Aegis Logistics Q1 FY27: Gas-led surge, liquids stay steady, and capex stays aggressive

Aegis Logistics opened FY27 with a sharp jump in profitability. Consolidated revenue in Q1 FY27 was INR2,357 crores, up 37% year on year. Normalised EBITDA rose to INR727 crores, up 184% year on year. Profit after tax was INR545 crores, up 212% year on year, and EPS was INR13.80 versus INR3.74 in Q1 FY26.

The quarter’s shape was clear. The gas business delivered a record EBITDA, helped by a strong ramp in LPG distribution volumes and margins. Liquids continued to behave like a stable annuity, posting its highest-ever Q1 revenue and EBITDA, and marking five consecutive quarters of EBITDA growth.

Q1 FY27 performance: gas does the heavy lifting

Management framed the quarter as a stress-test that the gas platform passed. Despite war-related disruptions and geopolitical uncertainty, LPG logistics and sourcing volumes stayed broadly stable. The outperformance came from distribution, where Aegis scaled volumes and expanded customer additions, including private sector customers.

In Q1 FY27, gas division EBITDA was INR591 crores, up 296% year on year. Liquids EBITDA was INR136 crores, up 28% year on year. On volumes, LPG logistics throughput was 1.124 million metric tons (down 3% year on year). Distribution volumes were 2.77 lakh metric tons (up 91% year on year). Sourcing volumes were 1.21 lakh metric tons (up 1% year on year).

Note: Normalised EBITDA is before forex, hedging-related expenses.

Liquids: stable cash engine with targeted expansion

The liquids division posted Q1 FY27 revenue of INR178 crores versus INR144 crores in Q1 FY26, a 24% increase. EBITDA rose to INR136 crores from INR106 crores, up 28%. Management positioned liquids as a diversified, stable cash-generating business and said it continues to invest in capacity expansion.

The longer-term numbers show stability rather than growth in FY26. For the liquids division, FY26 revenue was INR644 crores versus INR650 crores in FY25, and EBITDA was INR472 crores versus INR498 crores.

Capacity additions are concentrated at high-demand ports. Mumbai port, described as operating at high utilisation, is adding 64,000 cubic meters of liquid storage with capex of around INR125 crores, with commissioning targeted in the first half of FY27.

Gas: distribution scale, infrastructure enablers, and margin debate

Gas performance in the quarter was driven by distribution. Management attributed the success to vertical integration across sourcing, logistics, storage and distribution, which it said helped it deliver supply reliability during difficult market conditions.

The key investor question was sustainability of distribution profitability. The CFO stated that the historical INR4,000 EBITDA per ton level from FY24 and FY25 is unlikely to return, and that a blended margin around INR7,000 looks sustainable. He also stressed that distribution margins should be looked at over a full year rather than quarter by quarter. His rationale for stability was a mix of scale and infrastructure: higher volumes, VLGC-compatible capability, multimodal evacuation and procurement efficiencies.

Aegis is also preparing its terminals for a market increasingly dependent on large-vessel imports. Management pointed out that when LPG comes from the U.S., it typically arrives on very large ships, and terminals with small static capacities cannot handle these vessels. Aegis expects its larger terminals, particularly at Mangalore and Pipavav, to be structurally advantaged.

Necklace of terminals: capex, contracts, and new energy adjacency

The company’s strategy remains centered on building a network of liquid and gas terminals at key ports. The presentation lists terminals at Kandla, Pipavav, Mumbai, Mangalore, Kochi, Haldia and JNPT.

Several project updates stood out:

1. JNPA expansion: Aegis said current liquid storage at JNPA is 101,900 cubic meters. It is executing an expansion of around 318,100 cubic meters of additional liquid storage, 77,236 metric tons of LPG capacity and an LPG bottling plant of 35,000 metric tons per year, with total capex of roughly INR1,675 crores. The first phase of about 100,000 cubic meters is expected to be commissioned in Q3 FY27. The Board also approved a 52,000 metric ton refrigerated double-walled steel LPG tank at JNPA.

2. Pipavav as an integrated platform: The company highlighted three enablers for FY27 at Pipavav: a VLGC-compliant liquids jetty expected to be completed during the year, an additional liquid rail gantry supported by a 15-year take-or-pay agreement with committed volumes exceeding 0.5 million metric tons per annum (operations expected by end of year), and improving pipeline connectivity.

3. Pipavav ammonia terminal: Aegis announced commissioning of a specialised ammonia storage and terminaling facility at Pipavav with 36,000 metric tons static storage capacity. It also signed a 15-year take-or-pay agreement with Hindustan Zinc to service its upcoming DAP plant for part capacity. Management said ammonia distribution will start soon after commissioning, within weeks to a month, through industrial distribution.

4. Haldia contract visibility: At Haldia, the company operates an approximately 25,000 metric ton LPG terminal backed by an exclusive terminaling agreement with HPCL extending through 2038. It also operates 226,890 cubic meters of liquid storage capacity at Haldia and acquired a further three acres of land to enable liquid expansion.

5. Kandla and pipelines: Kandla was described as the company’s largest port terminal, with 952,000 cubic meters of liquid storage and 48,000 metric tons of static LPG capacity. Management said the Jamnagar-Loni LPG pipeline is now complete and operational, and the Kandla-Gorakhpur LPG pipeline is progressing with connection expected in the first half of FY27.

The quarter also reinforced Aegis’s balance sheet posture. The investor deck highlights liquidity reserves rising to INR5,939 crores in FY26. On the call, management said it prefers maintaining a fortress balance sheet and will deploy cash selectively for opportunities, while noting that capex at Aegis Vopak is self-funded via equity and borrowing headroom.

What investors should track next

Aegis begins FY27 with unusual earnings momentum, largely powered by the LPG distribution engine. The next few quarters will test whether distribution volumes stay sticky as the market normalises and whether the company can hold annual blended distribution margins around the level management described.

Execution will matter. Mumbai’s liquid expansion is targeted for the first half of FY27, and JNPA’s first phase is expected in Q3 FY27. Pipavav’s evacuation ecosystem upgrades and the early ramp of the ammonia terminal, backed by take-or-pay contracts, will also be watched closely.

Management also reiterated capital ambition. It expects cumulative capex to reach about $1.2 billion in FY27 and has identified a pipeline of around$5 billion through FY2030-31, with a target gearing ratio of about 0.6. If execution stays on track, Aegis’s network-led strategy could move it from being only a terminal operator to a broader energy logistics platform spanning traditional fuels and adjacent products like ammonia.