Snowman Logistics Limited

Gateway Distriparks reported a rail EBITDA per TEU of INR 9,300 and a CFS EBITDA per TEU of INR 1,000 for Q2 FY26. The company's double stack percentage improved to 41% from 39% last quarter, with container volumes exceeding 1 lakh. Management anticipates double-digit volume growth of 10-15% from existing locations in the medium term, driven by new trade deals and DFC connectivity. The target for CFS EBITDA per TEU remains INR 1,300-1,400, despite current quarter impacts from one-off^📎 costs and US tariffs.

Snowman Logistics faced significant margin pressure in Q2 FY26. The transportation segment's PBT margins have effectively disappeared, now breaking even, though EBITDA has turned positive due to business realignment and fleet optimization. The warehousing segment's PBT margin dipped sharply to 3% from 12% last quarter, primarily due to reduced utilization from new capacities, stress from specific product categories like seafood, and weather-related power cuts. Management expects positive traction and good volumes from December onwards, aiming for high single-digit PBT margins in transportation and a return to 10-12% in warehousing.

Snowman Logistics plans an annual capex of INR 100-150 crores, primarily for developing 2-3 owned warehouses/land and supporting build-to-suit facilities. The company aims to add two build-to-suit facilities per year, with an average capacity of 5,000 pallets each. Their strategy involves owning land and constructing warehouses for core assets, while utilizing fully built-up leased facilities for asset-light expansion. Snowman is also focusing on increasing its exposure to ice cream players and is working on closing 2-3 major 5PL accounts, with at least one expected in FY26.

Gateway Distriparks is increasingly focusing on the domestic market, aiming for 1,000+ TEUs of domestic volume per month within the next two years, eventually targeting 10-15% of its total business from domestic services. This shift is supported by evolving market dynamics and the DFC connection to Nava Sheva. While US tariffs caused a 4-5% dip in exports, management expects overall container volumes to benefit from new trade deals with the UK, EU, US, New Zealand, and Australia, as well as increased imports from China.

Gateway Distriparks reported market shares of 16-17% in NCR, 27% in Punjab, and 38% in Uttarakhand, indicating growth in Punjab and Uttarakhand. The rail segment's EBITDA per container saw a YoY decline of approximately INR 500, attributed to factors such as competition, market imbalance, empty running, and changes in weight slab. Management acknowledged port congestion and increased annual costs as contributing factors to overall operational pressures.