Aegis Logistics Ltd (AEGISLOG) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, the conference call for Aegis Logistics and Aegis Vopak Terminals will begin in the next few minutes. Thank you for your patience and please continue to stay connected.
Moderator: Ladies and gentlemen, good day, and welcome to the Aegis Logistics and Aegis Vopak Terminals Limited Q2 FY '27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an announce, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Raj Chandaria, Chairman and Managing Director. Thank you and over to you, sir.
Raj Chandaria (Aegis Logistics Ltd): Okay, thank you very much, and good afternoon everybody. Today, I have with me our CFO, Mr. Murad Moledina, and Miss Payal Dave from our investor relations team. Today, I'm going to cover four main things. First, is our planned acquisition of Tristar Holdings Limited. Secondly, the performance of Aegis Logistics. Third, is the performance of Aegis Vopak Terminals or AVTL. And fourth, a brief update on the progress of our port-by-port expansion projects. Murad can then take you through the financial performance in more detail. So, let me start with Tristar. You know, many of you would have heard about this this transaction. So, I'm really pleased to announce this landmark development for Aegis Logistics. So, on the 13th of October 2026, we signed a definitive agreement to acquire 89.8% stake in Tristar Holdings Limited for a consideration of $809 million. Now, Tristar is an integrated energy logistics company, headquartered in Dubai, but with global operations. The acquisition is a transformational step in Aegis' journey from a predominantly India-focused business to a global integrated energy logistics platform. This this transaction will bring together our domestic infrastructure and integrated logistics capabilities with Tristar's international network, its diversified service offerings, and established global customer relationships. And we think that this will significantly enhance our scale, obviously, our geographic diversification, and earning potential, and and create meaningful operational and commercial synergies. Subject to regulatory approvals and the customary closing conditions, we expect to complete this transaction in Q4 of FY '27. And we expect to have much more to report on the benefits of this move as we work to complete the the transaction. Now moving on, we are halfway through the year, through the financial year, and it is you know, the halfway mark always brings into perspective how we have done and gives a good indication of where we are heading. So, I'm pleased to report a record breaking breaking profit in the first half of this year FY '27. We had a revenue of Rs. 4,570 crores, generating an EBITDA of Rs. 1,184 crores and a profit after tax of Rs. 866 crores. In comparison to where we were this time last year, H1 FY '26, profit after tax has doubled, reflecting the strong operating and financial performance. Earnings per share for the first half of FY 2027 was at Rs. 21.23, which is up 141 140% from H1 FY '26. For the quarter, FY '27, we delivered revenue of Rs. 2,213 crores, EBITDA of Rs. 456 crores, and profit after tax of Rs. 321 crores. And both EBITDA and profit after tax
Raj Chandaria (Aegis Logistics Ltd): grew 32% year-on-year, underscoring the strength of our business fundamentals. And earnings per share for the quarter was at ₹7.42, up 45% year-on-year. This is obviously you know, better than what we normally expect and our liquid division delivered its highest performance ever in the first half of the year, with revenues of 366 crores, EBITDA of 284 crores, representing a margin of 78%. As we've emphasized in the past, this is a well-diversified, stable and cash-generating business for the company, and we will continue to expand capacity here. In our gas division, the business delivered an exceptional performance during this period. We achieved its highest first highest ever first half EBITDA of 900 crores in the first half of this year, which is up 137 crores, 137% year-on-year. This reflects the strength of our integrated business model and our ability to consistently capitalize on market opportunities. Looking at the individual segments, the logistics volume grew by 19% over the previous quarter, which is a very healthy improvement. Our distribution business continued to deliver an exceptional growth with volumes up 25% in the second quarter and 54% in the first half on a year-on-year basis. What makes this particularly noteworthy is that we've achieved this growth even as global supply conditions have largely normalized, and it shows that our growth is not merely the result of favorable market conditions, but is increasingly driven by new and large capacity additions in the previous year, our increased geographic reach, and a new product addition, namely ammonia, and structural strengths and the competitive advantages of our business model. In the sourcing business, volumes were lower during the year on account of some contracts expiring, but we need to keep in mind, of course, that sourcing volumes do not include our own distribution volumes. In distribution, we expanded our customer base over the year by onboarding several new private sector customers, and this momentum has continued into the current financial year. And our ability to consistently add customers, deepen existing relationships and scale our volumes is a direct reflection of our integrated business model. Overall, we are confident that the business that the gas division is well-positioned to sustain this growth trajectory and continue delivering strong operating performance and long-term value. Now, let me turn to Aegis Vopak terminals, which I'll take through on a on a port port-by-port a progress. Turning to AVTL, we delivered another strong operating performance in Q2 FY '27 with revenues of 271 crores, which are up approximately 17% year-on-year, and an EBITDA of 212 crores, which is up by 22%. Profit after tax was 96 crores, slightly lower than last year, mainly due to higher finance costs and tax, and I'm sure Murad will go into a little more detail on that. For the first half, revenue rose 15% year-on-year to 505 crores, supported by the ramp-up of recently commissioned capacities and strong performance in our liquid business. EBITDA was 392 crores, which is up 19%, and profit after tax was 166 crores. And earnings per share was 1.3 for the first half was 1.38 compared to 1.49, reflecting those higher finance and tax costs. I can run through the port-by-port rundown, starting with Mumbai, which is of course part of Aegis Logistics and not part of Aegis Vopak. This port continues to operate at high utilization levels. We are developing an additional 64,000 cubic meters of liquid storage at this port with an additional investment of
Raj Chandaria (Aegis Logistics Ltd): 125 crores. The project is progressing on schedule and we expect to commission, you know, gradually as as the year unfolds. We are based on, you know, customer interest and existing demand, we are confident that this new capacity will ramp up quickly once it becomes operational. As far as JNPT is concerned JNPA is concerned, the we've re- reached an important milestone with the commissioning of our LPG bottling plant with an annual capacity of 35,000 metric tons, which we did on October 15th of this year and JNPT's liquid storage capacity, which is currently 101,900 cubic meters is doing well. Our larger greenfield expansion in that is represents a significant investment of about 1,675 crores comprising an additional 318,000 cubic meters of liquids and approximately 77,286 metric tons of LPG storage. As communicated earlier, the first phase of this liquid storage expansion which is about 100,000 cubic meters will be commissioned in the third quarter of this year and otherwise everything is on schedule. Last year last quarter we had also announced a 51,000 approximately 52,000 metric ton refrigerated double-wall LPG storage tank at JNPT. This this important investment will further enhance our gas handling capabilities on the West Coast. And you know, once all of these capacities become operational and ramp up, we expect them to contribute significantly to our future growth. At Haldia port, everything continues to to do well. We have acquired an additional 3 acres of land at Haldia, which gives us further room to expand our liquid storage and increase our presence on the East Coast. Moving on to Kandla, which is one of our largest and most strategically most important terminals, serving the extensive hinterland across Northern and Western India, we have a 952,000 cubic meters of liquid storage and 48,000 metric tons of static LPG storage. An important milestone last year was the development of the VLGC handling capability at the terminal, which lets us accommodate these large gas carriers. This has really strengthened our operations and our ability to handle large LPG shipments. And our expansion in Kandla is progressing well. We have a CRL4 liquid terminal, which will add another 94,000 148 cubic meters. This is underway and with commissioning targeted for the next financial year. The two important pipeline developments. First of all, as we've spoken earlier, the Jamnagar-Loni pipeline is now complete and operational and you know performing very well. The Kandla-Gorakhpur LPG pipeline is now one of which is one of the country's largest LPG pipeline pipeline projects is nearing completion. As per the latest Crisil ratings report, the project is approximately 96% physically complete with the entire 1,958 km main trunk pipeline laid. The We understand that the Kandla-Lucknow section has been charged with LPG, and work on the remaining sections in the bottling plant connections are progressing well. We we think that these pipelines will be important growth enablers for Kandla and Pipavav, and you know, more importantly, as these pipelines become fully operational, we will be able to handle larger LPG volumes and serve a wider customer base across Northern and Western India. Moving on to Pipavav port, another important location with great significant growth opportunities. We believe Pipavav is in entering an important phase of development supported by three infrastructure initiatives. First of all, APM Terminals is developing a new VLGC-compliant jetty, which will let us handle larger LPG vessels and improve vessel turn
Raj Chandaria (Aegis Logistics Ltd): our own economics. Secondly, the Kandla Gorakhpur pipeline, as I mentioned earlier, is an advanced stage. This is the connection from that pipeline to Pipavav. And once it's connected to Pipavav, it will provide additional and more efficient evacuation into into the hinterland of India. And thirdly, of course, our existing rail loading infrastructure and bottling plants and truck loading bays gives customers multiple evacuation options. So, I think this together, these developments will transform Pipavav into a more integrated LPG logistics hub with with, you know, enhanced vessel handling capabilities, better storage bet larger storage and better connectivity. The the biggest development, of course, was the ammonia commissioning of the ammonia terminal at Pipavav. This was This is 36,000 metric tons of specialized ammonia storage and terminaling at Pipavav. We, as I mentioned earlier, we had signed a 15-year take-or-pay agreement with Hindustan Zinc, which gives us long-term revenue visibility and predictable cash flows and reinforces the commercial case for this investment. What excites us most about this is that this is more like a storage asset it's more than sorry, more than a storage asset. Much like our LPG business, it does allow us to participate in the distribution of ammonia to industrial customers, moving further along the value chain and capturing margin significantly higher than traditional just a traditional storage revenues. the strategic potential of this ammonia business is reinforced by the investment from Itochu Corporation, one of Japan's leading global trading houses, with whom, of course, we have a long-standing relationship, and they have acquired a 10% stake in in Aegis Terminal Pipavav Limited, which is the ammonia facility, and intend to increase its holding to 25% over the next 3 years. And we expect ammonia demand to grow beyond traditional fertilizer and industrial uses, potentially into emerging clean energy applications, such as fuel and hydrogen carriers. And this this partnership with Itochu's global sourcing and trading expertise with along with our integrated storage and logistics infrastructure bodes well for this business. Moving on to Kochi, our existing storage capacity of 82,000 metric ton cubic meters continues to operate well, and the expansion of another 49,577 cu m is underway, which will finally end up at 132,000 cu m of total storage, which is about 60 60% increase. We expect this to be commissioned in early FY '28. On Mangalore port, the liquid storage the 75,000 cu m last added last year is now fully operational and operating at 100% utilization, taking our total capacity to 193,000 cu m. Encouraged by, you know, the excellent demand that we're seeing in Mangalore in that part of India, we have secured additional land and we are evaluating at this point of adding a further 60,000 cu m of liquid storage. So, this is a summary of our business outlook port by port, project by project. And you know, I will just conclude by saying that our strong start to FY '27 and and the first half's half performance, reinforces our confidence in the growth trajectory of the business over the coming years. Our proposed acquisition of Tristar Holdings Limited is a transformational milestone in Aegis's journey. It will really expand our international footprint, diversify our revenue streams, and bring together complementary capabilities across this the global energy logistics value chain. And as far as the Indian side is concerned, multiple growth drivers are taking shape. The investments we have made over the years along with the capacity expansion position us to capitalize on rising demand and deliver you know, as we have demonstrated, sustainable growth. With that, I'd like to hand over to
Raj Chandaria (Aegis Logistics Ltd): and will take you through sort of more financial details for the quarter and for the first half. Thank you, over to you, Murad.
Moderator: Murad sir, please go ahead. You're not audible.
Murad Moledina (Aegis Logistics Ltd): Hello?
Moderator: Yes, sir, please go ahead.
Murad Moledina (Aegis Logistics Ltd): Am I audible? Can I go ahead?
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