JSW Infrast — Q4 FY25 earnings call

Call held 30 Apr 2025

Management summary

JSW Infrastructure delivered a strong Q4 and full year FY25, marked by robust revenue and net profit growth, driven by increased cargo volumes and a higher share of third-party cargo. The company made significant progress on its capacity expansion projects, increasing total handling capacity. Management outlined an ambitious capital allocation plan of INR 5,500 crores for FY26, targeting substantial growth in both port and logistics segments, while maintaining a strong balance sheet.

Highlights

  • Total revenue for FY25 stood at INR 4,829 crores, reflecting a growth of 20% year-on-year.

  • Net profit for FY25 was INR 1,521 crores, a growth of 31% year-on-year.

  • Total cargo handled stood at 117 million tonnes in FY25, a 9% year-on-year growth.

  • Third-party cargo grew by 34% year-on-year to 57.3 million tonnes, increasing its share to 49% in the overall mix.

  • Cargo handling capacity at Southwest Port Goa increased from 8.5 MTPA to 11 MTPA, increasing total company capacity from 174 million to 177 million tonnes per annum.

Concerns

  • Lower cargo volumes in the iron ore terminal at Paradip partially offset port segment growth in Q4 FY25.

  • The Logistics business incurred initial losses due to Navkar consolidation and required accounting clean-up, though profitability is expected to improve significantly in FY26.

Key financials

2 periods

Q4 FY25 Consolidated

  • PAT
    ₹516 Cr
    YoY +57%

FY25

  • Total Revenue
    ₹4,829 Cr
    YoY +20%
  • Total EBITDA
    ₹2,615 Cr
    YoY +17%
  • Net Profit
    ₹1,521 Cr
    YoY +31%
  • Total Cargo Handled
    117 million tonnes
    YoY +9%
  • Dividend Per Share
    ₹0.8

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 Segment (Q4 FY25)
    31.2 million tonnes Cargo Volumes₹1,152 Cr Operational Revenue₹626 Cr Operational EBITDA50% Third-Party Cargo Share

Capital allocation

high confidence
  • Capex ₹5,500 Cr
    • Port business ₹4,000 Cr
    • Logistics segment ₹1,500 Cr
    • Navkar investment (part of Logistics) ₹170 Cr
    For FY '26, the company plans to invest approximately INR5,500 crores with a significant portion around INR4,000 crores allocated towards the Port business and INR1,500 crores earmarked for the Logistics segment. So, we see lot of low-hanging fruit. So we will be investing -- Board has approved around INR170 crores to be spent in Navkar.
  • Debt Net ₹1,471 Cr · 0.7× EBITDA
    As of March '25, we have net debt of INR1,471 crores with a net debt to operating EBITDA of 0.65 and one of the strongest balance sheet in the sector.
  • Dividend ₹0.8/share (final) Payout ratio 40%
    The Board has recommended the dividend of INR0.80 per share, representing 40% of the face value.
  • M&A Navkar Corporation Acquisition · Closed · Consideration ₹[object Object] (undisclosed)

    Consolidated from Oct 11, '24. Initial losses due to accounting clean-up, but expected to contribute at least INR 100 crores EBITDA in FY26.

    company successfully completed the acquisition of Navkar Corporation at an enterprise value of INR1,596 crores. We have consolidated Navkar Corporation Financial in the previous quarter with effect from October 11, '24.
  • M&A Slurry pipeline Acquisition · Closed

    Signed a long-term take-or-pay agreement with JSW Steel to augment and reduce transportation costs.

    We have successfully completed the acquisition of the slurry pipeline and signed a long-term take-or-pay agreement with JSW Steel.

Guidance & targets

Port Capacity

  • Total Port Handling Capacity Port Capacity · FY2030 or before · High confidence 400 million tonnes per annum
    to ensure the advancement and successful completion of our expansion plan to 400 million tonnes per annum by financial year 2030 or before

    — Mr. Rinkesh Roy

  • New Concessions from Berth Privatization Port Capacity · next 1 or 2 years · Medium confidence 30-40 million tonnes per annum
    Broadly, we are looking at concessions coming out in the range of -- at least 30 million to 40 million tonnes per annum in the on a per annum basis in the next 1 or 2 years.

    — Mr. Rinkesh Roy

  • Goa Terminal Capacity Port Capacity · next 2 quarters at least · High confidence 15 million tonnes

    From 11 million tonnes today

    Further approvals have been sought to increase the total capacity of the Goa terminal to 15 million tonnes. We'll -- already, as I told you from 8.5 million to 11 million, we have already done. And this is a part of a process. And hopefully, this should be done in the next 2 quarters at least.

    — Mr. Rinkesh Roy

Logistics

  • Logistics Business Top Line Logistics · FY30 · High confidence INR 8,000 crores
    to significantly scale up the Logistics business segment, targeting a top line of INR8,000 crores by FY '30

    — Mr. Rinkesh Roy

  • Logistics Business EBITDA Margin Logistics · FY30 · High confidence approaching 25%
    and an EBITDA margin approaching 25%

    — Mr. Rinkesh Roy

  • Logistics Business Revenue Growth Logistics · FY26 · High confidence 50%
    and the revenue in the Logistics business, we are looking at around 50% growth.

    — Mr. Rinkesh Roy

  • Navkar EBITDA Logistics · current financial year (FY26) · High confidence at least INR 100 crores
    We are looking at, at least an EBITDA of INR100 crores at Navkar in the current financial year.

    — Mr. Rinkesh Roy

  • Logistics Segment Margin Logistics · next year (FY26) · High confidence 15%

    From 12-13% today

    logistics, we are aiming around 15% margin. So but currently, if you look at immediately, which is 12%, 13%, it will go to 15% by next year.

    — Mr. Lalit Singhvi

Port Volumes

  • Port Volumes Growth Port Volumes · FY26 · High confidence 10%
    So, broadly, we are looking at a 10% growth in Port volumes

    — Mr. Rinkesh Roy

Project Completion

  • JNPA Liquid Terminal Commissioning Project Completion · July/August 2025 · High confidence by July, August this year
    JNPA liquid terminal, we should be looking at commissioning it by July, August this year.

    — Mr. Rinkesh Roy

  • Tuticorin Completion Project Completion · Q4 FY26 · High confidence by Q4 of FY '26
    At Tuticorin, we are looking at doing it -- Tuticorin, we are looking at completion by Q4 of FY '26.

    — Mr. Rinkesh Roy

  • Mangalore Container Terminal Expansion Completion Project Completion · Q2 FY27 · High confidence by Q2 of '27
    Mangalore container terminal expansion, again, we are on track. We should be doing it by Q2 of '27.

    — Mr. Rinkesh Roy

  • LPG Terminal at Jaigarh Targeting Project Completion · June 2026 · High confidence by June '26
    LPG terminal at Jaigarh targeting by June '26.

    — Mr. Rinkesh Roy

  • Keni Port Completion Project Completion · March 2027 · High confidence by March '27
    And Keni Port already, we are looking at applying for the regulatory clearances from environment. And we should look at completion by March '27.

    — Mr. Rinkesh Roy

  • Slurry Pipeline Completion Project Completion · March 2027 · High confidence by March '27
    And slurry pipeline also, it's as I told you, it's going on around 200-plus kilometers have been welded, 180 has been lowered, and we look at its completion by March '27.

    — Mr. Rinkesh Roy

What to watch in Q1 FY26

JNPA Liquid Terminal Commissioning

July/August 2025
Current Under construction
Target Commissioned

Why it matters

Successful commissioning will add new operational capacity and contribute to volume growth, validating project execution timelines.

JNPA liquid terminal, we should be looking at commissioning it by July, August this year.

Risks & concerns

  • Global Trade Uncertainties and Volatility

    medium

    The overall global growth landscape is marked by uncertainty leading to significant volatility across business environments, financial markets, commodity markets, supply chains and capital flows. Management stated they are diligently monitoring trends but largely unaffected.

    Management acknowledged

  • Iron Ore Market Volatility

    medium

    The iron ore market is 'slightly volatile' due to issues with pellet exports and low prices, as it is primarily an export-driven market. Management is watching trends, but current $100 pricing is considered good enough.

    Management acknowledged

Q&A highlights

7 direct
Government pricing deregulation for existing concessions Direct
although the pricing is free, you can only charge up to what the customer or the market can bear. It's not something that it's for the industry to charge exorbitant rates because there are -- most of the port sector, the companies have 2 port solutions.

Clarifies management's view on potential pricing freedom, indicating market forces will naturally cap rates despite deregulation.

Asked by Mohit Kumar

Logistics business investment and profitability outlook Direct
We are looking at, at least an EBITDA of INR100 crores at Navkar in the current financial year. So, with 50% revenue increase and EBITDA levels -- from normalized EBITDA, it may go almost double.

Provides specific financial targets for the newly acquired and expanding logistics segment, addressing initial profitability concerns.

Asked by Mohit Kumar, Alok Deora, Achal Lohade

Mix of third-party vs. group cargo for FY26 growth Direct
So here, basically, if you see the growth that we are looking at in '26, 70% of it will be primarily from third-party, 30% will be group. So that is what will be the ratio in the coming...

Details the composition of expected volume growth, highlighting the increasing reliance on third-party cargo in the near term.

Asked by Achal Lohade, Koundinya Nimmagadda

Green energy projects at ports and associated capex Direct
So, at Jaigarh Port, we are looking at these opportunities and a lot of -- there is a lot of interest from various companies to set up green ammonia type of stuff. So we are very keen. And once we have something here, we can always plan to have it in Keni also. No. Unless there is a guaranteed traffic that we see. Otherwise, we are not looking at it.

Clarifies the company's strategic interest in green energy but emphasizes a cautious, asset-light approach to capex, only investing with guaranteed traffic.

Asked by Achal Lohade

Margin outlook for Port and Logistics segments in FY26-27 Direct
So port margins will remain, say, around 52% or so. And our logistics, we are aiming around 15% margin. So but currently, if you look at immediately, which is 12%, 13%, it will go to 15% by next year.

Provides clear margin guidance for both key segments, indicating expected improvement in logistics profitability.

Asked by Ankita Shah

Scope for Dolvi capacity expansion beyond 15 MTPA Partial
So there is always a possibility that because this brownfields are always easier to implement, cost-effective, as well as time-wise also, greenfield is always difficult. So there could always be a possibility of going further from 15 million also.

Suggests potential for further brownfield expansion at Dolvi, indicating long-term growth optionality beyond current targets, though not quantified.

Asked by Aditya Mongia

Timeline for Goa terminal capacity increase to 15 MTPA Direct
We'll -- already, as I told you from 8.5 million to 11 million, we have already done. And this is a part of a process. And hopefully, this should be done in the next 2 quarters at least.

Confirms the ongoing progress and provides a near-term timeline for achieving the increased capacity at Goa.

Asked by Koundinya Nimmagadda, Ketan Jain

JSW Group's potential entry into copper and JSW Infra's role Direct
So it's quite far today, the JSW Group is contemplating for going for copper, but how much capacity and all those things. So, as and when they come up, if there's a nearest port, if they are nearest port, definitely, we will have an opportunity to add that cargo into our port.

Highlights potential future opportunities for JSW Infra linked to JSW Group's diversification, contingent on proximity to new projects.

Asked by Veenit

3 min read 6 chapters

Detailed narrative

Robust FY25 Performance Driven by Volume Growth and Third-Party Expansion

JSW Infrastructure delivered a strong financial performance in FY25, with total revenue growing 20% year-on-year to INR 4,829 crores and net profit increasing 31% year-on-year to INR 1,521 crores. Total cargo handled reached 117 million tonnes, marking a 9% YoY growth. A significant highlight was the 34% YoY growth in third-party cargo to 57.3 million tonnes, increasing its share in the overall mix to 49% from 40% a year ago, indicating successful diversification beyond group cargo.

Strategic Capacity Expansion and Project Execution on Track

The company is actively pursuing its goal of reaching 400 MTPA capacity by FY2030. Key projects are progressing as planned: Southwest Port Goa's capacity increased from 8.5 MTPA to 11 MTPA, contributing to a total company capacity of 177 MTPA. Approvals are sought to further increase Goa's capacity to 15 MTPA within the next two quarters. The JNPA liquid terminal is slated for commissioning by July/August 2025, and the slurry pipeline, with 180 km completed, is on schedule for March 2027 completion, reinforcing infrastructure for future growth.

Logistics Business Scaling with Asset-Light Model and Profitability Targets

The logistics segment is a key growth driver, with management targeting a top line of INR 8,000 crores and an EBITDA margin of 25% by FY30. For FY26, a 50% revenue growth is projected for the logistics business. Following the acquisition of Navkar Corporation for INR 1,596 crores in FY25, the company expects Navkar to contribute at least INR 100 crores in EBITDA in FY26, with overall logistics EBITDA potentially doubling from normalized levels. This growth is underpinned by an asset-light model leveraging Gati Shakti terminals and optimizing empty return ratios.

Ambitious Capital Allocation Plan for FY26

JSW Infrastructure plans a substantial capital expenditure of approximately INR 5,500 crores for FY26. This includes around INR 4,000 crores allocated to the Port business and INR 1,500 crores earmarked for the Logistics segment. The Board has already approved INR 170 crores for investment in Navkar. This aggressive investment strategy aims to enhance cargo handling capacity and expand the logistics footprint, supported by a strong balance sheet with a net debt of INR 1,471 crores and a net debt to operating EBITDA of 0.65 as of March 2025.

Market Outlook and Government Initiatives

Despite global uncertainties, India's robust domestic demand and focus on infrastructure development present significant opportunities. Government initiatives to increase port handling capacity to 3,500 MTPA by 2030 and 10,000 MTPA by 2047, coupled with expanding private sector involvement through PPP terminals, create a favorable environment. Management noted that 30-40 MTPA of new concessions are expected in the next 1-2 years, further boosting growth prospects.

Segmental Margin Guidance and Project Timelines

For FY26, port margins are expected to remain around 52%. Logistics margins are projected to improve from the current 12-13% to 15% by next year, with a long-term target of 25%. Key project completion timelines include JNPA liquid terminal by July/August 2025, Tuticorin by Q4 FY26, Mangalore container terminal expansion by Q2 FY27, LPG terminal at Jaigarh by June 2026, and Keni Port by March 2027. The company declared a final dividend of INR 0.80 per share for FY25.

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