/** Title: Gateway Distriparks Q4 FY26: Stable margins, Indore capex, and a foggy EXIM outlook */

Gateway Distriparks Q4 FY26: Stable margins, Indore capex, and a foggy EXIM outlook

Gateway Distriparks ended Q4 FY26 with operating performance that stayed steady even as export-import (EXIM) trade faced fresh disruption. On a consolidated basis, the company reported total income of INR 538.7 crore in Q4 FY26 and EBITDA of INR 122.8 crore, translating into an EBITDA margin of 22.8 percent. Profit after tax for the quarter stood at INR 63.7 crore.

Management framed the quarter in the context of a soft demand environment driven by the West Asia conflict, which has disrupted shipping cycles and affected both import and export flows. Volumes were described as subdued, with limited visibility on when conditions will normalise. Yet, the company continued to invest for the long term, with land acquisition for a new Indore ICD, additional train orders, and a pilot for 40-foot EV trailers.

What Q4 looked like and where volumes moved

Gateway’s container logistics model sits across rail transportation, inland container depots (ICDs), and container freight stations (CFS). In the earnings call, the company disclosed that total throughput for the quarter was about 188,000 TEUs, with roughly 96,000 TEUs handled on rail and about 91,000 TEUs in CFS. The company also indicated that double stacking remained an important efficiency lever, with 42 percent in Q4 and about 40 percent for the full year.

The management commentary highlighted that the disruption is visible in specific trade lanes and commodities. Imports coming from the US, Europe and the Middle East were cited as impacted. On the export side, food and beverage, rice, and frozen foods were mentioned as affected categories.

At the unit economics level, management acknowledged that per-TEU realisations and EBITDA per TEU can come under pressure due to a combination of factors: more empties, more underframe moves, stabling costs when trains are parked, and upfront costs for building domestic capabilities. They also cautioned that as domestic volumes expand, revenue and EBITDA per TEU may look lower because domestic moves are typically shorter distance and lower yielding, even if overall EBITDA grows.

Financial summary (Consolidated)

Note: The investor presentation and tables also discuss exceptional items related to Snowman’s accounting under Ind AS 103 in prior periods.

Building capacity: Indore ICD, trains, and a push towards electrification

The most concrete expansion item in the investor presentation is the Indore ICD. The company disclosed that it acquired around 25 acres of land near Pithampur, Indore, and has received in-principle approval for the ICD. Planned capacity is about 120,000 TEUs per annum, with stated capex of INR 150 crore.

Management added more details during the call. It said around INR 50 crore has already been spent for land acquisition. The remaining capex of about INR 100 crore is expected to be deployed over the next two years, and operations are targeted to commence in 2028.

On the rail asset side, Gateway stated it is scaling up trains to 37 by end of Q1 2026, including nine higher-capacity higher-speed trains. The company reported it operates 34 rakes today (21 owned and 13 on long-term lease), alongside a trailer fleet of over 560.

The company is also beginning to test electrification on the road leg. The investor presentation mentioned an order for a pilot project of 40-foot EV trailers. In the concall, management described EV trailers as a future capex theme, with an indicated blended cost of about INR 90 lakhs per trailer. It also stated that EV adoption would require associated power infrastructure and mentioned investments in solar across locations.

Separately, management indicated the company typically expands yards when specific terminals reach about 70 to 80 percent utilisation. It named Garhi and Piyala as locations where yard extension is being planned.

Ankleshwar domestic ramp-up and the Jaipur overhang

Gateway’s new domestic operations at MMLP New Ankleshwar commenced in October 2025, as per the investor presentation. In the earnings call, management said domestic volumes are building month on month and highlighted a new revenue stream from handling steel coil rakes, after winning a tender with ArcelorMittal.

On the EXIM ICD at Ankleshwar, management said construction is on track, but completion and permissions could take three to six months.

Jaipur remains a waiting game. Management stated that the next hearing is in July, listed for final arguments, and they are hopeful for a positive order at that hearing or shortly thereafter if adjourned. While the company discussed Jaipur as a potential growth driver once operational, it remains dependent on legal outcomes.

Snowman: scale leadership, margin realities, and a deferred timeline

Snowman Logistics is now consolidated as a subsidiary, and management positioned it as India’s largest integrated temperature-controlled logistics provider. In the call, management provided competitive context using pallet capacity: Snowman is at about 160,000 pallets, while the next competitor is around 80,000 pallets. However, management also acknowledged that if the unorganised cold storage ecosystem is included, Snowman’s share is only about 3 to 4 percent of the total market.

The longer-term revenue ambition of INR 1,000 crore was reiterated, but with softened confidence. Management said the target remains the plan but could be deferred by a year due to disruptions. When asked for a timeline, management suggested FY29 may be more realistic than FY28.

On profitability, management stated that at INR 1,000 crore revenue, the company would target a blended EBITDA margin of about 15 percent, translating to around INR 150 crore EBITDA. It also stated that as the 5PL business increases, EBITDA percentage could reduce even as absolute EBITDA increases.

Snowman’s management explained that margins in the year were affected by ramp-up of new facilities and power-related costs. Higher power costs in early phases of new warehouses, and elevated diesel generator usage due to power cuts, were cited as contributors. Snowman also described its transportation segment as being under constant stress, and said it is implementing an online transport management system for better trip-level monitoring, expected to go live in Q1 of the current financial year.

What to watch next

Gateway’s Q4 FY26 narrative is not about a sudden jump in volumes. It is about resilience in margins, continued capex for future capacity, and a near-term operating environment that remains uncertain. The West Asia disruption is the single largest variable management pointed to, with no clear end date.

At the same time, the company’s investment path is visible: Indore is a defined capex project with a stated capacity and a 2028 start target; train additions are already ordered; domestic operations at Ankleshwar are ramping and have added a new steel rake revenue stream; and electrification themes like EV trailers and solar are entering the capex conversation.

For investors, the most useful framing from management was that per-TEU numbers can soften as domestic and short-distance volumes rise, but the objective is to expand total EBITDA through scale and new revenue streams. The next few quarters are likely to be judged on whether EXIM volumes stabilise, how Ankleshwar ramps further, and whether the company can keep executing on Indore and fleet upgrades despite the external noise.