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JSW Infrastructure FY2026: Ports stayed steady, logistics scaled up, and the capex cycle is accelerating

JSW Infrastructure closed FY2026 with steady operational delivery in India, a sharp step-up in logistics performance, and a clear set of milestones for the next phase of capacity growth. Consolidated revenue from operations rose to INR 5,361 crore, up 20% year on year, while operating EBITDA increased 15% to INR 2,604 crore. Adjusted PAT stood at INR 1,644 crore, up 12%.

The year was not without turbulence. Management flagged disruptions linked to geopolitical tensions in the Middle East, including lower volumes at the Fujairah facility and cargo deferments in India due to vessel availability and higher freight costs. The company also booked an exceptional provision related to an estimated loss arising from a fire incident at its Fujairah Liquid Terminal.

FY2026 performance: volume growth, margin compression, and a stronger logistics mix

On the ports side, the company handled about 122 million tonnes of cargo in FY26, up 4% year on year. The third-party cargo share remained close to half, at 48% in FY26 versus 49% in FY25. Q4 volumes were broadly flat at 31.6 million tonnes.

Financially, the ports segment reported revenue from operations of INR 4,647 crore in FY26, up 10%, and operating EBITDA of INR 2,462 crore, up 10%. Ports EBITDA margins were resilient, with FY26 margin at 53.0% and Q4 margin at 54.5%.

The logistics segment delivered the sharper improvement. Navkar Corporation reported strong volume growth across both EXIM and domestic segments. FY26 EXIM volume at ICD and CFS locations rose to 331,000 TEUs, up 21%, while domestic volume increased to 1,501,000 metric tonnes, up 40%. In Q4, domestic volume grew 56% year on year.

Logistics segment revenue from operations was INR 714.5 crore in FY26 with operating EBITDA of INR 141.8 crore. Management attributed the margin and profit improvement to higher capacity utilization at Navkar, which rose from 44% in FY25 to 56% in FY26, and reached 60% utilization in Q4.

Financial summary

Notes: Adjusted Q4 and FY26 numbers exclude items described by management, including an exceptional loss provision linked to Fujairah, employee cost related to labour code implementation, and unrealized forex impacts.

Key operating events: Indian milestones and overseas volatility

The company highlighted several operational milestones that improve near-term capacity and support better asset returns. The 4.5 MTPA JNPA liquid berth modernization project was completed, enabling a shift from interim to full commercial operations. Ennore coal terminal capacity was expanded from 9.6 mtpa to 11 mtpa, improving its ability to handle cape-size vessels.

On the call, management positioned Ennore as an example of its operating improvement approach. The terminal, acquired in November 2020 with 8 mtpa installed capacity and FY21 volume of 3.1 million tonnes, has since been scaled to 11 mtpa and achieved FY26 volumes of 10.4 million tonnes.

Overseas, the Fujairah liquid storage terminal faced a disruptive event. Management said three out of fifteen tanks were damaged, operations were impacted, and repairs could not be undertaken immediately due to prevailing conditions. The company filed insurance claims and stated that assets and loss of profit are insured, while also booking a provision of INR 68 crore as a precaution.

The quarter also included non-operational volatility through forex. The CFO stated that the company recognized an MTM unrealized forex loss of INR 43 crore in Q4 due to changes in INR and yield curves, and also noted that forex movements added to revenue and EBITDA, including a stated INR 17 crore forex gain in the quarter.

Growth strategy: capacity build-out to FY30 and logistics scale-up

JSW Infrastructure presented a 2030 roadmap that targets a material expansion of port capacity, alongside a push to build a rail-centric logistics platform.

The company’s total operational capacity is shown at 183 mtpa in FY26, with an indicative ramp to 300 mtpa by FY28E and 400 mtpa by FY30E. The pipeline includes brownfield expansions, new terminals, and greenfield port development.

Key project timelines include:

• Tuticorin dry bulk terminal (7 mtpa): expected completion by H2 FY26
• Mangalore container expansion (4.2 to 6 mtpa): expected completion by Q2 FY27
• Kolkata container terminal (6.3 mtpa, 0.45 million TEUs): interim operations expected shortly; completion expected in H1 FY28
• Dharamtar and Jaigarh expansion (36 mtpa): targeted by March 2027
• Jatadhar port (30 mtpa): targeted by March 2027
• Odisha slurry pipeline (30 mtpa): targeted by March 2027
• Keni port (30 mtpa): commercial operations expected in FY2029

In logistics, the company is building around a mix of Navkar terminals, inland container depots, Gati Shakti cargo terminals, and a growing rail rakes fleet. It acquired a 25-rake business in February 2026 and placed an order for an additional 40 rakes. Management also stated a medium-term objective to expand the rake fleet to around 250 rakes over two to three years.

The company’s FY30 targets for the logistics segment are: revenue of INR 8,000 crore, EBITDA of INR 2,000 crore, and capex of INR 9,000 crore during FY25 to FY30.

Guidance: FY27 and FY28 targets, plus capex intensity

Management provided explicit guidance by segment.

Ports guidance:

• FY27E: revenue INR 5,200 crore; EBITDA INR 2,600 crore
• FY28E: revenue INR 8,000 crore; EBITDA INR 4,300 crore

Logistics guidance:

• FY27E: revenue INR 1,650 crore; EBITDA INR 400 crore
• FY28E: revenue INR 2,800 crore; EBITDA INR 700 crore

Consolidated guidance is framed on operating revenue and operating EBITDA. Operating revenue is guided to INR 6,850 crore in FY27E and INR 10,800 crore in FY28E. Operating EBITDA is guided to INR 3,000 crore and INR 5,000 crore respectively.

Management also outlined an elevated capex plan. The company expects to invest about INR 16,500 crore across FY27 and FY28, with INR 13,000 crore allocated to ports and INR 3,500 crore earmarked for logistics. The CFO indicated the split would be around 40% in FY27 and 60% in FY28.

On return expectations, management stated that it evaluates greenfield projects at around 16% post-tax project IRR, with stronger projects around 20 to 21%, and that brownfield expansions typically generate post-tax project IRRs around 20 to 21%.

Balance sheet and capital allocation signals

The company ended FY26 with gross debt of INR 6,410 crore and cash and bank balance of INR 3,309 crore. Net debt to operating EBITDA stood at 1.2x. Management also reiterated that the company has investment-grade ratings from Fitch and S&P.

The Board recommended a dividend of INR 0.90 per share, stated as 45% of face value, subject to shareholder approval.

In the Q&A, management indicated it continues to evaluate acquisitions, particularly in logistics, alongside greenfield and brownfield expansion and ongoing bids for new port terminals.

Takeaways

FY2026 reinforced JSW Infrastructure’s operating strength in India, while highlighting the risk profile of overseas assets in a volatile geopolitical environment. Ports performance remained steady, supported by price actions, ancillary services, and interim operations at new assets. Logistics showed visible traction, with Navkar utilization improving and rail rakes beginning to contribute.

The next two years are positioned as a high capex build phase. With guidance for consolidated operating EBITDA rising to INR 5,000 crore by FY28E and multiple projects targeted by March 2027, execution discipline and commissioning timelines will be central to investor tracking.

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