Gateway Distriparks Limited Q3 FY26 Earnings Call Summary

Summary

Gateway Distriparks Limited - Q3 FY 2026 Earnings Call Summary Friday, February 06, 2026 04:30 P.M. IST

Event Participants

Executives 8 Ishaan Gupta, Kartik Sundaram Aiyer, Manoj Singh, Padamdeep Singh Handa, Prem Kishan Dass Gupta, Raghav Garg, Rajguru Behgal, Samvid Gupta

Analysts 6 Kunal (Fair Value Capital), Muralidhara Reddy (Individual Investor), Prashant Kale (Star Capital), Rusmik Oza (9 Rays), Tanay Handge (Elios), Vipulkumar Shah (Individual Investor)

Financials & KPIs

Geographic & Segment Commentary

• Rail & ICD Segment: Focus remains on Western ports. The company is investing ₹150 crores in a new Indore (Pithampur) terminal with a capacity of 120,000 TEUs, expected to be operational within 2 years.
• Snowman Logistics (Warehousing): Strategy is shifting toward a mix of frozen, chilled, and dry storage to provide “one-stop” synergies for QSR and coffee chains. Dry storage margins are lower but help improve customer stickiness.
• Snowman Logistics (5PL): Operates as a trading model where the top line includes traded value; inventory turnover is high at 15-20 days, resulting in limited balance sheet inventory (₹14 crores as of Sept).

Company-Specific & Strategic Commentary

• Rake Modernization: Management is swapping 3 old capacity rakes for 3 high-capacity units and adding 3 additional rakes to reach a total of 37 by June 2026.
• Snowman Build-to-Suit (BTS): Shifting toward an asset-light expansion model where partners develop warehouses to company specifications, reducing direct capex and debt requirements.
• Tax & Dispute Resolution: Actively utilizing government amnesty schemes (Vivad Se Vishwas) to close legacy matters; management emphasized transparency in reporting small industry-wide claims.
• International Trade Exposure: Approximately 25% of ICD export volumes are bound for the US and 10% for the EU; management expects growth from proposed trade deals in textiles, leather, and chemicals.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Asset Quality & Governance

• Question: Why are there so many tax notes and the Benami issue in Jaipur? (Prashant Kale / Muralidhara Reddy)
• Answer: Jaipur was a one-off involving an aggregator; for Indore, direct registry with landowners was used to avoid this. Many tax notes reflect industry-wide issues or small amounts disclosed for transparency (Samvid Gupta).

Snowman Profitability

• Question: Why have warehousing EBIT margins dropped from 20% to nearly 3%? (Kunal)
• Answer: The mix has changed from purely frozen to include chilled and dry storage for QSR clients. Dry storage has minimal margins but ensures customer stickiness. 5PL and “Park & Pay” also add absolute EBITDA but lower the margin percentage (Padamdeep Singh Handa).

Infrastructure & DFC

• Question: How will the JNPT DFC connection impact business? (Rusmik Oza)
• Answer: Completion is expected by March 2026. It will likely shift road volumes to rail and some Mundra volumes toward JNPT. Double stacking is expected to rise by 2-3% (Rajguru Behgal).

Expansion Strategy

• Question: Is the company planning to move into the Eastern DFC? (Prashant Kale)
• Answer: No, the EDFC is single-stack and trade flows for EXIM where GDL operates are primarily linked to Western ports (Prem Kishan Dass Gupta).

Key Takeaway

Gateway Distriparks Limited delivered a stable quarter, characterized by a strategic pivot toward asset modernization and geographic expansion. The company reached a significant milestone by achieving a net debt-free status (excluding Snowman) in early 2026, enabling a special dividend payout. Strategic focus remains on the ₹150 crore Indore terminal and increasing Snowman’s capacity to 200,000 pallets through a mix of debt-funded and Build-to-Suit models. While Snowman’s margins have faced pressure due to a shift toward low-margin dry storage and 5PL services, management maintains that these are essential for servicing high-growth QSR and quick-commerce segments. Looking forward, the completion of the Western DFC connection to JNPT by March 2026 and the operationalization of 37 high-capacity rakes are expected to drive volume growth and double-stacking efficiencies. Shareholders should monitor the resolution of the Jaipur land dispute and the impact of global trade deals on EXIM volumes.