Allcargo Termi

Allcargo Terminals Limited delivered a strong financial performance in FY26, with Profit After Tax (PAT) growing 46% over the previous year to INR 44 crores. The company's EBITDA also saw a significant increase of 26% year-on-year, reaching INR 162 crores. This growth was underpinned by a 6% rise in total volumes (CFS plus ICD) to 723,035 TEUs, demonstrating effective yield management and operating leverage. In Q4 FY26, revenue increased 12% year-on-year to INR 208 crores, and EBITDA grew 31% to INR 44 crores, with the EBITDA margin expanding to 21.2% from 18% in Q4 FY25.

The company is actively pursuing strategic capacity enhancements to support its long-term growth. A 10-year extension has been secured for one of its JNPT facilities, and construction has commenced on the PFT-ICD project at Farrukhnagar. This new facility, which involves a capex of INR 226 crores, is expected to be completed by April 2027, with the ICD operational two quarters thereafter. Additionally, the company plans upgrades at its JNPT Speedy facility, expected to be completed by Q3 of the current year, which will increase capacity utilization and throughput.

Allcargo Terminals has set ambitious targets, aiming to achieve 1 million laden TEUs by FY28 and expand its total capacity to 12.5-13 lakh laden TEUs by FY 2030. This growth will be fueled by India's robust EXIM momentum and the company's focused capacity additions at key ports, including planned expansions in Mundra and Chennai. The company also targets an EBITDA per TEU of INR 2,800 by 2030, a significant increase from the current INR 2,200-2,300 range, driven by scale efficiencies and a diversified service offering.

The company maintains a debt-free status from external borrowings, with its finance costs primarily consisting of lease-related interest under Ind AS 116, which amounted to INR 38 crores in FY26. For the current year, Allcargo Terminals plans a total capex of INR 400 crores for various expansion projects. This will be funded through a combination of existing cash flows (INR 80-90 crores annually), uncalled equity from rights issues (INR 80 crores remaining), and limited bank financing, ensuring that overall debt remains restricted to around INR 100 crores.

Management highlighted that improved operating leverage, disciplined cost management, and enhanced realization are key drivers for the company's sustained profitability. The EBITDA per TEU has been consistently maintained above INR 2,000, with a target to reach INR 2,800 by 2030. Initiatives such as the myCFS app, yard management systems, and investments in technology contribute to better operational parameters and fuel efficiency, supporting margin expansion and overall business performance.

Despite global growth moderation to 3.1% in 2026 due to geopolitical tensions, India remains a bright spot with GDP growth of 6-6.5%, supported by domestic demand and infrastructure focus. The logistics sector benefits from structural drivers like rising containerization and infrastructure investments. Allcargo Terminals estimates its CFS market share at 10-12% and aims to maintain this, participating in the 5-6% annual EXIM trade containerization growth. The company is well-positioned with facilities in major ports, addressing 80-85% of India's EXIM trade.