Container Corpn.

Container Corporation of India reported an all-time high Q1 throughput of 1.29 million TEUs, marking an 11.3% year-on-year growth. This growth was primarily driven by a 12% increase in EXIM volumes, while domestic volumes grew by 9%. Despite strong volume performance, PAT growth was limited to 1%, impacted by one-time^📎 expenses including an INR 18 crore employee award and an INR 21 crore volume discount reconciliation. Operating income saw a 2.5% growth, reflecting overall business activity.

The domestic segment experienced subdued performance in Q1 FY26, primarily due to delays in the supply of tank containers from M/s Braithwaite and a conscious decision to avoid low-margin traffic. However, management expressed optimism for a robust rebound, anticipating 'very good growth' from Q2 onwards. New initiatives, such as the movement of bulk cement in tank containers, are expected to significantly boost domestic traffic, with 'very good growth' projected from Q3 FY26. The company is also focusing on attracting traffic from large corporate houses like Tata, Jindal, and JK Cement.

The EXIM stream demonstrated excellent growth in Q1, with volumes increasing by 12%. This growth is expected to continue and further increase, especially with the commissioning of the Western Dedicated Freight Corridor (WDFC) up to JNPT by December 2025. While EXIM market share at JNPT increased to 58.39% from 56.02% last year, market share at Mundra declined to 36% from 38%, attributed to subdued demand in North India ICDs. Overall EXIM market share stood at 53.1% compared to 55% last year.

CONCOR achieved significant improvements in operational efficiency, with rail freight margin expanding to 26.96% from 24.36% last year, and operating margin improving to 29.81% from 28.58%. These gains were attributed to a 13.7% decrease in empty running costs, excellent planning by the operations team, increased double stacking (11.2% growth in rakes), and balanced two-way movement in both domestic and EXIM segments. The company also reported an increase in rail coefficient at Mundra (2%) and Pipavav (3%).

The company incurred a capital expenditure of INR 202.5 crores in Q1 FY26, maintaining its full-year budget of INR 860 crores. CONCOR commissioned 5 high-speed rakes and procured 1,500 containers for domestic use. Significant infrastructure developments are underway, including the commissioning of WDFC up to JNPT by December 2025, which is expected to lead to a 'quantum jump' in EXIM traffic. The company is also developing multimodal logistics parks that will serve both EXIM and domestic needs.

CONCOR is actively pursuing new growth avenues, including the movement of bulk cement in tank containers, with the first rake already loaded and a second expected soon. The company is also exploring liquid cargo movement in tank containers. A landmark achievement was the signing of an MOU with the RHS Group of Dubai to provide end-to-end logistics solutions, extending services beyond Indian ports to international destinations like Dubai, Sharjah, and potentially Singapore. This initiative aims to offer comprehensive logistics services to customers.

CONCOR's overall India level market share (EXIM-domestic combined) was 53.6%, with EXIM-only market share at 53.1% (down from 55% last year). At JNPT, market share increased to 58.39% from 56.02%, while at Mundra, it decreased to 36% from 38%. Pipavav market share remained stable at 49%. The decline at Mundra was attributed to subdued demand in North India ICDs, which primarily cater to Mundra traffic. Management emphasized a strategy of not pursuing low-margin traffic, which can sometimes impact market share.