Summary
Allcargo Terminals Limited - Q3 FY26 Earnings Call Summary Wednesday, February 11, 2026, 03:30 p.m.
Event Participants
Executives 2 Deepal Shah (CFO), Suresh Kumar R (Managing Director)
Analysts 6 Abhishek Nigam (Individual Member), Alok Deora (Motilal Oswal Financial Services), Jinesh Joshi (Prabhudas Lilladher), Pradyumna Choudhary (JM Financial), Radhika Jain (Nuvama Wealth Management), Shreepal Doshi (Equirus Securities)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| CFS Throughput | 1,60,600 TEUs | +4.9% YoY and +2% QoQ; driven by strong volume recovery in JNPT and Mundra. |
| Revenue from Ops | ₹211.5 crores | +11% YoY and +4% QoQ; growth led by volume uptick and improved yields from value-added services. |
| EBITDA | ₹37.5 crores | +16% YoY and +10% QoQ; margin expansion due to operational efficiencies and cost control. |
| EBITDA Margin | 17.7% | +80 bps YoY and +90 bps QoQ; benefit of scale and higher utilization at newer facilities. |
| Profit After Tax (PAT) | ₹16.8 crores | +12% YoY; impacted slightly by higher depreciation from recent capacity expansions. |
| Net Debt | ₹142 crores | Reduced from ₹158 crores in Q2 FY26; net debt-to-equity ratio remains healthy at 0.22x. |
Geographic & Segment Commentary
- JNPT (Nhava Sheva): Remained the largest contributor to volumes, capturing a 24% market share in the CFS segment. The facility saw a 6% YoY volume growth, benefiting from the stabilization of Terminal 4 and increased direct port delivery (DPD) handling.
- Mundra & Gujarat Cluster: Performance was robust with 8% YoY growth in throughput. Management highlighted that increased congestion at other ports directed more traffic to Mundra, where the company holds a strategic land bank for future expansion.
- Southern Region (Chennai/Tuticorin): Experienced moderate growth of 3% YoY. The region faced competitive pricing pressure, leading the company to pivot toward higher-margin specialized cargo and hazardous goods storage.
Company-Specific & Strategic Commentary
- Digital Transformation: The company successfully rolled out its ‘myCFS 2.0’ digital portal, which now handles 85% of customer bookings and payment transactions. This has reduced manual documentation time by 40% and improved working capital cycles.
- Asset-Light Expansion: Management reaffirmed the strategy of moving towards an asset-light model by entering into O&M (Operations and Maintenance) contracts for new terminals rather than heavy greenfield investments.
- Value-Added Services (VAS): Contribution of VAS (like temperature-controlled storage and labeling) increased to 12% of total revenue. This segment grew by 22% YoY, acting as a key margin lever against base storage rate fluctuations.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Throughput Growth | 8-10% for FY27 | Driven by expected recovery in global trade volumes and commissioning of the Jhajjar ICD. |
| EBITDA Margin | 18-19% by Q4 FY27 | Management anticipates further operating leverage and increased contribution from high-margin VAS. |
| Capex | ₹40-50 crores for FY27 | Primarily earmarked for technology upgrades and maintenance capex for existing CFS facilities. |
Risks & Constraints
| Risk | Context |
|---|---|
| Geopolitical Tensions | Ongoing Red Sea disruptions continue to impact vessel schedules, leading to “bunching” of vessels and unpredictable volume flows. |
| Pricing Pressure | Intense competition in the Chennai cluster continues to cap storage rate hikes despite rising operational costs. |
| Regulatory Changes | Shifts in DPD (Direct Port Delivery) policies could bypass CFS requirements; management is mitigating this by offering DPD-plus warehouse services. |
Q&A Highlights
Volume Drivers
- Question: What led to the volume outperformance this quarter relative to the industry? (Jinesh Joshi)
- Answer: Outperformance was driven by dedicated customer tie-ups and a shift toward handling pharmaceutical and chemical cargo, which requires specialized CFS infrastructure (Suresh Kumar R).
Margin Sustainability
- Question: Are the current 17.7% margins sustainable given the competitive landscape? (Alok Deora)
- Answer: Yes, we see a path to 18-19%. The focus is on lowering the fixed cost per TEU by increasing throughput at underutilized facilities like Kolkata and Dadri (Deepal Shah).
Debt and Cash Flow
- Question: With ₹142 crores net debt, what are the repayment plans? (Pradyumna Choudhary)
- Answer: We are generating healthy free cash flow. We intend to bring the net debt-to-equity below 0.15x by the end of next fiscal through scheduled repayments (Deepal Shah).
Jhajjar ICD Update
- Question: Can you provide a timeline for the Jhajjar ICD ramp-up? (Shreepal Doshi)
- Answer: Operations have commenced; we expect meaningful revenue contribution starting Q2 FY27. It will serve the NCR region, targeting high-value electronics and auto components (Suresh Kumar R).
Key Takeaway
Allcargo Terminals delivered a solid Q3 FY26, characterized by an 11% YoY revenue growth to ₹211.5 crores and a healthy EBITDA margin expansion to 17.7%. The performance was underpinned by CFS throughput growth of 4.9% YoY, totaling 1,60,600 TEUs, with significant contributions from the JNPT and Mundra clusters. Strategically, the company is successfully transitioning toward a more digital, asset-light model, with its ‘myCFS 2.0’ platform now processing 85% of transactions. While geopolitical tensions in the Red Sea remain a watch point for global trade consistency, management maintained an optimistic outlook, guiding for 8-10% volume growth in FY27. The company remains focused on de-leveraging and scaling its value-added services to sustain long-term profitability. Forward-looking efforts center on the ramp-up of the Jhajjar ICD and expanding market share in the high-margin hazardous and temperature-controlled cargo segments.
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