Aegis Vopak Q2 FY26 con-call
Dominant Growth on a Pan-India Scale 🔥
Aegis Vopak India Limited (AVTL), India's largest 3rd-party liquid and gas storage provider, demonstrated exceptional performance in Q2 FY26, with robust financial health and decisive execution of its long-term "Project GATI" strategy to build an unrivalled pan-India network.
🔖 Financial Performance
High Growth & Enhanced Profitability
⏺️Top-Line Strength
Revenue growth of 26.2% YoY to ₹187.6 crore, driven by new capacities and a better product mix.
⏺️Bottom-Line Surge
PAT soared 141.8% YoY to ₹53.9 crore, significantly aided by a 61% reduction in interest costs following strategic debt repayment and an ₹8,000 Cr equity raise, highlighting a transition to a more profitable, self-sustaining model.
⏺️Superior Margins
Maintained a stellar EBITDA margin of 73.3%, underscoring the high-quality, contracted nature of its earnings.
🔖 Strategic Expansion
Deepening the National Necklace of Terminals
⏺️Game-Changing Acquisition
The acquisition of a 75% stake in Hindustan Aegis LPG (Haldia) marks AVTL's strategic entry into the East Coast.
It comes with a long-term HPCL agreement until 2038, ensuring immediate cash flow.
⏺️Organic Commissioning & Pipeline
The Pipavav and Mangalore LPG terminals are now fully operational.
Critically, the Kandla-Gorakhpur LPG pipeline is set to be operational by Q3 FY26, connecting AVTL's terminals to the northern hinterland and acting as a major throughput catalyst.
🔖 Capacity Expansion
A Visible & De-risked Project Pipeline
The company is actively building future capacity, heavily de-risked by long-term agreements:
⏺️Dahej
Constructing India's first independent ammonia terminal under a 15-year "take-or-pay" pact with Hindalco.
⏺️JNPA
A massive ₹1,675 crore expansion is underway, with partial commissioning expected within FY26.
⏺️New Frontiers
An MOU with L&T for ammonia terminals at Kandla positions AVTL at the forefront of the emerging green ammonia market.
🔖 Future Outlook
A Clear Path to Market Leadership
⏺️Aggressive Capex
Targets $1.2 Bn cumulative Capex by FY27, scaling to ~$5 Bn by 2030 to expand liquid capacity to over 3 million m³ and build a dominant multi-gas infrastructure.
⏺️Prudent Funding
This will be funded via a balanced mix of equity, internal accruals, and debt, with a conservative target gearing ratio of 0.6x.
⏺️Operational Uplift
Improved LPG realizations are expected from Q4 FY26, driven by new pipeline links. Liquid revenue per m³ has already risen to ₹2,500.
🔖Bottom line
Aegis Vopak is not just reporting strong numbers; it is executing a compelling, de-risked growth story.
Leveraging its market leadership, strategic JV strengths, and a visible pipeline of projects, the company is uniquely positioned to be the primary beneficiary of India's expanding energy and chemicals logistics demand.
Rich valuations should get adjusted with earnings & EPS 🤞🏻
#aegisvopak