Ladies and gentlemen, good day and welcome to JSW Infrastructure Limited Q1 FY 2027 earnings conference call hosted by Investec Capital 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 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. Vineet Prasad from Investec Capital Services. Thank you, and over to you, Mr. Prasad.
Thank you. Good evening, everyone. A warm welcome on behalf of Investec India to Q1 FY 2027 earnings call of JSW Infrastructure Limited. We have with us the senior management team from the company represented by Mr. Rinkesh Roy, Joint MD and CEO. Mr. Lalit Singhvi, Strategic Advisor and Board Member. Mr. Nagarajan J., CFO. Mr. Vishesh Pachnanda, Head, Investor Relations. Now I'll hand over the call to senior management for the opening remarks, post which we'll open the floor for Q&A. Thank you. Over to you, sir.
Thank you, Vineet. Good evening, everyone, and thank you for joining us for our earnings call to discuss the performance for the quarter ended June 30th. The global economy continues to operate in an environment of mixed signals. Geopolitical tensions, trade-related uncertainties, and supply chain realignments continue to create volatility across markets. Against this backdrop, India continues to stand out as one of the fastest-growing major economies globally, supported by strong domestic demand, sustained government investments in infrastructure, and a resilient manufacturing sector. We remain optimistic about India's long-term growth trajectory and believe the country's infrastructure and logistics requirements will continue to expand meaningfully over the coming decades. Turning to our performance, JSW Infrastructure delivered another quarter of healthy growth despite a dynamic and challenging operating environment. During the quarter, we handled 31 million tonnes of cargo, representing a year-on-year growth of 6%.
Growth was driven by higher volumes across key commodities, supported by increased group cargo and continued momentum across our ports and terminals. Notably, this growth was delivered despite a negligible contribution from our Fujairah operations due to the challenging operating environment in the Middle East. Excluding Fujairah, our India operations recorded an impressive 11% year-on-year growth in cargo volumes, significantly outpacing overall industry growth and validating the strength of our business model and deep customer relationships. Our financial performance remained robust, reflecting the strength of our diversified portfolio and operating efficiencies. Consolidated operating revenue for the quarter stood at INR 1,445 crores, representing a growth of 18% year-on-year. Operating EBITDA increased by 16% year-on-year to INR 674 crores while maintaining healthy margins, demonstrating the resilience and scalability of our business model.
The quarter was also significant from a strategic perspective as we continue to advance our growth agenda across ports, logistics, and adjacent infrastructure. Our long-term ambition remains unchanged. We are building a platform that can support India's growing trade and logistics requirements by expanding our capacity from the current 186 million tonnes per annum to 300 million tonnes by FY 2028 and further to 400 million tonnes per annum by FY 2030 or earlier, while simultaneously establishing a comprehensive pan-India logistics network. We intend to achieve this through a combination of greenfield developments, brownfield expansions, port privatization opportunities, and value acquisitions. A key milestone during the quarter was the receipt of environmental clearance for Murbe, Maharashtra, along with approval for rail connectivity to the Dedicated Freight Corridor. These approvals represent key milestones and strengthen the project's multimodal connectivity, supporting its timely execution and long-term competitiveness.
Across our development projects, execution continues to progress steadily. The slurry pipeline project has crossed a key milestone with 251 kilometers of pipeline laid completed, representing approximately 83% strong execution momentum with the project on track for completion by March 2027. At Jatadhar Port , Odisha, the construction activities are in full swing with the novation agreement executed with the anchor customer following the approvals received from the government of Odisha. At Keni Port, we continue to make progress on statutory approvals and expect environmental clearance shortly. At South West Port Goa, we received consent to operate for the enhanced capacity of 12 million tonnes per annum, up from 11 earlier. The expansion work at Mangalore Container Terminal has been completed. As a result, capacity has been increased to 6 million tonnes per annum from 4.2 million tonnes earlier.
Meanwhile, construction at our Tuticorin bulk terminal is progressing well and remains on track for completion within the planned timeline. We also expanded our presence in the container segment through the award of the integrated development of the outer container terminal and Berths 1 to 5 at Netaji Subhash Dock, Kolkata under a PPP framework. This project further strengthens our position in Eastern India, and upon completion will increase our container handling capacity in Kolkata to approximately 1.4 million TEUs. Our brownfield expansion projects are also advancing as planned. At Jaigarh Port, major equipment packages have been awarded, while at Dharamtar Port, work on the conveyor system and barge unloaders are progressing well. These projects will further enhance capacity and improve operational efficiencies across our network. In logistics, Navkar delivered another strong quarter of strong operational and financial performance, driven by healthy volume growth and focused business development initiatives.
It reported an operating EBITDA of INR 33 crore in Q1, an increase of 62% YoY, reinforcing our confidence in the long-term potential of the integrated logistics platform. We also continue to strengthen our logistics network with the commencement of operations at the Gati Shakti Cargo Terminal at Aruppukkottai, Tamil Nadu, and interim operations at Kudathini Logistics Facility in Karnataka. Beyond the existing fleet of 25 rail rakes and 17 container rakes, including those operated through Navkar, taking our total fleet strength of 42, we have accelerated the scale-up of our logistics platform. As announced earlier, in April 2026, we placed orders for an additional 25 container rakes and 15 rail rakes, reflecting our confidence in the growth potential of the integrated logistics business.
I am pleased to share that we have already received the first two railway rakes under the order, marking the commencement of fleet expansion under this program. The balance rakes are lined up for scheduled delivery in a phased manner, which will further strengthen our rail logistics platform and support the growth of our integrated logistics business. This expansion is aligned with our medium-term objective of scaling our fleet to approximately 110 rail rakes and 140 container rakes, creating a combined fleet of around 250 rakes over the next two to three years, with a clear focus on asset utilization, returns, and earnings visibility. A major highlight during the quarter was the successful completion of our INR 7,503 crores qualified institutional placement, which witnessed strong participation from leading global and domestic institutional investors. The transaction reinforces confidence in our business model, execution track record, and long-term growth strategy.
The capital raised further strengthens our balance sheet and provides significant flexibility to accelerate our journey towards 400 million tonnes per annum capacity, expand our integrated logistics network, and pursue value accretive growth opportunities while maintaining disciplined capital allocation. Looking ahead, we remain focused on execution, operational excellence, and disciplined growth with a strengthened balance sheet, a visible project pipeline, and a growing logistics network. With that, I would now like to hand over the call to our CFO, Mr. Nagarajan, who will take you through the financial performance and other details. Thank you.
Thank you, Rinkeshi, and good evening, everybody. Let me first talk about our port business. In Q1 FY 2027, the company handled cargo volumes of 31 million tonnes compared to 29.4 million tonnes in Q1 FY 2026, registering a growth of 6% YoY. Increase was driven by strong performance at Jaigarh, led by higher anchor customer volumes and increasing third-party cargo throughput from newer cargo segments. Further contributed by robust throughput at Dharamtar, South West Port, and Ennore Bulk Terminal, along with interim operations at the Tuticorin Terminal. Growth was partially offset by lower volumes at Fujairah Terminal due to challenging operating environment in the Middle East, which impacted the third-party cargo volumes, which eventually stood at 48%. Operational revenue for the port segment increased by 11% during the quarter to INR 1,208 crores, compared with INR 1,086 crores in Q1 FY 2026.
Revenue increase was driven by volume growth and a favorable product mix. Operational EBITDA for port segment stood at INR 601 crores, up from INR 561 crores, a jump by 7%. EBITDA growth was largely driven by increased revenue, and the EBITDA margin was close to 49.8% vis-à-vis 51.8% a year ago. The dip in port EBITDA margin is mainly attributable to the lower contribution of volumes from Fujairah Port. Navkar delivered strong operational financial results in Q1 FY 2027. Total domestic cargo volumes stood at 385,000 tonnes, up 40% compared to the same period last year, while exim cargo volumes reached 83,000 TEUs, representing a 2% growth.
Revenue from operations for Navkar rose to INR 191 crores, up 38% YoY, while operating EBITDA climbed to INR 33 crores, representing 62% growth compared to the same period last year, showing substantial improvement, while net profit increased to INR 12 crore, a significant increase from INR 2 crores in the previous year. Overall logistics business, including Navkar and the rakes business, has generated a revenue from operation of INR 237 crore compared to INR 138 crore in the same quarter previous year. Operational EBITDA for logistics segment stood at INR 73 crore, up from INR 20 crore, an increase of 3.6x. EBITDA margin rose to 30.6% for the logistics business from 14.5% earlier. Total consolidated operational revenue for the company stood at INR 1,445 crore, and the operating EBITDA stood at INR 674 crore, reflecting a YoY growth of 18% and 16%, respectively.
Consolidated depreciation was INR 166 crore, and finance cost was INR 95 crore in the current quarter as compared to INR 143 crore and INR 91 crore, respectively, in quarter ended June 2025. PBT was INR 463 crore versus INR 473 crore, mainly reflecting a lower other income given the continued CapEx spend for the growth projects. PAT was INR 358 crore versus INR 390 crore, driven by lower PBT and higher ETR. For FY 2027 and FY 2028, company plans to invest approximately INR 16,500 crore, with a significant portion around INR 13,000 crore allocated to the port segment and INR 3,500 crore earmarked for logistics space. The company has incurred a cumulative CapEx outlay of approximately INR 6,900 crore up to June 2026, including INR 671 crore spent during quarter towards ongoing and existing growth projects.
In addition, the company has already committed further INR 5,500 crore of CapEx by placing orders for machinery, long-lead items and other civil work towards the ongoing projects across ports and logistics segment. During the quarter, we successfully completed a landmark INR 7,503 crore QIP, attracting strong participation from marquee global and domestic institutional investors. Given the QIP receipts of INR 6,555 crore into the company, as of June 2026, we have a net cash position of INR 2,769 crore. This, coupled with steadily increasing annual cash flows from current asset base, we are well positioned to pursue a growth plan to enhance our present cargo handling capacity to 400 million tonnes and in parallel grow our logistics business.
I am also pleased to share that Moody's has assigned JSW Infrastructure an investment grade rating of Baa3 from the existing Ba1 with a stable outlook, reflecting our strong financial fundamentals, disciplined capital management, and resilient business model. With this, I would request the operator to open the lines for Q&A. Thank you.
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star 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. The first question is from the line of Bharani V from Avendus Spark. Please go ahead.
Yeah. Good evening. My first question is on the cost escalations you put on due to the ongoing geopolitical crisis and how it has impacted our ongoing under construction projects like slurry pipeline. That's my first question.
The slurry pipeline work, as I mentioned earlier, we have crossed a very important landmark. We have now moved to 251 km by end of June of pipeline lowering, and it has not affected any ongoing projects in any way. There were some on and off issues with somewhere of LPG gas availability or diesel availability, these were a normal part of project execution. We have moved ahead and the projects are moving on quite nicely.
Bharani, the total project cost always has a contingency component, any such minor escalations get adjusted in that contingency component, eventually it won't affect the overall project cost.
Sure. Understood. My second question is, it's good to note that we got environmental clearance for Murbe. Could you give status on Keni Port? We know it is being awaited, where is the process and when we can expect it? That's my last question.
Could you be louder, please?
Bharani, I think you are quite far from the speaker, if you can come closer and repeat your question.
Sorry for that. I was asking the status of getting Environmental Clearance for Keni Port, where it is at, when we can expect it, sir.
Keni Port clearance is currently, we have applied at the Karnataka Coastal Zone Management Authority. They are now examining the matter and they'll be forwarding the case to MOEFCC. Once it moves to MOEFCC, then further approvals will be afforded. They should take another three to four months time to get the Environmental Clearance in place.
Understood. Thank you so much and all the best, sir.
Thank you. Participants who wish to ask questions may press star one at this time. The next question is from the line of Priyankar Biswas from JM Financial. Please go ahead.
Thanks, sir, for the opportunity and congratulations, sir, on the successful QIP recently. My first question is, I understand that your Middle East volumes were impacted by the-
Hello.
Sorry to interrupt. We have the current participant disconnected. The next question is from the line of Shubham Barode from ICICI Securities. Please go ahead.
Hello. Congratulations on a good set of numbers. Volume growth has been there in this quarter. How do we see the volume growth for this year, FY 2027?
You see, we are taking into account loss of cargo handling at Fujairah. We are taking that into account. We should deliver you a number of around 127 million tonnes this year.
Okay. Thank you.
Thank you. The next question is from the line of Priyankar Biswas from JM Financial. Please go ahead.
Am I audible now?
Yes.
Yes. Sir, my first question is, if Fujairah operations were normal and not impacted by the Iran-US incidents, what sort of additional EBITDA you could have possibly delivered in this quarter?
The port side, INR 601 crores, which we have delivered now, that would have become around about INR 670 crores-INR 675 crores.
INR 670 crores additional you are saying, EBITDA?
FX has also gone up. That's a dollar earning. Keeping that in mind, around INR 65 crores-INR 70 crores of incremental EBITDA we would have got. The expense of eight crores of Fujairah is already baked in this INR 608, which is drag. Incrementally, we would have got that INR 70 crores taking it to, say, INR 675 crores of operating EBITDA for the ports business.
Okay, sir. In which case, if we see on an underlying basis, generally in the fourth quarter, you have the take or pay also. Ideally, we are actually doing slightly better than the guidance. Is that the right way to look at it?
Yes, you can say that. If you look at it, even the India performance as we try to tell you, the Indian growth volumes, they showed a growth of around 11% in this period.
Yes. I think stick to our guidance of INR 3,000 crores, Priyankar, in terms of the EBITDA.
Okay. Sir, one more question since Kolkata is a new development. You have already provided like INR 740 crore would be required as the CapEx. If I may ask, at a steady state, what sort of revenue and EBITDA would be possible from this port, let's say from FY 2030 onwards, assuming the asset comes up in late FY 2028?
It should be around INR 70 crore- INR 90 crore. It will be in that range.
This is the EBITDA?
EBITDA.
EBITDA, I'm talking about.
INR 70 crore-INR 90 crore EBITDA you can take.
Let me put it to you this way, that currently the existing facilities have a 90% capacity utilization. By 2030, when we expect full completion of all projects in Kolkata area, we expect at least 75%-80% capacity utilization in that place. These numbers will be going up because these are coming in three distinct phases. The first one is Berth 7 and 8, second one is the outer terminal, and third one is Berth 1 to 5. If we look at all the three put together, these numbers will be substantially higher.
Priyankar, what I spoke about was only the Phase I.
This INR 70 crore-INR 90 crore is P hase I.
That's Berth 7 and 8. That's what I wanted to clarify to you. These are coming up in three phases, Berth 7, 8, Outer Terminal 1 and 2, and then Berth 1 to 5. These all put together is 1.4 million TEU. When we get all the three in place, by that time, the starting point would be 75%-80% capacity utilization.
Okay, sir. I'm just paraphrasing. In the first phase, you should be able to get at least like INR 70 odd crore. Is that the right way to look at it? Once you are done with the first phase, 0.45 million TEU.
On full completion, you can take it to INR 90 crore, basis the prevailing NSR which are there. We believe it can go up in the next two to three years by the time this stabilizes. As of now, you can take it at INR 90 crore. Overall, if you look at it for the entire 1.4 million TEU, we are looking at somewhere around about INR 300 crore-INR 350 crore.
Correct.
Okay. INR 300 crore-INR 350 crore in the long term when all phases are there.
Yes.
Okay. If I can just squeeze one more in. I understand that you have got the Environmental Clearances for the DFC connection, right, for Murbe. What about the Environmental Clearances for the port itself? That is Murbe. That is one.
That is what we have got. The EC for the entire project for Murbe, which includes the connectivity corridor.
Okay. You should be able to now start construction, let's say, next year, possibly then, in that case?
We are looking at starting it in Q3. Somewhere by December, we should be starting the work. Although all preparatory works we are targeting to start within a month.
Concession agreement will be signed in the next two to three months. Order placement will start now. Construction will commence by, say, December end, January.
Already tenders have been invited. We'll be moving ahead quite fast from this.
Okay, sir. Any updates on Oman? That's my last question, because given this Gulf crisis, what I understand is a lot of Middle Eastern countries are actually pushing forward their projects, which skip the Gulf Strait of Hormuz. Any update there?
As you have rightly stated, this port is outside the Straits of Hormuz, very strategically located. We have already invited bids on June itself for port construction. What is now awaited are some few details where the conditions precedent from their part has to be completed, after which the concession agreement will be signed. Then we'll be moving ahead. These will be all done parallelly. The award of the project, the concession agreement. This should take another month or two to get it completed.
Okay.
Hello?
Thank you. The next question is from the line of Aditya Mongia from Kotak Institutional Equities. Go ahead.
Hi. Good evening, everyone. I hope I'm audible to you. I'll go ahead with my first question. As in just taking the lead from the last person, I arrive at an EBITDA margin at the port business, which actually improves QoQ if you add back the 60 crore amount.
Yes.
While you had some pass-through income in port quarter, if one, two numbers are better, could you help us understand where and which ports are driving the margin expansion on a QoQ basis, while otherwise it should otherwise be falling down?
Yeah, it is primarily Jaigarh, which has driven the revenue as well as EBITDA in this quarter. I think that's the only port. Third-party volumes also have gone up, primarily cargo mix, especially in Jaigarh, because we have handled alumina as well as project cargo in Q1. That has resulted in some incremental EBITDA in this quarter.
Just to clarify, these are obviously recurring volumes that have started coming in, whatever margin improvement is happening should sustain, right?
No. These are in this quarter, especially the ones on alumina and project cargo were there in this quarter. I don't think this may be recurring in nature.
Okay, understood. The second question that I have are from some deferrals that have happened, especially Keni. I think by one year, and the project has been deferred now. Just wanted to get a sense of what are the key ponderables from here on, which may lead to any further delays, or is everything in control over there versus the FY 2030 guidance that we have today? I'm asking because we understand that it's a difficult project to get up and running better. Yeah.
Actually, if you look at it, you're absolutely right. We got the concession earlier in Keni, but if you look at the EC, we have got it earlier in Murbe rather than Keni. This has been actually something which was beyond our control because the KCZMA was not constituted for close to six to seven months in between. There were some issues. That statutory body was not there. Apart from us, others were also affected in that process. That has actually delayed that entire process.
Yeah. As a related question over there is that, should one anticipate beyond these any execution challenges to also kind of spring up given the topography of the area? I'm trying to get a check that FY 2030 is fine as of time being.
No, we don't foresee much of any problem because again, these models that the port models that we have come up with are basically reclamation models in the sea. The land acquisition parts are very minimal, so we don't foresee much of a challenge. Whatever is the local project challenge that we'll be facing.
Understood. Again, just a small clarification, if you could suggest the other income decline is quite stark QoQ. Should we just assume that this is linked to CapEx or maybe some one-off something is correct from here on?
No, last quarter, if you look at Q1 of FY 2026, the treasury balance was on the higher side. Of course, CapEx spend has been on, equity contribution is on for all the projects which are ongoing. That is where the treasury balance has come down. As of 30th of June, as you are aware, the QIP proceeds have come in.
Yes.
The treasury income will shoot up at least for the rest of the year.
Understood. Those are my questions. Thank you both for your response.
Thank you. The next question is from the line of Alok Deora from Motilal Oswal. Please go ahead.
I just had couple of questions. One is on the Middle East disturbance now. I know it's a difficult thing to answer maybe, but when we are giving the guidance, what are we expecting in terms of when the volumes normalize or have not taken any much contribution from that? Also on the insurance side, if there is What would be the process there, and how much recovery we are expecting from that side? That is question one. Question two is on the link to the previous question where you mentioned that the port margins have improved, but there is a certain component of one-off. We are expecting those things to completely come back to the Q4 levels in the second and third quarter onwards. Just clarity on these.
I'll just answer your questions on Fujairah. Number one, by July end, that's another 13, 10, 11 days, we expect to get eight tanks in Fujairah operational. They'll be ready for operation. Then it depends on the climate at that point of time, whether prices are low, whether ships are going to come in. That would be a separate issue, but we'll be ready for operations with eight tanks by July end or first week of August. That's one part of it. We expected a hit, and we have taken that into account when I told you that we are going to minus losses at Fujairah. We should be touching 127 million tonnes per annum.
On insurance, we have already put forward claims, it has been told by our advisor that it's going on well, we should expect a resolution by end of October. That's the current state of affairs on the insurance side.
Talking about the EBITDA margins, Alok. In other expenses, there is around INR 8 crores- INR 9 crores of expenses, which are one-time in nature, which have been incurred in this quarter. There was shifting of crane in Jaigarh Port from one bay area to another bay area. That is one incremental cost which we have incurred. It can't be capitalized. That is one item. If you look at the volumes, primarily vis-a-vis last quarter, there has been growth in SWPL as well as in Dharamtar. These are also a bit of a higher EBITDA margin ports wherein the volumes have gone up. SWPL, as you are aware, the capacity has gone up. That's where the numbers are up. Dharamtar, obviously because of enhanced volumes coming from the anchor customer, there has been a jump in the overall volume. These will be more or less normal in nature going forward.
Got it. Just one last question. You also mentioned about going ahead with the Oman port expansion there. Are we going ahead with that or is there still more at the MoU stage with still a chance to change it or having some alternate there because if things don't go as per the plan in terms of geopolitical situation? That would be my last question.
We have been repeating this part of it, that the area outside Hormuz has acquired a lot of strategic importance, be it in U.A.E. or in Oman. Every government is now stepping up massive investments on emergency basis to develop this coastline outside the Straits of Hormuz. We will be going ahead with this project because these wars, it's in our perception and everyone's perception, these are not going to be continuing indefinitely. These projects will take another two, three years to come into stream. I think that's a good decision to move ahead. We'll be continuing on this.
Got it. Thank you, sir. That's all from my side. All the best.
Thank you. The next question is from the line of Ankita Shah from Elara Capital. Please go ahead.
Hi, sir, Ankita Shah here. Most of my questions have been answered. Just one or two. We had plans to merge Navkar Corporation, right? Any thoughts on that?
We will communicate at the right time. We've not taken anything on that.
Are we looking at any acquisitions in the logistics space in this financial year, given that we are guiding for a strong growth this year and next year also, I'm assuming it is building in some acquisitions as well. Anything that you can share at the moment on the same?
Yeah. The rails business, obviously, we continue to place orders for the rails. On the terminal side, as you are aware, we have bid for NCR rail, and that's at the fag end of closure. That we should be closing in this quarter. A couple of assets are in the NCLT where we would like to participate in those assets as a bidder.
Okay. Okay, fine. I think that's it from my side. Thank you.
Thank you. The next question is from the line of Koundinya Nimmagadda from Jefferies. Please go ahead.
Hi, sir. Thanks for the opportunity. My question is likely a bit on the medium-term trajectory. Can you speak a little bit about the opportunity for third-party volume growth at some of your greenfield ports, especially something like a Murbe or your Keni Port as and when they come? Can you give a little bit color on what the catchment looks like? What are the industries that you're looking for to drive up utilizations here? Because my understanding is that there's not enough support from group for these ports. If you can speak a little bit on that, please.
At Murbe, let's go stepwise. At Murbe, we are looking at, there's an immediate industrial area in Tarapur, Boisar, Palghar area. That's the immediate vicinity you have a lot of cargo. Pushing inwards, because you are bypassing the Western Ghats, you get the hinterland of MP, you get the hinterland of Telangana, and Southern and Western Maharashtra. That becomes a big catchment area for traffic origin. Here, the traffic we're looking at is not only bulk, the break bulk, containers, fertilizers. There's a wide catchment area. Most importantly, the moment you are connected to the Dedicated Freight Corridor, the hinterland opens up to North India also. That is where the key traffic elements are going to come from. Number two part was on Keni. Keni, we are also looking at the immediate hinterland behind the Bellary, Hospet sector.
There's a lot of potential. Those areas are developing very fast with a lot of mineral-based and metal-based industries coming up there. The hinterland is again quite vibrant and growing. These are the areas we are looking at third-party cargo growth.
Sure, sir. Just spending a little bit more time on Murbe, you also need to compete with something like, let's say, JNPT, or let's say Hazira Port of Adani Ports, et cetera. Given it's a greenfield port where you're just starting, what are your strategies? If you can maybe speak a little bit about how do you intend to attract cargo from these customers.
It's a question of how quickly we number one I would say is how quickly we execute this project. That is number one. Since we have got the regulatory approvals with minimal land acquisitions involved, I think that part of the story we should be able to deliver quickly. Most importantly, if you would have seen, why we strategized to move into logistics was to have this integrated play, what you're looking at. We would be one of those few port operators who have a big logistics play right up to the hinterland. We'll be able to deliver door-to-door services. That is where our USP comes in.
Sure, sir. Understood. Got it. Sir, secondly, a small bookkeeping question. I'm just trying. Sorry for harping on this EBITDA margin part. Even if I add that INR 8 crores-INR 9 crores right back to the ports one-off thing, even then the margins actually look lower, especially given there's a significant contribution for something like a Jaigarh Port in this specific quarter. Am I missing something, or am I reading it incorrectly? If you can help me understand it, please.
No, one is that add back, as I said. Second is, obviously, Fujairah is not there in play. That is something you need to add back. Had it been there, then what would have been the outcome in terms of EBITDA margin, which we just highlighted around INR 65 crore-INR 70 crore we would have lost. Those are the things you need to add or subtract.
Sure, sir. Sir, just to confirm, did I hear correctly that your revised volume guidance is 127 million tonnes for the year?
Yeah.
Yeah.
Sure. Got it. Thank you very much. All the best.
Thank you.
Thank you.
The next question is from the line of Ketan Jain from Avendus Spark. Please go ahead.
Thank you. Congratulations. My question is on the rakes part. Have we added any rakes in this quarter?
This quarter, we did not add. The first two rakes have been delivered in this week only. That's I thought, as I told you, we wanted to share that good news. The orders that we placed in April, they have started fructifying here in July.
Okay. How many rakes are we expected to add this fiscal year?
This year, our entire orders of 40 rakes are supposed to come on stream by Jan or Feb latest. At least we should be having a rake fleet of 80 rakes plus by end of Jan or Feb, we should be having that.
From current fleet of 40.
Understood. Just a bookkeeping question. I see in our presentation that we've mentioned rail rakes contributed INR 43 crore in revenue and INR 40 crore in EBITDA. Can you help us understand this high EBITDA margin in this?
Because only the premium and the rebate is what we have accounted in our revenue. There is one more option wherein we can take the premium rebate and also the freight charges. At that point of time, the EBITDA margin will be around 25%. In this case, since the haulage charges or the logistic freight has been netted off, that is where the EBITDA margins are looking a bit elevated.
We will be following this policy from going forward?
It depends, like which kind of rakes we will be getting. If it is NHFPO rakes, NFHPO rakes, the treatment will be different. If it is for GPWIS rakes, it will be different. For container rakes, again, it will be a bunched service. For container rakes, typically you give a bunch service wherein the logistics cost plus the handling are all packaged together.
Understood. Okay, sir. Thank you. Those were my questions.
Thank you. The next question is from the line of Aditya Bhartia from Investec. Please go ahead.
Hi. Good evening, sir. Sir, we have the target of reaching 250 rakes by 2030. Just wanted to understand how many of those rakes are likely to be GPWIS and LSFTO rakes, and how many of those could be container rakes? Just a related question.
Broadly, 150 would be container rakes, 110 odd would be LSFTU and other GPWIS rakes.
Only thing is, as of now, we have 19 rakes, GPWIS in our portfolio, and there is a moratorium on that. In case the moratorium gets lifted, then this 250 rakes may also be revised upward. As of now, what we have targeted is a mix of container rakes and LSFTU rakes, plus the 19 GPWIS rakes which we already have. That is where we are reporting it at 250 rakes. In case the opportunity opens up in the GPWIS segment, we may revise this 250 rakes a little bit upward.
Understood, sir. What proportion of these rakes utilization is likely to be linked to the group? How much is it likely to be for third party?
It would be around 45:55. It will be in that ratio on the rakes front, because the larger proportion would be container rakes, 150 versus 110. 110 would be more or less group, 150, some part of it will be on the group cargo. Currently, if you look at Navkar and all the other operations that we do, it's around 75:25. 75% third party, 25% group.
Perfect. That's helpful, sir. Just one more question on Murbe. In Murbe, what proportion of traffic is likely to be container? Within that, on the bulk cargo, how much of that is likely to be linked to the group? Or should we assume it largely to be third party port?
We are basically looking at, as I told you, a hinterland in MP, which is more of fertilizers, some part of other movements. A part of it will be definitely container, and mostly it would be partially serving group somewhere in Tarapur, Boisar, this belt they will be serving. It would be a mix of 20:80, you can put it. 20% for group, 80% third party.
Sure, sir. Understood. Thank you so much.
Thank you. The next question is from the line of Shubham Barode from ICICI Securities. Please go ahead.
Hello. Thanks for taking my question. My question is, for this quarter, majority of growth in volumes have come from Dharamtar and Jaigarh. How do we see that growth in next three quarters?
As we said, we will be keeping that headline number of 127 million tonnes in mind, bases that, the cargo volumes will play out.
The next question is from the line of Achal Lohade from Nuvama. Please go ahead.
Yeah. Good evening, sir. Thank you for the opportunity. Just two questions, actually. First, if I understand you rightly, 127 million tonnes doesn't include Fujairah. What about INR 3,000 crores of EBITDA? How much loss or profit are we accounting for Fujairah in this EBITDA, sir?
Around 40% of the numbers we have baked in for Fujairah, as Rinkesh was mentioning that we'll be ready to operate eight tanks by August, and say another three tanks by, say, September or October. We have baked in around INR 100 crores-INR 125 crores of EBITDA coming in from Fujairah operations, out of the INR 3,000 crores numbers which we have guided.
Got it. In terms of volume?
Volume, around 2-2.5 million tonnes.
Same proportion, I think.
Yeah.
Got it. The second question I had, you mentioned about the third-party cargo which got handled at Jaigarh. Was that just the ODC cargo and alumina product, and that is more one-time? Have I understood right, or is there a recurring third-party cargo, a new set of category which is emerging?
From the project cargo as well as the alumina cargo, that is one-time. We have also got an incremental cargo on the LPG space. That we expect to take it forward or continue in the subsequent quarters.
Right. Understood. One clarification in terms of the other income. The QoQ fall, if you could clarify, sir. You clarified on the YoY fall. What about the QoQ? Was there any large one-off income in this INR 90 crore in 4Q FY 2026?
Because we had receivables from Hiranandani, which were. They are into JV with us in the Jaigarh Port. On the receivables, around INR 40 crore of interest they paid to us in Q4 FY 2026. That is accrued in our financials. If you look at it, sans that, it would have been in that INR 50 crore-INR 55 crore mark in Q4 FY 2026.
This INR 40 crore you have received or you have accrued? It's sitting as a receivable?
We have received.
Received. Okay. That is how we have accounted for. Okay. Understood.
Absolutely.
Perfect. Thank you so much for the clarification. Those were my two questions. Thank you.
Thank you. The next question is from the line of Shubham Barode from ICICI Securities. Please go ahead.
My question has been answered. Thank you.
Thank you. Ladies and gentlemen, that was the last question of the day. I would now like to hand the conference over to the management for closing comments.
We delivered a strong quarter driven by healthy cargo growth, resilient operational performance, and steady execution across our growth projects. We continue to make good progress on our brownfield expansions, while key milestones at Murbe and Jatadhar further strengthen the visibility of our greenfield pipeline. Our logistics platform is also scaling up well through rail fleet expansion, new asset commissioning, and strong performance at Navkar. Given the strong operating momentum and execution progress across ports and logistics, we reaffirm our operating EBITDA guidance of approximately INR 3,000 crore for FY 2027 and INR 5,000 crore for FY 2028. Thank you all.
Thank you. On behalf of Investec Capital Services, that concludes this conference. Thank you for joining us. You may now disconnect your lines.