Aegis Vopak Terminals Limited: Charting a Course for Growth in India's Energy Logistics

Aegis Vopak Terminals Limited (AVTL) has delivered a robust performance in the second quarter of fiscal year 2026, showcasing significant growth across its key financial metrics. The company, a leading player in India's tank storage terminal sector, reported a 26.2% year-on-year increase in revenue from operations, reaching Rs. 187.6 crore. This strong top-line growth was complemented by a 25.8% rise in EBITDA to Rs. 137.4 crore. Notably, Profit After Tax (PAT) surged by an impressive 141.8% year-on-year, settling at Rs. 53.9 crore. These results underscore the effectiveness of AVTL's strategic initiatives and its strong operational foundation in India's rapidly expanding energy logistics ecosystem.

The company's performance was driven by both its liquid and gas terminalling segments. Revenue from liquid terminalling grew by 28.3% year-on-year to Rs. 106.0 crore, attributed to higher volumes from capacity additions and an improved product mix. The gas terminalling division also saw a healthy increase of 23.7% year-on-year, contributing Rs. 81.6 crore to the total revenue. The commissioning of new LPG terminals at Pipavav and Mangalore in the previous quarter played a crucial role, becoming fully operational and revenue-accretive in Q2 FY26. This has started driving incremental volumes and strengthening AVTL's leadership in the LPG infrastructure segment. The company's operating EBITDA margin remained strong at 73.3%, reflecting efficient operations.

Strategic Expansions and Diversification

AVTL's growth narrative is deeply rooted in its strategic expansion plans, particularly under 'Project GATI' (Gateway Access to India). A significant development is the board-approved acquisition of a 75% stake in Hindustan Aegis LPG Ltd (HALPG). This acquisition will consolidate an additional 25,000 MT of LPG capacity, marking AVTL's strategic entry into the East Coast market at Haldia. HALPG operates a leading LPG terminal with an attached bottling plant and an exclusive terminalling agreement with HPCL until 2038, making it a valuable long-term asset.

Major capital expenditure projects are also underway. At JNPA Port, a substantial expansion program is progressing, which includes adding 318,100 cbm of liquid capacity, a 77,286 MT LPG terminal, and a 35,000 MT per annum LPG bottling plant, with a total investment of Rs. 1,675 crore. Parts of the new liquid terminal are expected to be commissioned before the end of the current financial year. Furthermore, AVTL is evaluating the addition of a 36,000 MT cryogenic gas tank at JNPA to further strengthen its gas infrastructure.

In a move towards new energy segments, AVTL is constructing India's first independent Ammonia Terminal at Pipavav, with a 36,000 MT static capacity, slated for completion before Q1 FY27. This terminal will operate under a 15-year take-or-pay agreement to serve Hindustan Zinc's upcoming Diammonium Phosphate plant, aligning with India's green hydrogen mission. The company is also planning an additional 60,000 cbm liquid capacity at Kochi and Mangalore, expected to be commissioned by December 2026, to cater to growing demand in Southern India.

Financial Discipline and Future Outlook

AVTL maintains a disciplined approach to capital deployment, aiming for a cumulative capital expenditure of USD 1.2 billion by FY27 and an aggregate CAPEX of USD 5 billion by 2030. This growth will be prudently funded through a balanced mix of equity, internal cash generation, and debt, targeting a gearing ratio of 0.6x and capping it at 3.5x EBITDA. This financial prudence, combined with operational excellence and strategic clarity, positions AVTL for sustainable value creation.

The company is also enhancing connectivity, with Kandla set to benefit from KGPL & JLPL pipeline connectivity and VLGC berthing by Q3 FY26, which will allow it to handle larger cargoes more efficiently. While there were temporary lower gas realizations and an increase in depreciation partly due to INDAS 116 (a non-cash item), management expects these to improve from Q4 onwards as pipeline connectivity and multimodal evacuations ramp up.

AVTL's Q2 FY26 performance reflects a company in a strong growth phase, strategically expanding its infrastructure and diversifying its product offerings to meet India's evolving energy demands. With a clear roadmap, disciplined financial management, and robust market opportunities, Aegis Vopak Terminals Limited is well-positioned to strengthen its leadership in the Indian energy logistics sector for the long term.