Summary
Aegis Vopak Terminals Limited - Q3 FY26 Earnings Call Summary Friday, January 30, 2026 03:00 p.m. (IST)
Event Participants
Executives 2 Murad Moledina (Director), Raj Chandaria (Chairman and Managing Director)
Analysts 4 Amit Vora (The Homeopathic Clinic), Keshav (Modifi Investment), Neelotpal Sahu (JM Financial), Siddharth Chauhan (B&K Securities), Yash Nandwani (IIFL Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹197.5 crores | +22.3% YoY; Driven by capacity additions and improved product mix. |
| Liquid Terminalling Revenue | ₹116.5 crores | +37% YoY; Reflects higher volumes and JNPA terminal stabilization. |
| Gas Terminalling Revenue | ₹81.0 crores | +6% YoY; Throughput volume stood at 0.67 million metric tons. |
| Operating EBITDA | ₹145.9 crores | +23% YoY; Strong operational leverage across both segments. |
| Profit After Tax (PAT) | ₹61.5 crores | +62.7% YoY; Significant surge due to operational efficiencies and scale. |
| Liquid Storage Capacity | 1.70 million cbm | Management targets expansion to 2.50 million cbm by FY27 end. |
| LPG Static Capacity | 225,800 metric tons | Includes the recent acquisition of Hindustan Aegis LPG (HALPG). |
| Debt Gearing / Leverage | 0.6x / <3.5x EBITDA | Management maintains strict internal caps on leverage for expansion. |
Geographic & Segment Commentary
- Liquid Terminalling: Segment revenue grew 37% YoY to ₹116.5 crores, driven by higher realizations and a better product mix, particularly at the JNPA terminal. Currently operating at 77% physical occupancy, the company plans to expand capacity by 0.8 million cbm across Kandla, Mangalore, Kochi, and Haldia by FY27.
- Gas Terminalling: Reported revenue of ₹81 crores with a throughput of 0.67 million metric tons in Q3; management expects a “step-up” in Q4 following the VLGC-enabling of Kandla Port. The 75% acquisition of HALPG adds a strategic East Coast footprint at Haldia with a 25,000 MT capacity and an exclusive HPCL agreement.
- West Coast (Pipavav & Kandla): Pipavav is becoming a flagship hub with a new 15-year take-or-pay petroleum handling agreement (0.5 million MT p.a.) and India’s first independent ammonia terminal (36,000 MT) for Hindustan Zinc. Kandla recently docked its first VLGC and anticipates massive throughput growth via the upcoming KGPL and JLPL pipeline connections.
Company-Specific & Strategic Commentary
- Project GATI (Gateway Access to India): A strategic initiative focused on expanding storage footprints, improving throughput efficiency, and diversifying into new products like ammonia and green energy.
- Strategic Acquisitions & MOUs: Completed the 75% stake acquisition of Hindustan Aegis LPG Limited (HALPG) and signed a non-binding MOU for a potential ₹20,000 crore investment in the proposed Vadhavan Port for liquid and gas facilities.
- Ammonia & Green Energy: Developing a 36,000 MT ammonia terminal at Pipavav and signed an MOU with L&T to develop ammonia terminals at Kandla to support green hydrogen ambitions.
- Take-or-Pay Contracts: Secured a 15-year agreement for petroleum at Pipavav starting Oct 2026 and a 15-year agreement with Hindustan Zinc for ammonia.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Total Capex | ₹10,000 crores by FY27 end | Expansion of existing liquid terminals and completion of JNPA expansion (₹1,675 crores). |
| Long-term Capex | $5 Billion by 2030 | Funded via internal accruals and debt (capped at 0.6x gearing). |
| Gas Throughput | Significant Q4 FY26 Uptick | Driven by VLGC compliance at Kandla and JLPL pipeline commissioning by Feb 2026. |
| Pipeline Connectivity | Kandla-Gorakhpur (KGPL) by June 2026 | Expected to drive substantial structural increases in LPG volumes at West Coast ports. |
Risks & Constraints
| Risk | Context |
|---|---|
| Execution Risk | Large-scale projects (Vadhavan Port, JNPA expansion) involve high capex and complex regulatory approvals/land allotments. |
| Regional Concentration | Heavy reliance on West Coast ports (Kandla, Pipavav) for volume growth until East Coast operations scale further. |
| Customer Concentration | High volume dependence on National Oil Companies (HPC, BPC, IOC) and specific long-term partners like Hindustan Zinc. |
Q&A Highlights
LPG Volume Growth
- Question: What caused the relative weakness in LPG volumes and EBIT this quarter? (Siddharth Chauhan)
- Answer: Q3 is historically similar to Q2, but Q4 is always the “surge” period. Higher depreciation from new assets and temporary costs affected EBIT, but a significant step-up is expected from Q4 onwards as utilization matures (Murad Moledina).
Pipeline & Throughput Capacity
- Question: How will the upcoming LPG pipelines impact throughput? (Keshav)
- Answer: The KGPL has a 5.75 million ton earmark for Kandla and 1.5 million for Pipavav. While it will take 2-3 years to reach full utilization, these connections at three source points will provide a massive structural uptick in volumes (Murad Moledina).
Vadhavan Port Investment
- Question: Why is the Vadhavan Port investment outlay so large at ₹20,000 crores? (Siddharth Chauhan)
- Answer: Vadhavan will be one of India’s largest ports. The ticket size is high because it includes complex gases like LNG (where one terminal can cost ₹8,000 crores), ammonia, and ethane (Murad Moledina).
Liquid Segment Realizations
- Question: Is the improved liquid realization sustainable? (Yash Nandwani)
- Answer: Yes, it is driven by a superior product mix and higher realization rates at the stabilized JNPA terminal, not one-time take-or-pay payments. This trend is expected to continue (Murad Moledina).
Key Takeaway
Aegis Vopak Terminals Limited delivered a robust Q3 FY26, characterized by an 18.3% nine-month revenue growth and a 90% surge in nine-month PAT. The company successfully integrated the HALPG acquisition, marking its strategic entry into the East Coast (Haldia) and securing long-term revenue visibility via an exclusive HPCL agreement. Strategically, the firm is pivoting toward high-growth segments including ammonia (Hindustan Zinc partnership) and large-scale petroleum handling (new 15-year take-or-pay deal at Pipavav). With a massive ₹10,000 crore capex roadmap by FY27 and the enabling of VLGC-compliant infrastructure at Kandla, management is positioning the company to capitalize on structural shifts in India’s energy logistics. While execution risks remain for the ambitious ₹20,000 crore Vadhavan Port project, the company’s disciplined capital structure (0.6x gearing) and positive credit outlook suggest a strong platform for reaching its $5 billion 2030 capex target.
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