# 1. Financial Performance ## A. Key Figures * **Revenue from Operations:** **₹2,294 Cr** Q2 FY'26 (+31%) · **₹4,013 Cr** H1 FY'26 (+20%) * **Normalized EBITDA:** **₹347 Cr** Q2 FY'26 (+46%) · **₹602 Cr** H1 FY'26 (+24%) * **Profit After Tax (PAT):** **₹244 Cr** Q2 FY'26 (+61%) · **₹419 Cr** H1 FY'26 (+35%) * **Segment Revenue (Q2):** **₹2,139 Cr** LPG (+32%) · **₹155 Cr** Liquid (+19%) * **Segment EBITDA (Q2):** **₹231 Cr** Gas (+60%) · **₹116 Cr** Liquid (+25%) ## B. Revenue Growth * **Broad-Based Top-Line Expansion:** Strong double-digit revenue growth across both LPG and liquid segments, driven by volume gains and operational scaling. * **Record Segment Performance:** Highest-ever quarterly revenue in both Liquid and Gas businesses, signaling peak operational execution. ## C. EBITDA & Profit * **Outperformance in Margins:** EBITDA growth significantly outpaced revenue, reflecting strong operating leverage and higher terminal/utilization efficiency. * **Gas Profitability Surge:** Gas segment EBITDA grew at a robust pace, with per-tonne margins reaching a sustainable **₹4,000**, underpinned by volume scale and cost advantages. * **Supportive P&L Dynamics:** Other income remained stable with **₹52 Cr** in interest income, while other expenses declined moderately without one-off impacts. ## D. Balance Sheet * **Conservative Financial Position:** Maintained low leverage and strong cash flow generation, reinforcing financial resilience. ## E. Cash Flow * **Strategic Liquidity Buildup:** Proceeds from divestments (including Hindustan Aegis) are being retained as cash for future strategic investments. --- # 2. Volume & Throughput ## A. Key Figures * LPG Throughput: 1.41 Mn T Q2 FY'26 (+32%) · 2.57 Mn T H1 FY'26 (+24%) * Distribution Volume: 1.92 LMT Q2 FY'26 (+49%) · 3.3 LMT H1 FY'26 (+31%) * Sourcing Sales Volume: **2.08 LMT** Q2 FY'26 (+7%) · **3.27 LMT** H1 FY'26 (+3%) ## B. LPG Throughput * **Robust Throughput Growth:** Strong double-digit volume expansion in both Q2 and H1, reflecting increased market penetration and infrastructure utilization. * **H2 Ramp-Up Expected:** Volumes anticipated to grow further in Mangalore and Kandla in second half, though no full-year FY'26 guidance given due to external dependencies. ## C. Distribution Volume * **Record Distribution Performance:** Sharp volume surge driven by new cryogenic terminals at Mangalore and Pipavav, along with Haldia terminal consolidation into AVTL. * **Margin Expansion from Scale:** Higher volumes enhancing procurement efficiencies and logistics optimization, contributing to **~₹4,000/tonne margin**; sustainability questioned but supported by operational improvements. * **Geographic Diversification:** Morbi’s share now only 15–20% of distribution volume, signaling successful regional expansion beyond traditional strongholds. * **Capacity Expansion Underway:** Haldia operations running at high utilization with **~3 acres of new land acquired** for terminal expansion. ## D. Sourcing Sales * **Modest Sourcing Growth:** Sourcing volumes show low-single-digit to mid-single-digit growth, significantly outpaced by distribution and throughput segments. --- # 3. Capacity & Expansion ## A. Key Figures * **Liquid Storage Capacity:** **334,000 kl** Mumbai Port · **101,900 m³** JNPT · **82,545 m³** Kochi · **194,382 m³** Mangalore · **226,890 m³** Haldia * **LPG Static Capacity:** **21,000 MT** Mumbai · **82,000 MT** Mangalore · **25,000 MT** Haldia * Under Development – Liquid: 64,000 kl Mumbai (Q1 FY27) · 318,100 m³ JNPT · 94,148 m³ Kandla (CRL-4) · 60,000 m³ Kochi · 60,000 m³ Mangalore * **Under Development – LPG:** **77,286 MT** JNPT · **77,000 MT** JNPA (cryogenic) · **60,000–100,000 MT** Haldia (planned) * **Project Cost:** **INR 125 Cr** for Mumbai expansion ## B. Terminal Capacity & Strategic Growth * **Multi-Port Expansion Momentum:** Aggressive capacity build-out underway across **Mumbai, JNPT, Kandla, Kochi, Mangalore, and Haldia**, signaling long-term volume growth and geographic diversification. * **JNPT as a Major Growth Hub:** JNPT set to become a key integrated terminal with **large-scale liquid and cryogenic LPG capacity under development**, including a **bottling plant**, enhancing downstream integration. * **Kandla Strategic Partnerships:** Nonbinding MoU with **Larsen & Toubro** for a green ammonia terminal underscores pivot toward **future energy infrastructure** and value-added services. * **Haldia Consolidation & Scale:** Plans to consolidate operations under **Aegis Vopak Terminals Limited** and develop a **sixth terminal** reflect strategic focus on operational efficiency and scale in a core industrial zone. ## C. Project Execution & Timeline * **Near-Term Commissioning Wave:** Multiple projects targeting **Q3–Q4 execution**, including **Mangalore capacity**, **Kandla VLGC jetty**, and **partial JNPA terminal startup in Q1 next FY**, supporting near-term volume ramp-up. * **Kandla Capacity Adequacy:** Current infrastructure sufficient for **4 crore tonne annual handling**, with **no near-term constraints**; expansion plans deferred beyond FY27 to align with demand trajectory. --- # 4. Infrastructure & Logistics ## A. Key Figures * **Liquid Storage Capacity:** **952,276 m³** at Kandla Port * **Gas Storage Capacity:** **48,000 MT** at Kandla Port * **Unloading Speed:** Up to **1,000 tonnes/hour** enabling daily VLGC turnaround ## B. Pipeline Connectivity * **Kandla-Gorakhpur Pipeline (KGPL):** PNGRB approvals secured; commissioning on track for **Q4 FY'26**, with volume ramp-up expected in the following year. * **JLPL Integration at Kandla:** Connectivity targeted for **Q3 FY'26**, with operational benefits anticipated in **Q4**, enhancing evacuation efficiency. * **Hassan-Cherlapally Pipeline:** Expected to be operational by **end of next fiscal year**, supporting expanded reach in South India. ## C. Multimodal Evacuation * **Rail Gantry Development:** Planned at **Pipavav** and proposed for **Mangalore**, significantly boosting inland evacuation capacity and terminal throughput. * **VLGC Berthing at Kandla:** Scheduled to commence in **Q3 FY'26**, enabling faster vessel turnaround and higher annual throughput potential. * **Integrated Evacuation Strategy:** Five key multimodal systems under development across **Kandla, Pipavav, and Mangalore**, focused on pipelines, rail, and high-speed unloading infrastructure. --- # 5. Strategic Projects & Capex ## A. Key Figures * **AVTL Project CAPEX:** **₹1,675 Cr** (30% upfront to ALL) · **20–25%** expected margin * Ammonia Terminal Capacity: **36,202 MT** at Pipavav (India’s first) · **36,000 MT** cryogenic tank planned * **Total Group Capex Plan:** **$2 Bn** outlay by next year · **$5 Bn** by 2030 (incl. Vadhavan’s **₹20,000 Cr**) * Conservative debt gearing targeted at 0.6x EBITDA (cap at 3.5x) · Funded via internal accruals & prudent debt ## B. AVTL Development * **Strategic Scale-Up:** Large-scale AVTL project advancing with LPG bottling plant and cryogenic tank plans, strengthening West Coast footprint. * **Capital Recycling Mechanism:** Aegis (ALL) recovers full project costs plus margin on infrastructure developed for AVTL, preserving cash flow under line-by-line consolidation. * **Ownership Trade-Off:** Despite **51% dilution**, retained **34% indirect stake** and **₹700 Cr surplus** ensure value compensation and continued exposure. ## C. Ammonia Terminals * **First-Mover Advantage:** India’s inaugural ammonia terminal at Pipavav on track for **Q1 next fiscal**, enabling vertical integration across the value chain. * **Dual-Track Strategy:** Launching with gray ammonia while positioning for rapid shift to green ammonia, with Kandla flagged as a future green hub. * **Path to Binding Commitments:** Current MOU at Kandla nonbinding; progress hinges on securing customer demand and formal agreements. ## D. Vadhavan Port * **Strategic Mega-Port Play:** Vadhavan Port investment via MoU under evaluation, aligned with $5 billion capex plan and long-term Western region dominance goals. * **Phased Development Outlook:** ~5-year timeline with staged infrastructure rollout; execution contingent on land allotment and regulatory approvals. --- # 6. Risks & Regulatory ## A. Evacuation Constraints * **Near-Term Capacity Crunch:** APM Terminals operating at near-maximum liquid berth capacity at Pipavav Port, with expansion expected by November–December next year. * **Proactive De-Risking:** Company confident in avoiding operational bottlenecks pre-expansion, having already boosted cryogenic capacity by **10–15%** ahead of KGPL hookup. * **Critical Path Milestone:** KGPL hookup remains the key resolution point for evacuation challenges, which are currently the primary constraint—not unloading. --- # 7. Guidance & Outlook ## A. Key Figures * Growth Guidance: 25% CAGR (2022–2027) with confidence to exceed; targeting 30% CAGR in coming years ## B. Growth Target * **Confidence in Outperformance:** Management reaffirms and expresses growing confidence in surpassing the 25% CAGR target, citing strong execution and operational momentum. * **Strategic Capacity Leverage:** Substantial underutilized capacity at Mangalore positions the company to capitalize on South India as a **virgin growth market**. ## C. Volume Ramp-Up * **Near-Term Volume Acceleration:** Quarterly run rate expected to increase meaningfully in Q3 and Q4, supported by rising sales and sustainable distribution margins. * **Infrastructure Tailwinds:** JNPA developments set to deliver operational benefits starting next fiscal, enhancing long-term volume and margin sustainability.