric tons annually.

  • Capex roadmap set at $1.2 billion by next year and approximately $5 billion by 2030.

  • Liquid storage capacity target of 2.5 million plus cubic meters by the end of FY27, up from current 1.7 million.

Key financials

  1. Revenue ₹197.5 Cr +22.3%YoY
  2. Operating EBITDA ₹145.9 Cr +23%YoY
  3. Profit ₹61.5 Cr +62.7%YoY
  4. Gas Throughput 0.67 million metric tons

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
₹197.5 Cr Total
  • Liquid Terminalling ₹116.5 Cr 59.0%
  • Gas Terminalling ₹81 Cr 41.0%

Guidance & targets

Capex

  • Aggregate Capital Expenditure Capex · by next year · High confidence $1.2 billion
    Now, by next year, our aggregate capital expenditure is projected to reach $1.2 billion.

    — Raj Chandaria, Chairman and Managing Director

  • Long-term Capex Roadmap Capex · by 2030 · Medium confidence $5 billion
    we have charted a capex roadmap of approximately $5 billion to be achieved by 2030.

    — Raj Chandaria, Chairman and Managing Director

Capacity

  • Liquid Storage Capacity Capacity · by FY27 end · High confidence 2.5 million plus

    From 1.7 million today

    We are at 1.7 million. So, I think we should be around 2.5 million plus by FY27 end.

    — Murad Moledina, Director

  • Ammonia Terminal Completion Capacity · Q1 FY27 · High confidence 36,000 metric tons
    construction of India's first independent ammonia terminal with a static capacity of 36,000 metric tons is progressing well, and is expected to be completed before the first quarter of the next fiscal year.

    — Raj Chandaria, Chairman and Managing Director

Debt

  • Debt Gearing Ratio Debt · Ongoing · High confidence 0.6 times
    Our financial strategy remains firmly anchored in prudence, with a commitment to maintain the debt gearing ratio of 0.6 times

    — Raj Chandaria, Chairman and Managing Director

Risks & concerns

  • Seasonality in LPG Volumes

    medium

    Q1-Q3 are typically slower, with a heavy reliance on Q4 for annual volume surges.

    Analyst acknowledged

  • Pipeline Connectivity Delays

    medium

    Kandla-Gorakhpur pipeline (KGPL) operationalization pushed to June 2026 in a 'worst case scenario'.

    Management acknowledged

  • Geopolitical Incidents in Middle East

    low

    Management noted January volumes were slightly affected by incidents but deemed them 'not really major'.

    Management downplayed

Areas of evasion (1)

  • Specific name of the large conglomerate for the 15-year Pipavav agreement was withheld.

Q&A highlights

3 direct
Liquid Terminal Realization Improvement Direct
This is not on account of any take or pay. This is on account of better product mix and increased realization rate, especially so from our JNPA terminal, which has now stabilized operations

Clarifies that margin expansion is structural (product mix) rather than just contractual (take-or-pay), suggesting sustainability.

Asked by Yash Nandwani, IIFL Capital

Weakness in LPG Volume and EBIT Direct
usually across the Board, quarter one is the least, quarter two, quarter three are always similar, and quarter four is the surge... you will see a sudden change, a step up [in Q4].

Explains the apparent stagnation in gas volumes as seasonal and sets a high expectation for a Q4 recovery.

Asked by Siddharth Chauhan, B&K Securities

Vadhavan Port Investment Scale Direct
There are so many gases or products like LNG, ammonia, LPG, ethane... One LNG terminal would cost you maybe INR8,000 crores.

Justifies the massive ₹20,000 crore investment target by highlighting the high ticket size of LNG and specialized gas terminals.

Asked by Siddharth Chauhan, B&K Securities

2 min read 5 chapters

Detailed narrative

Strategic Pivot to Long-Term Take-or-Pay Contracts

Aegis Vopak is significantly de-risking its revenue streams by entering into long-term take-or-pay agreements. A 15-year agreement was signed with a large conglomerate for petroleum products at Pipavav, guaranteeing over 0.5 million metric tons annually starting late 2026. Additionally, the new 36,000 MT ammonia terminal is backed by a 15-year take-or-pay deal with Hindustan Zinc, ensuring stable cash flows for specialized infrastructure.

Aggressive Capacity Expansion and Project GATI

Under Project GATI, the company is rapidly expanding its footprint across India's coastline. Liquid storage capacity is targeted to reach 2.5 million cubic meters by FY27, a 47% increase from the current 1.7 million. Major expansions are underway at JNPT (318,100 cubic meters liquid) and Kandla (94,148 cubic meters), alongside the recent acquisition of a 75% stake in HALPG Haldia, which adds 25,000 MT of LPG capacity.

Pipeline Connectivity as a Volume Multiplier

Management expects a significant 'step-up' in volumes as major pipelines connect to their terminals. The Jamnagar-Loni Pipeline (JLPL) connection is expected by February 2026, while the Kandla-Gorakhpur Pipeline (KGPL) is slated for June 2026. These connections, combined with VLGC-compliant jetties at Kandla and Pipavav, are expected to drive throughput efficiency and market share gains in the LPG segment.

Massive Investment Roadmap for Vadhavan Port

The company has signed a non-binding MOU to invest approximately ₹20,000 crores in the proposed Vadhavan Port. This mega-project is intended to be a distribution hub for liquid, gas, and specialized products like LNG and ethane. Management justified the high investment figure by noting that a single LNG terminal can cost up to ₹8,000 crores, positioning Vadhavan as a cornerstone of their 2030 vision.

Financial Discipline Amidst High Growth

Despite the ambitious $5 billion capex roadmap, management emphasized maintaining a conservative balance sheet. They committed to a debt gearing ratio of 0.6x and a leverage cap of 3.5x EBITDA. The recent credit rating upgrade to AA (Positive) from stable reflects the rating agencies' confidence in the company's ability to fund growth through internal accruals and disciplined debt use.

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