Ladies and gentlemen, good day and welcome to the JSW Infrastructure Limited Q4 FY 2026 Earnings Conference Call hosted by Motilal Oswal Financial Services Limited. 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 this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Alok Deora from Motilal Oswal Financial Services. Thank you, and over to you, sir.
Thank you, and good evening, everyone, and welcome to the 4Q FY 2026 Earnings Conference Call of JSW Infra. We have with us today Mr. Rinkesh Roy, Joint Managing Director and CEO, Mr. Lalit Singhvi, Strategic Advisor and Board Member, Mr. J. Nagarajan, Chief Financial Officer, and Mr. Vishesh Pachnanda, Head of Investor Relations. I would now hand over the call to the management to provide some opening remarks. We can go with the Q&A. Thank you, and over to you, sir.
Thank you, Alok. Good evening, and thank you all for joining our earnings call for the quarter and year ended 31st March 2026. Against a backdrop of a more complex global environment shaped by heightened geopolitical tensions in the Middle East and moderated global growth, India's macro environment continues to remain relatively resilient, supported by domestic consumption and government spending. During the year, and in particular during the quarter, we navigated a challenging operating environment and despite these headwinds, delivered a resilient performance across both ports and logistics. Overall, on a consolidated basis, our operating revenue was INR 5,361 crore for the year, representing a 20% YoY growth. Operating EBITDA for the period stood at INR 2,604 crore, marking a 15% increase, while adjusted net profit reached INR 1,644 crore.
The board has recommended dividend of INR 0.90 per share, which is 45% of the face value. Let me now touch upon the operating environment and key developments during the quarter, starting with the ports business. As previously disclosed, the company's five million tonne per annum liquid storage facility in Fujairah Oil Industrial Zone, FOIZ, located outside the Strait of Hormuz, was impacted following damage to certain infrastructure at the storage facility. The operating environment in the region remains volatile, influenced by heightened geopolitical developments and crude oil price movements. We remain closely engaged with local regulators, port authorities, and the government, who have been continuously supporting and guiding us during this turbulent period. Based on our current assessment, operations are expected to progressively normalize in due course. We'll continue to keep stakeholders updated on the developments. During the quarter, we achieved several important operational milestones.
We successfully completed the 4.5 million tonne JNPA liquid berth modernization project, enhancing our liquid cargo handling capabilities at one of India's premier gateway ports. We also expanded cargo handling capacity at the Ennore Coal Terminal from 9.6 million tonnes per annum to 11 million tonnes following receipt of the consent to operate. The Ennore Coal Terminal, acquired in November 2020, with an installed capacity of eight million tonnes and volumes of 3.1 million tonne in FY 2021, stands as a compelling illustration of our approach to value creation. Since acquisition, we have progressively scaled capacity to 11 million tonnes per annum with volumes of 10.4 million tonnes, reflecting our proven operational excellence in turning around port and logistics assets with a clear and unwavering focus on improving returns on capital employed.
Earlier in the year, we were awarded the Syama Prasad Mookerjee Port, Kolkata container terminal project with a capacity of half a million TEUs. Following the signing of the concession agreement, we moved swiftly to accelerate our operational readiness and have very recently received approval to commence interim operations. This milestone reflects the same execution discipline and operational excellence we have consistently demonstrated at JNPA and Tuticorin, the ability to commence revenue-generating operations while modernization works progress in parallel, minimizing time to revenue and maximizing returns on invested capital. On our ongoing growth projects, the 302-km iron ore slurry pipeline continues to progress steadily and remains on schedule. To date, 247 km of welding and 235 km of pipeline lowering have been completed, representing approximately 82% and 78% completion respectively.
Strong execution momentum continues with the project on track for completion by March 2027. Once operational, the pipeline will significantly enhance the efficiency and reliability of iron ore transportation, reducing dependence on road and rail logistics, lowering the cost of iron ore movement, and delivering a step change improvement in supply chain predictability for our customer. Meanwhile, the construction activities at the Jatadhar Port are in full swing with pile foundation work of the berths being 80% completed and seven million cubic meters of dredging being completed, with the target of completion of the entire project by March 27th. Our brownfield expansion projects continue to progress steadily. At Jaigarh Port, civil works for berths have been completed, with dredging currently around 60% complete. At Dharamtar Port, berth construction and related work is progressing well.
Moving on to our logistics business, Navkar reported a strong performance underpinned by healthy volume growth across segments. For FY 2026, domestic volumes grew by 40% and exim volumes grew by 21% YoY, alongside a steady improvement in capacity utilization from 44% in FY 2025 to 56% in FY 2026, reflecting better asset efficiency and operating leverage. Despite headwinds at the Morbi ICD arising from fuel shortages impacting certain customers, Navkar reported operating EBITDA of INR 40 crore in Q4 FY 2026, while full-year operating EBITDA stood at INR 118 crore versus INR 8 crore in FY 2025, representing a 14-fold increase. In February 2026, the company has successfully completed the acquisition of 25 rakes, with operations fully integrated effective 1st February 2026. This acquisition provides immediate access to Indian Railways GPWIS and LSFTO schemes, along with long-term operating licenses under these programs.
Since integration, the rail rake business has contributed operating EBITDA of INR 25 crore. Beyond the existing bouquet of 25 newly acquired and 17 container rakes housed under Navkar, taking the total fleet to 42 rakes, we have accelerated the scale-up of our logistics platform. In April 26, we placed orders for 40 additional rakes, reinforcing our growth momentum. This is aligned with our medium-term objective to meaningfully expand our fleet to around 250 rakes over the next two to three years, with a clear focus on asset utilization, returns, and earnings visibility.
We are also pleased to share that the Gati Shakti Multi-Modal Cargo Terminal at Arakkonam, Chennai, located entirely on railway land, which was awarded to us in June 24 for construction and operations, has been successfully commissioned and has received approval from Indian Railways to commence commercial operations effective April 26, further strengthening our integrated logistics offering. Our logistics segment continues to focus on rail-centric domestic cargo, while exim cargo is driven by enhanced capacity utilization across the network. The cumulative CapEx outflow on these projects, including acquisitions, is approximately INR 6,200 crore. In addition, the company has already committed a further INR 5,300 crore of CapEx by placing orders for machineries, long lead items, and other civil works towards ongoing projects across ports and logistics business.
While our guidance issued in January 2026 did not factor in developments at the overseas liquid terminal, we delivered in line with our operating EBITDA guidance for FY 2026 and continue to maintain our EBITDA guidance for FY 2027 and FY 2028, reflecting the availability of multiple growth levers. These include higher volumes at Goa, Jaigarh, and Paradip, phased debottling, bottlenecking, and capesize coal handling capability at Ennore, and the accelerated commencement of interim operations at the SMPK Kolkata Container Terminal, supported by favorable energy sector dynamics, including higher thermal coal demand in an El Niño scenario. Consolidated operating EBITDA is expected to grow by 15% to INR 3,000 crore in FY 2027 and nearly double from the FY 2026 base to INR 5,000 crore in FY 2028, driven by ports capacity additions and sustained EBITDA contributions from logistics assets.
With this, let me hand over to Mr. Nagarajan to take you through the financials and other details.
Thank you, Rinkesh, and good evening, everybody. Let me first talk about our port business. In Q4 FY 2026, the company handled cargo volumes of 31.6 million tonnes as compared to 31.2 million tonnes in the quarter ended March 2025. Volume increase was primarily driven by strong performance at South West Port, Dharamtar and Jaigarh Port on the back of higher volumes of anchor customer and was also fueled by start of interim operations at Tuticorin and JSW JNPT Liquid Terminal. The growth was largely impacted due to ongoing Middle East conflict, lower volumes at Fujairah facility and cargo deferments at Indian operations, driven by lower availability of vessels and higher freight cost. However, the situation has improved from April 2026. Group cargo has increased from 17 million tonnes.
Group cargo has increased to 16 million, 17 million tonnes from 15.7 million tonnes, representing an 8% growth. Operational revenue for the port segment increased by 12% during the quarter to INR 1,295 crore compared with INR 1,152 crore in FY 2025. This growth was driven by price adjustments communicated earlier. For SWPL Goa and Ennore terminals, along with price increase at the Mangalore Container Terminal effective from January 2026. This announcement or this was communicated to us in March 2026, the effective date was January 2026. Along with higher ancillary services like storage and transportation offered to domestic customers and higher cargo volumes. The improvement was further supported by sharp INR depreciation. Operational EBITDA for port segment stood at INR 705 crore, up from INR 626 crore, a jump of 13%.
EBITDA growth was largely driven by increased revenue. Operational EBITDA margin increased by 10 basis points to 54.5%. Talking of Navkar, it delivered a strong operational financial result in Q4 FY 2026. Total exim cargo volumes reached 86,000 TEUs, representing a 14% YoY growth. Domestic cargo volume stood at 427,000 metric tons, up 56% compared to the same period last year. Overall capacity utilization stands at 60% for the quarter, versus 56% for the whole year. Revenue from operations for Navkar rose to INR 201 crore, while operating EBITDA climbed to INR 40 crore, showing substantial improvement, while net profit increased to INR 14 crore, a significant turnaround from a loss of INR 19 crore in the previous year. We have consolidated newly acquired rail rakes in current quarter with effect from February 2026.
Consolidated operational revenue for the company stood at INR 1,522 crore, and the operating EBITDA stood at INR 769 crore, reflecting a YoY growth of 19% and 20% respectively. Consolidated depreciation was INR 158 crore and finance cost was INR 87 crore in the current quarter as compared to INR 140 crore and INR 94 crore respectively in the quarter ended March 2025. Given the changes in the INR and subsequent changes in the yield curve, we have recognized a MTM unrealized loss of INR 43 crore. This is essentially non-cash charge and in line with the guidelines of Ind AS 109. As mentioned by Rinkesh in his opening remarks regarding the damage at Fujairah facility, we have filed an insurance claim and our consultants are positive about the admissibility of these claims.
As a matter of abundant precaution, we have kept a provision of INR 68 crore in Q4 FY 2026. As a result, adjusted PAT for the current quarter stood at INR 528 crore, which is 15% YoY growth. For 2027 and 2028, the company plans to invest approximately INR 16,500 crore, with a significant portion around INR 13,000 crore allocated to the ports business and INR 3,500 crore earmarked for the logistics segment. Just to reiterate, our logistics segment guidance remains same, which is INR 400 crore EBITDA in FY 2027 and INR 700 crore in FY 2028. We have marginally trimmed the revenue numbers to reflect a higher EBITDA margin in LSFTO or rigs business. We have netted off the freight charges from revenue since it is a pass-through.
As of March 26, we have a net debt of INR 3,100 crore with a net debt to operating EBITDA of 1.2x and one of the strongest balance sheet in the sector. This coupled with steadily increasing annual cash flows from the current asset base, we are well-positioned to pursue growth plan to enhance our present cargo handling capacity to 400 million ton and in parallel grow our logistics business with a top line of INR 8,000 crore by FY 2030. With this, I request the operator to open the line for Q&A.
Yeah, just.
Shall we proceed with the Q&A?
Yeah.
All right. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Ketan Jain from Avendus Spark. Please go ahead.
Thank you. Good evening, sir. Thanks for the opportunity. Congratulations on a good set of numbers. I just wanted to understand the drivers for higher logistics EBITDA margin, which you reported this quarter.
Could you please come again?
The drivers for higher logistics EBITDA margin and higher margin in logistics.
Okay. As I mentioned, this is because of higher capacity utilization at our Navkar terminal, especially for the whole year, the capacity utilization stands at 56%. If you look at FY 2025 capacity utilization, that was around 44%. For Q4 of FY 2026, the capacity utilization in Navkar stands at 60%. On top of it, we have also, as you are aware, we have acquired this rail, 25 rigs from our group company. That has given an EBITDA of around INR 25 crore. It was in operation for two months, February and March. We have received all our delivery of all the 25 rigs, we have also guided around INR 150 crore of EBITDA for FY 2027 from those 25 rigs. All in all, this has resulted in enhancement in the EBITDA from the logistics space for Q4 FY 2026.
Understood. On the realization front, as you mentioned, it was because of the higher realizations and price increase in Goa and Mangalore, container port. Does that drive the 11% increase in realizations in the Q4 , or what is the reason?
Yes, that is one of the reasons. Apart from that, the Hiranandani one-time income we have booked around INR 75 crore, which is a part of the take-or-pay contract. Plus Forex fluctuations, plus additional storage income we have got in few of our ports. All these have resulted in the enhancement in the revenue.
What does this one-time item pertain to?
This is not a one-time item. It's a recurring one, but it comes in Q4.
What is the nature of this, sir?
This is a, I would say, a minimum take-or-pay contract which has been signed with H-Energy, wherein they use our LNG terminal at Jaigarh.
Understood. Understood. Just the last question. I was just reading a media article on some findings of environmental committee at Dharamtar Port. Is there any findings or any takeaway from that, or do we have any challenges in our execution?
Basically, if you see, that was a report that there was some spillover dust on the mangroves. There were two issues. One is the number of mangroves planted has been tremendous, and that addition has been done. The committee only pointed out that please provide a windscreen so that this dust doesn't land on the mangroves. That is all, and we are complying with all these conditions.
understood. No change in the execution timeline, right, sir?
No.
Understood. Thanks a lot, sir, and all the best for the next year.
Thank you. Our next question comes from the line of Priyankar Biswas with JM Financial. Please go ahead.
Sir, thanks for the opportunity for this question. Of course, congratulations to you that, despite such a challenging environment, I would say that this INR 2,600 crore EBITDA guidance was met in the first place. My first question is around that only. Like, if there had been no such, let's say, Fujairah-linked disruptions that had happened to you may have probably ended up at a slightly more higher EBITDA. How much higher it could have been? Also, like, what were the levers that offset the negative impact of Fujairah in this particular quarter? That's the first question.
INR 30 crore would have been the incremental EBITDA. Fujairah plus a little bit of volume loss in our other ports because of rerouting stroke deferment of cargo. Around INR 30 crore-INR 32 crore is what we would have earned more.
How did you offset that? I mean, INR 30 crore-INR 32 crore you may have lost because of this. What were the offsets that you were able to, like, reach that item?
You see, we did very well in the segment, logistics segment, as we had explained earlier, there was a tremendous increase in capacity utilization in Q4. The addition of new rigs altogether. What we had also provided additional services in many of our ports like Jaigarh and at Goa. These have helped to drive up the numbers to INR 2,600.
Forex fluctuation was there, which the spike happened in Q4, if you see. INR 16 crore of FX gain we have earned in Q4. That has also contributed to the EBITDA.
Okay. That's very clear. Sir, like, if I can ask something like, since you have already spelled out, let's say, your EBITDA guidance for FY 2028 and also indicated what your EBITDA can be, let's say, in FY 2030. What I understand is a lot of your projects, very large projects, like, let's say, Keni and Oman, these are coming on stream towards the very fag end of FY 2030, like, more like end of FY 2029, early 2030. The full effects of these are not really within this horizon. Can you please comment, like, slightly beyond FY 2030, what kind of growth we should still see continuing from here? Based on the current project pipeline alone, what can be like a steady-state EBITDA, let's say, in the 2030 to 2035 period?
I'll just break up your question into two parts, and where I would like to highlight two things that you would have seen that all our projects, the projects that we had lined up up to 2028, they're all progressing very well. In this period between 2026 to 2028, where we are aiming to go up from 183 to 300, all the projects have progressed steadily. The CAGR in, you know, revenue in this period will be around 42%. The CAGR for EBITDA would be around 39%. This is the first part I thought I would like to clarify. The second part is about the coming on stream of Keni and Oman projects. I agree with you, it could be the mid 2029, 2030.
They are already we have got, the EC, development process for both. Oman will be taking up, after the, you know, this, current, problems are over. Post 2030, that's what you want to know.
Yeah
you see steel plants everywhere are getting lined up for expansion. There we foresee that since we would have created the shell for the ports, you know, adding capacity to the new ports is a less, you know, it takes less effort, less CapEx. That is where the other drivers for growth will come, where currently let us say Jatadhar is at 33 million tons, and when we go into phase II, we'll be looking at adding another 20 million tons, 30 million tons of capacity. That will go up to 60 million tons. Keni will be going up from 30 million tons to another. We'll be adding another 30 million tons of capacity post 2030. These would be our, you know, path for growth.
What we have also not mentioned here is that the privatization of terminals, that opportunities that are already coming up in major ports. Here we are one of the strongest contenders. As you know, we are the largest holders of concessions in major ports. We have 10 such concessions, and we'll be further adding on to this. This would be broadly, 400 plus strategy that we are looking at.
If I may just ask on it, like, when you are putting, let's say, a port at a place like Keni, like, where are you going to get the volumes from? If you can just elaborate on that, like, how the volumes would be established, the strategy behind it?
Correct. If you look at it currently, the steel plants, as I mentioned to you, everyone is slated for expansion. Vijayanagar is slated for expansion from 18 million - 25 million. 7 million into 3 million. That is a net requirement of another 20 million tons of cargo for the plant is going to come up. These are these drivers. In that entire sector, if you look at Keni, the entire Bellary-Hospet region is slated for more capacity addition. We are very beat on that post 2030 with all the capacity expansions further being lined up, including at Jatadhar, at Dolvi, everywhere. That will be the main drivers for growth.
Yeah. Would it be fair to conclude that, even after FY 2030, when you reach INR 8,000 crore-INR 10,000 crore revenue, broadly all constants, you would still be able to continue at least 15%-20% growth for the next few years? Would it be a fair assumption?
We are looking at 25% CAGR growth. That is the target that we have set for ourselves. Beyond 2030, we would be continuing to expand in our existing ports that we have created currently, and that we'll be pursuing it further.
Okay. That's very clear, sir.
Thank you. The next question is from the line of Deepak Maurya from HSBC. Please go ahead. Deepak Maurya, your line has been unmuted. You may proceed with your question. The current participant seems to have dropped from the queue. Our next participant in the queue for the question is Raunak Mukherjee from Bigdata Asset Management. Please go ahead with your question.
Thank you for that. Congratulations to the team for great execution on this quarter. Just a couple of questions and maybe following on from the previous participant. We spoke about the volumes at Keni, the volume demand. Could we also get some color on the volume demand for Jatadhar? If possible, sort of, an idea how this splits by captive and third party. Secondly, for the Dolvi expansion, which ports would benefit from the 5 million tons planned expansion apart from Jaigarh and Dharamtar?
Okay. Currently we are Dolvi. Let me start with Dolvi. Dolvi is getting into expansion from 10 million - 15 million. In that, we are seeing growth in cargo at Dharamtar from 24 to 38. Similarly, growth in cargo at Jaigarh from close to 20, 21 to around 33, 34. That would be a net addition of 26 million ton-27 million ton at both these ports put together. Similarly, at Jatadhar, currently the entire focus has been more on movement of iron ore and iron ore pellets. The initial capacities that have been built up are for movement of these commodities outward from the port.
With the setting up of the steel plant, we will be adding on another at least 15 million tons of cargo into the steel plant because this would be primarily import base for coal and fluxes. That plant is also supposed to scale up very soon. First of all, the Jatadhar cargo stream currently would be mostly captive, but there is a condition that you can handle third-party cargo with permission from the Maritime Board. Permissions, as and when we fully develop the infrastructure, those permissions will be taken. That is close to 25% of the capacity that is allowed.
Got it. No, super clear on Jaigarh and Dharamtar. Just a quick follow-up on the Jatadhar, just to understand the flow of materials. From the slurry pipeline, we have that sort of exiting at the pellet plant and from there, that goes to Jatadhar Port to be exported to third parties or does it sort of come back to our Group companies?
For Vijayanagar or for export, all three options are possible.
Got it. Got it. Super. Maybe one last question from my end. Internally, when we look at greenfield and these brownfield expansions, how to think about conceptually around, say, returns or ROIC measures, how do we approach them?
Greenfield, typically project IRR, we look at 16% post-tax, and obviously equity IRR is around 20%-21%. A brownfield, obviously the capital cost comes down. There the project IRR itself post-tax comes around 20%-21%. Like in case of Jaigarh, what we are doing now. Jaigarh, Dharamtar, everywhere the project IRR for all these incremental expansions is around 20%-21% post-tax.
It's very clear. Thank you so much.
Thank you. Our next question is from the line of Aditya Banerjee from Nomura. Please go ahead.
Yeah. Thank you, sir, for taking my question, and congratulations for delivering a very good set of numbers. My first question is that on the Navkar front, the progress and expansion has been quite impressive. What is the peak level or sustainable level of capacity utilization that we can expect? What is the, similarly, what is the peak EBITDA margin and EBITDA that you would expect from Navkar for going forward?
From Navkar, you see, in the existing assets, we would be looking at further upping it to around 75%-80% capacity utilization. The numbers, because we are also acquiring one or two terminals in this Navkar company, the numbers we will be looking at upwards of INR 200 crore in the next two to three years.
Understood, sir. Just one small clarification. This capacity utilization that you mentioned for Navkar in this quarter, would it have been higher by any chance if there were no, you know, geopolitical disruptions in this quarter? We were still able to pocket at the peak utilization that was achievable this quarter.
The actual effects started coming in somewhere in April. I would not say for the March quarter there was much of effect. It would have started coming in April only. Impact was there in the first fortnight of April, which subsided by second fortnight of April.
Got it, sir. Got it. Just one last question. I think you have mentioned before, but just a little clarification. The breakup of the logistics EBITDA going into FY 2028 of the overall guidance that you have shared.
Just a second.
INR 700 crore is what we have given. This is primarily it will be a mix of revenue from Navkar, from rakes, the 25 rakes which we have, plus additional rakes. As Rinkesh said, 40 rakes order we have already given, and we will continue to give orders for more rakes. Plus our Gati Shakti terminals and our ICDs will start performing, like Arakkonam, Kudatini, and a few more are in the anvil. That put together, we expect to achieve INR 700 crore EBITDA in FY 2028.
Okay, sir. Any color, like what would be like the split between Navkar and the remaining logistics assets of this INR 700 crore?
Navkar would be around 200, close to 200. The rest would be from assets in JSW Infra and Port and Logistics, these two other subsidiaries that we use. Predominantly, it will be coming from the rake business.
Sir, your line is not clear. You're not audible. Just speaking.
We are not audible?
No. The participant who's asking the question. Aditya, have you.
Maybe, Prateek, we can move on. Have you had all your questions answered? We can take this question later.
Sure. Certainly, sir. We'll go ahead with the next question, which is from the line of Rajarshi Maitra from InCred. Please go ahead.
Hello. Thanks for the opportunity, sir. How much of your revenue is Forex denominated? Roughly what percentage?
FY 2026 it was $84 million.
Okay.
In dollar-denominated revenue.
Okay. I think you mentioned the number, but I didn't get it. For the FX gain this quarter, what is the amount?
INR 17 crore.
17?
Yeah.
Okay. Thank you. INR 17 crore. Okay. Thank you. That's all.
Thank you. Our next question is from the line of Claudia Carpenter with S&P Global. Please go ahead.
Oh, good. Thank you very much. Can you say if you are going to rebuild at Vizag? If so, how long it's going to take?
Claudia, can you please come again? We could not hear you.
Can you say if you're going to rebuild at Fujairah?
You see, based on best estimates, keeping in view the entire security issues prevailing there, we expect approximately 50% of operations to recommence shortly, subject to normalization of the environment there, with the balance ramping up in a phased manner thereafter.
The tanks that was damaged, was it one tank or three tanks?
Damage to tanks has been three out of a total 15.
Okay. Are you gonna fix them? Are you gonna repair them?
Yeah, we're gonna fix them shortly, but that can't be done right now because the situation is not conducive to even get the repair works done there right now.
Okay. How long will it take to repair them?
Once the situation stabilizes, we'll commence.
Once, as I told you, once, we expect approximately 50% of our entire capacity to come on stream very shortly, subject to, as I told you, that things normalize there.
Okay. The three tanks, were they complete, a complete loss?
Claudia, sorry to interrupt, your line is not very clear. May we request you to please rejoin the queue if you can establish a better connection. Thank you. We will proceed with our next question, which will be from Alok Deora from Motilal Oswal Financial Services. Please go ahead.
Good evening. Sir, just had a couple of questions. First on the Middle East disruption. Any impact we are also projecting for 1 Q, and any provisions or any impact which we are likely to see in the Q1, if you can highlight on that?
Q1 operations are not there, Alok.
No. Q1 I meant, I mean in the coming months I meant.
Yeah, yeah. Q1, most probably in June we are planning to commence the operations.
Right. Right. After the H1 , we should be kind of stabilizing on that.
Yes.
Got it.
Barring the three tanks.
Got it. Sure. Sure. Also in the capacity expansion, we have a Oman unit also which will be coming from 2028 onwards. I mean 2028 to 2030 onwards. What's the status on that? I mean, would it be a call we'll be taking at that point of time or just any? What's the progress on that?
The concession agreement is under negotiation.
Okay.
Port concession agreement, yes.
Okay. We are kind of going ahead with that, or it could be. It would depend on how the situation pans out. Any color on that?
Actually, if you look at it, I just wanted to clarify two or three things. One is that, this entire ports that is outside the Strait of Hormuz, basically Fujairah, Dibba, and Khor Fakkan, and Oman also, the entire ports in Oman. These are all outside the Strait of Hormuz, and they have a lot of strategic value in future. We had gone to the UAE in between and there we found that the entire UAE government is now focused on developing these ports, including And I think that would be the same case with the government of Oman because you don't have to cross the Hormuz to access any oil facilities or, you know, anything there.
There the governments are, you know, giving a lot of strategic focus in, especially in Fujairah. They have built a railway line, and now that railway line was the lifeline for the entire UAE. They were able to transport containers and everything there. In future, these ports would acquire a lot of strategic importance, and I think it's a positive news there. The, as Nagarajan had told you, that the concession agreement is under discussion. There are some conditions precedent. As and when they get fulfilled, and it's a part of a process, we will be looking at it very positively.
Got it, sir. Just last question. In logistics we are forecasting nearly 25% sort of EBITDA margin and in 2027 and even 2028 kind of similar margins. The margins in this business would kind of be in that range only, or as we scale up higher there could be a margin kicker in this business as well?
No, it should be around in this range only. As we scale up, obviously, ICDs will start coming in, and the ramp-up in ICDs again will be gradual, the way you are seeing in Navkar, like 44% to 56% to 60%. There can be a drop, it'll be in that zip code of 20%-25%.
Got it. Got it. That's all from my side. Thank you.
Thank you. Our next question comes from the line of Achal Lohade with Nuvama Institutional Equities. Please go ahead.
Good evening, sir. Thank you for the opportunity. Two questions. One, you know, in terms of this Fujairah terminal, what is the nature of insurance arrangement we have? You know, is it just the assets are covered or do we also have the insurance for the loss of profit as well?
Assets are adequately covered. Loss of profit insurance is also there. The region is seeing something like this for the first time or maybe after a very long time. We need to take it with a pinch of salt, and that's where we have made this provision also in our books to the tune of INR 69 crore.
Right. The second question I have is with respect to forex gain. You said INR 17 crore of forex gain. Is that part of your revenue and that's why the realizations are higher? Just a clarification on that.
Yes.
Okay.
Yes.
Got it. If you could split the CapEx plan, like you said, cumulatively you are looking at spending INR 16,000 crore. If you could call out what kind of spend we were looking at for FY 2027 and FY 2028 and split in terms of ports, if you could.
Yes, Achal, we have guided INR 16,500 crore spend for the next two years, FY 2027 and FY 2028. The split is INR 13 ,000 crore for ports and INR 3,500 crore for logistics.
No, I meant, within that, if you could provide the split in terms of year-wise and also port-wise.
it will be 40% this year and 60% in FY 2028.
Got it. Fine. I'll call back in the queue for follow-up. Thank you.
Thank you. Our next question is from the line of Priyankar Biswas with JM Financial. Please go ahead.
Achal, just a quick follow-up question. Can you tell me about what were the ESOP expense in FY 2026 and if there are any ESOPs that we should consider in FY 2027?
INR 23 crore was the FY 2026 ESOP expense vis-à-vis INR 63 crore in FY 2025. For FY 2027, maybe you can take the same number of around INR 3 crore. Maybe you can take around INR 5 crore.
INR 5 crore. Achal, also one more thing, that, given you are significantly below your net debt to EBITDA guidance, you typically say that your threshold level is at 2.5, broadly, is what I can recall. Since the balance sheet has some headroom, are you considering actively any acquisitions? If so, in which space you may be considering, if you're not willing to, let's say, get into detail. At least the space that you may consider.
Acquisitions, yeah, we will be looking at in the logistics space because there obviously this CapEx spend also we have given. It will be a mix of both, greenfield, brownfield and M&A opportunities. We will continue to bid for all these terminals which are coming up anyway, which are not a part of our INR 400 million crore guidance. There again, the spend can be there.
Okay. That's all.
Thank you. Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to the management for closing comments.
Thank you, Alok. Overall, we have demonstrated a clear scaling through the ongoing port expansion projects, steady progress in the logistics segment, and a strong turnaround, particularly at Navkar. We are encouraged by the increasing integration of our ports and logistics businesses, creating a seamless one-stop solution for our customers. This transformation strengthens our integrated platform and positions us well to deliver strong earnings compounding over the medium to long term. With this, I wish you all the best. Thank you.
Thank you. On behalf of Motilal Oswal Financial Services Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.