Detailed Narrative
Navkar Corporation's Strong Q2 FY26 Performance
Navkar Corporation, a key part of the JSW Infrastructure group's logistics business, delivered a robust performance in Q2 FY26. The company reported a 20% year-on-year increase in revenue from operations, reaching Rs. 163 crores. This growth was underpinned by a 20% rise in Exim cargo volumes to 79,000 TEUs and a significant 46% surge in Domestic cargo volumes to 394,000 metric tonnes compared to the previous year. Notably, Navkar achieved a net profit of Rs. 4 crores, marking a substantial turnaround from a loss of Rs. 2 crores in the prior year, with EBITDA climbing to Rs. 25 crores for the quarter.
Logistics Business Expansion and Strategic Investments
JSW Infrastructure is actively expanding its logistics business, targeting a revenue of Rs. 8,000 crores and a 25% EBITDA margin by 2030, supported by a total CAPEX of Rs. 9,000 crores. For FY26, the logistics business has a CAPEX guidance of Rs. 1,500 crores. A key strategic move in this quarter was the acquisition of a brownfield rail siding in Kudathini, Karnataka, for Rs. 57 crores, part of a larger Rs. 380 crore project to develop a multimodal logistics park. Commercial operations at Kudathini are expected to commence within the next two to three months, further enhancing the group's logistics capabilities.
Capacity Utilization and Future Outlook for Navkar
Management provided insights into Navkar Corporation's current capacity utilization, stating that the Mumbai sector operates at approximately 60% to 65% utilization, while the Morbi facilities are in the range of 55% to 60%. This indicates significant headroom for volume growth. The company expects Navkar's EBITDA to reach Rs. 100 crores for the full FY26, building on the Rs. 45 crores achieved in H1. While a substantial increase in EBITDA margin is not anticipated, a slight improvement is expected as volumes continue to scale.
Group-Level Capital Allocation and Financial Strength
At the group level, JSW Infrastructure reported a net debt of Rs. 1,810 crores as of September 2025, with a healthy net debt to operating EBITDA ratio of 0.75. The company also achieved an investment-grade rating of BBB-minus from S&P Global Ratings and Fitch Ratings, reflecting strong financial fundamentals. The overall capital commitments across all growth projects, including logistics, stood at Rs. 3,300 crores, with a spend of Rs. 902 crores in H1 FY26. The group aims to expand its cargo handling capacity from 177 million tonnes per annum to 400 million tonnes per annum by FY30 or earlier.