Gateway Distriparks Limited — Q1 FY26 earnings call

Call held 29 Jul 2025

Management summary

Gateway Distriparks reported a strong year-on-year improvement in Q1 FY26, primarily due to the absence of Red Sea disruptions. While rail EBITDA per TEU was INR9,100 and CFS EBITDA per TEU was INR1,500, the rail segment's revenue of INR319 crores saw a 3% YoY decline in realization per TEU, impacted by higher empty container movements. The company remains committed to expanding its Inland Container Terminal (ICD) network, despite ongoing land acquisition challenges, and Snowman Logistics continues its growth trajectory with significant expansion plans and a focus on 5PL services.

Highlights

  • Rail business EBITDA per TEU stood at INR9,100, slightly down due to higher empty and underframe running.

  • CFS business EBITDA per TEU improved to around INR1,500.

  • Rail segment revenue was INR319 crores, with a realization of INR34,200 per TEU, down 3% YoY.

  • Double stacking portion declined to 39% in the quarter due to lack of exports and trade realignment.

  • Snowman Logistics' trading and distribution segment saw a significant 54% QoQ growth.

  • Snowman plans to add 3-4 new facilities in the next 2 years and 5-6 in the next 3 years, with INR100 crores capex for own facilities.

  • Gateway Distriparks targets double-digit revenue growth for the full FY26.

  • Annual capex for GDL is projected at INR30 crores, with an additional INR150 crores per new terminal.

Concerns

  • Land acquisition challenges for ICD expansion

Key financials

  1. Rail Segment Revenue ₹319 Cr
  2. Rail Realization per TEU ₹34,200 -3%YoY
  3. Rail EBITDA per TEU ₹9,100
  4. CFS EBITDA per TEU ₹1,500
  5. Other Income ₹2.9 Cr
  6. Double Stacking Percentage 39%

What they filed

Q1 FY27: revenue down 3.4%, net profit down 25.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue384 386 391 380 403 +5%410 +6%385 −2%367 −3%
EBITDA94 92 79 89 95 +1%96 +4%92 +16%87 −2%
Net profit70 57 65 64 69 −1%71 +25%65 +0%48 −25%
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.

Segment breakdown

  • Rail Business
    ₹319 Cr Revenue₹34,200 Realization per TEU₹9,100 EBITDA per TEU
  • CFS Business
    ₹1,500 EBITDA per TEU
  • Snowman Logistics - Trading & Distribution
    54% QoQ Growth

Guidance & targets

Revenue

  • Overall Revenue Growth Revenue · FY26 · Medium confidence double-digit growth
    For even the rest of the year, we should see some growth coming in. We're still targeting a double-digit growth for the entire year.

    — Samvid Gupta, Joint Managing Director

Margin

  • Rail EBITDA per TEU Margin · coming quarters · Medium confidence INR9,500
    So, there is scope to increase double stacking. Possibly, we'll go back to INR9,500 in the coming quarters.

    — Samvid Gupta, Joint Managing Director

  • Rail EBITDA per TEU Margin · when Bombay DFC connects · Medium confidence INR10,000
    But still, that being said, we can still look towards the INR10,000 even when Bombay comes in.

    — Samvid Gupta, Joint Managing Director

Infrastructure

  • DFC Connection at JNPT Infrastructure · FY27 · Medium confidence 31st March 2026

    Previously 31st December 2025 → 31st March 2026

    So, what we are expecting as per DFC, so it will get operational by - like on the side, we are telling 31st December 2025. But when we spoke to them, so we are expecting that it should get completed by 31st March 2026.

    — Rajguru Behgal, Chief Business Officer

Capacity

  • Snowman Pallet Utilization Increase Capacity · coming quarters · Medium confidence 7,000 to 10,000 pallets
    I mean, if I say for the quarter, just an estimate, maybe we'll have a utilization percentage increase by approximately 7,000 to 10,000 pallets.

    — Padamdeep Singh Handa, CEO and Director - Snowman Logistics Limited

  • Snowman New Facilities Capacity · next 2 years · Medium confidence 3 to 4 facilities
    So, maybe 3 to 4 facilities in next 2 years and in next 3 years, probably 5 to 6 facilities is what is on the horizon right now.

    — Padamdeep Singh Handa, CEO and Director - Snowman Logistics Limited

  • Snowman New Facilities Capacity · next 3 years · Medium confidence 5 to 6 facilities

    — Padamdeep Singh Handa, CEO and Director - Snowman Logistics Limited

  • GDL ICDs to Open Capacity · 5 to 7 years · Medium confidence 6-7 ICDs
    We've identified probably the next 6, 7 ICDs that we want to open up.

    — Samvid Gupta, Joint Managing Director

Capex

  • Snowman Capex for Own Facilities Capex · ongoing · High confidence INR100 crores
    So, I mean, our plan is to continue to spend something around INR100 crores from our investments into our own facilities and then build couple of asset-light models alongside.

    — Padamdeep Singh Handa, CEO and Director - Snowman Logistics Limited

  • GDL Annual Capex (excluding new terminals) Capex · FY26 and through FY27 · High confidence INR30 crores
    The capex plans remain the same. Basically, we are looking at about INR30 crores of capex per year. This is not counting any new terminals.

    — Samvid Gupta, Joint Managing Director

  • GDL Capex per New Terminal Capex · as and when new terminal comes in · High confidence INR150 crores
    As and when a new terminal comes in, that will be at an average of about INR150 crores per terminal.

    — Samvid Gupta, Joint Managing Director

  • GDL Earmarked Capex for Two Terminals Capex · future · High confidence INR300 crores
    So, we've earmarked INR300 crores for two terminals.

    — Samvid Gupta, Joint Managing Director

  • GDL Capex for Jaipur Terminal Capex · whenever that comes in · Medium confidence INR60-70 crores
    And then the balance works from Jaipur, whenever that comes in will be about INR60 crores, INR70 crores.

    — Samvid Gupta, Joint Managing Director

Pricing

  • Snowman Price Increase Pricing · general · High confidence 5% to 7%
    So price increase, I mean, it's in the range of 5% to 7% in general.

    — Padamdeep Singh Handa, CEO and Director - Snowman Logistics Limited

Risks & concerns

  • Land acquisition challenges for ICD expansion

    high

    Caused delays in Jaipur ICD and is an industry-wide issue, leading to exploration of asset-light models.

    Management acknowledged

  • Geopolitical and geoeconomic conditions

    medium

    Conditions remain but are expected to stabilize soon.

    Management acknowledged

  • Operational imbalance (empty/underframe running, low double stacking, lack of exports)

    medium

    Impacted Q1 FY26 rail EBITDA per TEU, but improvement expected as imbalance improves.

    Management acknowledged

  • Uncertainty of DFC impact on cargo shifting

    medium

    Too early to quantify the shift in volumes and pricing dynamics, but GDL expects an advantage.

    Management acknowledged

  • Increased competition in logistics (e.g., JSW's expansion)

    medium

    Management focuses on its own growth story and careful site selection, exploring asset-light models.

    Analyst acknowledged

  • Land registration issues (Krishnapatnam)

    low

    An old case related to survey records, not stopping operations, expected to be sorted soon.

    Management downplayed

Areas of evasion (2)

  • exact breakup of empty versus laden containers
  • quantification of quick commerce/e-commerce revenue contribution for Snowman

Q&A highlights

2 direct
Operating expenses and cost headwinds Direct
These are general increases. Yearly, there is manpower and minimum wage and fuel increases. The hikes keep happening. So it's part of that only. Yes. But then this quarter had more underframe and empty running. So, we do expect some improvement in margin going forward, as the overall imbalance also improves.

Reveals the drivers behind increased operating costs and management's expectation for future margin improvement.

Asked by Rehan Saiyyed

Impact of DFC connection at JNPT Partial
So, it is too early to say, because there are multiple factors that will come into play - how the shipping lines are going to do their vessel rotation and how the cargo, which is going to Pipavav and Mundra, how the exporters, importers - they are going to ship. Because ultimately, it is the extra distance of 300 kilometers vis-a-vis Mundra and Pipavav. So, that will also come into play. And what pricing, shipping lines are going to come up and what the pricing the port authorities are going to come up vis-a-vis Pipavav and Mundra. So, that is something which will determine how much volume will get shifted. But we have a pan-India license and we have this advantage that after CONCOR, so we are only one of the private operators who have regular services towards JNPT. And definitely, we will foresee an advantage once this corridor starts.

Highlights the uncertainty and complexity of DFC's impact, while management still expects a long-term advantage.

Asked by Achal Lohade

Land acquisition issues and ICD expansion delays Direct
Yes. There's only one other land issue going on, which is in Krishnapatnam... Jaipur, we've already disclosed what's there. There are no other land issues going on in the group. Generally, what we say, land acquisition remaining a challenge, that's the same issues that we mentioned that it is either pricing or clear title - that we don't want any encroachment on it... It takes 2 years to build up an ICD. So 6, 7, I'm talking over a period of 5 to 7 years, not even immediate. We are focused on two in the near term. But this is just not an issue with us. It's an industry-wide issue. If you look all across, everyone is struggling to find land to expand in the right locations.

Reveals the persistent challenges in land acquisition, impacting the company's ICD expansion timeline and strategy, leading to exploration of asset-light models.

Asked by Aditya Mongia

3 min read 6 chapters

Detailed narrative

Q1 FY26 Performance Overview and Market Conditions

Gateway Distriparks reported a strong year-on-year improvement in Q1 FY26, largely attributed to the absence of the Red Sea disruption that impacted the previous financial year. Volumes remained consistent, with a slight increase in market share in operating regions. The company noted that while geopolitical and geoeconomic conditions persist, they are expected to stabilize soon, and upcoming trade deals with the UK, USA, and EU are anticipated to improve EXIM volumes long-term.

Rail and CFS Business Performance

The Rail business recorded an EBITDA per TEU of approximately INR9,100, a slight decrease due to higher empty and underframe running, lower double stacking (39%), and an imbalance from lack of exports. Rail segment revenue was INR319 crores, with a realization of INR34,200 per TEU, down about 3% YoY. The CFS business showed improvement with an EBITDA per TEU of around INR1,500. Management expects Rail EBITDA per TEU to return to INR9,500 in coming quarters and potentially INR10,000 with the DFC connection to Bombay.

Strategic Expansion of ICD Network

The company's focus on expanding its Inland Container Terminal (ICD) network continues, despite significant challenges in land acquisition. Management aims to open 6-7 new ICDs over the next 5-7 years, with two focused on in the near term. Building an ICD typically takes 2 years. The annual capex for existing operations is about INR30 crores, with new terminals requiring an average of INR150 crores each. INR300 crores have been earmarked for two terminals, and INR60-70 crores for the Jaipur terminal when it materializes. The company is also exploring asset-light models to overcome land acquisition hurdles.

Snowman Logistics Growth and Capacity Expansion

Snowman Logistics maintained its market leadership, with its trading and distribution segment showing a robust 54% quarter-on-quarter growth. The company plans to add 3-4 new facilities in the next 2 years and 5-6 facilities in the next 3 years, investing around INR100 crores in its own facilities and also using asset-light models. New facilities in Calcutta, Krishnapatnam, and Kundli (NCR) are expected to contribute to revenue, with an estimated utilization increase of 7,000 to 10,000 pallets in coming quarters. Snowman also implemented general price increases in the range of 5% to 7%.

Sustainability Initiatives and Green Logistics

Gateway Distriparks is actively pursuing greener logistics solutions. The majority (80-90%) of its warehouses, including Snowman's, utilize rooftop solar power, primarily under an opex model, providing a discount to grid rates. The company is now evaluating direct investment in solar, aiming for costs of INR2-2.5 compared to the average INR4.5 grid rate. Additionally, GDL is exploring electric and LNG vehicles for movement, with 65-70 CNG vehicles already in operation, to further reduce its carbon footprint.

DFC Connectivity and Market Share

The Dedicated Freight Corridor (DFC) connection at JNPT is now expected to be operational by March 31, 2026, a revision from the earlier December 31, 2025 target. While the exact impact on cargo shifting from other ports like Pipavav and Mundra is yet to be determined, GDL, as one of the few private operators with regular services to JNPT, anticipates an advantage. The company has maintained its market share, with NCR at 16-17%, Ludhiana at 27%, and Uttarakhand at 37%.

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