Analyst Concall
CONCOR says bulk cement loading big growth area going ahead
This story was originally published at 15:39 IST on 12 November 2025
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--CONCOR: Output in Apr-Sept 2.73 mln 20-foot equivalent units
--CONTEXT: Comments by CONCOR's management in post-earnings analyst concall
--CONCOR: Subdued demand in domestic business Apr-Sept
--CONCOR: May raise capex budget for FY26 above earlier guided INR 8.6 bln
--CONCOR: Making serious forays into shipping sector
--CONCOR: Export-import segment volume growth 10.2% Apr-Sept
--CONCOR: Rail coefficient up at all three major ports
--CONCOR: Total market share down, not picking up low-margin business
--CONCOR: Bulk cement a big growth area for co going ahead
--CONCOR:Availability of containers only constraint in bulk cement currently
--CONCOR: Low volume from north India affecting Mundra port market share
--CONCOR: Rail freight margin increased on year in Apr-Sept
--CONCOR: Seeing good margins, both sides, in shipping sector
--CONCOR: Indian Railways gave co a goods shed in Lucknow on pilot basis
--CONCOR: To develop railways' goods shed into integrated logistics hub
By Shreya Shetty and Rajesh Gajra
MUMBAI/NEW DELHI – Container Corp. of India Ltd. expects bulk cement loading to be a big growth area for the company going ahead, its management said Wednesday in a post-earnings conference call with investors and analysts. The company recently signed memoranda of understanding with both UltraTech Cement Ltd. and Adani Cement in October for the movement of bulk cement in tank containers, which is likely to contribute to good growth signs from the third quarter (Oct-Dec), a top official said.
The government owns a 54.8% stake in Container Corp. "Keeping in view the...focus of the government on different infrastructure projects the demand of bulk cement has increased like anything," the official said. The only constraint currently for further growth in bulk cement loading is the availability of containers, the official said.
"We have given 1,000 container orders to Indian companies, 500 to Braithwaite & Co., and then 500 to the open market... we have got 200 containers which we are moving in three circuits from the Hyderabad area," the official said. Some more container orders are likely to be delivered by mid-December, he said.
The growth in bulk cement loading is expected to contribute to the company's domestic segment growth going ahead, according to the management. Of the 20% growth guidance given for the domestic segment for 2025–26 (Apr-Mar), the company was able to achieve only 13% in Apr-Sept due to subdued demand. "For the second half we will have to go for 26-27% of growth in domestic to end the year with 20% growth... As I told you, we have good demand in bulk cement," the official said.
Of the 10% volume growth guidance given for its export-import segment, the company has already achieved 10.2% growth in Apr-Sept, the official said. "We are getting good volumes in imports as well as exports," he said.
The company is likely to raise its capital expenditure budget for FY26 from its previous guidance of INR 8.6 billion. "(The) board of directors have deliberated, and most probably we will be increasing the budget, because we have to increase more infrastructure spending," the official said. In Apr-Sept, the company has incurred capex of INR 4.2 billion, he said.
The company said it is aiming for further forays into the shipping sector. The Navratna company has already sent 200 containers to West Asia, and most of them have come back loaded, the official said. "This is also a very high margin business. We are getting more than 30% margin on every container", he said, because it is both-sided load movement. Container Corp. is also in talks with some companies in the "Far East" to start shipping services on that side of the globe as well, he said. As such, the company sees good margin growth from the shipping sector.
The Indian Railways has given the company a goods shed in Lucknow, Uttar Pradesh, on a trial basis, it said. In the next four years, the company is expected to convert this goods shed into an integrated logistics hub, where it will be able to give customers warehousing facilities, the official said.
The company will bid for terminal operations in the upcoming Vadhavan Port in north Maharashtra. The company is in "advanced" talks with "very big reputed players, port operators, international port operators," to partner for terminal operations in the Vadhavan port, the official said. The port, which is likely to be operational by 2030, is expected to have a total capacity of 23.2 million twenty-foot equivalent units. "The port has already signed a memorandum of understanding with CONCOR for the common rail operations," the official said.
The company handled a total volume of 2.73 million twenty-foot equivalent units in Apr-Sept, with 1.44 million twenty-foot equivalent units reported in Jul-Sept, it said. Demand in the domestic business was subdued in the first half of FY26, mainly due to low demand for cement owing to the monsoon season, the official said.
The company's rail coefficient has increased in all three major ports, the official said. In Jawaharlal Nehru Port Trust, it rose to 15.83% from 15.68% on year, while it has risen to 24.9% from 23.82% in the Mundra Port. In the Pipavav Port, it has risen to 58.14% from 57.42%, he said. The company's rail freight margin also saw significant improvement in the first half of FY26, he said.
The company's total market share saw a slight dip in Apr-Sept. In the export-import segment, it fell to 54.1% from 55.9% on year, while in the domestic segment it dropped to 55.7% from 58% last year. As such, the total market share is down at 54.5% from 56.5% last year, mainly due to a drop in the company's market share at the Mundra Port, the official said.
The company's market share in JNPT and Pipavav Port has increased by 178 basis points each, but it has gone down in the Mundra Port by 261 bps. "Basic reason (for the dip in market share) is that we have consciously decided not to pick up low margin business and which are low lead also. And the second thing is there is less demand in domestic (segment)," the official said. Low volumes in northern India are also a reason for a dip in the company's Mundra Port market share, he added.
The state-owned company reported a net profit of INR 3.77 billion for the quarter ended September, up 1.5% on year. Its revenue from operations rose 3% on year to INR 23.51 billion for the September quarter. Sequentially, the bottom line rose over 46% and the top line rose more than 9%. On Wednesday, shares of the company were 1.4% higher at INR 530.45 on the National Stock Exchange. End
Edited by Tanima Banerjee
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