Allcargo Termi

Allcargo Terminals Limited reported a total volume handled of 1,51,100 TEUs for Q1 FY26. Revenue for the quarter stood at INR187 crores, a slight decrease from INR190 crores in Q1 FY25 but an increase from INR186 crores in Q4 FY25. EBITDA, excluding other income, was INR35 crores, up 16.67% from INR30 crores in Q1 FY25. The EBITDA per TEU reached INR 2,292, showing a 22% growth compared to Q1 FY25 and 4% compared to Q4 FY25. Net profit for the quarter was INR9 crores, a significant improvement from a loss of INR2 crores in Q4 FY25.

The company's 3-year strategic plan aims to achieve 1 million laden TEUs, up from the current 6.5 lakh TEUs. This will be supported by increasing capacity from 8.3 lakh TEUs to 1.25-1.3 million TEUs. Key expansion initiatives include adding capacity in Mundra (renewing partnership with CWC and a new CFS on 60 acres of land) and JNPA (adding 25 acres to the flagship facility). Additionally, plans are underway for a greenfield ICD at Farukhnagar and exploring opportunities in Chennai. The company expects to maintain 85-90% capacity utilization with these additions.

Allcargo Terminals has a proposal to raise INR38 crores through fully convertible warrants to fund its growth plans. The estimated capex for Mundra CFS Phase 1 is INR75 crores, and for the Farukhnagar project, it is INR215 crores, totaling INR280 crores over 12-18 months. The overall capex outlay for the next 3 years is projected to be INR450-500 crores. This will be primarily funded through internal cash flow generation and the equity infusion, with limited dependency on bridge capital estimated at INR50-70 crores. The company also plans to repay some of its existing debt of around INR100 crores.

India's economy is expected to grow at 6-6.5% in FY26, driving container industry growth. Allcargo Terminals maintains a market share of 12-12.5% in its CFS markets and aims to grow this by 1-1.5%. The company differentiates itself through its PAN-India presence across 5 key locations (Nhava Sheva, Mundra, Chennai, Kolkata, Dadri), strong customer relations built over 20 years, and digital enablement via the myCFS portal. Being part of the Allcargo Group also provides benefits from integrated logistics solutions.

Management acknowledged the challenging global economic outlook, with IMF projecting 3% GDP growth in 2025 and headwinds from trade tensions and geopolitical uncertainties. India's growth is also expected to moderate slightly to 6.4% in FY26. Regarding US tariffs, the company believes the direct impact on its CFS-ICD business is limited, as a significant majority of its import cargo originates from non-US geographies and the affected commodities (like pharma, precious gems) are not typically handled by CFSs. However, the overall uncertainty can affect business sentiment.

The company's focus is on driving volume growth while sustaining profitability, with EBITDA per TEU improving. Gross margin has increased from 32% to 36% in Q1 FY26 due to various incremental measures. Management aims to maintain EBITDA per TEU in the range of INR 2,000-2,200. The JNPT extension and Mundra Phase 1 commissioning are expected to contribute to higher volumes without significant incremental costs, further boosting EBITDA. Repaying debt will also reduce interest costs, positively impacting PBT and PAT.

The Dedicated Freight Corridor (DFCC) is expected to bring faster turnaround times for import and export cargo, leading to a significant shift towards multimodal traffic. This aligns with government policies to increase rail traffic and reduce reliance on road transport. Management anticipates that DFCC will facilitate greater throughput and faster evacuation of cargo, which will benefit CFS operations, although the full impact may take some time to materialize.