Allcargo Terminals Limited — Q2 FY26 earnings call

Call held 6 Nov 2025

Management summary

Allcargo Terminals reported a strong Q2 FY26 with robust growth in revenue, EBITDA, and EBITDA per TEU, driven by capacity expansion and operational efficiencies. The company is actively pursuing further capacity additions across key locations, funded by a mix of internal accruals, debt, and planned equity infusion. While H1 net profit saw a slight decline, management remains optimistic about future growth and capacity utilization.

Highlights

  • Q2 FY26 Revenue of ₹207 crores, up 6% YoY.

  • Q2 FY26 EBITDA (excluding other income) of ₹40 crores, up 24% YoY.

  • EBITDA per TEU reached ₹2,390, a 17% YoY increase.

  • Total handling capacity increased from 8.3 lakh TEUs to 10.5 lakh TEUs.

  • Prepaid loans worth ₹70 crores (₹40 crores in Sep, ₹30 crores in Oct).

Concerns

  • H1 FY26 Net Profit declined to ₹20 crores from ₹21 crores in H1 FY25.

  • Global growth expected to moderate to 3.1%-3.3% due to persistent trade tensions and geopolitical uncertainty.

Key financials

2 periods

Q2 FY26

  • Volume
    1,68,000 TEUs
    YoY +7% QoQ +12%
  • Revenue
    ₹207 Cr
    YoY +6% QoQ +11%
  • EBITDA (excl. other income)
    ₹40 Cr
    YoY +24% QoQ +17%
  • EBITDA per TEU
    ₹2,390
    YoY +17% QoQ +4%
  • Net Profit
    ₹11 Cr
    YoY 0% QoQ +22.2%

H1

  • FY26 Net Profit
    ₹20 Cr
    YoY -4.8%

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 ₹400 Cr internal cash accruals, existing cash reserve, certain portion from debt, and equity infusion (INR 120 crores from warrants and rights issue)
    • Completing entire expansion plan for Farukhnagar, Mundra, Chennai, and JNPT ₹400 Cr
    So a large part of rights issue, the objective is to finance expansion, the expansions which we are planning for Farukhnagar and Mundra. Some portion of that would also be used for repayment of existing debt, which is mainly taken for HORCL appropriation and 25% would be general corporate purpose. So yes, majority of this rights issue proceeds will be used for expansion. Our estimated requirement is in the range of INR400 crores for completing entire expansion plan. However, we are not spending everything at one go. It is supposed to be done in a phased manner over next over till FY 2030. Our existing business is continuing to give very strong cash flow as we have reported this quarter also. Plus our some expansions like JNPT expansion is already live, and that is expected to yield more earnings and would contribute to my existing cash flow. So a lot of these expansions, we are planning to fund through our internal generated cash flow and the existing cash reserve. That's why we estimate the plus there is a small amount of borrowings, which we also have planned for to bridge the gap. So just to answer your question, a lot of this financing requirement would be funded through our internal cash accruals and cash flow from existing business, plus certain portion from debt. And the balance, we are looking to infuse the equity.
  • Debt Debt disclosed
    • Repayment Loan worth INR 40 crores prepaid in September quarter ₹40 Cr
    • Repayment Additional loan worth INR 30 crores prepaid in October ₹30 Cr
    I would also like to highlight here that we have prepaid loan worth INR40 crores in September quarter and additional INR30 crores in the month of October.

Guidance & targets

Profitability

  • EBITDA per TEU Profitability · going ahead · Medium confidence ₹2,200 to ₹2,300
    So about 12 quarters back, I think our EBITDA used to hover around INR1,800, and we had set the goal for ourselves to be above INR2,000, which I think is the right level to operate the business in a profitable manner. So we have now reached that level, and we expect to be in the thereabouts of INR2,200 to INR2,300 as we go ahead. So that's what our estimate is.

    — Suresh Ramiah

Capacity

  • Total Handling Capacity Capacity · 2- to 3-year period · Medium confidence 13 lakh TEUs

    From 830,000 TEUs today

    In our 3-year plan, we plan to increase this 830,000 TEUs handling capacity of laden containers to over 13 lakhs TEUs, and this is over a 2- to 3-year period.

    — Suresh Ramiah

Capacity Utilization

  • Overall Capacity Utilization Capacity Utilization · H2 FY26 · High confidence 80% to 85%
    And we expect in H2, volumes to also catch up with that capacity because we would like capacity utilization to remain in the range of around 80% to 85%.

    — Suresh Ramiah

  • New Projects Utilization (Mundra, Chennai) Capacity Utilization · within 6 to 9 months (best a year) from commissioning · High confidence 80%
    Mundra is basically a market where we already have 2 facilities. We just need to see how we are going to use the third new facility with expanded capacity. The other one is Chennai, again, a market where we are running at 100% capacity now of our facility. And Farukhnagar is a greenfield project. So other than Farukhnagar, we expect capacity utilization to get to desired levels of 80% within 6 to 9 months, so at best a year from commissioning of the 3 projects.

    — Suresh Ramiah

  • Farukhnagar Project Utilization Capacity Utilization · calendar year 2029 · High confidence 75% to 80%
    By '29, I think we expect '29 is the calendar year 2029, we expect to get to capacity utilization of 75% to 80% there.

    — Suresh Ramiah

Project Timeline

  • JNPT Expansion Completion Project Timeline · this year · High confidence November - December 2025
    JNPA additionally had expansion. We initiated that in August. The complete process will get over by November - December this year.

    — Suresh Ramiah

  • Mundra Project On-Stream Project Timeline · end of 2026 · High confidence end of 2026
    We expect this project to go on stream towards the end of 2026.

    — Suresh Ramiah

  • Chennai Project On-Stream Project Timeline · end of 2026 or early 2027 · High confidence end of 2026 or early 2027
    We expect this also to follow the same time line as Mundra or early 2027.

    — Suresh Ramiah

  • Farukhnagar Project Targeted Date Project Timeline · April '27 · High confidence April 2027
    The targeted date for that is April '27.

    — Suresh Ramiah

What to watch in Q3 FY26

Capacity Utilization

H2 FY26
Current ~76-77%
Target 80-85%

Why it matters

Tracking capacity utilization is key to assessing the efficiency of recent expansions and future revenue growth.

And therefore, currently, we operate at about 76% - 77% capacity utilization with the increase in capacity. We expect to get to about anywhere between 80% and 85% capacity utilization in H2.

Risks & concerns

  • Global economic slowdown

    medium

    IMF expects global growth to moderate to 3.1%-3.3% between '24 and '26 due to persistent trade tensions and geopolitical uncertainty.

    Management acknowledged

  • Inflationary pressures

    low

    Inflationary pressures are projected to ease further, but remain a factor.

    Management acknowledged

  • Impact of tariffs on EXIM volumes

    low

    Management stated they have not seen any pronounced impact on their business from tariff discussions, as a significant portion of affected cargo is not addressable by CFS ICDs.

    Management downplayed

Q&A highlights

8 direct
Rights Issue Objective and Funding for Expansion Direct
So a large part of rights issue, the objective is to finance expansion, the expansions which we are planning for Farukhnagar and Mundra. Some portion of that would also be used for repayment of existing debt, which is mainly taken for HORCL appropriation and 25% would be general corporate purpose. So yes, majority of this rights issue proceeds will be used for expansion. ... Our estimated requirement is in the range of INR400 crores for completing entire expansion plan.

Clarified the purpose and total amount of equity being raised (₹120 crores) and the overall funding requirement (₹400 crores) for the expansion plan.

Asked by Garvita Jain

Sustainability of EBITDA per TEU Direct
So we have now reached that level, and we expect to be in the thereabouts of INR2,200 to INR2,300 as we go ahead. So that's what our estimate is.

Management provided a clear target range for sustainable EBITDA per TEU, indicating confidence in maintaining current profitability levels.

Asked by Rajeev Makhija

Drivers of Volume Growth and FTA Impact Direct
The addressable market in the last quarter has grown 10% Y-o-Y and 3% sequentially. And the ATL, our volumes have grown 7% and 13% Y-o-Y and sequentially. So there has been good growth rates in import led by what has happened in the market, plus some of the expansion that we have done, and we expect these trends to continue.

Management explained the import-led nature of growth and the contribution of their own capacity expansion to the increased volumes, clarifying the limited impact of trade tariffs.

Asked by Rajeev Makhija

Volume Growth from Upcoming Projects Direct
So these 4 projects put together will enhance our volumes from 8.3 lakh TEUs to around 13 lakhs TEUs.

Management detailed the specific capacity additions expected from the four key projects, outlining the significant increase in handling capacity over the next 2-3 years.

Asked by Chinmay Parab

Impact of Road to Rail Shift on Business Direct
The ICD when we set up in Farukhnagar will be rail connected, and we will have rail operations, which will give us an opportunity to partake in not only the EXIM business, which happens from the northern portion of the country, but also start leveraging the DFCC, which passes through our facility to take an active role in the domestic market also.

Management outlined their strategy to capitalize on the shift towards rail logistics, particularly with the new rail-connected ICD in Farukhnagar, expanding into the domestic market.

Asked by Chinmay Parab

Market Share in Key Geographies Direct
So we have a market share in the range of 12.5% to 13% in the CFS space across the markets in which we operate in. And the markets in which we operate contribute to about 80% of India's EXIM trade.

Management provided a quantified estimate of their market share in the CFS space within their operational regions, offering insight into their competitive position.

Asked by Chinmay Parab

Cost Initiatives for Margin Improvement Direct
Over the last 2 to 3 years, if you were to look at it, just because of the scale efficiencies that we have, this is in terms of transport costs, which is a large portion of the cost for OpEx. And the second is the equipment cost. So on both these fronts, we have been able to kind of optimize, ensure technology also comes into play, that the yard management is something that we have done in some of the facilities with regard to moving into smarter yard management solutions.

Management detailed the specific operational and technological initiatives that have contributed to the improved EBITDA per TEU, highlighting their focus on efficiency.

Asked by Kiran Gadge

New Project Timelines and Utilization Targets Direct
JNPA additionally had expansion. We initiated that in August. The complete process will get over by November - December this year. ... We expect this project to go on stream towards the end of 2026. ... We expect this also to follow the same time line as Mundra or early 2027. ... The targeted date for that is April '27.

Management provided specific timelines for the completion and commissioning of their major expansion projects, along with expected utilization ramp-up periods, offering clear milestones for investors.

Asked by Charchit Malu

3 min read 6 chapters

Detailed narrative

Q2 & H1 FY26 Financial Performance Overview

Allcargo Terminals Limited reported a strong Q2 FY26, with total volume handled reaching 168,000 TEUs, marking a 12% sequential growth and 7% year-on-year growth. Revenue for the quarter stood at ₹207 crores, an 11% increase QoQ and 6% YoY. EBITDA, excluding other income, grew by 17% QoQ and 24% YoY to ₹40 crores, with EBITDA per TEU improving to ₹2,390. For H1 FY26, revenue was ₹394 crores and EBITDA was ₹75 crores, showing healthy growth compared to the previous year, although net profit for H1 FY26 slightly declined to ₹20 crores from ₹21 crores in H1 FY25.

Strategic Capacity Expansion Initiatives

The company is executing a comprehensive 3-year plan to increase its handling capacity from 830,000 TEUs to over 13 lakh TEUs. Key projects include yard expansion in JNPT, which is expected to be completed by November-December 2025. A new CFS in Mundra, for which land has been acquired and LOI received, is targeted to be operational by the end of 2026. Additionally, a CFS facility near Chennai's Ennore/Kattupalli ports and a greenfield ICD in Farukhnagar are planned, with the latter targeted for April 2027.

Funding for Growth and Debt Management

To finance its expansion plans, Allcargo Terminals is raising approximately ₹120 crores through equity, including ₹40 crores from a preferential allotment of warrants in July 2025 and a planned ₹80 crores rights issue. The total estimated requirement for the expansion plan is ₹400 crores, which will be funded through a mix of internal cash accruals, existing cash reserves, debt, and the aforementioned equity infusion. The company also demonstrated prudent debt management by prepaying loans worth ₹40 crores in September and an additional ₹30 crores in October.

Operational Efficiency and Margin Improvement Drivers

The improvement in EBITDA per TEU to ₹2,390 is attributed to scale efficiencies, particularly in transport and equipment costs, which are significant components of OpEx. The company has also leveraged technology for smarter yard management solutions in its facilities. Furthermore, ESG initiatives, such as transitioning to solar power, contribute to cost savings, with the Chennai facility, for example, sourcing about 70% of its electricity from alternate sources, enhancing overall operational profitability.

Industry Outlook and Market Position

The Indian ports and shipping sector is undergoing a transformative phase with significant investments and policy support, including initiatives like SagarMala. India is poised to become a modern maritime hub, benefiting logistics and terminal operators. Allcargo Terminals maintains a strong market position, operating as a leading CFS provider or within the top 2-3 operators in most of its markets. The company estimates its market share in the CFS space across its operating regions, which contribute to 80% of India's EXIM trade, to be in the range of 12.5% to 13%.

Leveraging Road to Rail Shift and Domestic Market

Recognizing the gradual shift from road to rail in logistics, Allcargo Terminals is strategically positioning itself to capitalize on this trend. The planned greenfield ICD in Farukhnagar will be rail-connected, enabling the company to participate in both EXIM and domestic cargo movements. This facility aims to leverage the Dedicated Freight Corridor (DFCC) to enhance cost-efficient and sustainable freight movement, creating new opportunities in the domestic market.

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