Allcargo Terminals Limited — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

Allcargo Terminals Limited reported a strong Q3 FY26, with significant growth across volumes, revenue, and profitability. Volumes increased 18% YoY to 1.76 lakh TEUs, while revenue grew 17% to Rs. 218 crores. EBITDA saw a 31% YoY increase to Rs. 43 crores, with EBITDA per TEU at Rs. 2,412, reflecting operational leverage from recent capacity expansions. The company also announced it is now debt-free, positioning it well for future growth and strategic investments.

Highlights

  • Volumes for Q3 FY26 stood at 1.76 lakh TEUs, reflecting an 18% YoY growth, driven by capacity additions at JNPA and Mundra.

  • Revenue grew by 17% YoY to Rs. 218 crores in Q3 FY26, demonstrating strong top-line performance.

  • EBITDA (excluding other income) increased by 31% YoY to Rs. 43 crores, with EBITDA per TEU reaching Rs. 2,412, indicating improved operational leverage.

  • Net profit for Q3 FY26 was Rs. 15 crores, up 28% YoY, underscoring enhanced profitability.

  • The company has successfully repaid its borrowings and is debt-free as of the call date, strengthening its financial position.

Key financials

2 periods

Q3

  • Volumes
    1,76,560 TEUs
    YoY +18% QoQ +5%
  • Revenue
    ₹218 Cr
    YoY +17% QoQ +5%
  • EBITDA (excl. other income)
    ₹43 Cr
    YoY +31% QoQ +6%
  • EBITDA per TEU
    ₹2,412
  • Net Profit
    ₹15 Cr
    YoY +28% QoQ +33%

9M

  • Volumes
    4,96,296 TEUs
    YoY +7%
  • Revenue
    ₹613 Cr
    YoY +7%
  • EBITDA (excl. other income)
    ₹118 Cr
    YoY +24%
  • Net Profit
    ₹35 Cr
    YoY +9%

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 Capex disclosed equity and internal accruals, with external borrowing for the gap
    • JNPA facility upgrade (technology, yard, warehouse repair)
    • Speedy JNPT facility upgrade (yard, warehouses)
    • Farukhnagar ICD project
    • New facility in Chennai
    In our investors' meet presentations also mentioned that for all these expansions, which we are looking at by 2030, we would be investing CAPEX upwards of, in the range of Rs. 400 crores. The primary sources of funds identified for these investments; number one is equity. Recently, we made a right issue, which was fully subscribed. Rs. 80 crores was the quantum of right issue. That we also made allotment of warrants to the promoters and promoters' group. That gave us access to Rs. 40 crores of equity, overall Rs. 120 crores by way of equity. We do have existing cash reserves in the tune of Rs. 30 crores. So, that will also be used for the future expansion. Also, the existing business generates very strong or continue to generate very strong cash flow in the range of Rs. 100 crores every year. And that would also be deployed for the expansion projects. Because of these identified sources, the dependency on borrowings, external borrowings would be minimal. So, we expect that we would be borrowing somewhere in the range of Rs. 100-150 crores based on the present estimate. So, we will try and limit borrowings to that extent. So, the primary source of funding for this project would be equity and internal accruals. And the gap would be breached by way of external borrowing.
  • Debt Net ₹0 Cr · 0.0× EBITDA
    • Repayment Repaid all borrowings, making the company debt-free.
    I would like to highlight here that we have repaid our borrowings, and the company will be debt-free in Q4 FY26. As on date, we have repaid that balance loan, and we stand debt-free as of today.
  • Liquidity Cash ₹30 Cr Existing cash reserves of Rs. 30 crores and annual cash flow generation of Rs. 100 crores will be used for future expansion.
    We do have existing cash reserves in the tune of Rs. 30 crores. So, that will also be used for the future expansion. Also, the existing business generates very strong or continue to generate very strong cash flow in the range of Rs. 100 crores every year.

Guidance & targets

Market Growth

  • Indian Port Volumes Growth Market Growth · coming years · High confidence 6% to 8%
    And if you were to look at for the coming years, and even as the 3-year plan discussions that we have, we have estimated market to grow at about anywhere between 6% to 8%.

    — Suresh Kumar

Volume Growth

  • ATL Volume Growth Volume Growth · next year · Medium confidence 1-2 percentage points faster than market
    This year, we grew at about 7%. We expect at least one to two basis point improvement in that growth going into next year.

    — Suresh Kumar

Capacity Utilization

  • Laden Container Capacity Utilization Capacity Utilization · future · High confidence 85%-86%
    So, our primary focus is to ensure that the capacity utilization that we have gets to about 85%-86%.

    — Suresh Kumar

Profitability

  • EBITDA per TEU Profitability · future · High confidence around Rs. 2,400
    We expect our EBITDA to be around this region because we also need to remain competitive in terms of pricing. So, we expect our EBITDA to remain at this level.

    — Suresh Kumar

  • EBITDA per TEU from Rail-linked Facilities Profitability · April '27 onwards · Medium confidence significant jump
    the Farukhnagar facility is a rail-linked facility, and therefore there is a portion of rail margins which will come into the ATL operations. So, we expect a significant jump around that time, but that clearly falls into April '27 onwards.

    — Suresh Kumar

Project Timeline

  • Farukhnagar ICD Go-Live Project Timeline · 2027 · High confidence April-May 2027
    Farukhnagar ICD project, which is estimated to go live in 2027 April-May timeframe.

    — Suresh Kumar

  • Speedy JNPT Upgrade Completion Project Timeline · H1 FY27 · High confidence March + 3-4 months
    expect the finalization of the scope of work, everything to happen by March, and maybe another 3-4 months for completing the necessary work.

    — Suresh Kumar

Capacity Addition

  • Farukhnagar ICD Capacity Capacity Addition · post go-live · High confidence 1.5 lakh TEUs
    That will add another lakh and a half capacity.

    — Suresh Kumar

  • Speedy JNPT Annual Capacity Enhancement Capacity Addition · post upgrade · High confidence 60,000 TEUs
    we will be able to handle more containers in the yard, and that is expected to give us an additional capacity improvement of about 60,000 annually.

    — Suresh Kumar

Total Capacity

  • Total TEU Capacity Total Capacity · by 2030 · High confidence 13 lakh TEUs
    So, the 13 lakh TEU that we are talking about is a combination of the present capacity that we are at up at about 10 lakhs.

    — Suresh Kumar

Capex

  • Total CAPEX for Expansions Capex · by 2030 · High confidence Rs. 400 crores
    for all these expansions, which we are looking at by 2030, we would be investing CAPEX upwards of, in the range of Rs. 400 crores.

    — Pritam Vartak

Debt

  • Borrowing for Future Capex Debt · future · Medium confidence Rs. 100-150 crores
    So, we expect that we would be borrowing somewhere in the range of Rs. 100-150 crores based on the present estimate.

    — Pritam Vartak

Market context

  • IMF Global Growth Forecast Global Growth · 2026 · High confidence 3.3%
    The IMF expects global growth to remain resilient at 3.3% in 2026 and 3.2% in 2027.

    — Suresh Kumar

  • IMF Global Growth Forecast Global Growth · 2027 · High confidence 3.2%
    The IMF expects global growth to remain resilient at 3.3% in 2026 and 3.2% in 2027.

    — Suresh Kumar

  • Global Inflation Decline Global Inflation · by 2027 · High confidence 3.4%
    Global inflation is easing and is projected to decline to about 3.4% by 2027.

    — Suresh Kumar

What to watch in Q4 FY26

Speedy JNPT Upgrade Completion

next quarter (March + 3-4 months)
Current In progress, finalization by March
Target Completion of upgrade work

Why it matters

Completion of this upgrade will enable an additional 60,000 TEUs annual capacity and improve operational efficiency.

expect the finalization of the scope of work, everything to happen by March, and maybe another 3-4 months for completing the necessary work.

Risks & concerns

  • Global trade instability and macro headwinds

    medium

    Management noted 'turbulent times' in the last 12 months and acknowledged that 'macro things' can impact the business, but expressed optimism for reduced risks.

    Both acknowledged

  • Competitive intensity in the market

    medium

    Management stated the need to remain competitive in terms of pricing due to competition and other operators in the market.

    Management acknowledged

Q&A highlights

6 direct
ICD vs CFS growth rates Direct
In terms of directional growth in the ICD, it is similar growth that we have seen.

Confirms that growth trends are consistent across both ICD and CFS operations.

Asked by Vikram Suryavanshi

Impact of DPD and Speedy CFS on business model Partial
CFSs and ICD exist because there is a need for customers to store the containers at strategic locations for a certain amount of time. And we are seeing that even when there is an overall increase in volume and when DPD volumes pick up, there are a set of customers, there are a group of customers, there are a set of commodities which definitely end up coming to the CFS's for the reasons that are value-adding for the customer.

Management explains the continued relevance of CFSs despite DPD, highlighting value-added services and specific customer needs.

Asked by Vikram Suryavanshi

Full impact of JNPT capacity expansion in FY27 Direct
So, for the first 4-5 months of the year, we did not have that capacity. And when you build the capacity, it takes a little time to fill in that capacity. So, this whole capacity, as you rightly mentioned, will come into play for us in the next financial year.

Clarifies that the full benefits of the JNPA capacity addition will be realized in the next fiscal year, implying further growth potential.

Asked by Darshil Jhaveri

EBITDA margin trajectory post capacity additions Direct
So, there has been substantial operating leverage, which has come into picture. Initially, when we added capacity, we were started paying the rent. However, the volume impact has kicked in in the last couple of quarters. As there are still some capacities which is available, especially in JNPT and also in Speedy, the capacity would get added once the upgradation is done. We expect that this upward trend, which is there in EBITDA per TEU, would continue because the operational leverage would be there and could come into picture.

Highlights that operating leverage is already improving EBITDA per TEU and is expected to continue as capacity utilization increases.

Asked by Darshil Jhaveri

Outlook for the next 2 years given reduced macro risks Direct
Port volumes in the country have grown at about 7% as of now. A couple of ports have done better. But overall, that's been the kind of volume growth. And if you were to look at for the coming years, and even as the 3-year plan discussions that we have, we have estimated market to grow at about anywhere between 6% to 8%. So, that's the range that we are talking about for market. And our ambition and aspiration is to grow faster than the market.

Provides management's view on market growth and their ambition to outpace it, supported by capacity additions.

Asked by Darshil Jhaveri

Capacity utilization percentage for the current year Direct
this year, most of the part, most part of the year, we were having a capacity of around 8.3 lakhs TEUs till about September. Post the expansion that we have had in JNPA, our capacity has increased to about 10. So, you can weighted average for the year, you could consider our capacity to be in the range of about 9 to 9.2 lakhs TEUs for the year. And then, in that, if you were to do around 7, that is the capacity utilization that we have of laden containers.

Clarifies the effective capacity for the year and the corresponding laden container utilization, providing context for volume growth.

Asked by Nilesh Sharma

Incremental benefits of CTO license (rail connectivity) Direct
However, when you have CTO license, you have access to the rail revenue as well, wherein the cargo is transported by way of rail from port to the hinterland ICD. Just to give you an idea in terms of revenue for Mundra to north ICD transportation could be in the range of 40,000 to 45,000 per TEU. So, currently as our business is CFS dominated, we are handling only port to CFS transportation. Whenever we operate an ICD where we have rail license, this revenue will also become part of our portfolio with a significantly higher revenue per TEU.

Quantifies the significant revenue uplift expected from rail-linked ICD operations compared to CFS-dominated business.

Asked by Aryan Bhatia

Impact of EU and US trade agreements on future volumes Partial
We are optimistic that with all the changes which have happened, we should see an uptick in growth. That is one. Second is the contribution from US and EU to the container volumes which come into the country, and that is estimated at close to about 30%-32% is the estimate that we have, at least to the facilities that we operate. So, in that portion of the volume, one could see uptick. But you also know, and I am sure that everybody in the public domain, it's clear that the EU agreement in terms of becoming operational could take X number of months.

Management acknowledges potential for volume uptick from trade agreements, but notes the procedural delays for EU agreement implementation.

Asked by Sanskar Raja

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Detailed narrative

Q3 FY26 Performance Highlights

Allcargo Terminals Limited delivered a robust performance in Q3 FY26, with volumes reaching 1.76 lakh TEUs, marking an 18% year-on-year growth. Revenue for the quarter stood at Rs. 218 crores, up 17% from the previous year. The company's EBITDA, excluding other income, increased by 31% year-on-year to Rs. 43 crores, translating to an EBITDA per TEU of Rs. 2,412. Net profit for the quarter also saw a significant rise of 28% year-on-year, reaching Rs. 15 crores, reflecting strong operational leverage.

Capacity Expansion and Utilization

The company's strategic 3-year plan is yielding results, with capacity additions at JNPA in Q2 FY26 and renewed contracts in Mundra contributing to volume growth. The JNPA expansion, completed in August, added approximately 1.70 lakh TEUs of handling capacity. For the full FY26, the average capacity is expected to be in the range of 9 to 9.2 lakh TEUs. Management aims for a laden container capacity utilization of 85-86%, which would signify near-full operational capacity.

Strategic Growth Outlook

Allcargo Terminals is optimistic about long-term growth, aligning with IMF's global growth projections of 3.3% for 2026 and 3.2% for 2027. The Indian port volumes are expected to grow between 6% and 8% in the coming years, and ATL aspires to grow 1-2 percentage points faster than the market. The company's focus on customer equity and capacity expansion is expected to drive this accelerated growth, with current year growth at 7%.

Capital Allocation and Funding

A significant highlight is the company's debt-free status as of the call date, having repaid all borrowings. For future expansions, including the Farukhnagar ICD project and a potential new facility in Chennai, the company plans to invest approximately Rs. 400 crores by 2030. This investment will primarily be funded through equity (Rs. 120 crores from a rights issue and warrants) and internal accruals (Rs. 100 crores annually), with a minimal borrowing of Rs. 100-150 crores to cover any gap.

Operational Efficiency and Margins

The EBITDA per TEU has shown a consistent upward trajectory over the last six to seven quarters, reaching Rs. 2,412 in Q3 FY26. This improvement is attributed to operational efficiency measures, cost management, and the benefits of operational leverage from increased capacity utilization. Management expects to maintain EBITDA per TEU around this level, balancing competitiveness with profitability. Rail-linked facilities like the upcoming Farukhnagar ICD are anticipated to bring a significant jump in EBITDA per TEU from April 2027 onwards, with revenue per TEU potentially reaching Rs. 40,000-45,000 compared to Rs. 12,000 for CFS operations.

Future Projects and Timelines

The Farukhnagar ICD project, a key future initiative, is estimated to go live in April-May 2027, adding approximately 1.5 lakh TEUs of capacity. The company also secured a 10-year extension for its Speedy JNPT facility, with plans to upgrade it by March plus 3-4 months, enhancing its annual capacity by 60,000 TEUs. These projects, along with the search for a new facility in Chennai, are part of the plan to reach a total capacity of 13 lakh TEUs by 2030.

Market Dynamics and Trade Agreements

While acknowledging past 'turbulent times' and ongoing macro uncertainties, management expressed optimism regarding the impact of new trade agreements, particularly with the European Union and the United States. These regions contribute 30-32% of container volumes to India. Although the operationalization of the EU agreement may take several months, the company anticipates an uptick in trade and volumes, reinforcing its focus on operational excellence and customer service to capture market share.

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