This article first appeared on GuruFocus .
Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Strong financial performance with revenue up 33% YoY, EBITDA up 45%, and net profit up 46% in Q1 FY2027.
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Underlying EBITDA margin expanded by 200 basis points to 61%, excluding one-off duty benefit scripts.
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RoRo volumes surged 53% YoY, with full-year guidance of 260,000-270,000 cars.
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New container service (FI2) with Maersk started in June, expected to offset some volume loss from the suspended Shaheen service.
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No port congestion at Pipavav, allowing the company to capture ad hoc transshipment opportunities from congested peers.
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Liquid jetty expansion on track for March 2027, with capacity increasing from 2 to 5 million metric tons, and customer demand remains strong.
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Positive progress in concession agreement discussions with Gujarat Maritime Board, with no red flags.
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Container realizations improved to INR 9,500-10,000 per TEU, driven by tariff increases and favorable exchange rates.
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Company maintains a strong EBITDA margin of 60%+ even after excluding one-offs, indicating operational efficiency.
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Liquids business has grown 60% over the last three years, with new ammonia tankage expected to add volumes from September-October.
Negative Points
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Container volumes grew only 3% YoY, below earlier guidance of 5-7%, due to the Middle East conflict.
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The Shaheen service (Middle East) remains suspended, leading to an expected loss of 70,000-80,000 TEUs for the full year.
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Liquid volumes declined 47% YoY, with LPG volumes down 63% due to the Middle East conflict.
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Dry bulk volumes fell 7% YoY, primarily due to a decline in limestone and minerals.
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Full-year guidance for liquids indicates a 15-20% decline in volumes, with only partial recovery expected.
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One-off revenues (duty scripts, provision reversals, transshipment opportunities) contributed ~5% to revenue, but these are not sustainable.
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Concession agreement expiry in September 2028 remains a key overhang, with no clarity on renewal terms or timeline.
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The company refrains from providing long-term guidance (3-5 years) until the concession extension is secured, creating uncertainty.
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Other expenses increased due to higher CSR costs and provisions, impacting quarterly profitability.
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The new liquid jetty will not contribute to revenue in FY2027, and it may take 3-5 years to reach full capacity utilization.
Q & A Highlights
Q: Could you please repeat the guidance for the financial year, as it was given quickly? A: Girish (Managing Director) reiterated the full-year guidance: EBIT growth of 20% to 24% year-on-year, container volumes of approximately 700,000 TEUs (a 4-5% increase), RoRo volumes between 260,000 and 270,000 cars, liquids between 1.3 and 1.4 million metric tons, and bulk between 2.4 and 2.6 million metric tons.
Q: Container volumes grew only 3% against the guided 5-7%. Where was the gap, and what is the outlook for the new service and normalization of services? A: Girish (Managing Director) explained that the shortfall was due to the Middle East conflict, which has kept the Shaheen service (Middle East) suspended. They now assume it will remain suspended for the rest of the year, resulting in a loss of 70,000-80,000 TEUs. However, a new service (FI2) with Maersk started at the end of June, and they have captured transshipment opportunities. Despite this, the full-year container growth guidance remains at 4-5%.
Q: What is the contribution of the new FI2 service with Maersk that started in June? A: Girish (Managing Director) stated it is early days with only about four calls so far. Services typically start small and grow. On a like-for-like basis, assuming nine months of FI2 versus 12 months of Shaheen, they expect FI2 to eventually match Shaheen's weekly volume.
Q: The liquids guidance of 1.3-1.4 million metric tons implies a decline. What trends are you seeing in July and mid-August for liquids and other cargoes? A: Girish (Managing Director) declined to comment on current quarter volumes but confirmed an expected 15-20% decline in overall liquid volumes versus last year's 1.6 million metric tons. While Q1 was difficult, LPG is now starting to come from the US, and they expect some catch-up in the remainder of the year.
Q: Can you explain the higher realizations on a like-for-like basis, excluding duty scripts and reversals? A: Santosh (CFO) noted container realizations are now INR 9,500-10,000 per TEU, driven by a favorable exchange rate and tariff increases implemented in January/April. However, the reported numbers are substantially higher due to one-offs, including ACIS duty scripts, provision reversals, and opportunities from transshipment and storage revenue. Bulk remains at INR 650-750 per metric ton, and liquids are slightly better at INR 650-700 per metric ton due to cargo mix.
Q: With congestion reported at other Indian ports, are you seeing opportunities to capture ad hoc calls? A: Girish (Managing Director) confirmed there is no congestion at Pipavav, with no berthing delays. The port is fully functional, and they are aggressively tapping transshipment opportunities, which they have already captured this quarter and expect to continue, subject to draft and vessel requirements.
Q: What is the CapEx outlay for this year, including the liquid jetty expansion? A: Santosh (CFO) stated there are no major changes from previous guidance. They expect to spend close to INR 200 crore, with the major spend on the liquid jetty, which will be commissioned this financial year.
Q: Can you quantify the additional revenue from one-offs (provisions and ad hoc opportunities) and is it sustainable? A: Santosh (CFO) clarified these are very ad hoc and not sustainable. Transshipment opportunities will keep coming, but it is difficult to quantify future revenues. On a high level, excluding the duty scripts, the impact of these one-offs on total revenue is roughly 5%.
Q: What is the status of the Kanla-Gurugram pipeline spur? A: Girish (Managing Director) confirmed the remaining 7-odd kilometers are expected to be completed by October this year, which is the current timeline.
Q: What is the US dollar exposure in terms of your revenues? A: Santosh (CFO) stated that 60-65% of the top-line comes from the container business, which is billed in US dollars. The rest, including dry bulk, liquids, and RoRo contracts, are in local currency.
Q: Why do you assume the Shaheen Middle East service will remain closed for the remainder of the year? A: Girish (Managing Director) explained this is a prudent assumption. Shaheen has been suspended since March, and they do not see it returning in September. If the Hormuz situation opens up, it could return, but for guidance purposes, they assume it will not come back this financial year.
Q: With the liquid jetty expansion, what visibility do you have on filling the new capacity? A: Girish (Managing Director) stated it is not possible to discuss at a customer level. Given India's LPG import growth and new ammonia tankages, they believe the additional jetty, which is fully VLGC compliant, will be filled over three to five years.
Q: What is driving the growth in other expenses, and are there any one-offs? A: Santosh (CFO) noted the increase is due to additional CSR expenses and some provisions made in the current quarter compared to the previous one. There is no significant increase in costs otherwise; the variations are mainly quarterly, including some repairs and maintenance activities.
Q: Are there any more SEIS claims that could be received? A: Santosh (CFO) confirmed there is one script still pending, but it is not a substantial amount. The scripts are tradable and have been monetized in the market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
