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    Gateway Distri

    GATEWAYGood
    Services·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

    8

    • 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%.

    What Changed1

    vs Q3 FY26

    Guidance items7 → 11 (+4)

    Key financials

    Single quarter

    06 metrics
    1. 01Rail EBITDA per TEU₹9,300
    2. 02CFS EBITDA per TEU₹1,000
    3. 03Snowman Warehousing Top Line₹60 Cr0%QoQ
    4. 04Snowman Warehousing PBT Margin3%-75%QoQ
    5. 05Rail Double Stack Percentage41%+5.1%QoQ

    Segment breakdown

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

    Guidance & targets

    11
    CategoryTargetPriority
    Volume
    Volume Growth
    10-15%
    		High
    Volume
    Domestic TEUs per month
    1,000+
    		Medium
    Volume
    Snowman Warehousing Volumes
    good volumes
    		Medium
    Revenue
    Domestic Business Contribution
    10-15%
    		Medium
    Margin
    Snowman Transportation PBT Margin
    high single-digit
    		Medium
    Margin
    Snowman Warehousing PBT Margin
    10-12%
    		Medium
    Margin
    CFS EBITDA per TEU
    INR1,300-1,400
    		High
    Capex
    Snowman Annual Capex
    INR100-150 crores
    		High
    Capacity
    Snowman New Facilities (Build-to-Suit)
    two facilities
    		Medium
    Client Count
    Snowman 5PL Major Accounts
    2-3
    		Medium
    Market Share
    GDL Ownership of Snowman
    just cross 50%
    		High

    Risks & concerns

    6
    RiskSeverity

    US tariff situation impacting exports

    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

    medium

    Weather-related power cuts and diesel consumption impacting warehousing margins

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

    low

    GST change impacting Snowman's transportation segment customer mix

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

    medium

    Competition and operational imbalances in the Rail segment

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

    medium

    Areas of Evasion(2)

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

    Q&A highlights

    3

    “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

    3 min read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.