JSW Infrastructure: Navigating Growth Amidst Shifting Tides in Q2 FY26

JSW Infrastructure Limited, a pivotal player in India's port and logistics sector, has reported a robust performance for the second quarter and first half of the fiscal year 2026. The company's Q2 FY26 consolidated revenue from operations surged by 26% year-on-year to ₹1,266 crore, demonstrating strong top-line momentum. This growth was complemented by an 18% increase in EBITDA, reaching ₹716 crore. However, the Profit After Tax (PAT) for the quarter saw a marginal decline of 1% to ₹369 crore, primarily influenced by an unrealized FX loss and specific operational challenges.

The company's operational strength was largely driven by its Ports segment, which contributed ₹1,103 crore to the Q2 revenue. Cargo handled in Q2 FY26 totaled 28.9 million tonnes, a 3% increase year-on-year, and 58.2 million tonnes for H1 FY26, up 4%. This growth was propelled by strong performances at South West Port, Jaigarh Port, and Dharamtar Port. The Logistics segment, including Navkar Corporation, also showed significant traction, generating ₹162.7 crore in Q2 FY26. Navkar Corporation, in particular, delivered a strong operational recovery, with EXIM cargo volumes up 20% and domestic cargo volumes up 46% year-on-year, returning to profitability. Despite these positive trends, overall growth was moderated by subdued volumes at the Paradip Iron Ore Terminal, which experienced a shortfall of 2.1 million tonnes in Q2 due to weak macroeconomic conditions impacting iron ore exports.

Strategic Expansion and Future Outlook

JSW Infrastructure is actively pursuing an ambitious growth strategy, aiming to expand its cargo handling capacity from the current 177 million tonnes per annum to 400 million tonnes by FY30. This vision is underpinned by significant investments in greenfield and brownfield projects across India's strategic coastal regions. Key initiatives include the development of three greenfield ports: Keni in Karnataka, Murbe in Maharashtra, and Jatadhar in Odisha, which are expected to add a combined initial capacity of 93 million tonnes. The public hearing for Keni Port has concluded, and the EIA report for Murbe Port has been submitted, paving the way for construction activities.

The company has also made substantial progress on the 302-kilometer iron ore Slurry Pipeline project, which is 60-70% complete and on track for completion by March 2027. In the logistics segment, JSW Infrastructure recently acquired an 86-acre brownfield rail siding in Kudathini, Ballari, Karnataka, to be transformed into a state-of-the-art multimodal logistics park, with commercial operations expected to commence within two to three months. Furthermore, a 30-year concession agreement was signed for the redevelopment and mechanization of berths at the Kolkata Container Terminal, which will significantly enhance container handling efficiency on the Eastern Coast.

Financial Discipline and Management Confidence

JSW Infrastructure maintains a strong financial position, reflected in its net debt of ₹1,810 crore and a healthy Net Debt/Operating EBITDA ratio of 0.75x. The company has also achieved a significant financial milestone by securing an investment-grade rating of BBB-/Stable from both S&P Global Ratings and Fitch Ratings, underscoring its robust financial fundamentals and disciplined capital management. Management has provided clear guidance for the full fiscal year, expecting cargo volume growth between 8-10% and ambitious targets for the logistics business, including ₹700-800 crore in revenue and ₹100 crore in EBITDA for FY26. The total CAPEX for logistics is projected at ₹9,000 crore by FY30, aiming for ₹8,000 crore in revenue and ₹2,000 crore in EBITDA from this segment.

Despite the challenges posed by global macroeconomic conditions and specific commodity market dynamics, JSW Infrastructure's strategic investments, operational efficiencies, and strong balance sheet position it for sustained long-term growth. The company's commitment to expanding its port and logistics infrastructure, coupled with its focus on enhancing connectivity and digitizing operations, reinforces its role as a key enabler of India's trade and infrastructure ambitions.