JSW Infrastructure Limited reported a strong Q3 FY25, with consolidated revenue growing 24% and EBITDA up 20% YoY, driven by increased cargo volumes and the consolidation of Navkar Corporation. The company outlined ambitious growth plans, targeting 400 MMTPA capacity by FY30 and an INR 8,000 crore logistics business with 25% EBITDA margins. While facing some headwinds in iron ore volumes and initial low utilization at its Morbi facility, management remains optimistic about future growth from greenfield projects and strategic logistics expansion.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| 9M Revenue | ₹3.5K Cr | +22.0% YoY |
| 9M EBITDA | ₹1.9K Cr | +22.0% YoY |
| 9M Net Profit | ₹1.0K Cr | +21.0% YoY |
| Q3 Consolidated Revenue | ₹1.3K Cr | +24.0% YoY |
| Q3 Consolidated EBITDA | ₹670 Cr | +20.0% YoY |
| Q3 PAT | ₹336 Cr | +32.0% YoY |
Segment Breakdown
| Category | Headline | |
|---|---|---|
Capex | ₹9,000 crores | |
Debt | Net ₹827 crores · 0.4x EBITDA | |
M&A | Navkar Corporation Limited acquisition · closed |
| Category | Target | Priority |
|---|---|---|
| Capacity | Total cargo handling capacity→400 million tonnes per annum | High |
| Logistics Business | Top line revenue→INR 8,000 crores | High |
| Logistics Business | EBITDA margin→approaching 25% | High |
| Volume Growth | Company level volume growth→10% | Medium |
| Port Segment | EBITDA margin (greenfield projects)→65% to 70% | High |
| Overall EBITDA Margin | EBITDA margin (400 MMTPA capacity)→around 55% | Medium |
| Port Sector | Volume growth→double-digit growth | High |
| # | Metric | |
|---|---|---|
| 01 | Navkar EBITDA guidance | |
| 02 | Dolvi steel plant commissioning | |
| 03 | JNPA and Tuticorin interim operations | |
| 04 | Morbi facility utilization improvement | |
| 05 | Iron ore volume recovery |
| Severity | Risk |
|---|---|
medium | Cyclicality of iron ore prices affecting export volumes Iron ore prices are cyclical and currently lower, affecting export volumes, though management expects recovery. Management |
low | Mark-to-market unrealized loss on hedging INR 156 crores mark-to-market unrealized loss recognized, but it's a non-cash charge and follows hedge accounting guidelines. Management |
medium | Low utilization at Morbi facility Morbi facility, started a year back, is currently at 25-30% utilization and has not reached breakeven, leading to heavy fixed costs. Management |
For the period April '24 to December '24 (9 months), total cargo handled stood at 85.7 million tonnes, registering an 11% year-on-year growth. Third-party cargo mix grew by 45% year-on-year to 41.7 million tonnes, increasing its share to 49% from 37% a year ago. Total revenue for the 9 months was INR 3,457 crores (22% YoY growth), with EBITDA at INR 1,885 crores (22% YoY growth) and net profit at INR 1,006 crores (21% YoY growth). For Q3 FY25, consolidated revenue was INR 1,265 crores (24% YoY growth) and consolidated EBITDA was INR 670 crores (20% YoY growth), with PAT growing 32% to INR 336 crores.
Management outlined three top priorities: advancing the expansion plan to 400 million tonnes per annum by FY2030, significantly scaling up the logistics business to a top line of INR 8,000 crores by FY30 with an EBITDA margin approaching 25%, and continuously seeking value-accretive inorganic opportunities. The company aims for an asset-light model in logistics to achieve an industry-leading ROCE. JSW Infrastructure Limited was also rated 'low risk' on ESG by Morningstar Sustainalytics.
The logistics segment is targeted for a top line of INR 8,000 crores by FY30 with a 25% EBITDA margin. The Navkar Corporation Limited acquisition, consolidated from October 11, 2024, serves as a stepping stone for this expansion. The company plans to invest INR 9,000 crores in logistics till FY30, including INR 1,100 crores for Navkar, INR 3,000 crores for GCT/terminal development, INR 3,000 crores for rig acquisition/leasing, INR 1,500 crores for specialized containers, and INR 500 crores for other activities. The strategy involves leveraging group cargo and creating a pan-India logistics network.
Cargo handling capacity at the Mangalore coal terminal increased to 8.1 MMTPA from 6.7 MMTPA, and PNP port capacity rose to 8 MMTPA from 5 MMTPA, bringing the total company capacity to 174 MMTPA. Interim operations have commenced at JNPA (liquid edible oil, ~90,000 tons handled in Q3) and are in progress at Tuticorin dry bulk terminal. The company expects double-digit volume growth in the port sector for FY25 and FY26, driven by these new capacities and resolution of issues at Paradip.
The port segment's operational EBITDA increased by 19% in Q3 FY25 to INR 570 crores. Management expects port segment EBITDA margins to improve from the current 52-53% to 58-59% as greenfield projects with higher margins (65-70%) come online. The tank farm business in UAE, contributing to the port segment, already operates at 85%+ EBITDA margins. The overall EBITDA margin for the 400 MMTPA capacity is projected to be around 55%.
For the next three years (FY26-FY28), the company plans to invest approximately INR 15,000 crores in the port business and another INR 3,000 crores in the logistics business (in addition to INR 1,000 crores already spent). This translates to roughly INR 2,000-2,200 crores per annum over the next five years. The capex for logistics will focus on asset-light models, including leasing of rakes and utilizing railway land for terminals, to optimize costs.