JSW Infrast — Q1 FY26 earnings call

Call held 22 Jul 2025

Management summary

JSW Infrastructure reported a strong Q1 FY26 with a 19% YoY revenue growth to ₹1,314 crores and a 31% YoY net profit increase to ₹390 crores, driven by robust third-party cargo growth and Navkar Corporation's turnaround. Despite a 5% YoY cargo volume growth in Q1, management reiterated its 10% annual guidance, expecting a stronger second half. The company continues to pursue strategic expansions and logistics network development, including new terminal acquisitions and infrastructure projects.

Highlights

  • Total revenue increased 19% YoY to ₹1,314 crores.

  • Net profit surged 31% YoY to ₹390 crores.

  • Third-party cargo grew 8% YoY to 15.3 MMT, now comprising 52% of the total mix.

  • Navkar Corporation returned to profitability with net profit of ₹2 crores and EXIM cargo growth of 31% YoY.

  • Port segment EBITDA margin improved to 51.7% from 51% a year ago.

Concerns

  • Q1 FY26 cargo volume growth of 5% was lower than the annual guidance of 10%, requiring a significant catch-up in H2.

  • Jaigarh port volumes showed a slight decline due to reduced third-party cargo and shifted vessel arrivals.

Key financials

  1. Total Cargo Handled 29.4 MMT +5%YoY
  2. Total Revenue ₹1,314 Cr +19%YoY
  3. EBITDA ₹671 Cr +10%YoY
  4. Net Profit ₹390 Cr +31%YoY
  5. Port Segment EBITDA Margin 51.7% +0.7%YoY
  6. Net Debt to Operating EBITDA 0.54×

What they filed

Q1 FY27: revenue up 18.1%, net profit down 8.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,001 1,182 1,283 1,224 1,266 +26%1,350 +14%1,522 +19%1,445 +18%
EBITDA521 586 641 581 610 +17%644 +10%769 +20%674 +16%
Net profit374 336 516 390 369 −1%365 +9%424 −18%358 −8%
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

  • Port Business
    ₹1,086 Cr Operational Revenue₹561 Cr Operational EBITDA51.7% EBITDA Margin
  • Navkar Corporation
    ₹138 Cr Revenue from Operations₹20 Cr EBITDA₹2 Cr Net Profit81,000 TEUs EXIM Cargo Volume2,75,000 metric tonnes Domestic Cargo Volume

Capital allocation

high confidence
  • Capex ₹3,000 Cr
    • Aggregate financial commitments across all growth projects encompassing awarded work orders and procurement of materials ₹3,000 Cr
    The aggregate financial commitments across all growth projects encompassing awarded work orders and procurement of materials stands at approximately Rs. 3,000 crores.
  • Debt Net ₹1,246 Cr · 0.5× EBITDA
    As of June '25, we have a Net Debt of Rs. 1,246 crores with net debt to operating EBITDA of 0.54x and this is one of the strongest balance sheets in the sector.
  • M&A NCR Rail Infrastructure Limited Acquisition · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    Part of pan-India logistics network, serving steel cargo, ICDs, and containers for return cargo. Strategic location near Eastern DFC and Western DFC entry.

    In line with our logistics expansion goals, our resolution plan for NCR Rail Infrastructure Limited has been approved under the insolvency process and we have received a letter of intent from the resolution professional.

Guidance & targets

Volume

  • Total cargo volume growth Volume · FY26 · High confidence 10%
    We still stand by our guidance of 10% for the entire year. And we are seeing very good trends also. So, we still stand firm on that guidance of 10%.

    — Rinkesh Roy

  • Jaigarh + Dharamtar combined cargo volume Volume · FY26 · Medium confidence 45.8-46 MMTPA
    And this year will be operating at the higher end of the range, we will be targeting around 45.8, 46 million tonnes.

    — Rinkesh Roy

Capacity

  • Cargo handling capacity Capacity · FY2030 or earlier · High confidence 400 MMTPA
    At JSW Infrastructure, we are focused on scaling our cargo handling capacity from 177 million tonnes per annum to 400 million tonnes per annum by FY2030 or earlier...

    — Rinkesh Roy

Revenue

  • Logistics business top line revenue Revenue · FY2030 · High confidence ₹8,000 crores
    ...grow our logistic business with a top line of Rs. 8,000 crores by FY2030.

    — Lalit Singhvi

  • Logistics business revenue Revenue · FY26 · Medium confidence ₹700-800 crores
    So, broadly we are looking at around Rs. 700 to 800 crores revenue in the entire year...

    — Rinkesh Roy

Profitability

  • Logistics business EBITDA Profitability · FY26 · High confidence ₹100 crores
    ...and we are looking at around Rs. 100 crores EBITDA for the year '26...

    — Rinkesh Roy

Project Completion

  • Kolkata terminal commissioning Project Completion · Q2 FY27 · High confidence August 2026
    August 26, Q2 of 27.

    — Rinkesh Roy

  • Iron ore slurry pipeline project completion Project Completion · March '27 · High confidence March 2027
    The project remains on track for completion by March '27.

    — Rinkesh Roy

  • JNPA Liquid Terminal project completion Project Completion · Q2 FY26 · High confidence Within this quarter
    Work on the JNPA Liquid Terminal is progressing well and we are confident of completing the project within this quarter.

    — Rinkesh Roy

  • Bhoke to Jaigarh rail siding completion Project Completion · 1.5-2 years · High confidence 1.5-2 years
    So they will be doing it in a period of again 1.5-2 years' time.

    — Rinkesh Roy

What to watch in Q2 FY26

Total Cargo Volume Growth

Next quarter (Q2 FY26) and H2 FY26
Current 5% YoY in Q1 FY26
Target Progress towards 10% YoY for FY26

Why it matters

Management reiterated 10% annual growth despite Q1's 5%, expecting H2 to compensate. Verification of Q2 performance is key.

We still stand by our guidance of 10% for the entire year. And we are seeing very good trends also. So, we still stand firm on that guidance of 10%.

Risks & concerns

  • Achieving 10% annual volume growth after a slow Q1

    medium

    Q1 FY26 cargo volume growth was 5% YoY, while full-year guidance is 10% YoY. Management expects H2 to be stronger due to monsoon effects in H1 and current positive trends in July.

    Analyst acknowledged

  • Project delays for Jaigarh LPG Terminal and Tuticorin

    low

    Jaigarh LPG project faced slight delays due to PESO approval, and Tuticorin due to final LOA timing, but both are now on track for completion as per revised timelines.

    Analyst acknowledged

Q&A highlights

4 direct
Volume Growth vs Guidance Direct
We still stand by our guidance of 10% for the entire year. And we are seeing very good trends also. So, we still stand firm on that guidance of 10%.

Addresses investor concern about low Q1 volume growth (5%) compared to full-year guidance (10%), with management confident of H2 catch-up.

Asked by Alok Deora (Motilal Oswal)

Jaigarh and Dharamtar Volume Decline Partial
It is only Jaigarh which has shown a little decline, which was primarily one is some third-party cargo also got reduced because MOP and this Urea one, last quarter government has not placed the orders and this is coming up in the subsequent quarter.

Explains the specific reasons for volume underperformance at Jaigarh, attributing it to temporary third-party cargo issues and shifted vessel arrivals, with expected recovery.

Asked by Mohit Kumar (ICICI Securities)

NCR Rail Infrastructure Acquisition Rationale Direct
So, this, as we told you earlier, that we are looking at building up a pan-India logistics network and primarily serving with the anchor base of steel cargo and then looking at ICDs and containers for return cargo. So, keeping that in mind, this is one of those terminals we had identified to fit into our overall pan-India logistics plan.

Clarifies the strategic importance of the NCR Rail acquisition as a key component of the company's broader pan-India logistics network expansion.

Asked by Priyankar Biswas (JM Financial)

Jaigarh LPG Terminal & Tuticorin Project Delays Direct
And LPG project in Jaigarh, the PESO approval we got was slightly delayed. So, keeping that, these are all statutory approvals that need to be in place before we can undertake the project. So, that was the prime reason. But now we are on track and I think we should be completing it on schedule as we have given the guidance or before that.

Addresses concerns about project delays, providing specific reasons (statutory approvals, LOA timing) and reaffirming confidence in meeting revised timelines.

Asked by Veenit (Investec)

Navkar Corporation's Contribution to Logistics Business Partial
No. It can't be like that because the Navkar balance sheet doesn't permit that much. You know the balance sheet of Navkar. So, whatever the way EBITDA is improving now, you can see that EBITDA is improving substantially. So, whatever you can absorb basis net debt to EBITDA of our guidance, we will keep investing in this. But obviously, their balance sheet is not that strong that they can take that much of the load.

Clarifies that while Navkar is part of the logistics growth, its balance sheet capacity limits its contribution to the overall ₹8,000 crores logistics revenue target, indicating other acquisitions/build-outs will be needed.

Asked by Mohit Jain (Deven Choksey)

Realization per Tonne Increase and Tariff Hikes Direct
So, we have been able to increase some prices this year. Like Goa, we have increased. Then the coal terminal also we have increased. So wherever there is a possibility, otherwise WPI based in any way we are able to increase, but WPI was not that high. So, wherever it is not WPI linked, we have been able to increase substantially.

Explains the 2% YoY increase in realization per tonne, attributing it to specific price increases in certain terminals and non-WPI linked contracts.

Asked by Nidhi Shah (ICICI Securities)

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

JSW Infrastructure reported a robust Q1 FY26, with total revenue growing 19% YoY to ₹1,314 crores and net profit increasing 31% YoY to ₹390 crores. EBITDA also saw a 10% YoY rise to ₹671 crores. The port segment's operational revenue grew 8% to ₹1,086 crores, with its EBITDA margin improving to 51.7% from 51% a year ago. Navkar Corporation also contributed significantly, turning profitable with ₹2 crores net profit.

Cargo Volume Dynamics and Outlook

Total cargo handled in Q1 FY26 was 29.4 million tonnes, a 5% YoY increase, primarily driven by coal handling at Ennore, PNP, and Paradip, alongside contributions from Tuticorin and JNPT Liquid Terminals. Third-party cargo showed strong growth of 8% YoY to 15.3 million tonnes, now constituting a record 52% of the total mix. Despite the Q1 growth being below the 10% annual guidance, management expressed confidence in achieving the full-year target, citing historical trends of stronger H2 performance and positive July trends.

Strategic Expansion and Project Updates

The company is actively pursuing its goal to scale cargo handling capacity to 400 MMTPA by FY2030 and build a pan-India logistics network. Key project updates include securing an LOA for the redevelopment of Berth 7 & 8 at Netaji Subhash Dock in Kolkata, and the approval of a resolution plan for NCR Rail Infrastructure Limited, for which ₹467 crores has been bid. The iron ore slurry pipeline project is on track for completion by March 2027, and the JNPA Liquid Terminal is expected to be completed within Q2 FY26.

Navkar Corporation's Turnaround and Logistics Growth

Navkar Corporation delivered an outstanding Q1 FY26 performance, achieving a net profit of ₹2 crores, marking a significant turnaround from previous losses. Its EXIM cargo volume grew robustly by 31% YoY to 81,000 TEUs, and domestic cargo increased 11% YoY to 2,75,000 metric tonnes. Revenue from operations for Navkar rose 17% YoY to ₹138 crores, with EBITDA climbing to ₹20 crores. Management projects the overall logistics business to achieve ₹700-800 crores revenue and ₹100 crores EBITDA for FY26.

Capital Structure and Allocation

As of June 2025, JSW Infrastructure maintains a strong balance sheet with a net debt of ₹1,246 crores and a net debt to operating EBITDA ratio of 0.54x. The company has aggregate financial commitments of approximately ₹3,000 crores for ongoing growth projects, including awarded work orders and material procurement. This strong capital position supports its growth plans, including the target to grow the logistics business top line to ₹8,000 crores by FY2030.

Tariff and Realization Improvements

The company reported a 2% YoY increase in realization per tonne, attributed to strategic price increases implemented in certain terminals like Goa and the coal terminal. Management noted that these increases were primarily in areas not linked to the Wholesale Price Index (WPI), allowing for substantial adjustments where possible, with such changes typically implemented in Q1. This proactive approach contributed to revenue growth.

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