JSW Infrastructure: Navigating Growth with Strategic Expansion in Q2 & H1 FY26

JSW Infrastructure Limited has reported a resilient performance for the second quarter and first half of the financial year 2026, demonstrating robust growth despite a complex global economic landscape. The company, a key player in India's port and logistics sector, posted a consolidated revenue from operations of ₹2,489 crores for H1 FY26, marking a 23% year-on-year increase. EBITDA grew by 14% to ₹1,387 crores, while Profit After Tax (PAT) saw a 13% rise to ₹758 crores. This performance underscores the company's strategic positioning and operational efficiency amidst evolving trade dynamics.

The growth was primarily propelled by the strong operational performance of its port business, particularly at South West Port, Jaigarh Port, and Dharamtar Port. These private ports delivered higher cargo volumes and improved realizations, contributing significantly to the overall revenue uptick. However, the company faced headwinds at the Paradip Iron Ore Terminal, where subdued macroeconomic conditions in the iron ore export market led to a shortfall of approximately 3.4 million tonnes in cargo volumes. The logistics segment, including Navkar Corporation, also delivered a standout performance, with EXIM cargo volumes growing by a robust 20% year-on-year and a significant turnaround to profitability.

Strategic Initiatives Driving Future Capacity

JSW Infrastructure is actively pursuing an ambitious growth roadmap, aiming to expand its cargo handling capacity from the current 177 million tonnes per annum to 400 million tonnes by FY30 or earlier. This vision is being realized through a series of strategic investments in greenfield ports, brownfield expansions, and logistics infrastructure.

Key projects include the development of Keni Port in Karnataka and Jatadhar Port in Odisha, both greenfield multi-cargo ports with capacities of 30mtpa each, expected to commence operations by FY29 and March 2027, respectively. The company is also advancing its 302KM Slurry Pipeline project in Odisha, targeting completion by March 2027, which will significantly enhance iron ore transportation efficiency.

In the logistics segment, the acquisition and transformation of an 86-acre brownfield rail siding in Kudathini, Ballari, Karnataka, into a state-of-the-art multimodal logistics park is a significant step. Commercial operations at this facility are anticipated to begin within the next two to three months. Furthermore, the company signed a 30-year concession agreement for the redevelopment and mechanization of berths at Kolkata Container Terminal, adding 6.3mtpa capacity by H1 FY28.

Financial Discipline and Outlook

The company maintains a strong balance sheet, with a net debt of ₹1,810 crores as of September 2025, and a healthy net debt to operating EBITDA ratio of 0.75x on a trailing 12-month basis. This disciplined capital management is further validated by the achievement of an investment-grade rating of BBB-minus from BB-plus with a stable outlook from both S&P Global Ratings and Fitch Ratings.

Management has provided clear guidance for the future, projecting port business volume growth of 8-10% for the full fiscal year. The CAPEX target for FY26 stands at ₹4,000 crores for the port business and ₹1,500 crores for logistics. Looking towards FY30, the logistics segment is targeted to achieve a revenue of ₹8,000 crores and an EBITDA of ₹2,000 crores, with a cumulative CAPEX of ₹9,000 crores for FY25-30. These targets underscore the company's confidence in its growth strategy and its ability to deliver sustained profitability.

Commitment to Sustainability and Community

Beyond financial performance, JSW Infrastructure demonstrated its commitment to sustainability and social responsibility. The company reported improvements in specific energy consumption and GHG emission intensity. In H1 FY26, it conducted over 7,000 health consultations, provided glasses to 351 people, and supported 264 truckers through welfare projects. Environmental initiatives included collecting 1,500 kg of plastic waste, maintaining 10,700 plants in a Miyawaki forest, and generating 215 tons of compost from municipal solid waste.

JSW Infrastructure's Q2 and H1 FY26 results reflect a company that is not only growing its core business but also strategically expanding its footprint and capabilities across India's crucial infrastructure landscape. With a clear vision, disciplined execution, and a focus on sustainability, the company appears well-positioned to capitalize on India's economic trajectory and strengthen its leadership in the sector.