Q2 25/26

Nov 7, 2025

Summary

Q2 FY26 revenue and operating EBITDA rose 26.2% and 25.8% YoY, respectively, while lower finance costs lifted profit. Growth plans center on pipeline-enabled throughput, major capacity additions, and a proposed Haldia acquisition.

Ladies and gentlemen, good day and welcome to the earnings conference call of Aegis Vopak Terminals Limited Q2 FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Before we begin the call, I would like to give a short disclaimer. This call may contain forward-looking statements, which are completely based upon our beliefs, expectations as of today. The statements are not guaranteed of future performance and involve unforeseen risk and uncertainties. With this, I would now like to hand the conference over to Mr. Raj Chanderia for his opening remarks. Thank you and over to you, sir. Thank you very much. Good afternoon, everybody, to all the participants in this Q2 FY26 financial results presentation. I am also joined by Mr. Murad Moledina and Ms. Payal Dave from MUFG Corporate Markets. I hope everyone has had the opportunity to review our investor presentation uploaded on the stock exchange in our company website. It gives me great satisfaction to address you again this quarter following our successful listing and the first earnings call earlier this year. I want to thank all our investors and stakeholders for the continued trust and confidence you have placed in our long-term vision, our management team, and our strong operational foundation. As you know, AVTL or Aegis Vopak Terminals Limited is India's largest independent owner and operator of tank storage terminals for LPG and liquid products, with assets located across six major ports on both coasts of India, offering multimodal connectivity through pipelines, road, and rail. Our joint venture parentage brings together the deep local expertise of Aegis Logistics and the global operating excellence of Royal Vopak. This unique partnership underpins our ability to deliver world-class safety, sustainability, and efficiency standards in India's rapidly expanding energy logistics ecosystem. During the first half of this fiscal year, we continued to make excellent progress in executing our long-term strategy under Project GATI, Gateway Access to India, G-A-T-I, which focuses on expanding our storage footprint, enhancing throughput efficiency, and diversifying into new products and regions. I am pleased to report that the new LPG terminals commissioned last quarter at Pipavav and Mangalore are fully operational and contributing to revenues from this quarter onwards. These additions have already started driving incremental volumes and strengthening our leadership in the LPG infrastructure segment. Now, in line with our strategic expansion plans, we are happy to announce the proposed acquisition of a 75% stake in Hindustan Aegis LPG Limited, which the acronym is HALPG, from Aegis Gas (LPG) Private Limited and Vopak India BV, subject to shareholder approval. Upon completion, HALPG will become a subsidiary of AVTL, and the transaction will consolidate a further 25,000 metric tons of LPG capacity currently at Haldia into AVTL and mark our strategic entry into the East Coast market. HALPG operates a leading LPG terminal with an attached bottling plant and an exclusive terminaling agreement with HPCL, which is valid until 2038. I think this is a significant long-term asset that aligns well with our growth ambitions. Let me just take you through the key project and port-wise developments. At Haldia Port, our liquid capacity of 226,900 cubic meters is operating at a high utilization level. After integration with Hindustan Aegis, HALPG, AVTL will have a pan-India network of four LPG terminals, Pipavav, Kandla, Mangalore and Haldia. With a combined static capacity of 225,800 metric tons. We have also been allotted an additional 3-acre plot of land at Haldia to facilitate future expansion and ensure smooth operations at this strategic location. At JNP Port, we continue to make steady progress on our large-scale expansion program. Our existing liquid capacity of 101,900 cubic meters is operating well, and construction is well underway for an additional 318,100 cubic meters of liquid capacity and 77,286 metric tons of LPG storage, along with a 35,000 metric ton per annum LPG bottling plant. This entire project involves a capital expenditure of INR 1,675 crores, which was approved by the board. Part of the new liquid terminal is expected to be commissioned before the end of this financial year. We have also started evaluating the addition of a further 36,000 metric ton cryogenic gas tank at this site to further strengthen our gas infrastructure. At Kandla Port, our existing facilities continue to operate at improved utilization levels. We expect a significant volume boost as both the KGPL and JLPL pipelines become operational. The KGPL connection has already received PNGRB approval, and JLPL connectivity is expected to be operational by the third quarter of FY 2026, so that is probably by December 2026. Sorry, December 2025. We are also gearing up for the commencement of VLGC berthing at Kandla in the third quarter, which will allow us to handle larger cargoes efficiently. As far as expansion is concerned, we have acquired some new land at a CRL-4 plot, where a new liquid terminal, with a storage capacity of 94,148 cubic meters is under development, and which is scheduled for commissioning next year. In addition, we had announced the signing of a non-binding Memorandum of Understanding with Larsen & Toubro to set up ammonia terminals to support their upcoming green ammonia facilities at Kandla, which would increase our participation in India's emerging green energy value chain. At this point, this is still a non-binding MoU, but discussions are underway to firm it up. At Kochi Port, our 82,000 cubic meter liquid terminal is operating at a high-capacity utilization. We have been allotted additional land at this site and plan to add another 60,000 cubic meters of capacity on the newly allotted land, which will help us to serve growing demand in Southern India and further strengthen our network on the West Coast as well. At Pipavav Port, following the commissioning of the 48,000 metric ton cryogenic LPG terminal in June 2025, the total LPG capacity at this port now stands at 70,800 metric tons. This terminal is expected to see a substantial boost once the Kandla-Gorakhpur pipeline, KGPL, becomes operational by Q4 of FY 2026, so we are looking at the end of March there. The port is now VLGC enabled and supports increased rail evacuation of LPG. Our liquid terminal at Pipavav continues to operate at very high utilization, catering to Western India, and we are also developing, in a very significant development, a rail gantry for liquids as well. This will be an important initiative. A further important development is the construction of India's first independent ammonia terminal at this port, which we announced last time, with a static capacity of 36,000 metric tons, and which is expected to be completed before Q1 of the next fiscal year. This terminal will operate under a 15-year take-or-pay agreement to serve Hindustan Zinc's upcoming diammonium phosphate plant, and is positioned to benefit from a rising domestic demand for ammonia, which is also driven by India's green hydrogen mission. At Mangalore Port, our 82,000 metric ton cryogenic LPG terminal was successfully commissioned in June, and the maiden LPG vessel was received last quarter, marking the inauguration of the LPG loading and unloading arm. In addition to this, the 75,000 cubic meter liquid capacity added last year is now fully generating revenue. We have been allotted some additional land at this location as well and plan to add another 60,000 cubic meters of liquid capacity to support further growth and deepen our presence in the region. In the previous earnings call, we had shared with you our intention to expand our presence to the seventh port, for which land allotment was expected shortly. I am now pleased to announce that we have signed a non-binding Memorandum of Understanding to invest in the Vadhavan Port, which some of you may have heard about, for around INR 20,000 crores. We now have intentions to expand our presence to two new ports and additional liquid or gas capacity will be developed once land is allotted in these ports. This will further diversify our geographic presence and product mix, strengthening our position as India's most comprehensive energy infrastructure platform. From a financial and strategic standpoint, we continue to maintain a disciplined approach to capital deployment. We remain on track to reach a cumulative capital expenditure of USD 1.2 billion by next year. We aim to achieve an aggregate CapEx of around USD 5 billion by 2030. This growth will be funded through a balanced mix of equity, internal cash generation, and prudent use of debt, with a target gearing ratio of 0.6 times currently, and a maximum cap of 3.5 times EBITDA. Financial discipline, alongside operational excellence and strategic clarity, positions AVTL for sustainable value creation over the long term. I would also like to take this opportunity to thank all our employees, partners, and stakeholders for their continued support and dedication as we execute on our strategic roadmap. With a strong balance sheet, an expanding asset base, and growing demand for LPG, ammonia, and liquids, we are well-placed to deliver consistent growth and strengthen our leadership in India's energy logistics sector. With that, I can now hand over to Mr. Murad Moledina to take you through the detailed financial performance for the quarter. Murad? Thank you, Mr. Raj. Hello, everyone. Q2 FY 2026, the revenue from operations increased by 26.2% year-on-year to reach INR 187.6 crore. Revenue from liquid terminaling was INR 106 crore, increasing by 28.3% year-on-year. This increase in revenue was driven by higher volumes on account of capacity additions and also on account of better product mix. Revenue from gas terminaling division reached INR 81.5 crore, that is an increase of 23.7% year-on-year. Gas throughput for the quarter was 0.68 million metric tons as against 0.52 million the previous quarter. With significant static capacity, which has been recently operationalized, the revenue contribution from gas division is poised to grow going forward. In fact, a step-up growth after operationalization of pipeline connectivity. Operating EBITDA increased by 25.8% year-on-year to reach INR 137.4 crore. As highlighted in the previous earnings call, we saw a full quarter impact of debt repayment and interest saving, witnessing a substantial reduction in interest costs driven by repayment of bank borrowings, with interest costs decreasing 61% year-on-year. The profit growth was 141.8% year-on-year to clock at INR 63.9 crore. Coming on to our H1 FY 2026 performance. H1 FY 2026 revenue from operations increased by 16.2% year-on-year to reach INR 351.6 crore. Revenue from liquid terminaling was INR 202.9 crore, increasing by 21.3% year-on-year. Revenue from gas terminaling division reached INR 148.7 crore, an increase of 9.8% year-on-year. Cumulative gas throughput for H1 FY 2026 was 1.2 million tons. Operating EBITDA increased by 15.5% for H1, reaching INR 257.4 crore. The profit growth was 111.4% year-on-year for H1, which clocked at INR 101.6 crore. A strong operational EBITDA was further supported by 49% decrease in finance cost for H1 FY 2026. The financial position of the company remains robust with low debt, strong cash flow, and a solid balance sheet. Thank you. I will now request the moderator to open the floor for question and answer session. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all the participants that you may press star and one to ask a question. Participants are requested to press star and one to ask a question. The first question is from the line of Nilotpal Sahoo from JM Financial. Please go ahead. Hi, sir. Thank you for the opportunity. Some bookkeeping questions, please. Sahoo, please unmute your line and go ahead. Hi, can you hear me? Hello? As there is no response from the line of Mr. Sahoo, we will move to the next question from the line of Vishal Mehta from IIFL Capital. Please go ahead. Hi, am I audible? Hello? The next question is from the line of Jenish Deida from Camfin Family Office. Please go ahead. Hello, am I audible? Yes. Yes, sir, you are audible. I just wanted to understand, can you share the volume numbers for FY 2025 and H1 FY 2026, if that is possible, both in liquids as well as in LPG? No, we do not give for liquid, as it is not relevant. But what you can see is that the last year we had 1.5 million CBM liquid space. As against the current year, where we are now operating 1.7 million CBM. So this is the liquid capacity. We have already given throughput capacity in our presentation, where in the first quarter it was 0.52 million metric tons, and in the current quarter it has risen to 0.68 million metric tons. For H1, it is 1.2 million metric tons. What will be for FY 2025, that is handy. We will have to look at the Please refer our presentation. I do not have it offhand. No issues. Thank you. I join back with you. Yeah. Thank you. The next question is from the line of Nilotpal Sahoo from JM Financial. Please go ahead. Hi, sir. Good evening. Can you hear me now? Yes, we can hear you now. Sir, can you give a split of EBITDA between liquids and gases? Neelu, we give it always at the year-end. What I can guide you is that the gas EBITDA per ton remains just a shade under 1,100. This is because the new cryogenic terminals have just come on stream. Going ahead, we will come back to our realization of EBITDA of 1,200 that we talk about. But in this quarter, it is just a shade under 1,100, and then you can calculate the liquid EBITDA accordingly. The liquid realization, if you look at the revenue, we have improved to 2,500 now as against around 2,250 the previous quarter as well as the last year. The EBITDA in liquid also has remained, the realization of EBITDA is almost the same per CBM. However, with JNPA product mix improving, you will see from next quarter, again, a jump in the EBITDA per CBM as far as liquid is concerned. As of now, this is all that I can help you with. Sure. That is helpful. Secondly, the depreciation number seems to have risen quite a bit. Is this now the normalized run rate we should consider, say, for the rest of the year? You please note that the depreciation number has not just increased on account of the asset addition, but also on account of JNPA coming on stream. So JNPA carries a little higher lease rent with under Ind AS 116. It's non-cash, but it comes under depreciation as well as interest. So a little part of that increase is Ind AS 116. But yes, I think you can take this run rate because this Ind AS is not going to go away in any case. But it's not actually depreciation. Understood. Also, sir, you've talked about KGPL and JLPL getting connected to AVTL's Kandla terminal. How much capacity is allocated to the AVTL terminal for these two pipelines together? There is no capacity allocation. Let me tell you one thing. JLPL is 3.5 million and KGPL is 8.25 million, of which 1 million is the hedge, 1.5 million is Pipavav. So what is left is 5.75 million and 3.5 million JLPL. JLPL is being upgraded to 6.5 million, so eventually there will be a pipeline evacuation of around 12 million going forward. Three terminals are hooked into, which is IOC Kandla, Adani Mundra, both LPG terminal and Aegis Terminal. I suspect that all three of us going forward will not be able to keep up with 12 million and we will have to expand, and that, of course, may happen in 2028, 2029. Building a tank will not take much time. It will be possible very quickly. But we need to get to that point. Also, distribution is a very important element from Kandla. So in addition to this 12 million going forward, of course, JLPL upgradation will still take some time. But with the distribution growing at the pace at which it is growing, we will need lot of capacity going forward. But in short-term, I think we have a good sight on the ramp-up that is going to happen, I suspect, very fast. Okay, sir. Understood. Last question from my side. Can you help us understand the nature of the other comprehensive income? Seems to be a large number. Yeah. So most of it is interest, which was there. So that is there. Other income in AVTL is INR 1 crore 45 lakhs, right? No. Other comprehensive income. Yeah. Other comprehensive income is the margin which the parent is charging on the Pipavav terminal that has commissioned. This is net of tax. Like what we have been always saying, 20%-25%. If you look at this 140, how much is it? INR 88 crore, right? Yeah. INR 86.68 crore, you will need to divide by 0.75, and if you equate it on the INR 600 crore Pipavav terminal that we just commissioned, you will understand that it's a shade above 20%. Margin- Right for the infrastructure development that we do. Right. Under consolidation, you have to bring it back. You have to first take the actual cost of construction, and then through this other comprehensive income, you have to take it to the amount that you have paid for. This is the way in which your asset goes, and is stated in your infrastructure schedule at the amount at which you have paid. Okay. Okay, sir. Yeah. Okay. Those are my questions. Thank you. The next question is from the line of Koundinya from Jefferies. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. Firstly, a bookkeeping question on the gas realizations. You have had lower $1,200. You partly explained that the new ones have lower realizations at the moment. So how low that cost can be? That is one. Two, even on the throughput turns, even if you adjust for the months of operation, it looked lower. So how should we read that number? How should we look forward to maybe from 3Q onwards, these two numbers? Yeah, so for throughput turnarounds, we have explained there are five very important things happening in near term, and those have to happen for the turns to come at the levels at which we always talk about our terminals being capable to handle. Number one, JLPL connection, which is right now, today, getting hooked up. The work is going on. We expect it to be operational next quarter. So that is JLPL Kandla. We have already explained it is a 3.5 million ton pipeline, and is presently being upgraded by JL probably. That will take still some more time. Anyway, JLPL will start operating next quarter. From Kandla Gorakhpur pipeline. We have just received PNGRB permission, which was awaited, and of course, Kandla Gorakhpur itself is getting commissioned. We expect that to happen and get completed sometime in Q4. So that also will start giving, not only in Kandla, but also in Pipavav, where in our own premises, a manifold for the hookup of Kandla Gorakhpur is being constructed by IHB. That is the third one. The fourth one is Kandla was only able to handle medium gas carriers up till now. But we have prevailed upon the port, and we are now under the process of starting to operate to unload very large gas carrier. That means the load which comes in doubles from 22,000 metric ton to 45,000 metric ton. So the load which comes in is a larger load. So it will help in the turnaround that you can do with the VLGC jetty enabling. Fifth one is Mangalore. We have just started construction of LPG rail gantry in Mangalore as well as constructing a LPG bottling plant in Mangalore. Further, JNPA work is in full swing for setting up 77,000 tons of LPG cryogenic storage terminal, as well as a 35,000 metric ton of bottling plant. There also, we have a window to connect into Uran Chakan pipeline. So all of these are going to be the enablers for a higher turnaround. Now we await, especially JLPL, KGPL to begin with, and then Mangalore also, we have an opportunity to hook up into Mangalore, Hassan, Cherlapally pipeline. All of these pipelines which I've just talked about, in addition to the upgradation of JLPL in terms of capacity, they are also extending the reach. So that also is a work going on. So it’s a very exciting time going ahead. It’s just the timing which we have to wait for the connections and operations. Sure, sir. Actually, my question was specific to the quarter only because it looks like the implied throughput was anyway close to 14, 15 turns. So the question is, how quickly can they go back to that 25, 30 turns at least? Is it going to happen in the next quarter itself, or is it at least six months, or eight to 12? We will see that from Q4 onwards. Q4 onwards. Q3 will also be a bit subdued, and Q4 onwards it will be- Yes, because then JLPL and a bit of KGPL will come into fray, as well as VLGC in Kandla. Okay, understood. My second question is on the CapEx plan. You did speak about $1.2 billion next year, and also $5 billion by 2030. Is it possible to give some kind of breakup on what is the estimate between different projects, when project-wise possible, the kind of CapEx that will be going out? What I can tell you is that the number of ports where we are present will increase. We are already in 6 ports. 2 additional ports, Vadhavan Port, we have already signed a non-binding MoU, of course, but we are very much wanting to start work as soon as we get the land, et cetera, at Vadhavan. Then there is one more port, which I think in the coming quarters, you will hear for. This is 6 to 8 to 12 ports we could go by 2030. That is number one, is increase in presence in number of ports. Second is increasing liquid capacity. We were at 1.5 million CBM, we are at 1.7 with JNPA, Haldia, Mangalore, Kandla expansion, we would be jumping to 2.5 million, and then probably by December 2026, maybe 3 million odd. Then this 3 million going further at the same rate until 2030. So that is increasing liquid CBM until 2030. Also, we have said that LPG, we are building in JNPA, 77,000. We are also looking at another 36,000. That is gas, whether LPG, propane or ammonia, we need to still zero in on. Plus, on top of that, I just said that Kandla, we may have short capacity, so we may need to put up more tanks in Kandla. So that is LPG. Ammonia, already we have said. We have started first ammonia terminal development. We have signed the non-binding MoU for Kandla, and we definitely are looking at Kandla as the second port. We probably would have around 8 to 10 terminals by 2030, as far as ammonia is concerned. Then there are some more gases where we could start having presence, whether it is natural gas, ethane. There are lots and lots. Plus, on top of that, industrial terminals. We are really talking for getting a presence in industrial terminals, which are customer-centric and, of course, getting into jetties. So there is so much to do. I think INR 5 billion will, may, is quite We would be there. Okay. I was trying to understand it on the project level. At least a USD 1.2 billion, is it possible to identify, where is it being spent for different projects or it is difficult at this point in time? USD 1.2 billion is INR 10,000 crore. We are already at INR 6,000 crore. We have just announced INR 1,675 crore in JNPA, INR 525 crore in Pipavav Ammonia. We have announced INR 165 crore for Kandla. Now, like I said, Hindustan Aegis acquisition. Plus on top of that, I just said there is a new port which you will hear in a quarter or so. Then Haldia, Mangalore, Kandla and Kochi surplus land, which we are planning to develop. So all of this put together will take us to INR 10,000 crore very easily. Understood. which is INR 1.2 billion by December 2026 or March 2027. We should be there. Understood. Sir, just one small request, if you can. I know you said that you will share the number on an annual basis, but it will be helpful if you can share the EBITDA numbers on a quarterly basis. Because as you add new plants, your depreciation shoots up, and the EBITDA is a moving number. It becomes really difficult for us to track the company. That is a small request from our end, sir. Note taken. All the best. Thank you. Thank you. The next question is from the line of Vishal Mehta from IIFL Capital. Please go ahead. Am I audible now? Yeah. Yes, go ahead. Yeah. Good evening. Thanks for the opportunity again. My question was, this expansion of liquid in Mangalore and Kochi, 60K CBM each. By when do we expect the commissioning by? Oh, it will be done quickly. It should be by December 2026, all done and finished. Maybe much before that, but definitely by December 2026. Okay. Sir, just reconciling the numbers here. We are 1.7 right now on liquid. We have plans for additional 0.6 odd million. So we are saying that we will reach probably 3 million by December 2026. So where is that additional 0.6 going to come from? I told you there are two more land parcels which we are at the stage of finalization, a new port. So once those come in, probably we should be very close to that number. Okay. Once those come in, probably by December 2026, we should quickly have those up and running. Yeah. We are very quick as far as liquid terminals, which generally, if everything goes well, we can finish between 9 to 12 months. So yeah, even if we start in January 2026, we should be able to finish it off. Okay. I am sorry, I probably got disconnected at the time when you were giving EBITDA per ton numbers for liquid and gas. If you could provide that again, it would be helpful. So like I said, we have improved the realization as far as revenue is concerned in case of liquid from INR 2,200 odd to INR 2,500. As far as EBITDA is concerned, of course it remains almost the same, INR 1,700. That will change quickly once JNPA mix, which has changed and will contribute more. So you will see an upside probably from next quarter onward. We have already improved on the revenue rate per CBM on liquid. As far as LPG is concerned, because these two terminals have come up, and remember, Mangalore terminal is again INR 1,175, not like Pipavav. So now Kandla and Mangalore are INR 1,175. So you will see a revenue rate a shade over INR 1,200, and EBITDA rate just a little shade under INR 1,100. But this again is going to improve once the throughput and the turnaround increases on account of multimodal evacuations. The five or six of them, which I just listed and which are expected in near term to happen. Okay. So on sustainable basis right now, we should probably at a blended level, build in a LPG realization of around INR 1,200 odd, a shade about INR 1,200? Yes. A shade above INR 1,200 and EBITDA a shade over INR 1,100. This is where we will be operating at. Okay. Thanks, and all the best. Thank you. Thank you. Ladies and gentlemen, in the interest of time, that was the last question. I would now like to hand the conference over to Mr. Raj for closing comments. Okay, thank you very much for those interesting questions. I'd just like to summarize by saying that AVTL is really on track. We are very clear strategically what we have to do, and I look forward to interacting with all of you next quarter to continue the rollout of our network. Thank you very much. Thank you. On behalf of Aegis Vopak Terminals, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.