JSW Infrast

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.

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.

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.

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.

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.

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.

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.