Container Corporation of India Limited

Container Corporation of India Ltd. achieved its highest ever throughput of 5.09 million TEUs in FY25, marking an 8% YoY growth. The company also reported its highest ever PAT and turnover, with PAT growing by 3.35% and operating income by 2.7%. In recognition of this performance, the Board approved a 1:4 bonus share issue and a total dividend of INR 11.50 per share (230%) for FY25, including INR 2 per share for Q4.

The EXIM segment demonstrated strong growth of 7% in FY25 and 12% in Q4 FY25, leading to a 40 basis point increase in Pan-India market share to 55.2%. Rail freight margins also improved by 55 basis points to 25.65%. Conversely, the domestic segment experienced a 2.6% decline in Q4 FY25 due to a strategic decision to avoid low-margin traffic, railway congestion in Eastern India, and delays in tank container supply from Braithwaite. The rail coefficient at key ports like Mundra and JNPT remained stagnant or declined, attributed to Direct Port Delivery (DPD) moving by road and increasing transshipment volumes.

CONCOR invested INR 810 crores in capex during FY25 and plans INR 860 crores for FY26, primarily for containers, wagons, terminals, and IT equipment. The company commissioned 11 new rakes, bringing the total fleet to 388, and procured approximately 9,000 containers, expanding its fleet to over 53,000. Double-stack handling of rakes grew by 16% to 6,302 in FY25, and empty running costs were reduced by 5.3% overall, with EXIM empty running costs at INR 121.3 crores and Domestic at INR 286.7 crores for FY25.

Management projects a 13% overall throughput growth for FY26, with EXIM expected to grow by 10% and domestic by 20%. A key driver is the commissioning of the Western Dedicated Freight Corridor (WDFC) up to JNPT by December 2025, which is anticipated to double the rail coefficient at Nhava Sheva from its current 17-18% range. The company also aims to achieve 100% first-mile, last-mile service in FY26 and commission 4 new terminals strategically located at Salawas, Pathri, Mandalgarh, and Chunar to tap into new traffic sources.

CONCOR has set an ambitious target of operating 100 terminals, 500+ rakes, and 70,000 own containers by 2028. The company is actively pursuing long-term agreements, having signed with 20 shipping lines for EXIM. For the domestic segment, it is in advanced talks with major corporate customers like Vedanta (agreement signed), Jindal (agreement soon), JK Group, Tata, and SAIL to secure stable, high-volume traffic, including bulk cement, tank containers, ceramic tiles, and food grain.

Despite a Q4 margin dip attributed to year-end adjustments, management expects to maintain an EBITDA margin of 24-25% in FY26. Realization is expected to improve slightly in FY26, supported by strategies such as filling empty containers with low-margin traffic to generate revenue rather than incurring negative returns. The company also highlighted a 5-year railway incentive scheme for empty movement of cement tankers, which will aid in maintaining profitability.