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Informist, Wednesday, Apr. 30, 2025

By Shakshi Jain and Anand JC

MUMBAI/NEW DELHI – JSW Infrastructure Ltd. expects its logistics business revenue to grow 50% in 2025-26 (Apr-Mar) from INR 4.85 billion last year, its management said at a post-earnings analyst conference call Wednesday. The company is strategising this growth through an asset-light model and plans to invest INR 15 billion to advance the vertical in FY26.

For its logistics business, the company is mainly targeting entry into Gati Shakti terminals, where it does not have to incur a huge capital expenditure on building the railway sidings or purchasing land at very expensive rates. The capital expenditure it plans to incur on terminals is way lower than industry standards. "... we are looking at powering these terminals through group cargo wherever they are available and this through a combination of rates, additional containers and new terminals which move into the light markets," the company said.

Part of JSW Infrastructure's overall logistics play is an expansion of Navkar Corp., which it recently acquired. Out of the INR 15 billion expenditure earmarked for the segment, the company has approved a INR 1.7 billion investment into this newly acquired arm. Over the long term, JSW Infrastructure is aiming for a margin of 25% for its logistics segment. Currently, the segment has a margin of 12-13%, and is expected to increase to 15% by FY26.

As part of its growth strategy, it has earmarked INR 90 billion for expanding its logistics segment. "This expansion aims to build on the Navkar acquisition to develop a robust pan-India logistics network. The company is targeting a top line of 8,000 crores (INR 80 billion) for its logistics segment, with a 25% EBITDA margin, resulting in industry-leading return on capital employed," it said in a press release.

Overall, JSW Infrastructure plans to spend nearly INR 55 billion towards growth and expansion initiatives during the full financial year. JSW Infrastructure also estimates a 10% growth in cargo volumes during FY26, company management said.

JSW Infrastructure primarily caters to steel, energy, and allied businesses when it comes to cargo handling. With the recently imposed 12% provisional safeguard duty on steel imports, the company expects that market to do well, thereby benefiting its own business. With coal driving India's energy demand, the company does not foresee any issues going forward in that segment. In all, despite the current macroeconomic uncertainty triggered by US tariffs, JSW Infrastructure does not expect much of a challenge to its guidance, which it says is conservative.

JSW Infrastructure's employee stock option plan cost is expected to rise to INR 250 million in FY26 from INR 200 million in FY25, the company said.

Responding to a query, company officials said there is currently no proposal or discussion on entering the airport business.

Earlier in the day, JSW Infrastructure reported a consolidated net profit of INR 5.09 billion for Jan-Mar, up 54% annually as well as sequentially. The port operator's consolidated revenue rose 17% on year and nearly 9% sequentially to INR 12.83 billion during the quarter. Cargo volume during the three-month period grew 5% to 31.2 million tonnes, the company said.

Shares of the company closed 2.3% lower at INR 293.65 on the National Stock Exchange Wednesday. The company reported its March quarter earnings after market hours.  End

Edited by Saji George Titus and Rajeev Pai

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