Allcargo Terminals Limited — Q4 FY26 earnings call

Call held 22 May 2026

Management summary

Allcargo Terminals Limited delivered strong Q4 and FY26 results, marked by a 46% increase in FY26 PAT and 26% EBITDA growth, driven by a 6% rise in annual volumes. The company expanded its Q4 EBITDA margin to 21.2% and maintained EBITDA per TEU above INR 2,000. Strategic capacity expansions, including a 10-year JNPT facility extension and the commencement of the Farrukhnagar PFT-ICD project, underpin future growth, though the latter's utilization ramp-up is anticipated to be gradual.

Highlights

  • FY26 Profit After Tax (PAT) grew 46% over the previous year to INR 44 crores.

  • FY26 total volumes (CFS plus ICD) reached 723,035 TEUs, reflecting a 6% year-on-year growth.

  • FY26 EBITDA stood at INR 162 crores, registering a growth of 26% year-on-year.

  • Q4 FY26 Revenue grew 12% year-on-year to INR 208 crores.

  • Q4 FY26 EBITDA increased 31% year-on-year to INR 44 crores, with EBITDA margin expanding to 21.2% from 18% in Q4 FY25.

  • Secured a 10-year extension for one of the JNPT facilities, enhancing long-term visibility.

Concerns

  • Global growth is expected to moderate at around 3.1% in 2026 due to geopolitical tensions and trade uncertainties.

  • Q4 FY26 volumes (CFS plus ICD) declined 7% quarter-on-quarter to 179,631 TEUs.

  • The ramp-up for the Farrukhnagar PFT-ICD is projected to be slower than expected, with 70% utilization only after FY30.

Key financials

2 periods

Q4 FY26

  • Volume (CFS+ICD)
    1,79,631 TEUs
    YoY +7% QoQ -7%
  • Revenue
    ₹208 Cr
    YoY +12%
  • EBITDA
    ₹44 Cr
    YoY +31%
  • EBITDA Margin
    21.2%
  • Net Profit
    ₹9 Cr

FY26

  • Volume (CFS+ICD)
    7,23,035 TEUs
    YoY +6%
  • Revenue
    ₹821 Cr
    YoY +8%
  • EBITDA
    ₹162 Cr
    YoY +26%
  • Net Profit
    ₹44 Cr
    YoY +46%

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 existing cash flow, future cash flow, equity, and bank financing
    • Farrukhnagar PFT-ICD project ₹226 Cr
    • JNPT Speedy facility upgradation ₹20 Cr
    • Mundra expansion
    • Chennai expansion
    So in our investors deck, we have mentioned that for various projects which we have been talking about, there is a capex outlay of INR400 crores, which we are estimating. We have existing investments in our balance sheet, which we are holding on. It is close to INR45 crores, which we are having. The existing business of the company continues to generate strong cash flow to the tune of INR80 crores to INR90 crores every year. Apart from that, as you have told, we have raised equity and only part of that equity we have called as of now. So that additional equity would also be used for financing our capex. So together with existing cash flow, the future cash flow and the equity, we are looking to raise INR300 crores for the project financing. Balance amount would be bridged through bank financing, external financing. But in our estimate, it would be restricted to somewhere around INR100 crores and which, for the company of our size, we can absorb.
  • Debt Debt disclosed
    Currently, the company doesn't have any debt on its balance sheet, and the company as of date is debt-free. (Pritam Vartak, Page 9) ... In current year, we had an external debt, which we had taken for certain acquisitions in the past. So the small part of that overall INR58 crores is the debt which we have paid to -- is an interest component which we have paid to NBFC. By year-end, that debt was fully repaid. And going forward, we will not have that interest. (Pritam Vartak, Page 11)
  • Liquidity Liquidity disclosed Raised equity by way of private placement and rights issue. INR 80 crores is yet to be called from rights issue and private placement. Existing business generates INR 80-90 crores cash flow annually. Looking to raise INR 300 crores for project financing, with balance through bank financing (restricted to INR 100 crores).
    Recently, we also raised equity by way of private placement and also the rights issue. So we are conserving capital right now, and dividends and buyback that all has to be considered. We'll consider that at an appropriate time. Currently, the focus is to execute the projects and maintain capital adequacy for that purpose. (Pritam Vartak, Page 5) ... So we have already raised fund INR120 crores. However, only first tranche of that fundraise has been called. As the projects go live and the requirements are there, we will make subsequent calls. So, around INR80 crores is yet to be called on totality of rights issue and the private placement, which will happen in the current year. (Pritam Vartak, Page 11)

Guidance & targets

Volume

  • Total Laden TEUs Volume · FY28 · High confidence 1 million
    As of now, we are on course. And as per the 3-year plan, if we were to look at the volumes that we have achieved in the last financial year and what we are targeting for the next year are all as part of the 3-year ambition that we have shared. So we are on course to achieve the 1 million laden TEU number in FY28.

    — Suresh Kumar

  • Total Laden TEUs Volume · 2030 · High confidence 1 million
    So 1 million TEUs by 2030 is the aspiration that we have with regard to volumes.

    — Suresh Kumar

Capacity

  • Total Laden TEUs Capacity Capacity · FY 2030 · High confidence 12.5 lakh to 13 lakh
    So our capacity ambition by FY 2030 would be in the range of around 12.5 lakh to 13 lakh laden TEUs.

    — Suresh Kumar

EBITDA per TEU

  • EBITDA per TEU EBITDA per TEU · going forward · High confidence INR 2,200-2,300
    our targeted EBITDA per TEU is in the range of INR2,200 to INR2,300. So we are happy where we are, and we expect to maintain it at this level going forward.

    — Suresh Kumar

  • EBITDA per TEU EBITDA per TEU · 2030 · Medium confidence INR 2,800
    If you look at my 2030 projections, which is part of our investors deck, from existing INR2,300, INR2,400 level per TEU, we are looking to go up to INR2,800 level.

    — Suresh Kumar

Project Timeline

  • Farrukhnagar PFT Completion Project Timeline · April 2027 · High confidence April 2027
    the time line for the PFT completion is April 2027 and the ICD completion, maybe another 2 quarters after that.

    — Suresh Kumar

Project Contribution

  • Farrukhnagar PFT-ICD Business Share Project Contribution · fully live · Medium confidence 20-25%
    that would form like 20%, 25% of my overall business once that is fully live.

    — Suresh Kumar

Market Share

  • CFS Segment Market Share Market Share · going forward · Medium confidence 10-12%
    Our estimated market share at this point in time, this is an estimated number, on the CFS side would be in the range of 10% to 12%.

    — Suresh Kumar

Market Growth Participation

  • EXIM Trade Containerization Growth Market Growth Participation · annually · High confidence 5-6%
    this is also on the back of expected market growth, which is in the range of 5% to 6% annually, which we will participate in.

    — Suresh Kumar

Capex

  • Total Capex Spend Capex · this year · High confidence INR 400 crores
    overall, we are looking for INR400 crores capex spend for various expansion projects we are talking about. In this year, there is Speedy upgradation thing, which is coming. For overall Farrukhnagar project, we have allocated a capex spend of INR226 crores.

    — Pritam Vartak

What to watch in Q1 FY27

Farrukhnagar PFT-ICD Construction Progress

next quarter
Current Construction commenced in Q4 FY26
Target Continued progress towards April 2027 completion

Why it matters

This is a significant greenfield project and a key driver for future capacity and volume growth.

Construction of our PFT-ICD at Farrukhnagar commenced at Q4 through partnerships with group companies, marking another important milestone in our growth journey.

Risks & concerns

  • Global Economic Slowdown and Trade Uncertainties

    medium

    Global growth expected to moderate at 3.1% in 2026 due to geopolitical tensions and trade uncertainties, which could impact supply chains.

    Globally, growth is expected to moderate at around 3.1% in 2026, and is forecasted at about 3.2% in 2027. This reflects the impact of geopolitical tensions and trade uncertainties, which continue to weigh on supply chains and cost structures.

    Management acknowledged

  • Farrukhnagar PFT-ICD Utilization Ramp-up

    medium

    The new Farrukhnagar PFT-ICD is projected to reach 70% utilization only after FY30, which is slower than analyst expectations.

    Because we are mentioning that after FY '30, it will be a 70% utilization. So why is this ramp-up slower than expected?

    Analyst acknowledged

  • Quarterly Volume Volatility

    low

    Q4 FY26 volumes declined 7% QoQ, indicating some short-term fluctuations.

    In Q4 FY26, we handled total volume, CFS plus ICD, 179,631 TEUs, reflecting a growth of 7% over Q4 FY25 and a decline of 7% over Q3 FY26.

    Management acknowledged

  • Supply Chain Disruptions

    low

    Occasional periods of disruption due to terminal congestion and transport fleet shortage are seasonal and built into the business plan.

    Having said that, there are occasional periods in which you have disruptions due to external reasons. We are passing through one of them currently because of a bit of terminal congestion, shortage of transport fleet. But these are seasonal, which we build it into our business plan, and we are confident of addressing them as we go ahead.

    Management acknowledged

Q&A highlights

4 direct, 2 evasive
Farrukhnagar PFT Utilization Ramp-up Partial
So at this stage, the volume estimates that we are doing there is based upon our understanding of the market. So to that extent, kindly consider this as a conservative estimate based upon the current market conditions that we are studying. Closer to launch, I think we can we will definitely look at reviewing the numbers that we have shared. And it's a good 1 year away.

Analyst questioned the slow ramp-up projection for a key new facility, indicating potential underperformance relative to market expectations.

Asked by Madhur Rathi

Capital Allocation Policy (Dividend/Buyback) Evasive
So we are a growing company. There are multiple projects which are aligned. Recently, we also raised equity by way of private placement and also the rights issue. So we are conserving capital right now, and dividends and buyback that all has to be considered. We'll consider that at an appropriate time.

Management deferred a clear stance on dividend or buyback policy, prioritizing project execution and capital conservation, which could impact shareholder returns.

Asked by Madhur Rathi

JNPT Throughput Capacity Increase Direct
So in terms of throughput, given the fact that this is the second facility that we have, Speedy Multimodes, that's the name of the facility, being closer to the port, we expect once the upgradation activities are completed, say, by Q3 of this year, we will be able to increase capacity utilization and therefore, throughput should also increase compared to how it was pre-renewal of the contract.

Management confirmed that ongoing upgrades at the JNPT facility, following a 10-year extension, will lead to increased capacity utilization and throughput, providing clarity on asset efficiency.

Asked by Madhur Rathi

EBITDA per TEU Trajectory Direct
our targeted EBITDA per TEU is in the range of INR2,200 to INR2,300. So we are happy where we are, and we expect to maintain it at this level going forward.

Management provided a clear target range for EBITDA per TEU, indicating stability and confidence in maintaining current profitability levels, with potential upside from new projects.

Asked by Madhur Rathi

Chennai Facility Timeline Evasive
So I look forward to sharing this in the coming investor calls. I would not want to make a comment on this today. But there is active work as an organization that we are doing to enhance capacity there.

Management declined to provide a specific timeline for the Chennai facility expansion, leaving uncertainty despite confirming active work, which is a key part of their 2030 capacity ambition.

Asked by Deepak Karwa

Lease Liabilities and Debt-Free Status Direct
So in current year, we had an external debt, which we had taken for certain acquisitions in the past. So the small part of that overall INR58 crores is the debt which we have paid to -- is an interest component which we have paid to NBFC. By year-end, that debt was fully repaid. And going forward, we will not have that interest. However, lease-related interest outgo will continue to be there in our P&L as per the Ind AS accounting standard.

Management clarified the nature of finance costs, distinguishing between repaid external debt and ongoing lease-related interest (Ind AS 116), confirming the company's debt-free status from external borrowings.

Asked by Ashok Shah

Ground Rent Contribution to Revenue Partial
I think over a period of time, ground rent as a percentage of CFS revenues have progressively come down. And that is currently running at close to a 20% level in terms of what the ground rent realizations that we have.

Management indicated a shift in revenue mix, with ground rent's contribution decreasing, suggesting a move towards more value-added services and throughput-driven revenue.

Asked by Kiran Gadge

Realization per TEU Increase Direct
Realizations, I've told you right, in terms of where we are currently EBITDA per TEU levels, which are quite healthy numbers. And we also operate in a competitive space. So we can't kind of push that beyond a level. And therefore, in our modeling and the future that we have planned, we will be happy to maintain our EBITDA per TEU at the levels that we currently are, which is about INR2,300 to INR2,400. And whenever the Farrukhnagar project happens, that will give us a fillip in the realizations.

Management clarified their strategy for realization, aiming to maintain current healthy EBITDA per TEU levels and expecting a boost from the Farrukhnagar project, providing insight into future profitability drivers.

Asked by Kiran Gadge

3 min read 6 chapters

Detailed narrative

Robust Financial Performance in FY26

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.

Strategic Capacity Expansion and Project Development

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.

Ambitious Long-Term Growth Targets

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.

Capital Allocation and Debt-Free Status

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.

Operational Efficiency and Profitability Drivers

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.

Market Outlook and Competitive Positioning

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.

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