Gateway Distriparks Limited — Q2 FY26 earnings call

Call held 4 Nov 2025

Management summary

Gateway Distriparks reported Q2 FY26 with varied performance across segments. Rail and CFS unit economics were detailed, with specific plans for domestic rail expansion and volume growth. Snowman Logistics faced profitability challenges in both transportation and warehousing segments, with management outlining clear strategies for realignment and margin recovery. The company remains optimistic about future growth driven by trade deals and infrastructure improvements, while maintaining a disciplined approach to capital expenditure and market share expansion.

Highlights

  • Rail EBITDA per TEU stood at INR9,300, while CFS EBITDA per TEU was INR1,000 for Q2 FY26.

  • The company targets 10-15% double-digit volume growth from existing locations in the medium term.

  • Domestic rail volumes are targeted to reach 1,000+ TEUs per month within the next 2 years, aiming for 10-15% of total business after a few years.

  • Snowman Logistics' transportation segment is undergoing realignment, targeting high single-digit PBT margins after breaking even this quarter.

  • Snowman Logistics' warehousing PBT margin dipped significantly to 3% from 12% last quarter, attributed to lower utilization, seafood stress, and weather-related diesel consumption.

  • Snowman Logistics plans an annual capex of INR100-150 crores, primarily for 2-3 owned warehouses and 2 build-to-suit facilities per year.

  • Gateway Distriparks' double stack percentage increased to 41% this quarter from 39% last quarter.

  • The company aims to increase its ownership in Snowman Logistics to just over 50%.

Key financials

  1. Rail EBITDA per TEU ₹9,300
  2. CFS EBITDA per TEU ₹1,000
  3. Snowman Warehousing Top Line ₹60 Cr 0%QoQ
  4. Snowman Warehousing PBT Margin 3% -75%QoQ
  5. Rail Double Stack Percentage 41% +5.1%QoQ
  6. Rail EBITDA per Container (YoY Change) ₹-500

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
    ₹9,300 EBITDA per TEU41% Double Stack Percentage16% Market Share NCR27% Market Share Punjab38% Market Share Uttarakhand
  • CFS
    ₹1,000 EBITDA per TEU
  • Snowman Logistics - Transportation
    0% PBT Margin
  • Snowman Logistics - Warehousing
    ₹60 Cr Top Line3% PBT Margin

Guidance & targets

Volume

  • Volume Growth Volume · medium term · High confidence 10-15%
    We're expecting double-digit growth closer to maybe 10% to 15% is a good range that we're looking at from our existing locations, not counting Ankleshwar and domestic volumes or any other new location.

    — Samvid Gupta, Joint Managing Director

  • Domestic TEUs per month Volume · next 2 years · Medium confidence 1,000+
    we are looking at it from a longer-term view where we want to do 1,000 plus TEUs of domestic in the next 2 years per month and then look to grow from there.

    — Samvid Gupta, Joint Managing Director

  • Snowman Warehousing Volumes Volume · December onwards till the year-end · Medium confidence good volumes
    Yes, we are seeing positive traction from December onwards till the year-end, we are expecting good volumes.

    — Padamdeep Singh Handa, CEO AND DIRECTOR – SNOWMAN LOGISTICS LIMITED

Revenue

  • Domestic Business Contribution Revenue · after a few years · Medium confidence 10-15%
    It still won't be a major contributor like EXIM, but maybe 10% - 15% of our business can be domestic in, after a few years.

    — Samvid Gupta, Joint Managing Director

Margin

  • Snowman Transportation PBT Margin Margin · Medium confidence high single-digit

    Previously 7-8% → high single-digit

    Yes, that's what we are targeting at. So, at EBITDA level, we have turned positive and with a reduced top line and further improvements are happening in the entire we are redoing the entire metrics once again.

    — Padamdeep Singh Handa, CEO AND DIRECTOR – SNOWMAN LOGISTICS LIMITED

  • Snowman Warehousing PBT Margin Margin · next few quarters · Medium confidence 10-12%
    Okay. And going forward in the next few quarters, do we expect this to reverse and revert to the mean 10%, 12%-ish that we were making?

    — Yash Tanna

  • CFS EBITDA per TEU Margin · going forward · High confidence INR1,300-1,400
    So I think the range we've given in the past is INR1,300 to INR1,400. That's still the target going forward.

    — Samvid Gupta, Joint Managing Director

Capex

  • Snowman Annual Capex Capex · per year · High confidence INR100-150 crores
    So we'll be roughly spending about INR100 crores to INR150 crores per year, and primarily, that is on making two to three owned warehouses or owned land.

    — Samvid Gupta, Joint Managing Director

Capacity

  • Snowman New Facilities (Build-to-Suit) Capacity · per year · Medium confidence two facilities
    And then we'll also be getting maybe two facilities a year on a build-to-suit model.

    — Samvid Gupta, Joint Managing Director

Client Count

  • Snowman 5PL Major Accounts Client Count · FY26 · Medium confidence 2-3
    But yes, we are working on 2, 3 major accounts in the same space. ... Yes, that's -- I mean, at least one of them will be closed in FY '26. The operations may start in Q2 or Q1 of FY '27.

    — Padamdeep Singh Handa, CEO AND DIRECTOR – SNOWMAN LOGISTICS LIMITED

Market Share

  • GDL Ownership of Snowman Market Share · High confidence just cross 50%
    I think we clarified this in the last few calls that our target was to reach 50%, just cross 50%.

    — Samvid Gupta, Joint Managing Director

Risks & concerns

  • US tariff situation impacting exports

    medium

    Exports saw a dip, with 4-5% lower volumes attributed to US tariffs, though it has stabilized. Full recovery depends on trade deal finalization.

    Management acknowledged

  • GST change impacting Snowman's transportation segment customer mix

    medium

    Due to GST changes (not operating in 5% GST yet), some restaurant brand customers opted out, impacting the transportation segment.

    Management acknowledged

  • Competition and operational imbalances in the Rail segment

    medium

    Competition, imbalance, empty running, lower double stacking in certain routes, and port congestion are pressuring Rail EBITDA per container.

    Management acknowledged

  • Weather-related power cuts and diesel consumption impacting warehousing margins

    low

    Patchy weather led to increased power cuts and diesel consumption, particularly in Southern warehouses, contributing to reduced margins.

    Management acknowledged

Areas of evasion (2)

  • granular split between laden and empty container numbers
  • terminal-wise double stack percentage or EBITDA impact

Q&A highlights

3 direct
Snowman Logistics Transportation Segment Profitability and Realignment Direct
So some of the vehicles which were off-road were earlier operated at a very negative margin, those are now moved out and the fleet will be refurbished, which will help us to increase the profitability.

Analyst questioned the significant drop in transportation PBT margins, and management provided a clear explanation and strategy for recovery, including fleet optimization and business model realignment.

Asked by Yash Tanna

Snowman Logistics Warehousing Segment Margin Dip Direct
One was on the utilization part of the overall capacity, which was there. Some new capacities were added and the overall utilization was reduced. Other was our existing couple of warehouses also had a stress because of seafood and other elements... And then third was weather, which was quite patchy this time, which has increased power cuts, and we have had a considerable diesel consumption in the warehousing unit.

Analyst highlighted a sharp decline in warehousing PBT margins, and management provided a multi-faceted explanation covering utilization, specific client issues, and weather impacts, indicating transparency.

Asked by Yash Tanna

Rail EBITDA per Container Pressure Despite Double Stacking Increase Direct
There are many reasons. One is competition. One is an imbalance is there. Empty running is part of it, lower double stacking in certain routes. So mix towards ports changes, weight slab changes. Transit time also was slightly better last year versus this year because there is port congestion going on.

Analyst questioned why unit economics in the rail segment were under pressure despite an increase in double stacking, prompting management to detail various contributing factors like competition, imbalance, and port congestion.

Asked by Jignesh Makwana

3 min read 7 chapters

Detailed narrative

Q2 FY26 Operational Performance Highlights

For Q2 FY26, Gateway Distriparks reported a Rail EBITDA per TEU of INR9,300, while the CFS segment recorded an EBITDA per TEU of INR1,000. The company's double stack percentage improved to 41% this quarter from 39% in the previous quarter. Despite this, Rail EBITDA per container saw a year-on-year decline of approximately INR500 from INR9,800, attributed to competition, operational imbalances, and port congestion. Snowman Logistics' warehousing segment reported a top line of INR60 crores, but its PBT margin significantly dropped to 3% from 12% last quarter.

Strategic Focus on Domestic Rail Logistics

Gateway Distriparks is actively expanding its domestic rail services, particularly from Ankleshwar to North India, utilizing its ICD network in Ludhiana, Garhi, Piyala, and Kashipur. The company aims to achieve 1,000+ TEUs of domestic volume per month within the next two years. Management anticipates that domestic business could contribute 10-15% of the total business after a few years, driven by trade deals and the shift from road to rail with DFC connectivity to Nava Sheva.

Snowman Logistics: Transportation Segment Turnaround

Snowman Logistics' transportation segment, which previously achieved 7-8% PBT margins, is currently breaking even. This decline is due to certain vehicles operating at negative margins being moved out and the impact of GST changes on customer mix, particularly restaurant brands. Management is realigning the business model, refurbishing the fleet, and focusing on new products and ice cream brands, targeting a return to high single-digit PBT margins.

Snowman Logistics: Warehousing Segment Challenges and Outlook

The warehousing segment of Snowman Logistics saw its PBT margin dip to 3% from 12% in the previous quarter. This was primarily due to reduced overall capacity utilization from new additions, stress from seafood and other elements in existing warehouses, and increased diesel consumption caused by patchy weather and power cuts. However, management expects a reversal in the next few quarters, anticipating good volumes from December onwards and a return to 10-12% PBT margins.

CFS Segment Performance and Export Headwinds

The CFS EBITDA per TEU was lower at INR1,000 this quarter, impacted by one-off legal costs, repair and maintenance, and a dip in exports due to the US tariff situation. Approximately 4-5% of export volumes were lower on this account, though the situation has stabilized. The company maintains a target CFS EBITDA per TEU of INR1,300-1,400, expecting improvement in coming quarters as trade deals are finalized.

Capital Expenditure and Network Expansion

Snowman Logistics plans an annual capital expenditure of INR100-150 crores, primarily for developing two to three owned warehouses on owned land. Additionally, they aim to add two build-to-suit facilities per year. The ideal facility size is approximately 5,000 pallets. Gateway Distriparks is also targeting to increase its ownership in Snowman Logistics to just over 50% and is open to exploring opportunities for satellite terminals and third-party terminals for network expansion.

Market Share and Trade Deal Impact

Gateway Distriparks reported a stable market share of 16-17% in NCR, with increases to 27% in Punjab and 38% in Uttarakhand. The company anticipates robust growth in container volumes, especially imports, and expects positive impacts from ongoing trade deals with the UK, EU, US, Oman, Philippines, New Zealand, and Australia, which are projected to boost exports out of India.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Services earnings calls