Allcargo Terminals FY26: Profit Growth, Lease-Heavy Assets, and a Capacity-Led Playbook

Allcargo Terminals Limited closed FY26 with a stronger profit profile, backed by higher volumes, operating leverage, and tighter yield and cost management. On a consolidated basis, revenue from operations rose to INR821 crore in FY26 from INR758 crore in FY25, an 8% year-on-year increase. EBITDA expanded faster, up 26% year-on-year to INR162 crore, and profit after tax grew 46% to INR44 crore.

The March quarter was mixed on volumes but solid on profitability. Q4 FY26 volumes were 179,631 TEUs, up 7% year-on-year but down 7% sequentially. Revenue from operations rose 12% year-on-year to INR208 crore, while EBITDA climbed 31% year-on-year to INR44 crore. PAT for the quarter was INR9 crore, compared with a loss in the same quarter last year, but down 42% versus Q3 FY26.

Management framed FY26 as a year of “purposeful groundwork” toward a multi-year ambition, pointing to capacity additions at JNPT and project execution progress on the NCR rail-linked ICD plan at Farukhnagar.

FY26 performance: operating leverage shows up in EBITDA

The consolidated income statement shows that the improvement in operating profitability was supported by a higher gross margin and a controlled cost base. FY26 gross margin improved to 36.9% from 33.8% in FY25. EBITDA margin rose to 19.7% from 17.0%. In Q4 FY26, EBITDA margin was higher at 21.2%, though management cautioned against reading a single quarter as the run-rate.

In the concall, management repeatedly steered the discussion toward EBITDA per TEU as the preferred operating lens. The Managing Director noted an upward trajectory over recent quarters and reiterated that the company’s targeted band is INR2,200 to INR2,300 per TEU, while current levels are around INR2,300 to INR2,400.

Management also explained why quarterly margins can move meaningfully. They cited commodity mix, the 20-foot versus 40-foot container mix, over-dimensional cargo, and occasional auctions of long-standing cargo as factors that can lift or compress quarterly margins. The CFO added that Q4 saw some reduction in other expenses due to operational efficiencies, and part of those expenses can return in other quarters.

Expansion agenda: JNPT, Mundra, Chennai, and Farukhnagar

The investor presentation positions ATL as a leading pan-India CFS operator with around 13% market share (presentation claim) and a throughput capacity of one million TEUs. The network includes six CFS facilities across JNPT, Mundra, Chennai, and Kolkata, plus one ICD at Dadri.

Capacity creation is the core strategic lever for the next phase. The deck highlights multiple projects and indicates cumulative capex of over INR400 crore. The capacity addition table in the presentation points to a path from 830,000 TEUs in FY25 to 1,345,000 TEUs by FY30, including already commenced additions such as CWC Mundra and JNPT expansion.

A key near-term operational milestone is the JNPT footprint. The deck states an additional 170,000 TEUs of capacity has been commenced, taking the JNPT capacity from 370,000 to 540,000 TEUs, with an aim to increase market share from 12% to 15%. Separately, the company has secured a 10-year extension for the Speedy Multimodes JNPT facility. On the concall, management clarified that the facility size remains unchanged, but planned upgrades to yard and warehouses are expected to improve utilisation and throughput. The Managing Director suggested these upgradation activities could be completed by Q3 of the current year.

In Mundra, the presentation outlines a large new CFS plan with a stated capacity of 250,000 TEUs on a 60-acre site, to be developed in two phases. The deck highlights the expected benefits of volume consolidation, including savings in rentals and scale efficiencies. In response to investor questions, the CFO confirmed Mundra and Chennai expansions are included within the broader INR400 crore capex envelope.

Chennai is described as a proposed new facility of 170,000 TEUs on 30 acres, with proximity to Kattupalli and Ennore ports. On the concall, management did not commit to a specific timeline, stating that the company is actively working on expansion there and would share details in future investor calls.

The Farukhnagar project is central to the company’s northern India expansion narrative. The deck describes an ICD opportunity in the NCR market and states an investment of INR115 crore for stake acquisition in HORCL. The project is positioned to leverage Dedicated Freight Corridor connectivity, with the deck citing 15% transit time savings. On the concall, management said construction began in January 2026, with a plan to complete the PFT by April 2027 and the ICD around two quarters later.

Importantly, management argued that Farukhnagar could change the earnings mix. The CFO stated that realizations per TEU at Farukhnagar should be higher than the existing business due to the rail-linked model, and indicated that once fully live, this could represent around 20% to 25% of the overall business.

Balance sheet: lease-heavy accounting, but external debt positioned as nil

The consolidated balance sheet shows a sharp increase in right-of-use assets to INR702 crore in March 2026 from INR389 crore in March 2025, with corresponding lease liabilities of INR727 crore (non-current) and INR41 crore (current). Traditional borrowings are shown as zero at March 2026 versus INR102 crore in March 2025, indicating repayment of external debt.

This structure became a key topic in the concall. The CFO clarified that the “borrowings” investors see are largely lease liabilities accounted under Ind AS 116, and that the company is debt-free in terms of external borrowings as of year-end. He also explained that finance cost includes the interest component embedded in lease payments. For FY26, finance cost was INR58 crore, and the company’s Ind AS 116 table shows ROU interest of INR50.04 crore for FY26.

Cash flow data supports strong operating cash generation. FY26 net cash from operating activities was INR157 crore, up from INR108 crore in FY25. Investing cash flows turned positive at INR8 crore in FY26 compared with an outflow of INR130 crore in FY25, while financing cash flows were an outflow of INR173 crore.

On funding the next investment cycle, management outlined a multi-source approach: existing investments on the balance sheet (stated at around INR45 crore), ongoing cash generation (management stated INR80 to INR90 crore annually), and equity already raised where a portion remains to be called. The CFO indicated that the remaining gap would be bridged through bank or external financing, which they expect to keep around INR100 crore.

What to track from here

The FY30 aspiration shared in the investor deck is clear: volume of 1 million TEUs, revenue of INR1,400 crore, and EBITDA of INR275 crore. Management also stated on the concall that the company remains on course to achieve 1 million laden TEUs by FY28 as part of its three-year ambition.

From an execution standpoint, the near-term checkpoints are visible. The Speedy Multimodes upgradation is expected to complete within the next few quarters, and Farukhnagar construction has started with a stated completion schedule. Chennai and Mundra expansions remain important but need more concrete timelines and milestones in future communication.

Overall, FY26 reinforces ATL’s positioning as a capacity-led CFS and ICD platform, where operating leverage and disciplined yield management are key to protecting EBITDA per TEU. Investors are likely to focus on three variables in coming quarters: the stability of EBITDA per TEU, the pace of volume ramp-up on new capacity, and how the company funds the INR400 crore capex plan while maintaining balance sheet resilience.