Allcargo Terminals Limited — Q1 FY26 earnings call

Call held 12 Aug 2025

Management summary

Allcargo Terminals Limited reported a strong Q1 FY26, with EBITDA growing 16.67% YoY to INR35 crores and net profit turning positive at INR9 crores from a prior quarter loss. The company is on track with its strategic plan to reach 1 million laden TEUs in three years, backed by significant capacity expansion initiatives and a robust funding strategy. Despite global economic headwinds and moderating Indian growth forecasts, management remains optimistic about its market position and operational efficiencies.

Highlights

  • EBITDA (excluding other income) for Q1 FY26 stood at INR35 crores, a 16.67% YoY growth from INR30 crores in Q1 FY25.

  • EBITDA per TEU for Q1 FY26 reached INR 2,292, marking a 22% growth compared to Q1 FY25.

  • Net profit for Q1 FY26 was INR9 crores, a significant turnaround from a loss of INR2 crores in Q4 FY25.

  • The company aims to achieve 1 million laden TEUs in the next 3 years, supported by planned capacity additions to 1.3 million TEUs.

  • Maintained a strong market share of 12-12.5% in key CFS markets, with plans to grow it by 1-1.5%.

Concerns

  • Global GDP growth projected at a challenging 3% in 2025 by IMF, facing headwinds from trade tensions and geopolitical uncertainties.

  • India's economic growth is expected to moderate slightly to 6.4% in FY26.

  • The company acknowledges that uncertainty from tariff stop-start policies could impact overall business sentiment, though direct impact on its CFS-ICD business is deemed low.

Key financials

  1. Total Volume Handled 1,51,100 TEUs
  2. Revenue ₹187 Cr -1.6%YoY
  3. EBITDA (excl. other income) ₹35 Cr +16.7%YoY
  4. EBITDA per TEU ₹2,292 +22%YoY
  5. Net Profit ₹9 Cr -10%YoY

What they filed

Q1 FY27: revenue up 14.5%, net profit down 30.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue195 187 186 187 207 +6%218 +17%208 +12%214 +15%
EBITDA32 32 34 35 40 +24%43 +31%44 +31%47 +37%
Net profit11 12 -2 9 11 −0%15 +28%9 +465%6 −30%
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.

Capital allocation

high confidence
  • Capex ₹450 Cr internal cash flow generation, INR38 crores equity infusion, and bridge capital of INR50-70 crores
    • Mundra CFS Phase 1 ₹75 Cr
    • Farukhnagar ICD project ₹215 Cr
    • JNPT expansion
    • Potential Chennai expansion
    For like very near future, foreseeable future, we have 2 projects which are coming up. One is Mundra CFS, other is Farukhnagar ICD. Mundra CFS, we are proposing to execute in 2 phases. Phase 1 should start in next quarter or so, which will give us additional 1 lakh TEU capacity. So, the Phase 1 estimated cost is around INR75 crores. For Farukhnagar project, the estimated capex investment is in the range of INR215 crores. We are overall estimating INR280 crores of capex outlay between these 2 projects. Because these projects are spread over like 1 year or 18 months of period, A lot of this capex requirement will be taken care from our internal cash flow generation. Our existing CFSs continue to generate strong cash flow with a good DSO of 18 to 20 days. So that way, these businesses would continue to generate cash outflow and fund this capex expansion. Also, we have equity infusion plans in place. INR38 crores of equity infusion, is already on the course, subject to regulatory approval, right? And there are other plans as well, which we will disclose at appropriate time. With the internal cash flow and equity infusion plan, the dependency on borrowing would be limited, and it would be only required to the extent of kind of bridge capital, which we are estimating in the range of INR50 crores to INR70. So that way, additional borrowings would be very limited while funding this capex project. I hope, Vedant ji, I'm able to answer your question. ... So, between Farukhnagar, where we have already invested about INR100 crores, Mundra, where we have already bought land of about 60 acres, the expansion in JNPT and the possible expansion in Chennai. We expect a capex outlay of around INR450 crores to INR500 crores over the next 3 years. Part of it has already been spent and a lot of it will be met by internal accruals.
  • Debt Gross ₹100 Cr
    • Repayment Looking to repay some of the existing debt
    We are also looking to repay some of our debt, which we have around INR100 crores we are having.
  • Liquidity Liquidity disclosed Existing CFSs continue to generate strong cash flow with a good DSO of 18 to 20 days, limiting dependency on borrowing for capex.
    Our existing CFSs continue to generate strong cash flow with a good DSO of 18 to 20 days. So that way, these businesses would continue to generate cash outflow and fund this capex expansion. Also, we have equity infusion plans in place. INR38 crores of equity infusion, is already on the course, subject to regulatory approval, right? And there are other plans as well, which we will disclose at appropriate time. With the internal cash flow and equity infusion plan, the dependency on borrowing would be limited, and it would be only required to the extent of kind of bridge capital, which we are estimating in the range of INR50 crores to INR70.

Guidance & targets

Volume

  • Laden TEUs handled Volume · next 3 years · High confidence 1 million
    Our 3-year plan, which we have been talking about in the last couple of investor calls, aims at getting us to 1 million laden TEUs in the next 3 years.

    — Suresh Kumar

Capacity

  • Total TEU capacity Capacity · next 3 years · High confidence 1.25 million to 1.3 million

    From 8.3 lakh today

    All these capacity enhancement initiatives will increase our capacity from the current 8.3 lakh TEUs to over 1.25 million, 1.3 million TEUs.

    — Suresh Kumar

Volume Growth

  • Volume growth in H2 FY26 Volume Growth · H2 FY26 · Medium confidence better than 5% with a couple of percentage points minimum addition

    From 5% today

    So, we expect H2, the growth to be better than the 5% that we are currently running at. And maybe a couple of percentage points minimum is what one can add.

    — Suresh Kumar

Market Share

  • CFS market share growth Market Share · coming years · Medium confidence 1% to 1.5%

    From 12% to 12.5% today

    We expect to grow this market share in the coming years by 1% to 1.5%.

    — Suresh Kumar

EXIM Trade Growth

  • Indian EXIM trade growth EXIM Trade Growth · ongoing · Medium confidence 6%
    I think it should be in the range of 6%.

    — Suresh Kumar

Profitability

  • EBITDA per TEU Profitability · ongoing · High confidence INR 2,000 to INR 2,200
    our benchmark number is in the range of INR 2,000 crores to INR 2,200 crores. So, we are hovering around that number for the last 4 to 6 quarters, and we would like to maintain it at that level.

    — Suresh Kumar

Capex

  • Total capex outlay Capex · next 3 years · High confidence INR450 crores to INR500 crores
    We expect a capex outlay of around INR450 crores to INR500 crores over the next 3 years.

    — Suresh Kumar

What to watch in Q2 FY26

Accelerated Volume Growth in H2 FY26

H2 FY26
Current Q1 FY26 volume growth at 5% YoY (implied for CFS)
Target Better than 5% YoY, with a couple of percentage points minimum addition in H2 FY26

Why it matters

Indicates successful utilization of new capacity and overall business momentum.

So, we expect H2, the growth to be better than the 5% that we are currently running at. And maybe a couple of percentage points minimum is what one can add.

Risks & concerns

  • Global economic slowdown

    medium

    IMF projects global GDP growth at around 3% in 2025, facing headwinds from trade tensions and geopolitical uncertainties.

    Management acknowledged

  • Fragmented market for CFS business

    medium

    The CFS market is very fragmented with few organized players, making premiumization difficult.

    Management acknowledged

  • Moderation in India's economic growth

    low

    India's growth is expected to moderate slightly to 6.4% in FY26.

    Management acknowledged

  • Uncertainty from tariff stop-start policies

    low

    While uncertainty is not good for business sentiment, direct impact on ATL's CFS-ICD addressable market from US tariffs is deemed low due to cargo origin and type.

    Management downplayed

Q&A highlights

8 direct
Strategy to achieve 1 million TEUs target and capacity addition plans Direct
Our 3-year plan, which we have been talking about in the last couple of investor calls, aims at getting us to 1 million laden TEUs in the next 3 years. ... All these capacity enhancement initiatives will increase our capacity from the current 8.3 lakh TEUs to over 1.25 million, 1.3 million TEUs.

Analyst sought clarity on the company's long-term volume target and the specific capacity expansion initiatives to support it.

Asked by Vedant, Khusi Capital Advisory

Funding for capacity expansion and future fundraising Direct
For like very near future, foreseeable future, we have 2 projects which are coming up. One is Mundra CFS, other is Farukhnagar ICD. ... A lot of this capex requirement will be taken care from our internal cash flow generation. Our existing CFSs continue to generate strong cash flow with a good DSO of 18 to 20 days. ... INR38 crores of equity infusion, is already on the course, subject to regulatory approval, right? And there are other plans as well, which we will disclose at appropriate time.

Analyst inquired about the funding strategy for the ambitious capacity expansion, including the recent INR38 crore fundraise and potential future capital needs.

Asked by Vedant, Khusi Capital Advisory

Demand sufficiency for industry growth and ATL's differentiation Direct
The container industry, the EXIM trade is very, very closely linked to the GDP numbers of the country. And at 6%- 6.5% predicted by almost every analyst, I think India is on a very strong growth path... The first differentiation that we have is as an organized listed entity and also as a PAN-India operator... Second is the customer relations and the equity and the franchise that we hold with our customers... The digital enablement is in the form of a myCFS portal...

Analyst questioned the market demand outlook and how Allcargo Terminals differentiates itself in a competitive environment.

Asked by Vedant, Khusi Capital Advisory

Impact of US tariffs on business Direct
So, if you were to look at the addressable market or the cargo which moves into the container freight stations and the ICDs that we operate, a whole lot of this cargo, in fact, a significant majority of this cargo originate the imports originate from geographies which are not U.S. ... So, both from a geography point of view and from a commodities point of view, I don't think there is a significant impact of the tariffs that you are referring to from the U.S., which we foresee on our operations.

Analyst probed on potential risks from US tariffs, and management clarified the limited direct impact due to cargo origin and type.

Asked by Vedant, Khusi Capital Advisory

Expected volume growth for FY26, market share gains in JNPT/Mundra, EXIM trade growth, and EBITDA/PAT guidance Direct
So, on volumes, you have rightly picked up the numbers, 5%. And with the capacity expansion that we have done in JNPT where we have added 25 acres to our existing flagship facility. ... We are pretty much held on to market share in most of the markets that we operate in, which would be in the range of around 12%. ... I think it should be in the range of 6% [for EXIM trade]. ... we would remain, maintain at that level [INR 2,000 per TEU EBITDA].

Analyst sought comprehensive guidance on key operational and financial metrics for the current fiscal year.

Asked by Samraat Jadhav, Prosperity Wealth Advisor

Outlook post DFC connectivity to JNPT, Mundra catchment area, and Vadhavan Port development Direct
Vadhavan is a good 3-4 years away. So, we have still not factored that into our 3-year plan. ... I think Mundra becomes a preferred port, and that is what has kind of driven Mundra volumes to almost similar levels as of the Nhava Sheva volumes. ... DFCC brings in faster turnaround times for both import and export cargo. And that will be the major change.

Analyst inquired about the long-term strategic implications of major infrastructure projects and port developments on the company's operations.

Asked by Vikram Suryavanshi, PhillipCapital

Competitive scenario in Dadri and CTO used for rail operations Direct
We use CONCOR, they are partners there. CONCOR is what we use. And there are a certain number of regulated numbers of CFSs, which are there, and there are about 5 major operators. And that's a very compact market. And we are one of the leading operators there. JV that we have with CONCOR.

Analyst sought clarification on the competitive landscape and operational partners in the Dadri region.

Asked by Vikram Suryavanshi, PhillipCapital

Revenue per TEU and comparison with competitors, premiumization opportunities Direct
So around INR11,000 per TEU, Preetam was alluding to that. We are in the range of INR10,500 to INR11,500 per TEU. ... Premiumization is something which is very difficult given the capacity which is available. And it's a very fragmented market. There are very few organized players.

Analyst asked for specific revenue metrics and insights into the competitive dynamics and potential for value-added services in the fragmented market.

Asked by Akshay Kothari, Envision Capital

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Detailed narrative

Q1 FY26 Financial Performance Overview

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.

Strategic Vision and Capacity Expansion

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.

Funding Growth Plans and Capital Allocation

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.

Market Dynamics and Competitive Edge

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.

Impact of US Tariffs and Global Headwinds

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.

Operational Efficiency and Profitability Outlook

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.

DFCC and Multimodal Shift

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.

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