Container Corpn.

Container Corporation of India Ltd. achieved its highest ever throughput of 5.58 million TEUs in FY26, marking a 9.6% year-on-year growth, with EXIM growing 8% and domestic 14.6%. The company's rail freight margin improved by 1.51% to 27.16%, and the overall operating margin increased by almost 1% to 30.89%. EXIM revenue reached an all-time high of INR6,000 crores for the first time in the company's history.

Despite strong volume growth, PAT decreased by 4.5% in FY26, primarily due to geopolitical conflicts and trade tensions. These factors led to less demand in domestic streams, particularly Gunny Bales and tiles traffic, and a global economic slowdown, impacting EXIM volumes, especially textiles and marine products. The domestic segment's EBIT margin was significantly compressed to 0.2% in Q4 FY26 due to empty container movements from Eastern India, exacerbated by an 11.3% increase in domestic empty running costs YoY for the quarter.

The company commissioned 43 high-speed rakes in FY26, bringing the total to 423, and procured 4,729 new containers, expanding its fleet to 57,746. A significant development is the upcoming commissioning of DFC connectivity to JNPT by June 1, 2026, which is expected to boost EXIM volumes and increase the JNPT rail coefficient from 15.12% in FY26 to 18-19% in FY27, and 30-35% in three years. CONCOR also signed an MOU for the Bharat Container Shipping Line, holding a 30% stake, aiming to be a top 10 global shipping line by 2047.

CONCOR is actively expanding its domestic offerings, with bulk cement transportation in tank containers being well-received by trade, targeting at least 1 million tons in FY27. The company also saw a 38% increase in DPD volumes and a 17% growth in reefer exports. New terminals in Mandalgarh, Kadakola, Jajpur, and Paradip are expected to bring new traffic, further contributing to domestic volume growth.

The Board approved a capex budget of INR945 crores for FY27, following an expenditure of INR1,085.20 crores in FY26, primarily for infrastructure additions and container procurement. The company anticipates potentially increasing this budget during a midyear review. CONCOR is also focused on ESG norms, operating 230 LNG trucks and trialing electric RSTs and vehicles, with plans to procure more based on positive results. An interim dividend of INR1 per share for Q4 FY26 was declared, bringing the total FY26 dividend to INR8.6 per share.

For FY27, CONCOR provided guidance of 8% growth for EXIM, 15% for domestic, and an overall throughput growth of 9.5%. The company aims to maintain an EBITDA margin between 24-25%. Management expressed optimism for a business upsurge from May 2026, despite a challenging start to the fiscal year, and will review guidance mid-year if environmental factors change.