Navkar Corporation Q4 FY26 earnings call

JSW Infrastructure Limited reported a resilient performance for Q4 FY26 and the full year ended March 31, 2026, despite a complex global environment. For the full year, operating revenue stood at INR5,361 crores, marking a 20% Y-on-Y growth. Operating EBITDA increased by 15% to INR2,604 crores, and adjusted net profit reached INR1,644 crores. For Q4 FY26, consolidated operational revenue was INR1,522 crores, with operating EBITDA at INR769 crores, reflecting a 20% Y-o-Y growth, and adjusted PAT of INR528 crores, up 15% Y-o-Y.

During Q4 FY26, the ports segment handled 31.6 million tonnes of cargo, a slight increase from 31.2 million tonnes in Q4 FY25, driven by strong performance at South West, Dharamtar, and Jaigarh ports. Operational revenue for the port segment grew by 12% to INR1,295 crores, with EBITDA increasing by 13% to INR705 crores, achieving a 54.5% margin. Key milestones included the completion of 4.5 million tonnes JNPA liquid berth modernization projects and the expansion of Ennore coal terminal capacity from 9.6 million tonnes to 11 million tonnes. The SMPA Kolkata Container Terminal project also received approval to commence interim operations.

The logistics segment, particularly Navkar, delivered strong operational and financial results. For FY26, Navkar's operating EBITDA surged to INR118 crores from INR8 crores in FY25, a 14-fold increase, driven by domestic volumes growing 40% and EXIM volumes 21%. Capacity utilization improved from 44% in FY25 to 56% in FY26, reaching 60% in Q4 FY26. The acquisition of 25 rail rakes in February 2026 contributed INR25 crores to Q4 FY26 operating EBITDA, and the company placed orders for 40 additional rakes in April 2026, aiming to expand its fleet to around 250 rakes over the next 2-3 years.

The 302-kilometer iron ore slurry pipeline project is progressing steadily, with 82% of welding and 78% of pipeline lowering completed, targeting completion by March 2027. Construction activities at the Jatadhar port are also in full swing, with 80% of pile foundation work and 7 million cubic meters of bridging completed, also targeting March 2027. The Gati Shakti Multimodal Cargo Terminal at Arakkonam, Chennai, has been commissioned and received approval for commercial operations in April 2026, further strengthening integrated logistics offerings.

The company's cumulative capex outflow on projects, including acquisitions, was approximately INR6,200 crores. An additional INR5,300 crores has been committed for future capex. For FY27 and FY28, the company plans to invest INR16,500 crores, with INR13,000 crores allocated to ports and INR3,500 crores to logistics. As of March 2026, net debt stood at INR3,100 crores, with a net debt to operating EBITDA ratio of 1.2x, indicating a strong balance sheet. The Board recommended a dividend of INR0.90 per share for FY26.

The company's liquid storage facility in Fujairah was impacted by damage, leading to a provision of INR68 crores in Q4 FY26 and an MTM unrealized loss of INR43 crores. Management stated that 3 out of 15 tanks were damaged and that both asset damage and loss of profit are covered by insurance. Operations are expected to progressively normalize, with approximately 50% recommencing shortly, subject to environmental normalization. The company is engaged with local regulators and authorities for support during this period.