Summary
Container Corporation of India Limited - Q3 FY 2026 Earnings Call Summary Friday, January 30, 2026, 11:30 AM IST
Event Participants
Executives 5 Ajit Kumar Panda (Director - Projects and Services), Harish Chandra (PED - Finance & CFO), Mohammad Azhar Shams (Director - Domestic), Sanjay Swarup (Chairman & Managing Director), Vijoy Kumar Singh (Director - International Marketing and Operations)
Analysts 10 Ankita Shah, Jayman Shah, Kunal Shah, Mukesh Saraf, Priyankar Biswas, Pulkit Patni, Sandesh Shetty, Sumit Kishore, and others from the participant list.
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Throughput | 4.15 million TEUs | +11% YoY for 9M FY26; highest in company history. |
| EXIM Throughput | 3.44 million TEUs | +10% YoY; driven by aluminum, auto parts, and meat exports. |
| Domestic Throughput | 0.71 million TEUs | +13% YoY; lower than 20% target due to conscious avoidance of low-margin business. |
| Operating Income | ₹2,350 crores (approx) | +3.3% YoY growth for the quarter. |
| EBITDA Margin | 25.1% | +90 bps YoY; improved despite competitive pressures. |
| Rail Freight Margin | 27.7% | +200 bps YoY from 25.7% due to operational efficiencies. |
| Land License Fee (LLF) | ₹110.7 crores | +23% YoY; normalized following reversals in the previous fiscal year. |
| PAT | ₹330 crores (approx) | Flattish YoY; impacted by ₹68 crore higher depreciation and higher LLF. |
| CAPEX | ₹1,060 crores | Revised upward by 23% from ₹860 crores for FY26 to meet robust demand. |
| Dividend | ₹3.40 per share | 68% for the quarter; total FY26 dividend to date is ₹7.60 (152%). |
Geographic & Segment Commentary
- EXIM Segment: Reported healthy growth with revenue on track to exceed $60 billion for the first time. Market share increased at JNPT (+186 bps) and Pipavav (+93 bps), though Mundra saw a decline of 232 bps. Management noted a 2% decline in average lead to 693 km due to demand shifts in North India.
- Domestic Segment: Growth of 13% was driven by bulk cement and FMCG, though below the 20% guidance. Challenges included delayed delivery of tank containers and lower demand for gunny bales from Bangladesh. New high-speed rakes and 25-tonne axle load wagons are being deployed to capture road-to-rail shifts.
- International (Nepal & Middle East): Robust performance in Nepal traffic via Visakhapatnam and Kolkata. CONCOR is expanding services to Raxaul and Biratnagar and has formalized contracts for shipping services to the Middle East and Far East.
Company-Specific & Strategic Commentary
- Western Dedicated Freight Corridor (DFC): Connectivity to JNPT is expected by March 2026, which management believes will be a “game-changer” for assured transit times and road-to-rail conversion.
- Fleet Expansion: Commissioned 31 high-speed rakes in 9M FY26 (total fleet: 413) and procured 3,800 containers (total fleet: 57,000) to support high-growth projections.
- Bulk Cement & Tank Containers: Signed long-term agreements with UltraTech, Adani, and JK Cement; currently operating 500 tank containers with 100 more being added monthly.
- Infrastructure Development: Developing new terminals at Sanand (double-stack capable) and Jodhpur to enhance Western DFC utilization and capture high-value cargo.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue (Top line) | ₹15,000 crores by FY29 | Driven by DFC connectivity, shipping expansion, and bulk domestic cargo. |
| Throughput | 10 million TEUs by FY29 | Assumes 15% CAGR in EXIM and 20%+ CAGR in Domestic over three years. |
| Volume Growth (FY26) | 13% overall | Maintains 10% EXIM and 20% Domestic guidance despite current domestic lags. |
| Market Share | 65-70% by FY29 | Strategic shift toward multi-modal logistics and end-to-end services. |
Risks & Constraints
| Risk | Context |
|---|---|
| DFC Delay | While management is confident of March 2026 completion, any further delay in JNPT connectivity remains a risk to EXIM volume acceleration. |
| Lead Distance Erosion | EXIM lead fell 2% this quarter; sustained reduction in lead distances could decouple volume growth from revenue growth. |
| Competition/Margins | The shift of low-margin business to competitors has impacted market share; balancing volume growth with margin retention is a key constraint. |
Q&A Highlights
Revenue vs. Volume Realization
- Question: Why is revenue growth (mid-single digits) significantly lower than volume growth (11%)? (Pulkit Patni)
- Answer: Revenue is a function of Net Tonne Kilometers (NTKM). While volumes rose, the average EXIM lead fell by 2% due to North India demand shifts. DFC connectivity will eventually restore longer-lead traffic (Sanjay Swarup).
DFC Connectivity Impact
- Question: Why has existing DFC connectivity to Gujarat ports not shown a major impact? (Pulkit Patni)
- Answer: Gujarat ports use IR feeder routes between the port and DFC, limiting speed and axle loads. JNPT will have pure DFC connectivity, allowing 80-tonne payloads and assured transit (Sanjay Swarup).
Market Share Recovery
- Question: Market share has dipped from 75% historically to ~54%. How will you recover it? (Jayman Shah)
- Answer: Market share loss was a conscious choice to avoid low-margin business. New MMLPs and first-mile/last-mile services will target 65-70% share by FY29 (Sanjay Swarup).
Domestic Growth Drivers
- Question: What changes in Q4 to meet the 20% domestic growth guidance? (Sumit Kishore)
- Answer: Growth will be driven by the ramp-up in bulk cement, new tank containers (100 added monthly), and advanced-stage contracts with Petronet and GAIL (Sanjay Swarup).
Key Takeaway
CONCOR delivered a record nine-month throughput of 4.15 million TEUs, representing 11% YoY growth, despite a flattish PAT of approximately ₹330 crores impacted by higher depreciation and normalized Land License Fees. The company demonstrated strong pricing discipline, improving EBITDA margins to 25.1% while consciously ceding low-margin domestic volumes. Strategically, CONCOR is aggressively positioning for the March 2026 Western DFC completion by increasing FY26 CAPEX to ₹1,060 crores and expanding its high-speed rake and tank container fleet. Management issued a bold FY29 outlook targeting ₹15,000 crores in revenue and 10 million TEUs, predicated on 15-20% segment CAGRs and a significant road-to-rail shift. While lead distance compression remains a watch point, the anticipated “pure DFC” connectivity to JNPT is expected to re-accelerate long-haul realizations and market share from Q1 FY27 onwards.
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