Guj Pipavav Port

Gujarat Pipavav Port reported a strong financial performance in Q3 FY26, with EBIT increasing by 18% quarter-on-quarter. This growth was primarily fueled by a significant 39% rise in RoRo volumes, which reached a record high of over 62,000 cars. Dry Bulk volumes also contributed positively, growing by 25% QoQ, while container volumes showed a 7% QoQ increase. For the nine-month period, YTD EBIT was up 18% over the previous year, and EBITDA margins expanded by 100 basis points to 58%.

The container segment, despite historical year-on-year declines, showed 'green shoots' with a 7% QoQ growth. Management noted structural positives, including shipping lines resuming transit through the Suez Canal, which releases capacity and benefits the port. Initiatives with Maersk have started yielding results, contributing to a 15% volume growth for Maersk from Jan to Dec. The company expects further benefits from Red Sea opening and bilateral free trade agreements, but will wait for one more quarter to confirm structural growth.

Beyond containers, RoRo volumes were a standout, achieving their highest-ever quarter with a 39% QoQ increase, handling over 62,000 cars. Dry Bulk volumes also demonstrated robust growth, up 25% QoQ. Liquids remained broadly flattish quarter-on-quarter. On a year-to-date basis, RoRo volumes grew by 40%, dry bulk by 45%, and the liquid business by 13%, highlighting broad-based operational strength.

Operating expenses outpaced revenue growth both QoQ and YoY during the quarter. Management attributed this to specific factors, including catch-up on preventive maintenance activities and additional spend on CSR initiatives. A gratuity provision of approximately Rs. 4.8 crores was also recorded as an extraordinary item^📎 due to new labor laws. Despite these, YTD EBITDA margins for the nine-month period stood at 58%, a 100 basis point improvement over the previous year.

The company has significant long-term investment plans totaling 17,000 crores, which are contingent on the concession extension. For the liquid segment, a new jetty is under construction, targeted for completion by December 2026, which will expand total liquid handling capacity from 1.6-1.75 million metric tons to 5 million metric tons. In the RoRo segment, a 60,000 square meter staging area expansion is underway, with 30,000 sq meters expected by March and the remainder by May/June, increasing car handling capacity from 250-300k to 400-450k cars by June.

The ongoing engagement with the Gujarat Maritime Board for concession renewal is progressing positively, with management reporting no 'red flags.' This extension is crucial as the company's substantial 17,000 crore investment plan is contingent upon it. The company expects the Kandla Gorakhpur Pipeline (KGP) to connect to its facilities between March and June 2026, which is anticipated to further boost liquid cargo volumes. Management expressed optimism about structural positives in the market benefiting the port's future growth.

The company implemented a tariff increase of approximately 5% across container and marine services, effective January. This increase is expected to translate into a 3% to 4% impact on the top line. Realizations for the current quarter remained stable, with container at ₹9,500-₹10,500 per TEU, bulk at ₹650 per metric ton, and liquid at ₹550-₹600 per MT. Management did not disclose segment-wise margin splits or RoRo realizations due to commercial sensitivity and limited customer base.