JSW Infrast — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

JSW Infrastructure delivered a resilient performance in Q4 FY26 and full FY26, achieving 20% Y-on-Y revenue growth and 15% EBITDA increase despite a challenging global environment and the impact on its Fujairah facility. The company saw strong performance in logistics, driven by higher capacity utilization and rail rake acquisitions, and maintained robust growth guidance for the coming years, backed by significant capex plans and strategic project execution.

Highlights

  • Consolidated operating revenue for FY26 grew 20% Y-on-Y to INR5,361 crores.

  • Operating EBITDA for FY26 increased 15% to INR2,604 crores.

  • Adjusted net profit for FY26 reached INR1,644 crores.

  • Navkar's operating EBITDA in Q4 FY26 climbed to INR40 crores, turning around from a loss of INR19 crores in the previous year.

  • Board recommended a dividend of INR0.90 per share, representing 45% of Face Value.

  • Consolidated operating EBITDA for Q4 FY26 grew 20% Y-o-Y to INR769 crores.

Concerns

  • Fujairah Oil Industrial Zone (FOIZ) liquid storage facility impacted by damage, leading to a provision of INR68 crores in Q4 FY26.

  • Middle East conflict caused lower volumes at Fujairah and cargo deferments at Indian operations, impacting Q4 FY26 port segment growth.

  • MTM unrealized loss of INR43 crores recognized due to INR and yield curve changes.

Key financials

2 periods

Q4 FY26

  • Consolidated Operating Revenue
    ₹1,522 Cr
    YoY +19%
  • Consolidated Operating EBITDA
    ₹769 Cr
    YoY +20%
  • Adjusted PAT
    ₹528 Cr
    YoY +15%

FY26

  • Consolidated Operating Revenue
    ₹5,361 Cr
    YoY +20%
  • Operating EBITDA
    ₹2,604 Cr
    YoY +15%
  • Adjusted Net Profit
    ₹1,644 Cr

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
    31.6 million tonnes Q4 FY26 Cargo Volumes₹1,295 Cr Q4 FY26 Operational Revenue₹705 Cr Q4 FY26 Operational EBITDA54.5% Q4 FY26 Operational EBITDA Margin
  • Navkar (Logistics Segment)
    86,000 TEUs Q4 FY26 EXIM Cargo Volumes4,27,000 metric tonnes Q4 FY26 Domestic Cargo Volumes60% Q4 FY26 Overall Capacity Utilization₹201 Cr Q4 FY26 Revenue from Operations₹40 Cr Q4 FY26 Operating EBITDA₹14 Cr Q4 FY26 Net Profit₹25 Cr Q4 FY26 Rail Rakes Business EBITDA

Capital allocation

high confidence
  • Capex ₹16,500 Cr
    • Ports business ₹13,000 Cr
    • Logistics segment ₹3,500 Cr
    • Cumulative capex outflow on projects including acquisitions ₹6,200 Cr
    • Committed capex for machineries, long-lead items and civil works ₹5,300 Cr
    The cumulative capex outflow on these projects, including acquisitions, is approximately INR6,200 crores. In addition, the company has already committed a further INR5,300 crores of capex by placing orders for machineries, long-lead items and other civil works towards ongoing projects across ports and logistics business. For '27 and '28, the company plans to invest approximately INR16,500 crores, with a significant portion around INR13,000 crores allocated to the ports business and INR3,500 crores earmarked for the Logistics segment.
  • Debt Net ₹3,100 Cr · 1.2× EBITDA
    As of March '26, we have a net debt of INR3,100 crores with a net debt to operating EBITDA of 1.2x and one of the strongest balance sheet in the sector.
  • Dividend ₹0.9/share (final) Payout ratio 45%
    The Board has recommended a dividend of INR0.90 per share, which is 45% of the Face Value.
  • M&A 25 rail rakes Acquisition · Closed

    Provides immediate access to Indian Railways GPWIS and LSFTO schemes, along with long-term operating licenses.

    Contributed INR25 crores operating EBITDA since integration.

    In Feb '26, the company has successfully completed the acquisition of 25 rakes with operations fully integrated, effective 1st February '26. ... Since integration, the rail rakes business has contributed operating EBITDA of INR25 crores.
  • M&A 40 additional rakes Acquisition · Announced

    Reinforcing growth momentum and expanding fleet.

    In April '26, we placed orders for 40 additional rakes, reinforcing our growth momentum.

Guidance & targets

Profitability

  • Consolidated Operating EBITDA Profitability · FY27 · High confidence INR3,000 crores
    Hence, consolidated operating EBITDA is expected to grow by 15% to INR3,000 crores in FY '27

    — Nagarajan J

  • Consolidated Operating EBITDA Profitability · FY28 · High confidence INR5,000 crores
    and nearly double from the FY '26 base to INR5,000 crores in FY '28

    — Nagarajan J

  • Logistics Segment EBITDA Profitability · FY27 · High confidence INR400 crores
    Just to reiterate, our Logistics segment guidance remains same, which is INR400 crores EBITDA in FY '27

    — Nagarajan J

  • Logistics Segment EBITDA Profitability · FY28 · High confidence INR700 crores
    and INR700 crores in FY '28.

    — Nagarajan J

  • Navkar EBITDA Profitability · next 2 to 3 years · High confidence upwards of INR200 crores
    So from Navkar, you see in the existing assets, we would be looking at further upping it to around 75% to 80% capacity utilization. And in numbers, because we are also acquiring 1 or 2 terminals in this Navkar company. So the numbers, we would be looking at upwards of INR200 crores in the next 2 to 3 years.

    — Rinkesh Roy

  • Logistics EBITDA Margin Profitability · ongoing · Medium confidence 20-25%
    No, it should be around in this range only. But as we scale up, obviously, ICDs will start coming in and the ramp-up in ICDs, again, will be gradual, the way you are seeing in Navkar like 44% to 56% to 60%. So there can be a drop. But so it will be in that zip code of 20 to 25 percentage.

    — Nagarajan J

Capacity

  • Fleet Expansion (Rakes) Capacity · next 2 to 3 years · High confidence around 250 rakes
    This is aligned with the medium-term objective to meaningfully expand our fleet to around 250 rakes over the next 2 to 3 years

    — Nagarajan J

  • Cargo Handling Capacity Capacity · by FY2030 · High confidence 400 million tonnes
    well positioned to pursue growth plan to enhance our present cargo handling capacity to 400 million tonnes

    — Nagarajan J

Revenue

  • Logistics Business Top Line Revenue · by FY2030 · High confidence INR8,000 crores
    and in parallel grow our logistics business with a top line of INR8,000 crores by FY2030.

    — Nagarajan J

Growth

  • Revenue CAGR Growth · 2026-2028 · High confidence around 42%
    And the CAGR in revenue in this period will be around 42%

    — Rinkesh Roy

  • EBITDA CAGR Growth · 2026-2028 · High confidence around 39%
    and the CAGR for EBITDA would be around 39%.

    — Rinkesh Roy

  • Post 2030 CAGR Growth · Post 2030 · High confidence 25%
    We are looking at 25% CAGR growth. That is the target that we have set for ourselves. So beyond 2030, we would be continuing to expand in our existing boards that we have created currently and that we'll be pursuing it further.

    — Rinkesh Roy

Capex

  • Total Capex Capex · FY27 and FY28 · High confidence INR16,500 crores
    So Achal, we have guided INR16,500 crores spend for the next 2 years, F '27 and F '28.

    — Nagarajan J

  • FY27 Capex Capex · FY27 · High confidence INR6,600 crores
    So, it will be 40% this year and 60% in F '28.

    — Nagarajan J

  • FY28 Capex Capex · FY28 · High confidence INR9,900 crores

    — Nagarajan J

ESOP Expense

  • ESOP Expense ESOP Expense · FY27 · Medium confidence around INR5 crores
    For F '27, maybe you can take the same number of around -- maybe you can take around INR5 crores.

    — Nagarajan J

What to watch in Q1 FY27

Fujairah Operations Normalization

Next quarter
Current 50% operations expected to recommence, full repairs pending conducive environment.
Target Further ramp-up of operations and progress on repairs.

Why it matters

The Fujairah facility is a key asset, and its full recovery is crucial for the company's international operations and profitability.

we expect approximately 50% of operations to recommence shortly, subject to normalization of the environment there with the balance ramping up in a phased manner thereafter.

Risks & concerns

  • Geopolitical tensions and Middle East conflict

    high

    Impacted Fujairah facility, caused cargo deferments, lower vessel availability, and higher freight costs.

    Management acknowledged

  • Environmental concerns at Dharamtar port

    low

    Report on spillover dust on mangroves, company is complying with recommendations (windscreen).

    Analyst acknowledged

Q&A highlights

6 direct
Drivers for higher logistics EBITDA margin Direct
Okay. As I mentioned, this is because of higher capacity utilization at our Navkar terminal. Especially for the whole year, the capacity utilization stands at 56 percentage. If you look at FY '25 capacity utilization, that was around 44 percentage. And for Q4 of FY '26, the capacity utilization in Navkar stands at 60 percentage. On top of it, we have also as you are aware, we have acquired this rail 25 rakes from our group company. So that has given an EBITDA of around INR25 crores.

Clarifies the operational and strategic factors (capacity utilization, rail rake acquisition) contributing to improved logistics profitability.

Asked by Ketan Jain

Fujairah impact and offset levers Direct
So INR30 crores will be -- would have been the incremental EBITDA. Fujairah plus a little bit of volume loss in our other ports because of rerouting some deferment of cargo. So around INR30 crores to INR32 crores is what we would have earned more. ... So you see, we did very well in the segment, logistics segment where we as we had explained earlier, there was a tremendous increase in capacity utilization in Q4 and the addition of new rakes altogether plus what we had also provided additional services in many of our ports like Jaigarh and at Goa. So these have helped to drive up the numbers to INR2,600 crores. Also, forex fluctuation was there, which the spike happened in Q4 if you see. So INR16 crores of FX gain we have earned in Q4. So that has also contributed to the EBITDA.

Quantifies the negative impact of Fujairah and details the specific factors (logistics performance, forex gains, additional services) that helped offset it to meet guidance.

Asked by Priyankar Biswas

Post-2030 growth drivers and strategy Direct
Post 2030, you see steel plants everywhere are getting lined up for expansion. So there, we foresee that since we would have created the shell for the ports, adding capacity to the new ports is a less, it takes less effort, less capex. So that is where the other drivers for growth will come where currently let us say Jatadhar is at 30 million and when we go into Phase 2. We'll be looking at adding another 20 million, 30 million tonnes of capacity. So that will go up to 60 million tonnes. Similarly, Keni will be going up from 30 million tonnes to another -- we'll be adding another 30 million tonnes of capacity post 2030. So these would be our path for growth. And what we have also not mentioned here is that the privatization of terminals that opportunities that are already coming up in major ports. So here, we are one of the strongest contenders.

Provides long-term strategic vision, capacity expansion plans for key ports (Jatadhar, Keni), and potential M&A opportunities in port privatization.

Asked by Priyankar Biswas

Greenfield/Brownfield project IRR targets Direct
So, Greenfield, typically project IRR, we look at 16 percentage post tax. And obviously, good IRR is around 20 to 21 percentage. And a Brownfield, obviously, the capital cost comes down. There, the project IRR itself post tax comes around 20 to 21 percentage. Like in case of Jaigarh what we are doing now. Jaigarh, Dharamtar, everywhere. The project IRR for all these incremental expansions is around 20 to 21 percentage post tax.

Discloses the company's internal hurdle rates and expected returns for different types of infrastructure projects, indicating capital efficiency focus.

Asked by Raunak Mukherjee

Fujairah rebuild/repair timeline and operational recommencement Partial
So you see based on our best estimates, keeping in view the entire security issues prevailing there, we expect approximately 50% of operations to recommence shortly, subject to normalization of the environment there with the balance ramping up in a phased manner thereafter. And while we expect... Yes, we're going to fix them shortly, but that can't be done right now because the situation is not conducive to even get the repair works done there right now.

Provides an update on the critical Fujairah facility, indicating partial operational restart and challenges in full repair due to security, which is a key risk.

Asked by Claudia Carpenter

Acquisition strategy given low net debt Direct
Acquisitions, yes, we will be looking at in the logistics space because they're obviously the capex spend also we have given. So it will be a mix of both greenfield, brownfield and M&A opportunities. Plus, we will continue to bid for all these terminals which are coming up anyway, which are not a part of our 400 million tonnes guidance. So there, again, the spend can be there.

Clarifies the company's M&A strategy, focusing on logistics and port terminals, leveraging its strong balance sheet for growth beyond organic expansion.

Asked by Priyankar Biswas

Fujairah terminal insurance coverage Direct
Assets are adequately covered. Loss of profit insurance is also there. But the region is seeing something like this for the first time or maybe after a very long time. So, we need to take it with a pinch of salt, and that's where we have made this provision also in our books to the tune of INR68 crores.

Confirms insurance coverage for both assets and loss of profit, but also highlights the unique nature of the event and the company's prudent provision.

Asked by Achal Lohade

3 min read 7 chapters

Detailed narrative

Q4 FY26 & Full Year Performance Overview

JSW Infrastructure reported a resilient performance for Q4 FY26 and the full fiscal year. Consolidated operating revenue for FY26 reached INR5,361 crores, representing a 20% Y-on-Y growth. Operating EBITDA for the year stood at INR2,604 crores, marking a 15% increase, while adjusted net profit reached INR1,644 crores. For Q4 FY26, consolidated operational revenue was INR1,522 crores (19% Y-o-Y growth) and operating EBITDA was INR769 crores (20% Y-o-Y growth). The Board recommended a dividend of INR0.90 per share, which is 45% of the Face Value.

Fujairah Facility Impact and Mitigation

The company's 5 million tonne per annum liquid storage facility in Fujairah Oil Industrial Zone (FOIZ) was impacted by damage to certain infrastructure. A provision of INR68 crores was made in Q4 FY26 due to this. Management expects approximately 50% of operations to recommence shortly, with the balance ramping up in a phased manner, subject to environmental normalization. The estimated incremental EBITDA loss from Fujairah was INR30-32 crores, which was largely offset by strong logistics performance and INR16 crores in forex gains.

Port Segment Operational Highlights

The port segment handled 31.6 million tonnes of cargo in Q4 FY26, a slight increase from 31.2 million tonnes in Q4 FY25. Operational revenue for the segment grew 12% to INR1,295 crores, and EBITDA increased 13% to INR705 crores, with the EBITDA margin improving by 10 basis points to 54.5%. This growth was driven by price adjustments at SWPL Goa and Mangalore, higher ancillary services, and forex fluctuations. The company also completed 4.5 million tonnes JNPA liquid berth modernization and expanded Ennore coal terminal capacity to 11 million tonnes.

Logistics Segment (Navkar) Performance

Navkar delivered strong operational and financial results in Q4 FY26. EXIM cargo volumes grew 14% Y-o-Y to 86,000 TEUs, and domestic cargo volumes increased 56% to 427,000 metric tonnes. Overall capacity utilization reached 60% in Q4 FY26, up from 44% in FY25. Revenue from operations for Navkar rose to INR201 crores, and operating EBITDA climbed to INR40 crores, resulting in a net profit of INR14 crores, a significant turnaround from a loss of INR19 crores in the previous year. The acquisition of 25 rail rakes contributed INR25 crores to EBITDA in Q4 FY26.

Ongoing Growth Projects & Capacity Expansion

The 302-kilometer iron ore slurry pipeline is progressing steadily, with 82% of welding and 78% of pipeline lowering completed, on track for March '27 completion. Construction activities at Jatadhar port are in full swing, with 80% of pile foundation work and 7 million cubic meters of bridging completed, also targeting March '27. The SMPA Kolkata Container Terminal project received approval to commence interim operations, demonstrating the ability to generate revenue while modernization works progress.

Strategic Vision and Future Growth

JSW Infrastructure aims to expand its rail rakes fleet to around 250 over the next 2-3 years and enhance cargo handling capacity to 400 million tonnes, targeting a top line of INR8,000 crores for the logistics business by FY2030. The company projects a revenue CAGR of 42% and EBITDA CAGR of 39% between 2026-2028. Post-2030, a 25% CAGR is targeted, driven by steel plant expansions at locations like Jatadhar and Keni, and opportunities in port privatization.

Capital Allocation Strategy

The company plans a significant capex of INR16,500 crores for FY27 and FY28, with INR13,000 crores allocated to ports and INR3,500 crores to logistics. This capex will be split 40% in FY27 (INR6,600 crores) and 60% in FY28 (INR9,900 crores). JSW Infrastructure maintains a strong balance sheet with a net debt of INR3,100 crores and a net debt to operating EBITDA ratio of 1.2x, positioning it well for both greenfield and brownfield expansions, as well as M&A opportunities in the logistics space.

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