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JSW Infrast — Q2 FY26 earnings call

Call held 16 Oct 2025

Management summary

JSW Infrastructure reported a robust Q2 FY26, with H1 consolidated revenue growing 23% YoY to ₹2,686 crores and EBITDA increasing 14% to ₹1,387 crores. Despite a 1% decline in Q2 PAT due to FX losses and moderated cargo growth from Paradip, the company demonstrated strong operational performance in other segments and made significant progress on its greenfield and brownfield expansion projects. Management reiterated its ambitious capacity and logistics business growth targets, supported by a healthy balance sheet and investment-grade rating.

Highlights

Total Revenue for H1 FY26 grew 23% YoY to ₹2,686 crores, reflecting strong operational performance.
Consolidated EBITDA for H1 FY26 increased 14% YoY to ₹1,387 crores, driven by higher EBITDA yielding assets.
Navkar Corporation reported a Net Profit of ₹4 crores in Q2 FY26, a significant turnaround from a ₹2 crores loss in the previous year, with Exim cargo volumes up 20% YoY.
The company secured an investment-grade rating of BBB-minus from BB-plus by S&P Global Ratings and Fitch Ratings, reflecting strong financial fundamentals.
Progress on greenfield projects is on track, with the Slurry Pipeline 60-70% complete and Jatadhar port dredging completed, both targeting March '27 completion.

Concerns

PAT for Q2 FY26 declined by 1% to ₹369 crores (vs ₹374 crores in Q2 FY25), primarily due to an unrealized FX loss of ₹5 crores.
Cargo handled growth of 4% in H1 FY26 was significantly impacted by a 3.4 million tonnes shortfall at the Paradip Iron Ore Terminal due to challenging macroeconomic conditions.
Slurry pipeline laying progress was slower this quarter, with only 5 kilometers laid, attributed to monsoon waterlogging in low-lying areas.

Key financials

2 periods

Q2 FY26

Total Consolidated Revenue
₹1,372 Cr
YoY +26%
Total EBITDA
₹716 Cr
YoY +18%
PAT
₹369 Cr
YoY -1%

H1 FY26

Total Revenue
₹2,686 Cr
YoY +23%
Total EBITDA
₹1,387 Cr
YoY +14%
Net Profit
₹758 Cr
YoY +13%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	1,001	1,182	1,283	1,224	1,266 +26%	1,350 +14%	1,522 +19%	1,445 +18%
Expenses	481	596	642	643	656	706	753	771
EBITDA	521	586	641	581	610 +17%	644 +10%	769 +20%	674 +16%
Margin	52%	50%	50%	47%	48%	48%	51%	47%
Other income	87	83	89	90	107	52	17	57
Interest	-80	256	8	55	105	93	130	102
Depreciation	134	138	140	143	149	164	158	166
Profit before tax	554	276	581	473	463 −16%	439 +59%	498 −14%	463 −2%
Tax rate	33%	-22%	11%	18%	20%	17%	15%	23%
Net profit	374	336	516	390	369 −1%	365 +9%	424 −18%	358 −8%
EPS	1.77	1.57	2.43	1.83	1.72	1.71	1.99	1.49

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 Segment (Q2 FY26)
₹1,103 Cr Operational Revenue₹585 Cr Operational EBITDA53% EBITDA Margin28.9 million tonnes Cargo Volumes
Logistics Segment (Navkar Corporation Q2 FY26)
₹163 Cr Revenue from Operations₹25 Cr EBITDA₹4 Cr Net Profit79,000 TEUs Exim Cargo Volumes3,94,000 metric tonnes Domestic Cargo Volumes

Capital allocation

high confidence

Capex Capex disclosed
- Aggregate financial commitments across all growth projects, awarded work orders and procurement of materials ₹3,300 Cr
- Kudathini brownfield rail siding acquisition and development ₹380 Cr
- Acquisition cost for Kudathini ₹57 Cr
Coming to the CAPEX part now, the aggregate financial commitments across all growth projects encompassing the awarded work orders and procurement of materials stood at Rs. 3,300 crores. So, that means almost Rs. 3,300 crores of capital commitments we have done. And the spend in the first half of this financial year stands at Rs. 902 crores for CAPEX. We have acquired a brownfield rail siding in Kudathini, Ballari, Karnataka. The total capital expenditure for the project is estimated at Rs. 380 crores, including Rs. 57 crores for the acquisition.
Debt Net ₹1,810 Cr · 0.8× EBITDA

As of September 2025, we have a net debt of Rs. 1,810 crores with a net debt to operating EBITDA on a trailing 12-month basis of 0.75 and one of the strong balance sheets in the sector.
M&A Kudathini brownfield rail siding Acquisition · Closed · Consideration ₹57 Cr

To develop a multimodal logistics park, container handling systems, rail freight terminal and inland container depot.
Total capital expenditure for the project is estimated at Rs. 380 crores, including Rs. 57 crores for the acquisition. This investment will be deployed over the next few years to fully develop the site into a comprehensive logistics hub.

We have acquired a brownfield rail siding in Kudathini, Ballari, Karnataka. The site spans over 86 acres, and the facility is being transformed into a state-of-the-art multimodal logistics park featuring advanced land infrastructure, container handling systems, a rail freight terminal and a fully equipped inland container depot. Commercial operations are expected to begin within the next two to three months with a phased ramp-up. The total capital expenditure for the project is estimated at Rs. 380 crores, including Rs. 57 crores for the acquisition.

Guidance & targets

Capacity

Cargo Handling Capacity Capacity · FY30 or earlier · High confidence 400 million tonnes per annum

From 177 million tonnes per annum today

This vision is being actively pursued through a series of strategic investments and development initiatives, particularly in greenfield port projects that are set to redefine India's maritime landscape. Our commitment to expanding our cargo handling capacity from the current 177 million tonnes per annum to 400 million tonnes per annum by FY '30 or earlier.

— Mr. Rinkesh Roy

Logistics Business

Logistics Business Top Line Logistics Business · by 2030 · High confidence ₹8,000 crores

parallelly grow our logistics business with a top line of Rs. 8,000 crores by 2030.

— Mr. Nagarajan J
Logistics CAPEX Logistics Business · FY26 · High confidence ₹1,500 crores

So, we have given a guidance of Rs. 4,000 crores spend in the port business and Rs. 1,500 crores spend in the logistics business, so we continue with that guidance.

— Mr. Nagarajan J
Logistics Margin Logistics Business · High confidence 25%

It would be around 25% margin that we are looking at out of that top line.

— Mr. Rinkesh Roy
Domestic vs EXIM Mix Logistics Business · High confidence 60% domestic, 40% EXIM

So, the breakup would be broadly, that is it would be somewhere around 60% would be domestic and around 40% will be EXIM.

— Mr. Rinkesh Roy
Group Customer Contribution Logistics Business · High confidence 35-40%

So, group customers, we are expecting somewhere in the range of 35% to 40%. That would be the range.

— Mr. Rinkesh Roy

Port Business

Port CAPEX Port Business · FY26 · High confidence ₹4,000 crores

So, we have given a guidance of Rs. 4,000 crores spend in the port business and Rs. 1,500 crores spend in the logistics business, so we continue with that guidance.

— Mr. Nagarajan J

Navkar Corporation

Navkar EBITDA Navkar Corporation · FY26 · High confidence ₹100 crores

Coming to Navkar EBITDA, we are at Rs. 45 crores in H1, and we continue with our guidance of Rs. 100 crores for FY '26.

— Mr. Nagarajan J

Cargo Volumes

Full Fiscal Cargo Volume Growth Cargo Volumes · FY26 · Medium confidence 8-10%

However, the exact numbers we are looking at, keeping these factors in mind, we are looking at something between 8% to 10%. But again, a lot of it depends on how the iron ore market will pan out in the coming days.

— Mr. Rinkesh Roy

Kolkata Container Terminal

Nepal Traffic Return Kolkata Container Terminal · within 18 months · Medium confidence 30-40%

The Nepal traffic, the current estimations are that we will be getting around 30% to 40% the moment we set up the right infrastructure, because these are currently without topside equipment. So, within 18 months or so we expect a gradual shift back into Kolkata, and that will drive the growth further.

— Mr. Rinkesh Roy
Occupancy Rate Kolkata Container Terminal · High confidence 90%

And this terminal, we are expecting a full occupancy, at least 90% occupancy at these two berths that we are taking.

— Mr. Rinkesh Roy

Tonnage Tax

Tonnage Tax Savings Tonnage Tax · FY26 · High confidence ₹17 crores

So, tonnage tax savings or the tax savings will be around Rs. 17 crores, which we are projecting for FY '26.

— Mr. Nagarajan J

Profitability

EBITDA and Profitability Gains Profitability · starting FY '27, '28 · Medium confidence Significant gains

The investments and efforts we are making today are poised to deliver significant gains in EBITDA and profitability starting FY '27, '28.

— Mr. Rinkesh Roy

What to watch in Q3 FY26

Full Fiscal Cargo Volume Growth

next quarter / FY26 end

Current 4% in H1 FY26 (impacted by Paradip)

Target 8-10% for FY26

Why it matters

This is management's revised full-year guidance, crucial for assessing operational performance and market recovery.

However, the exact numbers we are looking at, keeping these factors in mind, we are looking at something between 8% to 10%. But again, a lot of it depends on how the iron ore market will pan out in the coming days.

Risks & concerns

Challenging macroeconomic conditions in iron ore export market
high

This led to a 3.4 million tonnes shortfall at Paradip Iron Ore Terminal in H1 FY26, significantly impacting overall cargo growth. However, prices are now firming up.

Management acknowledged
Geopolitical tensions and evolving trade policies
medium

Global economy continues to navigate a complex terrain, with geopolitical tensions and evolving trade policies, especially from the US, introducing new uncertainties.

Management acknowledged
Monsoon impact on construction progress
low

Slurry pipeline laying progress was slow (5 km this quarter) due to waterlogging in low-lying areas during the monsoon period, with actual work expected to pick up from November.

Management acknowledged
Fluctuation in dollar-rupee rate and yield curve
low

Resulted in an unrealized FX loss of ₹5 crores in Q2 FY26, impacting reported PBT and PAT, though it's a non-cash accounting adjustment.

Management acknowledged

Q&A highlights

7 direct

Full fiscal cargo volume growth guidance and realization per tonne Direct

However, the exact numbers we are looking at, keeping these factors in mind, we are looking at something between 8% to 10%. But again, a lot of it depends on how the iron ore market will pan out in the coming days. And on the realization part, as we had explained, so these are coming at our three major private terminals, especially at Jaigad and Dharamtar and also at Goa, where we are giving more additional cargo-related services.

Management provided a revised full-year volume growth guidance and explained the drivers for improved realization per tonne, including permanent rate increases and additional services.

Asked by Sumit Kishore

FY26 CAPEX target and split between port and logistics Direct

So, we have given a guidance of Rs. 4,000 crores spend in the port business and Rs. 1,500 crores spend in the logistics business, so we continue with that guidance.

Management confirmed the specific CAPEX allocation for the current fiscal year across its two core business segments, indicating a significant pickup in H2.

Asked by Sumit Kishore

Status of greenfield projects (Jatadhar port, Slurry Pipeline) and regulatory approvals Direct

So, these are all ongoing projects. So, there are now no regulatory approvals that have to be taken. So, all the regulatory approvals are in place. And in Jatadhar, work has started. Dredging works have been completed to the tune of 4.5 million cubic meters and work on the berths and other conveyors and all, these have also started. So, we are on course to completion of this project by March '27.

Management provided a clear update on the progress and regulatory status of key greenfield projects, confirming they are on track for their stated completion timelines.

Asked by Bharanidhar Vijayakumar

Impact of iron ore market disruption on Paradip volumes and outlook for reversal Direct

Last year, H1, there was around 16 million tonnes of iron ore dispatched from these four terminals, this year it has dropped down to around 9 million tonnes. So, there has been a loss of 7 million tonnes of iron ore movement across these four port terminals. Because the iron ore prices had come down below a normal economic level for movement. And these prices have gone up in the last month, and we are now seeing a firming up of these prices in the international market.

Management detailed the specific volume impact from the iron ore market slowdown and provided an optimistic outlook for recovery based on recent price trends and miner activity.

Asked by Bharanidhar Vijayakumar

Strategy for the newly won Kolkata container terminal, including Nepal traffic and capacity ramp-up Direct

And there is a trend now that with better efficiencies that we will get in, along with the port taking the right measures to improve efficiencies in and around the port logistics, we are expecting this traffic to also make a comeback back into Kolkata, and that will drive the growth further. The Nepal traffic, the current estimations are that we will be getting around 30% to 40% the moment we set up the right infrastructure... And this terminal, we are expecting a full occupancy, at least 90% occupancy at these two berths that we are taking.

Management outlined its strategy to revive volumes at the Kolkata terminal, particularly by recapturing Nepal traffic, and provided specific occupancy targets.

Asked by Mohit Kumar

Tariff regime for major port terminals and move towards free market pricing Partial

Achal, this new policy is still in a draft stage. So, it is not yet finalized. So, once it is finalized, they will all get benefit. So, right now, it is at the same tariff regime.

The question addressed a potential regulatory change that could significantly impact port revenues, and management clarified the current status of the policy.

Asked by Achal Lohade

Logistics business revenue mix (domestic vs EXIM, group vs third-party) for the ₹8,000 crores target Direct

So, the breakup would be broadly, that is it would be somewhere around 60% would be domestic and around 40% will be EXIM. So, group customers, we are expecting somewhere in the range of 35% to 40%.

Management provided a detailed breakdown of the expected revenue composition for its ambitious logistics business target, offering clarity on growth drivers.

Asked by Achal Lohade

Fujairah terminal volume decline and O&M contract renewal Direct

So, Ankita, there was a kind of in the first half of this year, there was an issue with black oil demand in that area totally... Now we are gradually seeing that it's come back to some sort of normalcy... The oil terminal is our own. There is no period as such. So, this O&M contracts will be renewed because they have a practice of giving on a five-year basis.

Management explained the reasons for volume fluctuations at Fujairah and assured investors about the continuity of the O&M contract, which is crucial for international operations.

Asked by Ankita Shah

3 min read 6 chapters

Detailed narrative

Strong H1 FY26 Performance Despite Headwinds

JSW Infrastructure reported a robust H1 FY26, with consolidated revenue growing 23% YoY to ₹2,686 crores and EBITDA increasing 14% YoY to ₹1,387 crores. Net profit for the period also saw a 13% growth, reaching ₹758 crores. This performance was achieved despite a 3.4 million tonnes shortfall at the Paradip Iron Ore Terminal due to challenging macroeconomic conditions, which moderated overall cargo handled growth to 4% for H1 FY26. Without this impact, growth would have been closer to 10%.

Q2 FY26 Financials and Margin Expansion

For Q2 FY26, total consolidated revenue stood at ₹1,372 crores, a 26% YoY growth, with total EBITDA reaching ₹716 crores, up 18% YoY. The port segment's operational EBITDA increased by 12% to ₹585 crores, with its margin improving to 53% from 52% a year ago, driven by strong operational performance at private ports like Jaigad, SWPL, and Dharamtar. However, PAT for Q2 FY26 saw a marginal 1% decline to ₹369 crores, primarily due to an unrealized FX loss of ₹5 crores compared to a gain of ₹155 crores in the prior year.

Logistics Business Turnaround and Growth

Navkar Corporation, the company's logistics arm, delivered a standout performance in Q2 FY26, achieving a net profit of ₹4 crores, a significant turnaround from a ₹2 crores loss in the previous year. Its revenue from operations grew 20% YoY to ₹163 crores, supported by a 20% increase in Exim cargo volumes to 79,000 TEUs and a 46% rise in domestic cargo volumes to 394,000 metric tonnes. The company continues to target a logistics business top line of ₹8,000 crores by 2030 with an EBITDA margin of approximately 25%.

Strategic Expansion and Greenfield Projects

JSW Infrastructure is actively pursuing its vision to expand cargo handling capacity to 400 million tonnes per annum by FY30 or earlier. Key milestones in Q2 FY26 included the conclusion of public hearings for Keni and Murbe ports, paving the way for construction. The 302 km iron ore Slurry Pipeline project is 60-70% complete, and construction at Jatadhar port is in full swing, with both projects targeting completion by March '27. The company also signed a 30-year concession agreement for a container terminal at Netaji Subhash Dock in Kolkata, with a handling capacity of 6.3 million tonnes per annum.

Capital Allocation and Financial Strength

The company's aggregate financial commitments for growth projects, including awarded work orders and material procurement, stand at ₹3,300 crores, with ₹902 crores spent in H1 FY26. It maintains a healthy balance sheet with a net debt of ₹1,810 crores and a net debt to operating EBITDA ratio of 0.75 as of September 2025. Management reiterated its FY26 CAPEX guidance of ₹4,000 crores for the port business and ₹1,500 crores for the logistics business. The company also achieved an investment-grade rating of BBB-minus from S&P Global Ratings and Fitch Ratings.

International Operations and Future Outlook

International operations in the UAE, particularly at Fujairah and Dibba ports, delivered exceptional operational performance. Fujairah is on track to exceed its minimum cargo volume commitments, and both ports are expected to scale up volumes in the coming years. Management expressed confidence in India's economic trajectory and the company's strategic investments, anticipating significant gains in EBITDA and profitability starting FY27-28, driven by new greenfield ports, brownfield expansions, and a robust logistics platform.

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